KGL Resources (ASX:KGL) has revealed more high grade copper at its Rockface prospect, located within its wholly-owned Jervois Copper-Silver Project in the Northern Territory.
A diamond hole delivered: 13 metres at 2.14% copper, 12.5g/t silver, 0.10g/t gold from 255 metres; and 2 metres at 2.83% copper, 10.8g/t silver, 0.05g/t gold from 278 metres.
Mineralisation coincides with a strong, IP chargeability and conductivity anomaly, with strong DHEM conductors detected in-hole and off-hole extending 300 metres below the current resource.
Simon Milroy, managing director, commented:
“Detection of strong off-hole EM conductors extending below KJCD171 is driving a reassessment of the potential at Rockface.
"The width and grade of the mineralisation is better than in any previous drilling closer to the surface and in outcrop. Rockface appears to be improving with depth.
“The Rockface trend does not currently feature in our PFS mine schedule but has the potential to add a new open pit and underground mine to the project.
"It is exciting to see a commitment to exploration generate further upside to the project at these grades.”
The importance of Rockface to the PFS
Earlier in the month KGL revealed a Pre-Feasibility Study (PFS) for Jervois.
The potential of the PFS is that this is a starting point, and as tonnes and grade is added to the Jervois resource, this will have a direct impact in lowering all in costs (C3), as the PFS includes all of the capex.
Today's discoveries at Rockface build on previous results, and with Rockface not included in the PFS, it has the potential to deliver a positive boost to the overall economics of the project.
Jervois has been ranked in the lowest quartile for costs and first quartile for grade of undeveloped copper projects in a global ranking, and has a low capital intensity when ranked against peers.
Key PFS Metrics:
Analysis
Today's discoveries at Rockface have the potential to provide a significant boost to the overall economics of the Jervois project, as recent Rockface results have not been included in the PFS.
The PFS has confirmed Jervois as a robust, mid-level scale mining project with an annual production of more than 20,000t of copper, 1moz of silver, plus lead and zinc, with a mine life of more than 8 years.
It now certainly appears that Rockface will add more tonnes and grade.
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