Jervois Copper Project Overview

Project Overview

KGL acquired the Jervois Copper Project, located in the Northern Territory, Australia in 2011.

The Jervois Copper Project is located on existing mineral leases and benefits from road access to Darwin and Alice Springs by the Stuart and Plenty Highways, being 380km by road, east north-east of Alice Springs.

KGL completed a feasibility study (FS) for the project in November 2022, with exploration continuing during 2023 and 2024 with the goal of increasing the quality and size of the Jervois Resource before proceeding to mine development.

In May 2024, the Company announced a JORC Mineral Resource Estimate of 23.37 Million tonnes at 2.02% Copper, 26.0 g/t Silver and 0.26 g/t Gold (472.2kt copper metal, 19.5 Moz silver, 192.8 koz gold) following a successful drilling program with a maiden measured category in the opencut area.

The Company in November 2024 further defined an improved JORC Mineral Resource Estimate of 27.45 Million tonnes at 1.87% Copper, 25.3 g/t Silver and 0.24 g/t Gold (513kt copper metal, 22.37 Moz silver, 214.5 koz gold).  This represents an increase by 17.4% from 23.37Mt to 27.45Mt, offset by a marginal reduction in the Cu grade from 2.02% to 1.87%.

The contained copper has increased across the project from 472Kt to 513Kt.  Silver and gold contained metal has also increased to 22.4Moz (+14.7%) and 215Koz (+11.3%) respectively.

In February 2025, the Company announced the results of its FSU25 which confirmed a robust and financially viable project with a 10-year life of mine plan leveraged to the global copper price and with significant growth from exploration potential.

With all necessary approvals in hand and a financially viable feasibility study, development/construction is targeted to coincide with an undersupply of copper later in the decade being forecast by independent market analysts.

KGL has also lodged its Environmental Impact Statement (EIS) in October 2018, and completed a supplementary EIS in July 2019 following the public notification period. The Northern Territory Environmental Protection Authority recommended Government approval of the Jervois Copper Project in October 2019. A Mining Management Plan addressing the conditions of the Environmental approval was lodged with the Northern Territory Government in April 2020, with government approval received in January 2021. Learn more about the project environmental approvals HERE

The Company has pursued a strategy of increasing the quality and size of the Jervois Resource before proceeding to mine development. The Company is now focused on the development studies to determine the optimal development path for the project. Contemporaneously the Company will undertake targeted exploration seen as being accretive to development.

The Jervois Copper Project​ is located on existing mineral leases and benefits from road access to Darwin and Alice Springs by the Stuart and Plenty Highways, being 380km by road, east north-east of Alice Springs.

KGL lodged its Environmental Impact Statement (EIS) in October 2018, and completed a supplementary EIS in July 2019 following the public notification period. The Northern Territory Environmental Protection Authority recommended Government approval of the Jervois Copper Project in October 2019. A Mining Management Plan addressing the conditions of the Environmental approval was lodged with the Northern Territory Government in April 2020, with government approval received in January 2021.

Feasibility Study Update 2025 and Development towards Production

The Jervois Copper Project Feasibility Study Update 2025 (FSU 25) is the result of optimisation works and ongoing project derisking following the maiden Feasibility Study issued at the end of 2022.

The FSU 25 continues to define a robust project with a 10-year life of mine plan.

During the first seven years of the production schedule, post operational ramp up, the project delivers an average of 30 kt per annum of copper in concentrate at an average C1 cost of US$1.95/lb (after by-products) generating average EBITDA of approximately $229M per annum (steady state).

Project construction capital of $362m together with pre-production/development mining opex, rehabilitation bond and working capital of c.$136m results in a peak funding requirement of $498m during Q1 2027.

The Project has an attractive capital efficiency of c.A$12,000 per tonne of contained copper per annum.

Overall, the Project’s after-tax net present value at a discount rate of 8% has increased from A$241M to A$405M (c.68% with an after tax IRR of 24% and a simple payback of c.3.4 years from first concentrate.

