KGL Resources Limited (ASX:KGL) has announced significant progress in its Jervois Copper Project in its latest quarterly activities report. The Feasibility Study Update (FSU25) highlights the project’s economic viability, showcasing a Base Case NPV of A$405 million and capital efficiency of A$12,000 per tonne. The project is also highly leveraged to copper prices, with an incentive price of US$5.90 per pound potentially generating an NPV of A$682 million. KGL believes that the timing is perfect to progress financing options for development of the Project. KGL is focused on securing the optimal funding structure and strategic partners to support its goal of commencing production in 2027. To facilitate this, KGL has appointed Cutfield Freeman & Co and amicaa Advisors as joint Corporate Advisors. Recent drilling programs have focused on increasing resource confidence and extending project life, revealing promising near-surface resources at Reward East and Bellbird North. The discovery of a magnetite body on the western limb of the J-Fold suggests potential for additional exploration within the Jervois project area.
Corporate activities during the quarter included multiple meetings with Northern Territory Government officials and potential debt providers. A non-renounceable pro-rata Entitlement Offer raised an additional $4.2 million before costs. As of March 31, 2025, the company’s cash and cash equivalents stood at $2.495 million. The FSU25 incorporates improvements such as expanding the open pit mine plan and increasing the process plant’s annual processing rate to 2.0 Mtpa. The copper resource has increased by 8.0% to 510,000 tonnes. An Independent Technical Review by RPM Global identified no critical issues. The company reported payments to related parties of $41,000, consisting of directors’ fees and expenses. KGL expects exploration expenditure will decline as it progresses project funding options.
