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Tenements - Jervois Mining Ltd - Jervois Mining Ltd - Copper Nickel Cobalt & Gold Scandium Exploration Australian

Tenements

Our current list of tenements are:


Nickel/Cobalt Laterite, ‘Summervale’ Nyngan,NSW.

Tenement – ‘Summervale’ EL 7281

Geological Setting
Exploration Licence 7281 ‘Summervale’ is located approximately 25 km north west of Nyngan, NSW, straddling the Mitchell Highway.

The EL covers the north east limb of a north-south trending arcuate belt of serpentinised ultramafics known as the West Lynn Serpentinite; within the Girilambone-Wagga Anticlinorial Zone. The linear orientation of the belt suggests emplacement along regional deformation or faults of Alpine-type origin (ophiolite).

The Serpentinite is derived from the alteration of a medium grained dunite intruded into the metamorphosed Ordovician Girilambone Group. It is comprised of phyllites, quartz-mica and chlorite schists, quartzite, laminated siltstone (all with pervasive quartz veins) and conglomerates of Cambrian-Ordovician age; with numerous late Silurian to early Devonian intrusives of ultramafic to intermediate composition. The EL is almost completely covered by alluvium.

Exploration Program
The program followed a concept identified by our Exploration Manager, Dr Sanja Van Huet. One veteran local geologist, when advised of this discovery said “this thing lay for eons of time undiscovered just waiting (for Jervois) to come!” Despite quite intensive past airborne geophysics, magnetics etc, no one else previously drilled a test hole. [The writer’s comment; our exploration team kept it simple, knew what they were looking for and were not diverted by any search for a “Tritton”* look alike!]
*a copper/gold mine some 170 kilometres from Nyngan

This discovery is considered very important for Jervois and its shareholders and because of the relatively high grade, also especially important for NSW. Shareholders should realise that whilst the current nickel laterite locations of Young and Nyngan are both near perfect from an infrastructure perspective, the grade dictates that Summervale, near Nyngan, will potentially become the major nickel asset of the Company.

Exploratory drilling program: initial assays.

Hole Number

Northing GDA

Easting GDA

From(m)

To(m)

Interval width(m)

Ni %

Co %

SV1

6523588

501394

43

47

5

0.710

0.027

49

66

17*

0.328

0.014

SV2

6523584

501513

42

69

27*

0.3173

0.015

SV4

6523584

501313

43

49

6

0.914

0.046

49

68

19*

0.3290

0.014

SV5

6523584

501213

38

41

3

0.686

0.032

43

46

3

0.4984

0.017

SV6

6523784

501426

31

41

10

0.922

0.034

including

32

37

5

1.145

0.038

41

60

19*

0.2643

0.013

*These thick mineralization, although lower grade, are reported because of the possibility of up-grading by physical means (e.g. screening). At this early stage we have no knowledge of the mineralogy of this unit.

Mr Derek Foster, our Director for WA and geologist, assisted with the drill logging. He considers, based on certain structural and textural features that he observed in the sample, that Jervois should also be testing the margins of this ultra-mafic zone for nickel sulphides.

Exploration Drilling September 2009

As a follow up to the previous drill programs, ground magnetic surveys have been carried out to assist with further exploration drilling at ‘Summervale’. Results are in table below.

Hole Number Northing GDA Easting GDA From (m) To (m) Interval Width (m) Ni% Co%
SV15 6524364 502331 28 31 3 0.96 0.255
SV39 6524466 502333 27 38 11 1.02 0.035
including 29 35 6 1.25 0.034
SV44 6522985 501348 41 54 13 1.41 0.083
including 41 42 1 2.15 0.033
and 43 44 1 2.03 0.264
and 42 45 3 1.89 0.210

The latest drilling results, in combination with those reported on 25 June; appear to have identified a block of continuous mineralisation estimated to be 200 meters wide and 800 meters long. This exploration target doesn’t follow the expected magnetic signature and as such was difficult to locate. To reach proper JORC resource status, further exploratory drilling is required

Syerston, Near Fifield, NSW: EL 7805

ABOUT EL 7805

A scout drilling (10 hole) programme was completed in 2012 at Jervois Minings recently acquired tenement Syerston, EL 7805. The tenement targets a major geological feature and abuts a mining lease application for Nickel and Cobalt, held by IvanPlats SyerstonThe drilling intersected some interesting mineralization in the last drill hole completed, Sy10a. In particular, strong values of Scandium were discovered along with associated with the potentially economic by-products of iron, gallium, vanadium cobalt and platinum. There were low nickel values (0.3%). The mineralisation persists over the entire length of this drill hole. There was no association with Uranium.

