KGL Resources (ASX:KGL) will use a new drilling program to test targets from a high potential area at the Jervois copper and multi-metal project in the Northern Territory.
KGL has completed a 3D - Induced Polarisation and magnetotelluric survey in the Bellbird region to search for additional zones of mineralisation.
The area is poorly tested and yet is a highly prospective zone along the 12 kilometres of mineralised strike length at Jervois.
There are several large deeper targets in addition to the many shallow targets, with drilling to kick off in August.
Magnetotelluric survey results are expected in about four weeks.
Simon Milroy, managing director, commented:
“There is an excellent correlation between known mineralisation and the coincident chargeability/resistivity anomalies generated by the 3DIP."
The detail of these survey's enables KGL to accurately target and identify new anomalies.
Drilling program
A diamond and reverse circulation drilling program will commence in August to test all the conductivity and chargeability targets generated by the 3DIP.
KGL said that the results of this 3DIP survey are very encouraging and should the defined targets be confirmed by the proposed drill testing, the company will look to extend the survey area to the north and east over much more of the prospective stratigraphy.
About Jervois
The Jervois resource has been characterised as a hybrid SEDEX-VHMS system by both CSIRO and an independent study conducted by the NTGS in 2014.
Characteristics observed at Jervois that are consistent with this style of mineralisation include:
- Cu-Pb-Zn mineralisation is stratiform and extending over several kilometres along strike with repeating stratigraphy due to folding;
- Mineralisation occurred syngenetically as a hydrothermal exhalative event, prior to metamorphism and deformation; and
- The sedimentary host rocks and mineral zonation suggest a SEDEX deposit, while high Cu grade is more common in VHMS deposits.
Analysis
KGL Resources will use a new drilling program to test targets from a high potential area at the Jervois project, which could further enhance its metal inventory.
This will provide news flow over coming months.
Earlier in the week KGL delivered a bumper resource upgrade.
The Jervois resource swelled to 30.5 million tonnes at 1.07% copper and 23g/t silver for 327,000 tonnes of contained copper and 22.6 million ounces of contained silver.
Indicated resources jumped 36%.
The upgraded resource will form the basis of an optimised PFS expected in October.
Proactive Investors estimates the company's cash balance to be around $5 million, which would be sufficient to complete the PFS.
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