KGL Resources (ASX:KGL) shares are poised to open higher after intersecting some stunning high grade copper‐lead‐zinc‐silver‐gold mineralisation at Green Parrot prospect, part of the Jervois project in the Northern Territory.
Managing director Simon Milroy termed the latest results as "extraordinary intersections" and he may not be wrong.
The mineralisation at Green Parrot is both high grade and multi-metal - copper, lead, zinc, silver and gold, while being close to surface which strongly indicates the potential for open pit mining.
Drilling at the Jervois project confirms high grade copper-lead-zinc-silver‐gold mineralisation and extends the mineralised zone down dip, and included the highest ever recorded gold grade at Green Parrot of 25.7 g/t gold.
- 6 metres at 8.55% copper, 15.08% lead, 10.95% zinc, 679.7g/t silver, 4.87g/t gold from 48 metres, including 3 metres at 12.38% copper, 22.15% lead, 16.78% zinc, 963.3g/t silver and 1.01g/t gold.
- 6 metres at 1.68% copper, 4.30% lead, 5.03% zinc, 124.5g/t silver and 0.04g/t gold from 83 metres.
Today's results follow last month's highest grade copper ever recorded at Green Parrot along with very high silver, including 2 metres at 31.5% copper, 5.96% lead, 1.77% zinc, 1240 g/t silver from a hole 100 metres to the north.
The historic Green Parrot pit lies south of Marshall-Reward, the location of the largest currently known Resource at Jervois.
Simon Milroy, managing director, commented:
"The results further expand and upgrade the extensive zone of high grade mineralisation centred on the main Marshall‐Reward deposits and now extending from Morley in the north to Green Parrot in the south.
"These intersections come on top of other recent announcements of further high grade drilling results to the south along the 'J‐curve' Jervois fold and are part of the 6 kilometres mineralised trend that extends from Bellbird to Reward and Morley.
"These two holes conclude the results from the phase 2 drill programme and we look forward to commencing the phase 3 drill program in September 2014."
Green Parrot history
Previous exploration at Green Parrot delineated several high‐grade lead‐zinc‐copper resources that were partially mined from an open pit in the 1980's.
As part of the recent extension drilling program by KGL two reverse circulation holes were drilled from the base of the Green Parrot pit to test the main lead-zinc lens and to extend it down dip.
Some historical drilling stopped short of the main zone of mineralisation.
JOC176 and JOC177 both intersected high grade massive sulphide that over intervals contains in excess of 50% combined copper-lead-zinc.
The mineralised zone in JOC176 also includes individual results of up to 25.7g/t gold and 1,055g/t silver
With 80% of the historical holes at Green Parrot not assayed for gold, and in many cases these were also not assayed for silver or zinc, the potential within the known mineralisation is yet to be fully realised.
The two deepest historical holes on this section stopped short of the main lode, hence the high grade mineralisation on this section has only now been explored to around 60 metres vertically below the surface and this lode is still open down dip.
KGL Resources plan to test this in the upcoming drill program.
Key near-term catalysts include a resource upgrade expected in late-August, with a PFS in September.
KGL remains well-funded with $14.8 million in cash at the end of June 2014.
Today's results continue the extraordinary momentum building at Jervois. There looks to be further upside in bounds for KGL.
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