KGL Resources (ASX:KGL) has continued to improve confidence in its Jervois base metals project in the Northern Territory with the discovery of a 14-metre sample of strongly mineralised material.
The drill hole, which was targeting a coincident induced polarisation (IP) anomaly on the project’s Rockface trend, is deeper than any previous hole drilled at the prospect (from 253.5 metres) and well below the current inferred resource.
The Rockface anomaly is around 500 metres long.
Simon Milroy, managing director, commented: “This intersection shows that the 3DIP survey method works well at the Jervois project.
"This is important because it now gives us confidence to use this geophysical survey method over other areas of the Exploration license to define new prospective areas.
“The Rockface trend does not currently feature in our PFS mine schedule though with mineralisation like this, in our first hole into an IP anomaly 500 metres long, it is likely that further drilling could result in the definition of additional prospective areas that may be amenable to mining, going forward.”
KGL on the exploration trail
One of the most active explorers in the Northern Territory, KGL delivered a 21% increase in the confidence and tonnage of the Jervois resource last month to 30.5 million tonnes at 1.07% copper and 23g/t silver.
The upgraded resource will form the basis of an optimised Pre-Feasibility Study expected in October.
The latest exploration momentum builds on a recently completed 3D IP and magnetotelluric survey in Jervois’ Bellbird area.
This data informed the drilling of five holes earlier this month, all of which intersected copper mineralisation.
The progress has been interpreted as clearing a path toward further expansion of the inventory at Jervois, which consists of a number of open pit and underground mines feeding a centralised flotation plant to produce a copper concentrate and a separate lead-zinc concentrate.
Concentrates from the site will be transported by road to Alice Springs and then by rail to Darwin for export to overseas smelters.
Jervois has an existing mining lease due to historical mining activities on site.
Analysis
KGL news flow will remain strong with drilling assays in around three weeks.
The company is well-funded with $4.8 million in cash at the end of June 2015.
Next key catalyst:
In addition, an optimised Pre-Feasibility Study for the project is expected in October.
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