Following revelations 10 November 2021 that KGL Resources (ASX: KGL) had further extended the Rockface deposit within its Jervois Base Metal Project in the Northern Territory, the copper miner has announced another promising drilling intercept.
Two of the three drill cores are still awaiting results.
But the company revealed a new record assay of 61.4% copper at the ‘Rockface’ target, part of a total intercept of 20.5% copper and 302g/t silver over 4.21m from 698.80m downhole.
Drillhole D6, which intersected a zone of high-grade copper mineralisation, included a hanging wall bornite-rich massive sulphide zone (0.84m) and a footwall chalcopyrite-rich massive sulphide zone (1.90m).
Two additional holes (D7 & D8) have been completed at Rockface.
Both of these holes intersected intervals of massive sulphides which extends the up-down plunge extent of the Rockface North massive sulphide shoot to at least 160 metres.
KGL is looking to produce 30,000 tonnes of copper annually, (plus silver and gold) from the Jervois copper project in NT, and a final feasibility study is due for completion in early 2022.
Commenting on the latest announcement, KGL managing director Simon Finnis noted, mineralogically, it represents 97% pure bornite [high grade copper mineralisation] and confirms the previous visual estimate.”
More importantly, Finnis added, together with previous results the new visual mineral intersections demonstrate that the high-grade shoot of massive sulphides has significant dimensions and grades that bode well for the future.
“Equally exciting are the indications from the DHEM geophysics that the Rockface deposit remain open for significant extensions at depth.”
Meantime, drilling continues with two drill rigs on site, and this will continue into 2022.
Formerly Kentor Gold Limited, KGL Resources (market cap $253m) share price has bounced from a high of 84.5 cents late April to 51.5 cents early October.
Since then, the stock has bounced up to 61.5 cents, and overall, it is up 128% for the year.
While consensus does not cover this stock, Morningstar puts fair value at 71 cents, a 13% discount to today’s price.
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