Why Jervois Mining Ltd Jumped Higher Today

At the time of writing, shares of Jervois Mining Ltd [ASX:JRV] are up by 17.86%, now trading for 33 cents per share.

Why did Jervois Mining Ltd shares do this?

In response to weekend media speculation, the company confirmed it submitted an application for a prospecting license over the Kabanga nickel-cobalt deposit in Tanzania. Kabanga’s resource (mostly in the indicated and measured categories) stands at 57 million tonnes of sulphide ore, grading 2.62% nickel, 0.20% cobalt and 0.35% copper.

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What now for Jervois Mining Ltd?

The company elaborated on the project today:

The quality of the mineralization is exceptional, with low-risk sulphide metallurgy expected to produce a high-grade low impurity nickel-cobalt product. Prior owners invested significantly in drilling and studies that culminated in a [definitive feasibility study] DFS envisaging annual production in excess of 50ktpa nickel with significant cobalt and copper co-products.

Kabanga’s geology is similar to other world-class nickel-cobalt basins, such as Thompson, Manitoba, Jinchuan and Voisey’s Bay. That’s why, despite not actually owning the project yet, the company’s market capitalisation stands at roughly $60 million.

That’s a pretty decent price tag!

But it could go a lot higher…

The story comes down to whether Tanzania grants the company the project. If it happens, the share price could skyrocket. Jervois believes it can significantly improve the DFS numbers. That could generate a lot of shareholder value in the short, medium and long term.

Jason Stevenson,
Resources Analyst, Markets & Money

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Jason Stevenson is Markets & Money’s resource analyst. He shares over a decade’s worth of investing and trading experience across resource stocks and commodity futures and options. He originally studied accounting and finance at Curtin University, where he was awarded a first-class honours degree. His professional background stems across high-net-worth, top tier accounting (corporate finance, tax and auditing), and sell-side equities research. Before joining the team at Markets and Money, Jason worked at boutique firms which advised fund managers and high-net-worth clients on where to invest. Whether it’s gold, crude oil, copper or an obscure metal like vanadium, you can rely on an in-depth analysis in Markets and Money. Jason also brings you extensive macro, political and geopolitical analysis from around the world. He leaves no stone unturned when it comes to telling the truth. Jason is also the lead analyst of Gold Stock Trader, a premium service for investors serious about precious metal stocks. Websites and financial e-letters Jason writes for:


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