Proactive Investor's  Instablog

Kentor Gold (ASX: KGL) is building on the exploration potential of its Jervois Copper-Silver-Gold Project in the Northern Territory with the identification of several previously unknown and unexplored copper-gold zones.

Importantly, these new zones, which were discovered by surveying, are outside of the current Resource area, delivering strong potential for a Resource upgrade.

Kentor is fast tracking a Feasibility Study of the Jervois Project, where high grade drilling results across the 12 kilometres strike length have recently been announced.

The company has begun sampling and mapping programs at a newly identified prospect, named Chubko, which is expected to lead to a drilling program later this year.

Reconnaissance mapping in the south-eastern portion of the Jervois Project subsequently identified several zones of mineralisation at the Chubko Prospect.

An area of 1.3 kilometres strike length and about 700 metres width was traversed with handheld GPS/Niton XRF, and spot readings were taken on multiple rock types in the survey area. There is no recorded historical exploration in the area.

Mineralised lodes are within the same Bonya Schist unit of the Arunta Orogenic Domain as the Reward, Marshall, Green Parrot and Bellbird Prospects that are currently undergoing Resource development drilling and evaluation.

Interpretation of Advanced Spaceborne Thermal Emission and Refection Radiometer data suggests that alteration halo signatures present at the Bellbird Prospect are replicated in the south-eastern portion of the tenement.

Copper mineralisation, identified within three main zones striking west-southwest to north-northeast, has distinct mineralisation characteristics.

Mineralisation in the northern zone is represented mostly by disseminated malachite and occasional chalcocite and in veinlets to 0.5 metres thick. Most of the host schists bear low grade copper and zinc mineralisation.

In the southern zone, mineralisation is identified in lensed quartz veins as disseminations and veinlets of malachite and haematite.

In the central portion of this zone, in quartz veins, extremely high gold grades of up to between 50 and 56 grams per tonne (g/t) were identified.

The gold is accompanied by elevated Bismuth of between 0.6 and 0.95%, and a rise in arsenic levels of between 53 and 130 parts per million.

This mineralisation system is typical of hydrothermal association, and may indicate a new type of mineralisation within the Jervois Project area.

Next exploration steps

While the development of the existing resources at Jervois and completion of the Bankable Feasibility Study remains Kentor's primary focus, the company is continuing to pursue identification of areas with future development potential, close to existing resources.

Large scale open cut potential

Ongoing high grade results from Jervois continue to reinforce and increase the potential for large scale open cut mining at the project.

Demonstrating the strong open cut potential of a zone discovered earlier this month by Kentor, mineralisation begins at surface, as evidenced by an intersection of 38 metres, which includes 32 metres at 1.1% copper, 1.2% lead, 1.4% zinc, 60.4 grams per tonne (g/t) silver and 0.12g/t gold from surface.

Further high grade results have also recently been received from diamond and reverse circulation drilling at the Marshall and Bellbird Deposits.

Notable intercepts from Bellbird include 6 metres at 2.7% copper, 25.8g/t silver and 0.07g/t gold from 122 metres.

Meanwhile, Marshall has delivered highlight intercepts of 26 metres at 2.2% copper, 0.2% lead, 0.2% zinc, 53.1g/t silver and 0.21g/t gold from 73 metres; and 9 metres at 1.9% copper, 26.5g/t silver and 0.31g/t gold from 280 metres.

Feasibility Study

The current drilling program is a major part of a Feasibility Study being undertaken following a recently completed Scoping Study that found Jervois would be a robust project producing strong financial returns.

The study confirmed the viability of a 1.5 million tonne per annum operation capable of producing 15,000 tonnes per annum of copper and 7,000 ounces of gold per annum over a seven year mine life, as well as silver, lead and iron ore by-products.

As part of the Feasibility Study, Kentor is focusing on extending the current resource base, improving the level of confidence by converting Inferred Resources to the Measured and Indicated categories and providing samples for metallurgical test work.

Jervois currently hosts an Inferred Resource of 11.9 million tonnes at 1.3% copper and 25.2g/t silver for 150,500 tonnes of contained copper and 9.7 million ounces of contained silver.

Increasing the resource will allow Kentor to consider treatment rates of up to 2.5 million tonnes per annum, which would lower operating costs and improve project economics.

Recent drilling suggests the possibility of improved grades, which would further enhance project economics.

Proactive Investors is a market leader in the investment news space, providing ASX "Small and Mid-cap" company news, research reports, StockTube videos and One2One Investor Forums.