A Quick Look At KGL’s Jervois Copper Project

A Quick Look At KGL’s Jervois Copper Project

Australian mineral exploration company, KGL Resources Limited (ASX: KGL) is focused on the development of its Jervois Base Metal Project, which was acquired in 2011. The company’s 100% owned Jervois Copper Project, located in Northern Territory, is having copper Resource of around 385,200 tonnes. The project’s indicated copper resources have increased significantly in the recent past, mainly due to major upgrade at the Rockface deposit where there was a 190% increase in the Indicated Resources.

Indicated Resources for Silver increased in the conversion from Inferred to Indicated categories by 5.4% from 9.2 million ounces (Moz) to 9.7 Moz during the update, and the combined inferred and indicated silver resources increased slightly from 22.4 Moz to 22.5 Moz silver. The infill drilling at Rockface brought in more peripheral lower grade mineralization which caused the small decline in average copper and silver grades. However, the average grade of copper in the Indicated category increased by 9% to 1.52% copper.

As per the company’s recent announcement, more than half of the Jervois copper Resource of 385,200 tonnes grading 1.49% is now in the Indicated Resource category, a 25% increase since last May.

The company recently received commitments to raise $6.5 million, without costs, through the issue of 21.67 million new shares at 30 cents per share (the placement), to take Jervois Copper Project to development ready stage. Under the placement, the company will issue 12.7 million shares to Marshall Plenty, 5.6 million shares to KMP Investments Pte Ltd and 3.3 million shares to ASM Connaught House Fund.

The company is going to apply these fund to accelerate the high impact infill drilling programs at Reward and Rockface to further upgrade the Mineral Resource classification at Jervois Copper Project. Further, these funds will support the financing initiatives for the development of the Project.

Currently, the Directors of the company are encouraged by the current and increasingly positive outlook for copper as demand for copper is rising due to its heavy use in infrastructure and the manufacturing of electric vehicles.

In 2019, the company will be focusing on unlocking further potential at Reward North using the DHEM technology, and it will pursue the potential expansion of the shallow portion of Rockface North lode indicated by previous high-grade intercepts. The company will also start the process of preparing the EIS supplementary report which is a last major approval required for the Project.

Recently, the company has disclosed that one of its substantial holders, Pegasus CP One Limited has increased its stakes in the company from an earlier 6.27% voting power which comprised of 16,338,000 shares to 18,050,000 shares, which ultimately resulted into 6.93% interest.

At the time of writing (15 March 2019, AEST 01:18 PM), KGL’s stock is trading at a price of $0.295, with a market capitalization of ~$76.79 Million. Importantly, the stock has provided a respectable return of 201.36% in the past five years as on 14 March 2019. It had a 52-week high price of $0.405 and touched 52 weeks low of $0.270, with an average volume of ~83,760.


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