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Jervois ups capex estimate for its Idaho cobalt project, says on track for production in Q3 2022

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(Kitco News) - Jervois Global (TSX-V: JRV) today reported construction progress and results of a reforecast to project cost and schedule at its 100%-owned Idaho Cobalt Operations ("ICO”) in Idaho, United States.

The company said that estimated total capital expenditure to bring ICO into production in 2022 revised to US$99.1 million (previously US$92.6 million) construction cost, principally due to market and inflationary pressures in the western United States.

Jervois explained that increases in costs relating to high density polyethylene for the waste storage facility, steel and cement supply, camp materials, construction and site labour cost have contributed to inflationary pressure on the project budget, and are incorporated into the revised forecast.

On the other hand, Jervois pointed out that the project's schedule substantially unchanged, with first ore anticipated in August 2022 (previously - July 2022), and that sustainable commercial production anticipated from December 2022.

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Importantly, the company noted that the detailed engineering progress at 64% complete with procurement 55% completed, and that commitments are substantially advanced with now over 76% planned dollars committed on purchase orders.

"Mine development has advanced in line with plan for both west and east portals. Daily advance of approximately 20 feet per day with no critical ground conditions,” the company said in a statement.

Jervois indicated that once complete, ICO will be the only mine supply of cobalt in the United States, a critical mineral necessary for industry, defense, electric vehicles and energy generation and distribution in a carbon constrained economy.

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