The area targeted by this drilling had been only lightly explored before by previous tenement holders. As a consequence, the underlying bedrock geology was poorly understood.

GEOLOGY
Hole Sy10a targeted a magnetic anomaly known as the Tout Complex. (There are two magnetic anomalies in EL 7805, the other known as the Owendale complex.) The Tout is considered to be an Alaskan-type* ultramafic intrusive body.

*Alaskan-type complexes are characterized as having concentric zones or rings and are classified by their tectonic setting, size, composition, internal structure, and mineralization. They form small intrusions in convergent plate-margin settings.

Aeromagnetic map of the Tout (south-western) and Owendale (north-eastern) complexes, Syerston NSW An outline of the Companies tenement EL 7805 (in red), and the location of drilling and hole Sy10a (in yellow) are shown

Location

EL 7805 is situated approximately 9.4 km south east of the historical platinum mining town of Fifield, and 167 km south of Jervois scandium resource in Nyngan.

**Need SC measured resource plus 0.2 g/t platinum.

syerston2

WHAT IS SCANDIUM?
Scandium :
– is a metal widely distributed in the Earths crust in trace amounts
– has a melting point of 1,540° C and atomic number of 21.
– has alloy qualities similar to yttrium & rare earth metals
– is used in the manufacture of:
– solid oxide fuel cells (SOFC)
– high strength alloys for use in the aerospace industry
– a range of aluminium alloys
– Current annual world production is primarily from Russia and China

Scandium
Interest in the metal Scandium has intensified in recent years. Interest in this metal was aroused by the early flights of the Russian MiG Fighter Planes. MiGs had an outer skin of welded Aluminium/ Scandium alloy  with performance to match the use of such an exotic alloy. Today with improvements in metallurgical techniques a number of patents have been applied for Master Alloys, purported to contain 2% Scandium in Aluminium alloy, increasing the alloy strength comparable to steel, but retaining aluminiums light weight. The master alloys are expected to be in use in aeronautical applications. More recent interest is promoted for the use of Scandium Oxide (Sc2O3) in Solid Oxide Fuel Cells (SOFC). There are SOFC units being manufactured in USA and being used to generate green electricity. This may ultimately lead to the establishment of a worthwhile market. There has always been intense interest in the Jervois Scandium resources from Europe and Asia and this will be pursued.

SCANDIUM PROJECT ADVANTAGES
– Very High Grade
– Large Resource
– Shallow Depth
– Low Mining Costs
– Well Located
– Established Infrastructure:
– Major Highways
– Railway
– Electricity and Water
– Population Centres
– Long Mine Life
– Able To Increase Production To Meet Demand
– Politically Stable Country
– Dedicated Scandium mine  no known by-products

INTEREST AND USES

Scandium is used for:
Fuel cell technology. Scandium doped silicates in fuel cells have a lower operating temperature and longer life that yttrium doped zirconium, currently used in fuel cell technology. Fuel cells currently provide 100% power for eBay (USA) and Google (USA). http://www.bloomenergy.com/ http://en.wikipedia.org/wiki/Bloom_Energy_Server

Crystals for lasers and optics Link

Metal alloys: Scandium is a useful alloy in a number of applications. Current interest is in aerospace technology. Scandium aluminium alloys enable to aluminium to be welded, thus reducing friction, increasing the strength of the joins and still retaining the light weight. The potential saving is fuel and increase in aircraft safety is an attractive possibility for companies looking for new materials for the manufacture of aircraft. Interestingly, the Russian MiG 21 and MiG 29 fighters were composed of scandium alloys. http://en.wikipedia.org/wiki/Scandium

