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King River Copper Share Price Rises On Re-Start Of Exploration For Copper/Gold In WA

Jul. 22, 2013 2:20 AM ET
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King River Copper (ASX:KRC) has seen strong buying of late, with its share price rising 75 per cent since April as it prepares to test the copper / gold potential at Speewah Dome in WA in July.

But with exploration soon to kick off afresh, this could be the start of more renewed interest...

Earlier rock samples returned 27.25% copper, 25 ounces per tonne silver and 4.97 grams per tonne gold.

A new geological model for copper / gold exploration emerged following an independent geological review of all previously known exploration data. Share buy-backs have tightened the share structure.

King River has recently 'bought back' 10% of the capital, and has made an application to have the flexibility to purchase another 10% commencing July 23.

King Road will buy back up to 13,865,717 shares within the 12 month period representing 10% of the shares on issue. "At any rate, they may serve to place a "floor" around the current price," Proactive Investors wrote earlier.

Assisting the cause, King Road received a Research & Development tax rebate of $1.46 million in June, which will be used to support ongoing exploration and general working capital throughout the remainder of 2013/2014.

King River holds 785 square kilometres of mineral leases covering a unique geological feature in the Eastern Kimberley of Western Australia.

In 2010 / 2011, rock chip sampling programs over some previously unexplored portions of the Speewah Dome returned numerous high grade copper, gold and silver assays which included 27.25% copper, 25 ounces per tonne silver and 4.97 grams per tonne gold.

A comprehensive dataset over some of these locations comprising airborne magnetics, gravity, SAM and IP surveys, surface sampling (soils and rock chips) was undertaken.

The shift? An independent geological review of all previously known exploration data was undertaken - a new geological model for copper / gold exploration emerged.

Exploration to begin

Field sampling will kick off in late July targeting three high priority prospects within the Speewah Dome at Greys-Hayden-Eiffler (previous reported surface results of 27.5% copper and 4.97g/t gold), Todhunter (previous reported surface results of 7.3g/t gold and 3.0% copper), and the new untested King-Central prospect.

The initial focus of the field work will involve soil and rock sampling of these three prospects.

A 3D geophysical modelling has highlighted the potential for gold/copper mineralisation along north-south and cross linking faults at these prospects, some located under alluvial cover.

An initial RAB drilling program is planned for 2013 on the highest priority defined soil targets.

King River has built a comprehensive dataset at the Grey-Hayden and Eiffler prospects, comprising airborne magnetics, ground based gravity, SAM and IP surveys, surface sampling (soils and rock chips), and some drilling.

Reprocessing of the geophysical datasets and its integration with the geochemical and geological data has now been completed, and several high priority gold/copper targets have been identified associated with the intersection of inferred faults.

Todhunter prospect

Meanwhile at Todhunter, a high priority gold/copper target has been identified at Todhunter as a result of 2D / 3D modelling of airborne magnetics, topography, surface geochemical results and geology.

This work defined a 2.5 kilometre long fault with the potential for several gold and copper mineralised targets. Previously reported surface rock chip sampling at one locality along the Todhunter fault has identified a 90 metre long zone of gold and copper mineralisation assaying 4.9 - 7.3g/t gold with from 0.7 - 3.0% copper.

However, there is a sense that its potential is closer to being realised than ever before. King River will start the sampling in thoe most exciting areas...where the major structures are covered with scree.

In addition, King River has a helicopter survey booked for July 19th to visit four unexplored locations around the Dome where modelling has identified that felsic rock unit at or near surface. Assays should be turned around quickly.

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.

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