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Kentor Gold Delivers Stunning 60m At 1.73% Copper From Jervois; Open Pit Potential Confirmed

Kentor Gold (ASX: KGL) has delivered some stunning near surface results from the Jervois copper silver gold project in the Northern Territory.

There is no doubt the market will be impressed with assays up to 19.4% copper, 37.6% lead, 14.2% zinc and 702 grams per tonne (g/t) silver.

The latest highlights include; 60 metres at 1.73% copper, 3.81% lead, 1.15% zinc, 113.3g/t silver and 0.21g/t gold from 7.1 metres.

Better still, with the above intersection, the first 3.35 metres hosts 12.06% copper, 2.42% lead, 2.4% zinc, 217.3g/t silver and 0.62% gold.

Other top results include; 16.3 metres at 1.87% copper, 55.3g/t silver and 0.59g/t gold from 15.2 metres; and 10.3 metres at 2.1% copper and 13.3g/t silver from 17.4 metres.

Astute investors will know these are not one off intersections, and just a fortnight ago Kentor announced from Jervois; 53.5 metres at 1.08% copper, 24.9g/t silver and 0.24g/t gold from 105.1 metres; and 12 metres at 3.72% copper, 40.7g/t silver and 0.68g/t gold from 63 metres.

The outcome from the continued discovery of mineralisation at Jervois is that the project is now perfectly positioned to be a high grade, open pit mine.

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

Simon Milroy, managing director, commented on the results: "These significant, near-surface results continue to confirm the open pit mining potential of the Jervois Project.

"The high grade multi-metal results include good gold grades, strengthening the expectation that we will be able to include gold for the first time in an increased Mineral Resource."

Jervois drilling result news flow to continue

A review of the current diamond drilling program at Jervois has Kentor completing so far around 4200 metres of a 5400 metre program. The remaining 6 diamond tails totalling 1,280 metres are anticipated to be completed by mid-July.

The 10,000 metre reverse circulation drilling program is also nearing completion with the remaining 11 holes to be drilled this month.

Well funded with maiden gold pour on the horizon

Kentor is in a strong financial position, closing the March quarter with total cash reserves of $27.4 million.

In addition, Kentor is set to join the ranks of Australian gold producers within the next couple of months, with the company on schedule for the first gold pour from the Murchison Gold Project in mid-2012.

Initial production rates are forecast at 24,000 ounces per year from a combination of open pit and underground mining. Based on the current US$1560 spot price, this would create gross revenue of more than US$37.4 million in the first year of operation.

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