It was probably inevitable that Sam Strohmayr would end up as the boss of one of the Northern Territory’s most exciting mining projects. 

His late father Walter worked at Frances Creek iron ore mine , just north of Pine Creek. 

“I was always going to end up in the Territory,” he says. 

Mr Strohmayr, who has now lived in Darwin for more than 20 years, is the new chief executive of KGL Resources Ltd, which is developing the Jervois high-grade copper, gold and silver project 380 kilometres north-east of Alice Springs. 

The project is a great prospect – it has a JORC resource of 28.95 million tonnes of high-grade copper and will, over a life-of-mine of 10 years, produce more than one million dry metric tonnes of concentrate with 276 thousand tonnes of copper, 10.5 million ounces of silver and 87 thousand ounces of gold. 

The project has a net present value of about .$839 million with a post-tax internal rate of return of 31 percent and simple payback of 3.1 years. 

Jervois could hardly be in better hands. 

Mr Strohmayr is one of Australia’s most experienced and knowledgeable resources executives and is particularly skilled at steering mining startups into production. 

His last role was as chief operating officer for Glencore Zinc Australia, where he was responsible for the Mount Isa complex, McArthur River Mine, Townsville port and refinery, and multiple underground and open-cut operations. 

His impressive CV includes: 

• Successful closure planning and execution of the Mount Isa copper operations 
• Ramp-up of the George Fisher mine to achieve metal production targets 
• Delivery and commissioning of a new open-cut mining fleet at McArthur River Mine. 

Other career highlights include leading Glencore’s South American operations in Peru, Bolivia and Argentina, and increasing Indigenous employment at McArthur River Mine to 23 percent. 

Mr Strohmayr, who gained an honours degree in minerals processing engineering from the University of Queensland, says a final investment decision on Jervois will be made within months, which means production could start in March 2028. 

“It’s not a complex project,” he says. “Its high copper grade makes it very capital effective. The development approach via opencut mining and conventional processing is practical and robust, which derisks the execution phases – it won’t take long to get going.” 

KGL has recently entered into a US$300 million precious metal sales agreement with Wheaton Precious Metals International, a wholly-owned subsidiary of Wheaton Precious Metals Corp, a Canada-based multi-billion-dollar investment company that has backed many of the world’s most successful mining operations. 

“This agreement is Wheaton’s first in Australia and has truly put us on the map,” says Mr Strohmayr. “It is recognition that Jervois is a great project; it’s got everything going for it. There’s now a clear roadmap to production.” 

Investors are delighted with Wheaton’s show of faith. 

While engaging with potential investors for the remaining project funding, KGL also wants to work with the NT Industry Capability Network to detail opportunities for Territory companies for a suite of contracts, such as civil works. 

“I know a lot of businesses in the Territory and I know what work they are capable of providing..” 

Jervois is a large mineral-rich system in the NT, which covers more than 38 square kilometres and is underexplored. 

The project is approaching production as a worldwide shortage of copper looms but demand increases, according to independent market analysts. 

Production at Jervois will start with two open pits and then transition into underground mines. 

Straight-forward metallurgy enables conventional processing at an onsite plant with a capacity of two million tonnes per annum. 

Jervois will be powered by diesel at first and then transition to a hybrid diesel-solar-battery operation. 

It will create a peak of 450 jobs directly and through subcontractors during construction and up to 500 during operation. A 250-bed camp expandable to 300 will be built on site. 

SAM AT MRM MINING LEAD, ZINC, SILVER 45 YEARS LATER

About $379 million will be paid in royalties, mainly to the Territory Government. 

Concentrate is planned to be freighted either north-west to Darwin for export or east to smelters. 

Discussions with potential offtake partners are under way. 

KGL has gained all necessary approvals, including an Indigenous Land Use Agreement, which has been signed with the Central Land Council. 

And the company has developed a good relationship with the nearby Aboriginal community of Bonya. 

KGL has three other exploration licences – at Unca Creek, Yambah Mt Cornish – which have similar mineralisation to Jervois, indicating similar excellent exploration potential. 

Mr Strohmayr was born in Sydney but was brought up in Brisbane, where he attended state schools before going to university. 

His father, who was born in Austria in 1939 and lived in the Russian-occupied part of the country after the Second World War, emigrated to Australia in 1964 and ended up working at the Frances Creek iron ore mine in the NT. 

His mother was born in Victoria and took a nursing job at Katherine Hospital; Sam’s parents met and got married in Katherine in 1971 his sister is named Katherine. 

Mr Strohmayr’s first job at McArthur River Mine in 1995 was the start of a 31-year love affair with the mining industry. 

He had an eight-month break when he went to connect with his Austrian heritage, but his life has been dedicated to family and his work. 

Mr Strohmayr and his wife Sally, who was born in Mt Isa, have three daughters: Amelia, Greta and Hermine. 

Hermine and Amelia were born in Darwin and Greta in Portugal. Hermine, is a chip off the old block – not surprisingly, she works on a Northern Territory mine as an environmental advisor and has just been nominated for a Women in Mining award. TQ 

CONTACT 

KGL Resources Ltd 

(07) 3071 9008 

kglresources.com.au 

info@kglresources.com.au