Tag Archives: M3 Engineering

Jervois gears up for Idaho Cobalt Operations commissioning

24th June 2022Base metals, Comminution of minerals, Energy minerals, Mineral project development, Mining equipment, Mining servicescobalt, DRA Global, ICO, Idaho Cobalt Operations, Jervois Mining, M3 Engineering, Metso Outotec, mineral processing, RPMGlobal, Small Mine DevelopmentDaniel Gleeson

Jervois Global is progressing the build of the Idaho Cobalt Operations (ICO) in the US, with the mill set to be commissioned in September and full production slated for February 2023.

Once in production, ICO is billed as being the only primary cobalt mine in the US, able to supply a critical metal necessary for electric vehicles, energy generation and distribution, defence and other industries.

In its latest project update, Jervois said that it had come up with a revised construction budget of $107.5 million that had board approval. This was up from the previous $99.1 million outlined, reflecting a heighted inflationary environment in the US.

This adjusted final forecast capital expenditure and schedule will form the basis of a “Cost to Complete” test by independent engineer RPMGlobal, who has been engaged by the trustee acting for bondholders under the terms of Jervois’ $100 million Senior Secured Bonds. RPM engineers are scheduled to visit site in early July to undertake the final Cost to Complete test ahead of the planned second tranche bond drawdown of $50 million later that month.

Mine development, meanwhile, continues at circa-25 ft/d (7.6 m/d), the company noted. Planned increases to underground working faces, improved water management and road conditions, as well as additional personnel and mining equipment on site, are expected to increase mine development productivity, it said.

“Jervois and its mining contractor, Small Mine Development, remain confident in the revised mining production targets that underpin the capital cost update,” the company stated.

Jervois says it is achieving infill drilling rates over 200 ft/d as part of a 19,000 ft underground campaign to decrease hole space aiming to enhance orebody knowledge. The drilling is improving the robustness of the resource model to generate a production block model for mining, it added.

The SAG mill, ball mill and crusher are each in place, and work continues with facilities construction and equipment placement, Jervois noted, saying that an official opening ceremony was scheduled at site for October 7, 2022. The SAG mill, a 4.7-m diameter and 2.5-m-long 750 kW installation, is provided by Metso Outotec.

A 2020 bankable feasibility study, managed by a joint team of DRA Global and M3 Engineering, was based on extracting 2.5 Mt of ore at an average grade of 0.55% Co, 0.8% Cu and 0.64 g/t Au. The initial mine life within the study was seven years.

DRA Global and M3 Engineering on board Jervois ICO cobalt-copper project

19th September 2019Base metals, Mineral project development, Mining servicescobalt, copper, DRA Global, ICO, Idaho, Jervois Mining, M3 Engineering, mine engineering, USADaniel Gleeson

Jervois Mining says it has selected DRA Global and M3 Engineering as lead engineers for finalisation of a bankable feasibility study (BFS) for its 100%-owned ICO cobalt-copper project in Idaho, US.

The selection of engineers comes only two months after Jervois got its hands on the project following a completed merger with eCobalt.

Jervois said: “DRA and M3 have extensive study and construction experience across all the relevant unit operations for the ICO, providing a strong basis for successful BFS delivery. They were chosen due to their strong track record with relevant process plant studies as well as construction and operating implementation phases, as Jervois looks to move seamlessly into construction after BFS and project financing close.”

The joint engineering team has extensive global experience across both cobalt and copper mining operations and concentrator flowsheets, while also having a detailed understanding of project delivery in the US, specifically local conditions in Idaho and regional contractor capabilities, Jervois said.

Finalisation of the BFS will be based on a flotation mill processing 1,200 short tonnes per day (1,089 t/d) of ore, as well as ancillary facilities. The project will ultimately consist of an underground cobalt-copper mine, a flotation mill processing 1,200 st/d as well as ancillary facilities. The latter will include aspects such as the mine and related infrastructure, run of mine pad and crushers, fine ore conveyor and silo, mill and flotation, tailings, waste rock and water storage facilities, water treatment plant, soil stockpile area, National Pollutant Discharge Elimination System discharge outfall and non-process infrastructure to support the development and mine operations.

Jervois expects the BFS will be concluded in the March quarter of 2020 and summarised in a NI 43-101 compliant feasibility study soon after. The company has commenced a diamond core drilling program at ICO to supply metallurgical samples for test work to support the BFS update, and to infill drill the RAM deposit during initial years of envisaged mining operation.

ICO will initially produce and sell separate cobalt and copper concentrates as Jervois formed a view early in its due diligence of ICO that reversion to separate concentrates was commercially necessary in the absence of a US refinery. In comparison to the partially completed mine and mill, the refinery is at a preliminary level of study and technical certainty, and so cannot be realistically constructed within the same timeframe as mine to concentrate.

Jervois has commenced discussions with offtake partners for an initial period covering mine ramp up and stabilisation. Jervois will also commission a refinery engineering study to consider commercially proven technology to process concentrates, including third party feed through to refined cobalt and copper.

With the ICO BFS team now established, DRA and M3 will progress the engineering design for the process plant and infrastructure. In parallel, Jervois has commenced discussions with potential lenders and a data room is being prepared to facilitate due diligence. Upon project financing close and opening of the ICO mine portal and decline, Jervois expects a 12-month construction period with first saleable concentrate in the second half of 2021

M3 Engineering wins Camino Rojo oxide gold project EPCM

9th September 2019Mineral project development, Mining services, Precious metalsCamino Rojo, EPCM, gold, Jason Simpson, M3 Engineering, Mexico, mine engineering, Orla Mining, SEMARNATDaniel Gleeson

Orla Mining says it has awarded the engineering, procurement and construction management (EPCM) contract for the Camino Rojo oxide gold project in Zacatecas State, Mexico, to M3 Engineering & Technology Corp.

M3, a full service EPCM firm headquartered in Tucson, Arizona, has provided services to over 10,000 projects for some 1,000 clients in its 33-year history, Orla says.

Work on the Camino Rojo project will be undertaken out of the M3 office in Hermosillo, Mexico, with senior review and support from the Tucson, Arizona office. The company will be responsible for detailed engineering, construction planning and execution, contractor management and cost control for the project under the auspices of Orla management.

Orla expects to begin engineering work by mid-September, yet the selection of M3 and commencement of any EPCM work is subject to entering into a definitive agreement.

Jason Simpson, President and Chief Executive Officer of Orla, said: “M3 has a wealth of engineering knowledge and with its extensive experience in Mexico, it is well suited to design and build the Camino Rojo project on time and on budget.

“We look forward to commencing detailed engineering work by mid-September as we work with M3 to build a high-quality project that begins to produce gold in mid-2021.”

The Camino Rojo oxide project consists of an 18,000 t/d heap-leach open pit operation. An estimated 44 Mt grading 0.73 g/t Au and 14.2 g/t Ag is expected to be processed during an almost seven-year mine life. Gold production is expected to average 97,000 oz/y at an estimated all-in sustaining cost of $576/oz of gold.

Orla has submitted the permit applications to SEMARNAT for the Manifesto de Impacto Ambiental (MIA) and the Change of Land Use (ETJ) permits at the end of August. The legislated timelines for the review of properly prepared MIA and ETJ applications and mine operating permits for a project that does not affect federally protected biospheres or ecological reserves are 120 working days and 105 working days, respectively, which can be completed concurrently, according to Orla.