Jervois initiated exploration north-west of Young in New South Wales in the early 1990s discovering vast resources of nickel, cobalt and scandium. At the time this was a new discovery by Jervois and was totally concealed by varying depths of alluvium. Airborne magnetics, followed by ground magnetics and occasional fresh serpentine outcrop provided the vital clues that led to the discovery.

Nico Young has rapidly turned into a core asset, with cobalt-nickel resources becoming increasing valuable as a result of the forecast acceleration in demand due to electrification of the global economy.

The NiCo Young exploration licenses, held by Jervois, contain published JORC Inferred resources of 167.8Mt @ 0.59% Ni and 0.06% Co (using a 0.6% Ni equivalent cut-off); including a higher grade zone of 42.5Mt @ 0.80% Ni and 0.09% Co (using a 1.0% Ni equivalent cut-off).

Within this mineral resource, focusing upon cobalt leads to JORC Inferred resource of 99.1Mt @ 0.58% Ni and 0.08% Co (using a 0.05% Co cut-off) including 33.4Mt @ 0.66% Ni and 0.12% Co (using a 0.08% Co-cut off).

The Young nickel/cobalt resource is lower in nickel grade than many tropical laterites overseas. Conversely the cobalt content is above average. The Young resource does have the advantage, compared with other Australian laterites, of an attractive location with regard to existing infrastructure including the Cooper Basin gas pipeline.

The company is planning an infill drilling program during 2018 to focus on upgrading resource to Indicated category under JORC, and on proving up shallow, higher grade cobalt zones that may be amenable to early mining. Currently open cobalt resource extensions will also be tested.