Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

KGL Resources' Director Brad Ellis Buys On-Market, Shares Under Cash-Backing

KGL Resources' (ASX: KGL) Brad Ellis is another director of the company snapping up shares on-market while the stock is trading under cash-backing.

Ellis purchased 100,000 shares at $0.092 for a consideration of $9200.

Earlier in the month non-executive chairman Andrew Daley boosted his stake to 488,146 ordinary shares.

KGL had $20 million in cash at the end of December 2013, equating to around $0.14 per share in cash.

The company last traded at $0.092, for a total value of $13 million.

Even taking into consideration exploration costs at the Jervois copper-silver-gold project in the Northern Territory during the March quarter of 2014, the company at the moment would hold around $5 million more in cash than the company's valuation.

Drilling fast-tracked at Jervois

The success of both the 20,000 metre resource extension drilling program concluded in February and the electromagnetic surveys has caused KGL to commence a second phase drilling program.

Extension drilling had intersected a new second zone of copper mineralisation just 50 metres east of the existing Reward resource.

Jervois is a high grade project at 1.25% copper, and currently hosts resources of 170,000 tonnes of copper and 11 million ounces of silver.

The project has access to existing infrastructure, and is located 350 kilometres north east of Alice Springs on the Plenty Highway, and 250 kilometres away from the Alice Springs to Darwin Port rail link.

A PFS is also underway to examine options for heap leaching copper oxide.

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.