However, the results have demonstrated high grade and continuity for copper and gold that are higher than estimated in the existing resource.
The result is the highest copper grade recorded in drilling at Jervois, and is part of a 30,000 metre program.
Significant intervals include:
- 10m at 3.11% Cu, 0.15% Pb, 0.23% Zn, 20.3g/t Ag, 0.34g/t Au from 37 m (Hole JOC027)
- 7m at 7.27% Cu, 1.12% Pb, 1.35% Zn, 140.2g/t Ag, 0.38g/t Au from 8 m (Hole JOC028); including 2m @ 20.98% Cu, 1.53% Pb, 1.11% Zn, 302.5g/t Ag, 0.77g/t Au from 9 m
A near surface silver, lead, zinc zone located towards the northern end of Reward has delivered:
- 2m at 0.48% Cu, 6.64% Pb, 4.28% Zn, 47.6g/t Ag, 0.03g/t Au from 22 m (Hole JOC010); and
- 10m at 2.34% Cu, 1.03% Pb, 2.76% Zn, 16.4g/t Ag, 0.02g/t Au from 28 m (Hole JOC015).
The shallow reverse circulation drilling program was completed in May-June and comprised 177 holes for 9,653m.
Simon Milroy, managing director for KGL Resources, commented:
"We were anticipating good copper grades in the shallow part of the Jervois resource though have been surprised with the extent and continuity.
"There has been some historical drilling of the near surface resource though much of it did not analyse for gold and in many cases the presence of silver and zinc.
"We are seeing copper and gold grades that are often much higher than estimated in the existing resource so I am looking forward to the resource update to be completed by the end of August."
Lead assays pending
Several lead assays in holes JOC024, 25, 26, 28 are over-limit and have been cut to 20% lead, with final lead assays for these holes pending.
The drilling program was designed to improve delineation of the oxide, transition and fresh rock boundaries within the regolith profile as part of the planned resource update.
At Marshall-Reward and Bellbird chalcopyrite is the dominant copper sulphide mineral.
Jervois has pathway to market
KGL Resources plans to truck concentrate to Alice Springs, which will then be transported by rail to port.
Today's results of up to 26% copper are impressive, but they are just the start of assays from an extensive drilling program at Jervois, which will deliver a resource upgrade in late-August.
The company is seeing copper and gold grades that are often much higher than estimated in the existing resource. In addition, the continuity is also significant.
Drilling results will continue to flow in coming weeks, with over 10,000 diamond and reverse circulation samples remaining outstanding.
KGL was able to drill 30,000 metres due to competitive drilling rates, and because the company remains well-funded.
At the end of March the company had $19 million in cash.
Simon Milroy, managing director, recently outlined at Proactive Investors "Sydney Investor Luncheon" that the company will have $11 million at the end of 2014 - which is $0.08 per share.
Other key catalysts include a Pre-Feasibility Study expected in September 2014.
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