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KGL Resources Identifies New Targets At Jervois

KGL Resources' (ASX:KGL) Jervois Copper-Silver-Gold Project in the Northern Territory has the potential to expand even further, after geophysics identified new targets.

Areas have now been identified for drilling to extend the Marshall‐Reward high grade lead zone.

The project already boasts one of the highest grade copper open pit projects in Australia, with significant silver credits and lead / zinc potential.

DHEM

Several new off-hole conductors were recorded in a down-hole electromagnetic survey (DHEM) at Marshall-Reward.

The key point to the EM is that it only gives a strong response in areas of very high grade ore, which is what KGL received in the area at the north end of Reward and also in the silver lead zinc area.

Both of these will be followed up by further drilling.

Simon Milroy, managing director, commented: "These results are very encouraging as copper mineralisation up to about 2% copper generally presents as a weak conductor.

"Stronger anomalies like the one we are seeing below RJ169 historically correlate well with much higher grades.

"That's just what we like to see in these deeper parts of the deposit.

"Further drilling is currently being designed to test some of the stronger down-hole EM conductors.

"This drilling will be focussed in areas that add the greatest value to the Jervois project."

Jervois has an existing mining lease due to historical mining activities on site, which has the potential to provide a faster-track to production.

Jervois Resources

A recent resource upgrade delivered an 85% increase in the Resource to 25.3 million tonnes, a 64% increase in contained copper to 280,000 tonnes with an additional exploration target of 50,000 to 150,000 tonnes.

There was also a 150% increase in contained lead/zinc to 120,000 tonnes.

Illustrating the size of the mineralised system at Jervois and the potential for further significant extensions to the global Resource, the company announced in October 2014 that the first deep diamond hole drilled at Jervois had intersected copper sulphide mineralisation.

This was 300 metres below the base of the Resource at Reward.

Analysis

The DHEM identified new targets at Jervois, with KGL set to test these with drilling.

The key point to the EM is that it only provides a strong response in areas of very high grade ore.

KGL received this in the area at the north end of Reward and also in the silver lead zinc area.

Pending PFS:

Milroy, told Proactive Investors today, that the PFS is on-track to be completed in the next fortnight.

Keys to Jervois:

- Has an existing mining lease due to historical mining activities on site.

- Is one of the highest copper grade open pit projects in Australia, with significant silver credits and lead / zinc potential.

The company remains well funded with $12.8 million in cash at the end of September 2014, and no debt.

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