Jervois has accumulated royalties over several projects in which it was previously involved. These are now viewed as non-core assets and the Company is seeking strategies to monetise these holdings.
Jervois holds a royalty over gold production from the Bullabulling gold deposit in Western Australia of $30 an ounce on the first 400,000 ounces of production and $20 an ounce thereafter for the life of the mine.
The Jervois Royalty covers approximately 84 per cent of the total indicated and inferred resource of 3.75 million ounces. The deposit is 70km south-west of Kalgoorlie and contains indicated and inferred resources of approximately 110 million tonnes grading just over 1 gram a tonne. The deposit is owned by Chinese mining company Zijin Mining through its ownership of private company Norton Goldfields Limited, which also owns the nearby Paddington mine.
Jervois has a 1.5% NSR on any production from Forest Reefs which is held by Newcrest. This project is currently in the exploration phase.
MT MOSS ROYALTY
Jervois holds a 1.5% NSR over any base metal, magnetite or silver production from Mt Moss mine in Queensland, Australia. The mine is currently on care and maintenance and had a production capacity of approximately 0.5Mtpa magnetite prior to operations ceasing. Remaining resources were estimated at December 2012 as 11Mt @ 44.5% Fe in oxide (hematite) and 9.4Mt @ 45.0% Fe (magnetite). The mine also has the geological potential to produce copper and zinc concentrates as secondary products due to its skarn classification.