SIGNIFICANT INTERSECTIONS
Assay Results: Co, Fe, Pt. Drill Hole SY 10a

Composite Interval (m) from

Composite Interval (m) to

Interval width (m)

Cobalt (Co)

ppm

Iron (Fe)

%

Platinum

(Pt)

ppm

 

11

22

12

600

39

0.25

including

11

17

7

 

42.5

 

and

13

17

5

   

0.35

and

21

22

2

2197

   

Assay Results: Ga. Drill Hole SY 10a

Composite Interval (m) from

Composite Interval (m) to

Interval width (m)

Gallium

(Ga) ppm

1

11

11

36

Assay Results Sc, V. Drill Hole SY 10a

Composite Interval (m) from

Composite Interval (m) to

Interval width (m)

Scandium

(Sc) ppm

Vanadium

(V)

ppm

 

1

23

23

266

653.4

including

11

21

11

352

 

and

4

17

14

 

809

Assay Details of Relevant Significant Metals, from Collar to EOH (end of hole)

Co ppm

Fe %

Ga ppm

Sc ppm

V ppm

Pt ppm

SY10A01

42

23.6

30

116

616

0.035

SY10A02

29

25.4

30

87

693

0.027

SY10A03

21

24.7

30

84

709

0.025

SY10A04

28

26.5

40

90

821

0.02

SY10A05

19

32.3

40

113

838

0.024

SY10A06

23

38.4

50

173

893

0.021

SY10A07

21

38

40

176

860

0.023

SY10A08

19

34.4

40

160

766

0.028

SY10A09

20

27.7

40

142

674

0.047

SY10A10

28

28.8

30

192

590

0.074

SY10A11

59

40.6

30

425

690

0.117

SY10A12

88

41.5

20

274

678

0.21

SY10A13

118

40.2

20

240

893

0.319

SY10A14

188

44.2

10

431

868

0.394

SY10A15

148

42.4

10

Young, NSW – Nickel/Cobalt Laterite Project.

Historical Overview

Persistent exploration since 1998 over a blind or hidden target, located north-west of Young in central NSW has yielded vast resources of nickel, cobalt, scandium and iron. This was virtually a new discovery 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.

Drilling of the magnetic anomalies has produced a resource of 167 million tonnes at 0.72% nickel and 0.07% cobalt.

Follow up metallurgical testwork based initially on High Pressure Acid Leach (HPAL) technology and using sulphuric acid yielded better than average recoveries for nickel and cobalt. The production difficulties using this process in WA are well documented and indeed on-going. The company then tested a non-pressurised sulphuric acid leach process in Reno, Nevada. This process worked for saprolite type resources but was of limited effect on limonite/haematite resources. The process was therefore deemed too selective and in any event, the pelletising process needed prior to treatment was not consistent.

The company’s metallurgical consultant then recommended in December 2003, that we explore the possibilities of an Atmospheric Chloride Leach Process (ACLP) using hydrochloric acid. During 2004 this new process was applied to sample from Young with considerable success for all three lithologies tested viz Haematite, Limonite and Saprolite. More exhaustive tests have commenced in Sydney (Metcon Laboratories) in a two-pronged attack:

Agitation leach testwork using hydrochloric acid in a magnesium chloride brine; and
A heap leach approach using hydrochloric acid and a polymer binder.
A possible extra benefit may be a consequence of the use of chloride chemistry in that, apart from nickel and cobalt recovery, by-product scandium, pure iron ore and pure magnesite (Mg0) should be recoverable.

A brief review of metal prices for all recoverable metals is presented.

1. GENERAL

1.1 Exploration Licences 5527, 5571 and 5152

The Young nickel/cobalt laterite project was initiated by a search of the Minfinder Database of the NSW Department of Mineral Resources.

