KGL acquired the Jervois Base Metal Project, located in the Northern Territory, Australia in 2011. Since that date, the Company has successfully defined a current JORC Resource of 20.97 Million tonnes at 2.03% Copper and 31.9g/t Silver.
The Company has pursued a strategy of increasing the quality and size of the Jervois Resource to one that will sustain a mining project in the bottom half of the international cost curve for copper mines before proceeding to mine development. The Company is now focused on the development studies to determine the optimal development path for the project. Contemporaneously the Company will undertake targeted exploration seen as being accretive to development.
The Jervois Base Metal Project is located on existing mining leases and benefits from road access to Darwin and Alice Springs by the Stuart and Plenty Highways, being 380km by road north-east of Alice Springs.
KGL lodged its Environmental Impact Statement (EIS) in October 2018, and completed a supplementary EIS in July 2019 following the public notification period. The Northern Territory Enviromental Protection Authority recommended Government approval of the Jervois Base Metal Project in October 2019. A Mining Management Plan addressing the conditions of the Environmental approval was lodged with the Northern Territory Goverment in April 2020, and the approval decision is expected in Q4 2020.
The known resources at Jervois are spread across multiple prospects that extend along a 12km strike length in the shape of a J curve. Several prospects have the potential for both open pit and underground mining.
However, the Company has concentrated recent exploration on the Rockface and Reward prospects where new mineralised zones of increasingly high grade have been discovered using modern Down Hole Electromagnetic (DHEM) surveying and targeted drilling.
DHEM surveying at Rockface and Reward has identified new drill targets from which drilling has produced high grade intersections and extensive mineralised zones. More DHEM surveys in the new drill holes have in turn identified new target areas (conductors) with drilling resulting in further high-grade mineralisation.
KGL is working with leading consultants to evaluate development scenarios at Jervois in order to maximise development economics while minimising environmental impact.
KGL is also working closely with all stakeholders including the Northern Territory Goverment and local communities on the Jervois development.
The Company has sought to employ financial resources in the most efficient way, engaging in cost effective exploration while minimising corporate costs.
KGL also acquired in 2015 two exploration licences at Yambah, 60km north and northeast of Alice Springs, because of the similarity of the style and age of the mineralisation to Jervois which is 150km to the east. Limited work has been done on under KGL ownership on these tenements, however the geology indicates excellent exploration potential that would be accretive to the Jervois development story.
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