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KGL Resources intersects 31.5% grade copper at Jervois

Published: 00:43 18 Jul 2014 EDT

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KGL Resources has intersected copper grading up to 31.5% copper during drilling to extend the resource at its Jervois project in the Northern Territory.

With the results, the shares should open stronger this morning.

Best results drilling the Copper-Silver-Gold Project included some first class widths and grades:

- 18 metres at 4.92% copper, 1.54% lead, 0.75% zinc, 240.5g/t silver, 0.14g/t gold from 10 metres, including 2 metres at 31.5% copper, 5.96% lead, 1.77% zinc, 1,240g/t silver, 0.07g/t gold.

- 12 metres at 1.27% copper, 0.38% lead, 0.39% zinc, 85.4g/t silver, 0.15g/t gold from 2 metres.

While near surface drilling at the northern end of Reward and outside the existing resource continues to encounter good copper mineralisation including: 20 metres at 1.35% copper, 0.28% lead, 0.24% zinc, 19.6g/t silver, 0.15g/t gold from 36 metres.

Near surface drilling at Marshall is also building on the recently announced intersections with further mineralisation including: 12 metres at 4.92% copper, 78.6g/t silver, 0.37g/t gold, 0.11% WO3 from 27 metres.

Simon Milroy, the managing director of KGL Resources, said: “It is great to see that high grade results continue to be received from the Project.” 

“The very high grade result of 18 metres at 4.92% copper, 1.54% lead, 0.75% zinc, 240.5g/t silver, 0.14g/t gold from hole JOC062 was intersected less than 10 metres below the surface in an area to the north of Green Parrot pit in which we had never previously drilled. This opens up a new area for further exploration.”

“Drilling has now concluded but there are thousands of further sample results still to be received from the laboratory. These will be released to the market when received over the coming weeks.” 

Drilling background

A shallow reverse circulation drilling program was completed in May‐June and comprised 177 holes for 9,653 metres.  

The majority of the holes were drilled at the Marshall‐Reward and Bellbird deposits where 59 and 56 holes were drilled respectively.  

Smaller programs were completed at Cox’s Find, Rockface, Green Parrot and at mineralised zones parallel to Marshall‐Reward.  Holes range from 25 metres to 100 metres and were drilled at 10 metre intervals along traverses spaced at 80 metres along the deposits.


Analysis

The results continue to shine at Jervois from a large drilling campaign.  The intercept of 8 metres at 4.92% copper, 1.54% lead, 0.75% zinc, 240.5g/t silver, 0.14g/t gold from hole JOC062 at less than 10 metres below surface is indicative of the potential in an areas where they had not been previously drilled.

With literally thousands of sample results still to be received provides significant news flow and price catalysts for KGL.

At 30 June 2014, a cash balance of $14.8 million which puts the company in a strong position to continue to advance the project. It also points to the under-valuation with a market cap of circa $19 million.

Upcoming catalysts include a resource upgrade expected in August with a PFS in September.

 

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