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- KGL Resources (KGL) shares spike today after striking massive copper sulphides in a resource development drill hole at its Jervois Copper Project in the Northern Territory
- The company says it hit high-grade mineralisation estimated to contain 90 per cent sulphides over a true thickness of 3.02 metres in the Rockface orebody of Jervois
- KGL struck the mineralisation as part of a drilling program designed to improve the accuracy of the mineral resource model for the Jervois project
- CEO Simon Finnis says the “rather unexpected, but spectacular” intersection is expected to materially add to the Rockface mineral resource
- Shares in KGL Resources closed 12.5 per cent higher at 67.5 cents each
KGL Resources (KGL) spiked on the ASX today after striking massive copper sulphides in a resource development drill hole at its Jervois Copper Project in the Northern Territory.
The company today told investors the hole, which was drilled in the Rockface orebody of the Jervois project, intersected high-grade mineralisation estimated to contain 90 per cent sulphides over a true thickness of 3.02 metres.
According to KGL, this is some of the richest copper mineralisation ever seen at Jervois.
What’s more, the mineralisation was struck in a hole that does not correspond to any known electromagnetic conductors.
KGL CEO Simon Finnis said the “rather unexpected, but spectacular” intersection was expected to materially add to the Rockface mineral resource.
“The intersection is close to the current mine plan and will conceptually result in an extension to the west as a minimum,” Mr Finnis said.
“The core from the intersection is being afforded the highest priority for processing and half-core samples will be despatched for analysis in the coming days.”
The drilling at Rockface was taken on as part of KGL’s feasibility study for the Jervois project.
According to the company, drilling was designed to improve the accuracy of the mineral resource model for the project while converting inferred resources into indicated resources.
The company has already completed drilling at the Reward and Bellbird deposits of the project area, with assays for Reward hole received but final assays for Bellbird still on the way.
Meanwhile, KGL is halfway through an eight-hole program at Rockface. It was from the fourth hole of this program that KGL intersected the 90-per-cent sulphides mineralisation.
It’s important to note, however, that this estimate is based solely on KGL’s visual inspection of the drill core and samples from the Rockface drilling are yet to be assayed.
KGL said it had down-hole electromagnetic (DHEM) contractors on site, with a planned DHEM survey scheduled over the coming days.
The company said the DHEM response and interpretation would be important for guiding further drilling, particularly given the intersection from the fourth Rockface hole.
Shares in KGL Resources closed 12.5 per cent higher at 68 cents each. The company has a $265 million market cap.