Jervois has focussed on mineral exploration within Australia and as part of this on-going activity, the first Exploration Licence was granted at Young in 1998. Two more Exploration Licences were acquired subsequently and the total area under exploration licence is now 265 square kilometres. Within these licences, extensive drilling has yielded resources in laterite in the indicated and inferred category of greater than 1.3 million tonnes of nickel, greater than 115,000 tonnes of cobalt and greater than 5000 tonnes of the exotic metal scandium. The high iron content of the hematite and limonite zones allows consideration of iron concentrate production also. As a consequence of funding provided by our loyal shareholders, the company still retains 100% equity in the exploration tenements and resources. Grenfell tenement 5152 was relinquished in 2015.

1.2 Location

The Young/Cootamundra district lies in central NSW. Young is situated about 300 km inland and slightly south-west of Sydney. Young and Cootamundra lie on the Olympic Highway that connects Albury to Sydney via Wagga Wagga and Bathurst. The area is well serviced by roads, rail (the Sydney-Melbourne railway line and numerous branches to agricultural centres), electrical power, gas (the Cooper Basin-Sydney pipeline passes through the exploration licences in a favourable position), water, airports and other ammenities.

The Young/Cootamundra district contains prime quality agricultural land. In a normal year about 50mm of rain falls each month and every month. The countryside is undulating to flat, this latter is the alluvial covered north-west of the licences. Elevation are between 300 and 500 metres Australian Height Datum (AHD).

The closest mining activity to the Jervois resource is an operating open pit magnesite mine located just west of the Jervois’ nickel/cobalt resources of Thuddungra. The Company has access and compensation agreements with 38 landowners covering the areas of interest.

2. GEOLOGY

2.1 Resources

Four deposits have been delineated, three of them over the same serpentine belt but separated along strike by either fresh unaltered serpentine or by Tertiary erosional alluvial infill. The deposits occur over a strike length of 30 kilometres with widths of 200 to 600 metres and are classified in the Indicated and Inferred categories. Jervois Mining Limited holds 265 square kilometres under Exploration Licences between Grenfell and Cootamundra. The licences are for Group 1 minerals (Metallic).

**New resource calculator Ardnaree 43.6 tonnes, Ni % 0.78, Co % 0.05, aboveo 0.6% Ni.

Assays for the metal scandium were carried out on representative bulk samples drawn from the Thuddungra East Arm and the Low Grade Resources. Scandium grades of 41g/t equate to a resource of over 5,000 tonnes of scandium metal potentially recoverable as a by-product.

2.2 Nickel/Cobalt Laterites at Young, NSW

The source of the nickel/cobalt mineralisation is the Wambidgee Serpentinite of Cambrian age. The serpentinites (originally harzburgites) have intruded the Jindalee Beds in elongate north-south bodies associated with faulting. In the Young/Cootamundra area they are flanked on the eastern side by the Silurian, Young Granodiorite. It is believed that this is an important factor in the formation of the mineralised laterites. Run-off in the region is from east to west (from the Great Dividing Range) and the acid-rich ground water, after traversing the 30 kilometre wide granite belt, has chemically leached the basic composition of the serpentinites, removing silica, magnesium and other solubles from its lattice and leaving enriched amounts of less soluable iron, aluminium, nickel and cobalt.

The Tertiary lateritisation has produced the following profile over the serpentinite bodies:

Hematitic (Pisolitic) Clay

}

} Scandium rich

Limonitic Clay

}

}

} Cobalt rich

Saprolite (Smectitic Clay)

}

}

} Nickel rich

Weathered Serpentinite

}

Fresh Serpentinite (Background Nickel/Cobalt/Scandium)

Depending on the topographical profile in geological times, the laterite can be overlain by up to 80 metres of Tertiary/Quaternary fluviatile/lacustrine clays, sands and gravels.

A feature of the laterisation is that there are at least two eras of weathering. The displayed chip tray for YA223 shows repeated (haematite)/limonite/saprolite horizons. Since the haematite horizon is less enriched in nickel and cobalt, there is frequently a middle (and sometimes upper) zone of low-grade material separating the run-of-mine mineralisation. A further feature of the cross section shown is that the mineralisation can spread laterally across the underlying serpentinite/granite contact.

Since the underlying serpentinite source rocks are strongly magnetic, the exploration procedure was to locate the magnetic anomalies and pattern drill them. The Cootamundra 1:250,000 sheet had been flown in November/December 1997 and February/March 1998 for magnetics/radiometrics for AGSO and the Department of Mineral Resources as part of the Discovery 2000 programme. The total magnetic intensity map clearly depicts the serpentinites, other ultramafics and their trends beneath soil cover.

