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
Northern Territory.
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.
Analysis
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.
