KGL Resources on track to boost Jervois copper-silver resources
KGL Resources’ (ASX: KGL)
extension drilling has confirmed the continuity of the mineralised zone
between the Bellbird and Bellbird North deposits at its Jervois
copper-silver-gold project in the Northern Territory.
Results from the first batch of drilling also indicated that mineralisation remains open at depth and delineated a new zone of copper, lead and zinc mineralisation to the east of Bellbird.
Best results include:
- 5 metres at 3.9% copper, 11.1g/t silver, 0.9g/t gold from 375 metres;
- 3 metres at 1.79% copper, 7.1g/t silver, 0.23g/t gold from 106 metres;
- 2 metres at 2.25% copper, 20.4g/t silver, 0.22g/t gold from 219 metres; and
- 3 metres at 1.88% copper, 10.1g/t silver, 0.26g/t gold from 137 metres.
In addition, the new copper, lead and zinc zone corresponds with surface exposures of ferruginous schist with malachite staining that extends from the Rockface prospect to the southeast.
Further field work and possibly drilling is planned to assess the significance of this new trend.
Drilling is continuing at the Reward and East Reward zones.
Resource extension drilling commenced in September 2013 with the aim of extending the mineralisation beyond the 2012 resource boundary and the current Resource of 170,000 tonnes of copper and 11 million ounces of silver.
Drilling, which was conducted on an 80 metre by 50 metre grid that is sufficient to support an Inferred resource, was designed to test for extensions below the pit and between Bellbird and Bellbird North.
This has confirmed the continuity of mineralisation between Bellbird and Bellbird North though the grade and thickness of copper mineralisation is variable.
Phase 2 of the resource extension program commenced in March and is scheduled to continue into May.
Five Phase 2 holes are planned at Bellbird to extend and in-fill existing drill coverage.
One hole will be drilled to test a possible sulphide shoot plunging steeply north under hole KJCD026 and a diamond hole will be drilled at Bellbird North to extend a lens of high-grade lead-zinc mineralisation.
The diamond drill rigs are currently drilling at the northern end of the Reward and East Reward zones and will then move to test for further extensions of the high grade silver, lead and zinc mineralisation at the southern end of the Marshall zone.
Further assays are pending in these areas and will be announced when received.
Confirmation of continuity between the Bellbird and Bellbird North deposits at KGL Resources’ Jervois copper-silver-gold project is likely to result in the company achieving its objective of increasing resources.
That this has also resulted in the discovery of a new zone of copper, lead and zinc mineralisation east of Bellbird is just icing on top of the cake.
There is more news on the horizon with drilling continuing at the Reward and East Reward zones, which will be followed by the second phase of drilling at Bellbird.
KGL had $20 million in cash at the end of December 2013, equating to around $0.14 per share in cash.
The company last traded at $0.092, for a total value of $13 million.
Even taking into consideration exploration costs at Jervois during the March quarter of 2014, the company at the moment would hold around $5 million more in cash than the company's valuation.
Proactive Investors maintains a share price target of $0.13 to $0.15 for KGL Resources, and continued exploration success has the potential to lift this higher.
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