KGL Resources Ltd (ASX:KGL) has revealed strong new copper and silver assays that confirm high-grade, massive sulphides within the Rockface deposit at Jervois Base Metals Project in the Northern Territory.
In October and early November, the explorer reported it had intersected thick, massive sulphides from a diamond drill hole at the base metals deposit and today’s results corroborate their occurrence.
In addition, KGL also hit its highest-ever copper assay — 40.9% — within the Rockface diamond hole, known colloquially as D3.
The assays include:
- 23.6% copper and 503 g/t silver over 3.5 metres from 725.35 metres downhole, including:
- 37.4% copper and 1,106 g/t silver over 1.51 metres from 725.35 metres downhole; and
- 40.9% copper and 1,427 g/t silver over 0.78 metres from 725.35 metres downhole.
What’s more, KGL has hit a new massive sulphide intersection in diamond hole D6, targeting the Rockface North lode.
A visual inspection indicates the new intersection extends the high-grade zone at Rockface to 40 metres up-plunge, while together the four massive sulphide drill hits extend for more than 85 metres up- and down-plunge.
Jervois’ Rockface deposit remains open at depth and down-plunge to the west-southwest.
“Highest-ever copper assay”
Speaking to the results, KGL managing director Simon Finnis said: “More than 100,000 drill samples have been assayed for copper over the decades at Jervois and it is very gratifying to obtain the highest ever copper assay in the most recent set of results from Rockface.
“Even more encouraging is the fact that three follow-up holes drilled after the D3 discovery have all intersected zones of copper-bearing massive sulphides.
“The most recent hole, KJCD481D6, appears particularly significant due to its visually estimated high bornite content and its position 40 metres up-plunge from D3, indicating a scale of the high-grade target beyond expectations from the recent downhole EM modelling.
“Considering the intercepts up and down plunge from D3, we have at least 85 metres of this high-grade material now identified.
“Samples from D6 have been prioritised, but due to congestion at laboratories Australia-wide, assay results are not expected for several weeks.
“Another revelation from the D3 assays was the association of very high-grade silver with the bornite copper zone.
“Follow-up drilling continues on the western side of Rockface while the second rig has now commenced drilling the shallower Reward Gap targets, including the potential to extend the resource envelope beyond the current limits of the Reward open pit as outlined in the pre-feasibility study in late 2020.”
Shares higher
Investors have responded strongly to the news with shares as much as 17.5% to an intraday high of A$0.705 while the market cap before opening was approximately A$235.4 million.
Work underway at the Jervois Base Metals Project.
About Jervois
KGL acquired the Jervois Base Metal Project, located in the Northern Territory, in 2011.
Since that date, the company has successfully defined a JORC resource of 20.97 million tonnes at 2.03% copper and 31.9 g/t silver.
Environmental approval was recommended in October 2019 and KGL’s mining management plan was approved by the NT Government in January 2021.
The known resources at Jervois are spread across multiple prospects that extend along a 12-kilometre strike length in the shape of a J curve.
Importantly, several prospects have the potential for both open pit and underground mining.
However, the company has concentrated recent exploration on the Rockface and Reward prospects, where new mineralised zones of increasingly high grade have been discovered using modern Down Hole Electromagnetic (DHEM) surveying and targeted drilling.
Down-hole electromagnetic (DHEM) surveying at Rockface and Reward has identified new drill targets, from which drilling has produced high-grade intersections and extensive mineralised zones.
More DHEM surveys in the new drill holes have, in turn, identified new target areas (conductors) with drilling resulting in further high-grade mineralisation.