Jervois Base Metal

Copper Mineral Resources have been significantly upgraded at the Jervois Copper Project in the Northern Territory, 100% owned by KGL Resources Limited (ASX: KGL) (KGL or the Company).

Confidence levels in the resource estimates have been strengthened by an increase in the Indicated Copper category from 50% to 65% of the total copper Mineral Resources. The total copper resource estimates now stand at

• 26.6 million tonnes at 1.47% copper and 24.7 g/t silver,
• containing 390,600 tonnes copper and 21.1 million ounces silver,
• including Indicated Resources of 255,000 tonnes contained copper and 12.7 million ounces contained silver.

The upgrade is the successful result of a recently completed infill drilling program at the Reward and Rockface deposits. The drilling achieved the objective of increasing the confidence levels in the underground Mineral Resources by converting resources from the Inferred to Indicated category. Indicated Resources of copper at Reward and Rockface were increased by 240% and 34% respectively.

Resources update in detail

The new resource estimates for the underground deposits at Reward and Rockface are listed in Table 1.

Table 2 shows the impact of the infill drilling on the Mineral Resources for the Jervois Project. The new estimates show a 32% increase in contained copper for the Indicated Resources with increases of 240% and 34% for Reward and Rockface respectively.

Contained silver for the Indicated Resources has increased by 31% with increases of 37% and 236% for Rockface and Reward respectively.

More than 65% of the Jervois copper resource of 390,600 tonnes is now in the Indicated Resource category. This is mainly due to the major resource upgrades for the Reward and Rockface deposits.

While there has been a small increase in total contained copper at Jervois, the infill drilling has prompted a reinterpretation of the extent of the lead mineralisation at Reward with the result that the size of the deposit has been significantly reduced. The current lead Indicated Resource at Reward is a minor component of the total Mineral Resources at Jervois.

• Regrouping and renaming of deposits: The Marshall lode is now included in the Reward Deposit in Table 2, following drilling and improved modelling for mine planning purposes. The Green Parrot deposit has been renamed Reward South now that it is considered as a southern extension of Reward with potential for expansion.

Figure 1 illustrates the progress of the copper resource definition under KGL’s ownership of the Jervois project. Figure 2 illustrates the progress of the silver resource definition by KGL at Jervois.

Jervois JORC Report

View the latest Jervois JORC report.