Ground magnetic traverses were then conducted along fence lines on the freehold properties with pin markers being attached to the fences every 200 metres for semi-permanent reference and the location of the ends of the lines were fixed using a GPS surveying instrument.

The follow-up drilling programmes have been confined to summer period between agriculture grain cropping and sowing times. All the drilling, along the fence lines, has been by air-core drilling methods. All holes have been backfilled with surplus sample and capped, about 0.3 metres below the surface, with an octoplug cap, then covered with soil. The collars were surveyed using a Trimble PROXRS GPS system to an accuracy of about 1 metre. Seven drilling programmes have seen the completion of 379 holes for 15000 metres drilled.

Drilling at Ardnaree (Young) Ni/Co Laterite, (2008)

In-fill drilling was carried out during the March and June Quarters of 2008. In total 53 holes were completed for a cumulative 2284 metres mostly in or near the Ardnaree resources. The programme was interrupted by wet weather but has finally been completed.

Intervals of interest were sampled and sent for assay. The main objective of the drilling was to recover sample for metallurgical work in China and in Australia.

Ongoing Metallurgical Testwork Update

Leaching of nickel/cobalt laterites using hydrochloric acid (HCl) in magnesium chloride brine is known to be effective with excellent recoveries (i.e. greater than 90%) for both nickel and cobalt. A disadvantage is the cost of hydrochloric acid and the amount of acid necessary to dissolve the nickel bearing minerals to release nickel. As a consequence the re-generation of the hydrochloric acid is an essential step.

Recent testwork in Australia and Canada suggests that a breakthrough in the iron hydrolysis processing step is potentially in sight. Batch hydrolysis tests in a local laboratory appear to have obtained up to 95% ferric chloride hydrolysis conversion to hematite and produced correspondingly high-strength acid for recycle to leach.

Further lab scale and future mini-plant testing are planned so that Jervois can pursue this highly encouraging development.

The purpose of the iron hydrolysis and acid recovery step is to convert iron and other by-product metal chlorides in the leach solution to hematite and other by-product metal oxides; whilst producing concentrated hydrochloric acid for recycling back to the laterite leach step and concentrated low-iron solution for impurity removal and nickel hydroxide/metal production.

3.4 Mineralogy

A preliminary mineralogical assessment of sample drawn from seven discrete lithologies will be carried out by Pontifex and Associates Pty Ltd, Adelaide. This work will be in support of and complimentary to the chloride leach testwork being carried out at Metcon Laboratories.

The following resource types will be assessed:
– Haematite
– Limonite
– Saprolite
– Weathered Serpentine
– Hematite Scree
– Limonite Scree
– Saprolite Scree

THE FUTURE FOR THE YOUNG PROJECT

4.1 Mining

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 the best possible location with regard to existing infrastructure. Any process selected for Young must be flexible enough to accept a blend of limonite, saprolite and weathered serpentine (the three main resource categories). This blend would be mined at a rate of 10 to 15 million tonnes per annum yielding 60,000 tonnes to 90,000 tonnes of nickel and 6000 to 9000 tonnes of cobalt. If the heap leach approach is effective on the upper lower grade resource, the mine may reach 20 million tonnes per annum and perhaps 100,000 tonnes per annum of nickel.

5.4 Iron Ore

The Young resource contains extensive zones grading more than 30% Fe. Chemically pure Fe203 is a possible by-product of the chloride process and could attract in the present bull market up to A$100.00 per tonne as a high grade concentrate.

5.5 Mg0/Manganese

Other possible by-products from the chloride leach approach would be pure magnesite and a manganese product (Mn02 battery grade).

Khartoum Project – Tin/Tungsten (QLD)

EPM 14797 Khartoum

EPM 15570 Khartoum North

EPM 19112 Khartoum East

EPM 19113 3 Mile Khartoum

EPM 19114 Carbonate Creek

EPM 19203 Mt Furgland


Map

tenements-map