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KGL Resources Finds High-Grade Copper-Silver-Gold At Marshall-Reward

KGL Resources' (ASX: KGL) shares are set to lift at the open as the latest drilling at Reward indicates that the best copper mineralisation at depth is at the northern end of the deposit.

Highlights from the northern part of Marshall-Reward Deposit:

- Hole RJ237W1: 25 metres at 1.74% copper, 35.9 grams per tonne silver, 0.82g/t gold from 518 metres, including 8 metres at 3.96% copper, 82.2g/t silver, 2.38g/t gold.

- Hole KJCD074: 12 metres at 1.1% copper, 15.8g/t silver, 0.63g/t gold from 271 metres.

Over at the East Reward mineralised zone, assays included:

- KJCD074: 3 metres at 3.03% copper, 37.4g/t silver, 0.22g/t gold from 90 metres; and

- KJCD065: 2 metres at 1.98% copper, 10.2g/t silver, 0.05g/t gold from 473 metres.

Reward is part of the Jervois copper project in the Northern Territory.

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.

It 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.

The project has 31.4 square kilometres of exploration licences, and 6.5 square kilometres of granted mineral leases.

Massive and semi massive sulphide mineralisation

Copper mineralisation has been recorded in most holes drilled at Reward with massive and semi massive sulphide mineralisation logged in holes KJCD051, KJCD075 and KJCD090 that await processing and assaying.

With the new drilling included, the resource is likely to extend down to a consistent depth of 500 metres and will be extended north by 300 metres.


KGL currently had a cash balance of $19 million at the end of March 2014, which equates to $0.135. The company last traded at $0.083, and is therefore trading well-under cash backing.

Strategic partner, KGL in discussions

KGL will look to complete the Prefeasibility Study in September 2014, and will then actively move to seek a Project partner to provide the funding for the definitive engineering phase of the project.

This has the potential to turn to a go ahead decision.

The company has already commented preliminary discussions with a number of parties who have shown interest in the project.


Key catalysts for KGL in the near-term include the resource update due for completion in August will for the first time include the East Reward lode.

This will be followed by the completion of the Prefeasibility Study in September.

Talks are already underway with strategic partners.

KGL remains lightly valued, and considering the company had $0.135 per share in cash at the end of March 2014, and is trading at just $0.09.

Proactive Investors maintains a share price target of $0.13 to $0.15 for KGL Resources, and continued exploration success has the potential to lift this higher.

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