KGL Resources' (ASX: KGL) resource extension drilling program at its Jervois Project in the Northern Territory continues to return strong results with the intersection of massive sulphides with visible copper, lead and zinc.
Notably, the greater than 10 metre wide interval at the Marshall Deposit is below the existing Inferred Resource boundary and remains open at depth.
The core has been cut and despatched to the lab for analysis with results anticipated next week.
"We are delighted with the discovery of visible copper, lead and zinc sulphide below the existing inferred resource at Marshall, that supports the potential scale of the Jervois project," managing director Simon Milroy, said.
"The Rockface discovery of copper mineralisation 400 metres to the west and along strike from the Rockface prospect illustrates the prospectivity of the Jervois project and the potential to add additional high value, shallow resources that can be mined from an open pit."
Drilling along strike both north and south of this location is planned to be completed before the end of December.
The diamond drilling is part of a resource extension program that commenced in September with the aim of increasing the global resource as part of a pre-feasibility study.
Approval has been received for a 13 hole drill program on the north (downdip) side of the Rockface prospect and preparation of an access road and drill pads is nearing completion.
This provides good access to test the Rockface IP anomaly and commence infill drilling along an untested 400m zone that extends between the historical Rockface intersections to the most recently announced intersections in holes KJC033 and KJC035.
KJC033 had returned 9 metres at 1.21% copper, 4.1 grams per tonne silver and 0.03g/t gold from 105 metres. KJC033 intersected 24 metres at 1.47% copper, 3.5g/t , 0.04g/t Au from 160 metres.
An additional track-mounted diamond rig has been mobilised to site and will initially target the centre of the Rockface IP anomaly (Figure 4) and then move to infill the untested areas between the two zones of copper mineralisation.
KGL will now have three rigs drilling at Jervois up until the Christmas break.
The Rockface mineralisation is on a separate mineralised trend that has been traced for over one kilometre and is delineated by a ferruginous schist with malachite occurrences that is parallel but north east of Bellbird mineralised trend where there is already a substantial resource established.
KGL Resources is aiming to increase the overall scale of the multi-metal resources at Jervois as part of a Pre-Feasibility Study currently being undertaken.
KGL Resources has a market cap. of around $11 million, and with over $10 million in cash, the company's enterprise value is not much more than a million dollars.
Proactive Investors estimates a share price target of $0.13 to $0.15 for KGL Resources in the next 6 to 9 months, based on the resource based at Jervois, key catalysts ahead, a resource upgrade and the completion of a Pre-Feasibility Study in the first half of 2014.
The importance of today's drilling results from Jervois is that the broad zones of plus 1% copper mineralisation should increase the current resource.
More assays are pending in the next week to ten days.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.