KGL Resources hits more massive sulphides at Jervois, Northern Territory
KGL Resources' (ASX: KGL)
shares are likely to firm after once again intersecting massive and
semi-massive sulphides at the Jervois copper-silver-gold project in the
The sulphides were intersected at the Marshall-Reward deposit in KJCD045, an 8 metre wide zone of massive and semi-massive sulphide containing visible copper, lead and zinc sulphide mineralisation.
The importance of this latest intersections is that it is located just 90 metres north along strike and 50 metres down dip from KJCD048, which supports the continuation of the resource at depth.
Details of KJCD048 were announced on Wednesday 6th December 2013, with a re-assay of over limit samples have increased lead grades for hole to:
- 18 metres at 0.88% copper, 19.63% lead, 3.77% zinc, 732.3g/t silver, 0.61g/t gold from 287 metres, including 9 metres at 1.48% copper, 22.08% lead, 3.07% zinc, 740g/t silver, 0.53g/t gold.
This increased the Copper Equivalent for KJCD048 to 11.3%.
Simon Milroy, managing director, commented: “Intersecting the silver lead zinc ore again at depth demonstrates that this high-grade zone remains open both at depth and along strike.”
Assays show 20.6% lead up to 35.10% lead
The original assay method for KJCD048 could only read up to a maximum of 20% lead, and the nine samples re-assayed that were previously reported as >20% returned lead grades ranging from 20.6% lead up to 35.10% lead.
This lifted the lead grade of the 18 metre interval from a previously reported 15.66% lead up to 19.63% lead, and as a result the Copper Equivalent grade increased to 11.3% from 10.3%.
Details of KJCD045
In hole KJCD045 the massive galena mineralisation has a very sharp contact at the hanging wall and appears to replace a limestone unit within mudstones, siltstones and schists.
It appears to be a distinct style of mineralisation adjacent to the more common Marshall-Reward style copper mineralisation that was intersected higher up in the hole. The limestone has been altered to a carbonate-magnetite rock containing sphalerite and pyrite.
The importance of today's results for KGL Resources is that they support the continuation of the resource at depth, and are just 90 metres north along strike and 50 metres down dip from KJCD048, announced last week.
Last KJCD048 received 'Drill hole of the Day' in a note from UBS Securities and distributed by Bell Potter, and now due to the now higher assayed lead levels, the hole has become even better with an increase in the Copper Equivalent to 11.3%.
Key catalysts for KGL Resources in the near-term include additional drilling before the end of December, which is planned along strike and to the north and south, which is open at depth and along strike.
KGL Resources has a market cap. of under $14 million. With over $10 million in cash at the end of September 2013, the company's enterprise value is light at around $4 million.
Proactive Investors maintains a share price target of $0.13 to $0.15 for KGL Resources in the next 6 to 9 months.
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