During the quarter, KGL Resources Limited (KGL or the Company) continued to focus on the proposed development of the Jervois Project in the Northern Territory. The Jervois Project is now seen as having the potential to be a large copper and multi- metal mining project.
The pre-feasibility study, including the current 20,000m drilling program, progressed well and is due for completion in the first half of 2014.
The drilling program which is aimed at increasing the global Resource base by extending the existing Resources and testing new targets intersected massive sulphides beneath the Marshall-Reward deposit where the largest Resource at Jervois is located. The intersection of an 18m high grade, lead and silver zone confirms the multi-metal nature of Jervois, with the assays also identifying zinc and gold, to give a copper equivalent grade of 11.3%.
New near-surface discoveries were also made near existing Resources at Morley, near Marshall-Reward, and at Rockface, 6km away near the Bellbird Deposit.
The sale of the Murchison Gold Project for $15M was announced late in the quarter. As a result, when the transaction has completed, KGL will be in a strong financial position to fund the continuing work at Jervois.
To view Report please download PDF below: