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KGL Resources now have greater confidence in the Resources at its 100% owned Jervois Copper Project as the copper resources have been upgraded from Inferred to Indicated category.
In the quarterly activity report for the three months ended 31 December 2018, KGL Resources Limited (ASX:KGL) revealed that more than half of the Jervois copper Resource of 385,200 tonnes had been upgraded to Indicated Resource category, reflecting an improvement of 25% since last May. The company stated that a substantial increase in the Jervois Resource category had been driven by the significant upgrade at the Rockface deposit where there was a 190% rise in the Indicated Resources of 55,900 tonnes.
KGL Executive Chairman Denis Wood commented the company is progressing well on its commitment for Jervois Copper Project success. The infill drilling at Rockface has resulted in a significant upgrade of Resources which is an essential step to be able to estimate a Mineral Reserve from which mining can proceed.Â
The report read that Indicated Resources for Silver has also been increased by 5.4% from 9.2 Moz to 9.7 Moz silver in the conversion from Inferred to Indicated categories at Jervois during the update. Whereas, the combined Inferred and Indicated Silver Resources increased slightly from 22.4 Moz to 22.5 Moz silver.
KGL Resources told that infill drilling at the Reward underground deposit has returned more high-grade copper intersections in the underground mining area that is located below the proposed open pit outline. The company believes that these results would further support to upgrade the copper resource at Reward as well as to extend the precious metal mineralization.
The company now intends to invest in the drilling of fault zone at Reward North using the Down Hole Electromagnetic (DHEM) technology to test the conductors for copper mineralization. The DHEM surveys have reportedly indicated the presence of strongly conductive material with a similar signature to the Rockface high-grade copper mineralization.
During the early part of 2019, the company aims to focus on drilling activities and complete optimization studies for the metallurgical and mining processes. It also plans to start the process of preparing the EIS supplemental report with an emphasis on the clearances and approvals necessary for drilling to confirm a sustainable source of process water. It follows the positive response the company has received for its Environmental Impact Statement that it lodged with the Northern Territory.
The company stated that comments from the public consultation and the governmentâs information requests do not demonstrate any potential impediments to the project development. However, some delay in the EIS approval timeframe and consequently the Companyâs current development program is expected as the required lease and clearances are obtained to secure the most reliable and environmentally sustainable source of water for the Project.
KGL traded flat on 23 January 2019. However, 42,228 shares changed hands on ASX. The stock price last traded at $0.320 with a market capitalization of $83.3 million. Over the past 12 months, the stock has fallen by 16.88%.
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