A Melbourne based mining company seeking to develop a nickel mine with Chinese partners in Young, has made a statement to the Australian Stock Exchange about on site drilling and the development of a low cost extraction method.

In a letter dated late last month Managing Director Mr Duncan Pursell of Jervois Mining Limited sent a copy of the latest drilling at Young, and an update on the processing flow sheet.

Mr Duncan reported results details from 19 drill holes undertaken last month. He also stated that the development of a low cost solution for the key chloride leach iron hydrolysis, and acid recovery step in the atmospheric chloride brine agitation leach process for treatment of Young nickel/cobalt laterite, had previously proved to be more challenging and complex than anticipated.

“Extensive ongoing independent laboratory test work has been undertaken by CSIRO, Perth and others, on behalf of Jervois,” he stated in the report.

“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 metal oxides whilst producing concentrated hydrochloric acid for recycling back to the laterite leach step.

Recent test work in Australia and Canada suggest 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 percent ferric chloride hydrolysis conversion to hematite and produced correspondingly high-strength hydrochloric acid for recycle to leach.

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

“The chloride leach technology being developed by Jervois could possibly provide an independent alternative to the chloride leach technology of Jervois’ Chinese partners.”