KGL Resources (ASX:KGL) has improved the prospects of expanding the mine plan at the Jervois multi-metal project in the Northern Territory by confirming strong mineralisation in one of the property’s emerging areas.
Drilling at Jervois’ Rockface trend is building confidence that the prospect could be incorporated into Jervois Mining schedules in the future, with the latest drill results returning 14 metres of mineralisation from deeper than any previous hole in the poorly test area.
Mineralisation was marked at Rockface from 253.5 metres, which is well below the project’s current inferred resource.
The garnet, magnetite schists found in the latest hole are considered typical of the host rocks for other mineralisation at Jervois, which is prospective for lead, zinc, copper, silver and gold.
Ever growing scope at Jervois
The exploration success at Rockface adds to the potential at Jervois where mineralisation outcrops for approximately 12km along a J shaped structure.
To date, all eight of the holes so far completed in the current drilling programme at Jervois have intersected some copper mineralisation.
KGL conducted two drill programs between January and June 2015, including geotechnical drilling of Bellbird and the Marshall-Reward area.
A second program for the resources extension targeted not only Bellbird and Marshall-Reward, but the Green Parrot, Johannsen and Sykes prospects as well.
This resulted in almost 11,900 metres of drilling and followed up extensive survey and sampling work that will ultimately provide systematic coverage of the entire Jervois tenement.
Previous sampling confirmed known mineralisation and identified several new zones such as the Wren prospect, which demonstrates narrow but continuous mineralisation over more than 1000 metres.
KGL delivered a 21% increase in the tonnage of the Jervois resource last month to 30.5 million tonnes at 1.07% copper and 23 grams per tonne silver.
Analysis
The direct confirmation of mineralisation at Rockface is important because it increases the chances of this area being amenable to mining and added to operational models as Jervois development progresses.
Success at Rockface further justifies the application of 3D-induced polarisation and magnetotelluric survey technique, improving confidence in the discovery of new prospective areas by using this method.
Given the IP anomaly at Rockface is 500 metres long, additional drilling in the area seems likely to result in the definition of more potentially mineable areas.
KGL’s recent exploration success in the lead-up to an optimised prefeasibility study for Jervois in October has helped improve the company’s share price by 14% over the past week to about A$0.16.
Following release of the updated study results, KGL will be in a position to engage with strategic investors to advance the project.
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