The total Mineral Resource estimate used in the Feasibility Study Update is as follows:

• 28.95 million tonnes at 1.76% copper, 24.8 g/t silver and 0.23 g/t gold.
• Containing 509,800 tonnes copper, 23.13 million ounces silver and 213,130 ounces of gold.

The known resources at Jervois are spread across multiple prospects that extend along a 12km strike length in the shape of a J curve.

The FSU25 mine plan envisages ore to be mined from two open pit mines (Reward and Bellbird) and four underground mining areas (Rockface, Reward, Marshall, Bellbird).

The Project is based on a high-grade Reserve, 1.8% copper, with silver and gold credits. The Project has an 18-month construction schedule followed by a 6-month plant commissioning and ramp up program to achieve forecast concentrate production during 2027 (subject to completing satisfactory financing arrangements).

Initially all ore production will be from conventional contractor managed open cut operations delivering 2Mtpa (ore feed). This is followed by progressively developing underground mines to transition from open pit to full underground feed by mid-2030, as planned open pit ore finishes. The purpose-built, state of the art, concentrator, with a nameplate capacity of 2 million tonne ore feed per annum, is designed to produce 27% copper / byproducts concentrate, that is sold under a Free on Transport (FOT) / ex-site commercial offtake contract.

Key Project Metrics

Based on current market forecasts, the Project is expected to generate an after-tax net present value at a discount rate of 8% of A$405M. KGL believes the Jervois Project is timed to deliver copper into the potential supply deficit where increased commodity / incentive prices will prevail. The FSU 25 does not reflect supply deficit pricing however the upside economics facing the Project, once delivered, are significant.

Table 1: Project Value and Sensitivities

Table 2: Key Financial Metrics

Pathway to Production Timeline

The Project has all necessary approvals to commence construction.

The Project has an 18-month construction schedule followed by a 6-month plant commissioning and ramp up program to achieve forecast concentrate production during 2027, subject to completing satisfactory financing arrangements.

Steady-state operations is expected H2 2027 delivering an average 30kt per annum of contained copper in a 27% saleable copper concentrate per annum.

The FSU25 has been subject to a Phase 1 Independent Technical Review by RPM Advisory Services Pty Ltd (RPM) showing no red flag / critical issues. Lower-level risk issues (not Red Flags) have been included in the Company Risk Register with risk mitigations initiatives scheduled accordingly.

RPM have been engaged to complete Phase 2 that involves an Independent Technical Engineers (ITE) Report and Independent Environmental and Social Report (IESR) suitable for the purpose of project financing. This is targeted to be completed during H1, 2025.

KGL continues to working closely with all stakeholders including the Northern Territory Government and local communities with the goal of bringing Jervois into production in 2027.

Scale and Opportunity

The FSU 25 10-year mine life lays the foundation for low cost / accretive growth. Substantial potential exists for Resource and Ore Reserve growth, leading to increased utilisation of the installed plant capacity and mine life extension. The Jervois tenements remain under explored with recent drilling focused on infill drilling and extending the resource and knowledge, at depth, for the current lodes. This work has consistently demonstrated high grade copper intersects in these areas. Structural geology and geophysical interpretations of existing exploration information are providing key targets for future exploration programs.

The Company has sought to employ financial resources in the most efficient way, engaging in cost effective exploration while minimising corporate costs.

KGL also acquired in 2015 two exploration licences at Yambah, 60km north and northeast of Alice Springs, because of the similarity of the style and age of the mineralisation to Jervois which is 150km to the east. Limited work has been done under KGL ownership on these tenements, however the geology indicates excellent exploration potential that would be accretive to the Jervois development story.

Contribution

The Jervois Project (both KGL and Contractors) will provide peak employment of 450 people during construction and up to 500 people employed during operations supported by a 300-man camp. The NT royalty contribution is c.A$220M.