KGL Resources boosts copper and silver grades at Jervois in new resource estimate

KGL Resources (ASX: KGL) has boosted contained copper by 18% and grade 43% in its latest resource upgrade for its wholly-owned Jervois copper project in the Northern Territory.

Contained copper at Jervois has now grown to 384,800 tonnes, while the average copper grade has risen to 1.53%.

Additionally, contained silver at the project has increased 4%, with the average silver grade expanding 27%.

The updated resource now sits at 25.2 million tonnes grading 1.53% copper, 29.2 grams per tonnes silver for 384,800t of copper and 23.6 million ounces of silver.

This compares to the previous indicated and inferred resource estimate of 30.5Mt grading 1.07% copper and 23g/t silver for 327,000t of copper and 22.6Moz of silver.

Despite the increase in contained metal and grade, the indicated and inferred resources for the Jervois deposit were cut 17% on 2015 estimate levels because the cut-off grade was doubled to 1% to account for an underground mining scenario rather than the previous open pit.

Additionally, the Cox’s Find and Rockface open pit resources were excluded from today’s announced upgrade.

However, KGL Resources chairman Denis Wood said the boost in contained resources and grades “more than offset” the decrease in the resource tonnage.

KGL Resources claims the increases is a result of “disciplined” exploration over the last two years, which has focused on the Rockface and Reward prospects.

“The updated resource estimates for the Jervois copper project are excellent, and when viewed together with the drilling exploration potential from the wider tenement package, allow KGL Resources to continue to build momentum as it progresses towards key decisions for the development of Jervois as a highly attractive copper project,” Mr Wood said.

“Contained copper has increased, and, most importantly, we have a resource of significantly higher quality, which the board believes underwrites a robust base-case mining scenario now being developed.”

Mr Wood said the Rockface discoveries were included in the resource estimate for the first time, which, alone, are estimated to contained 90,000 tonnes of copper at an average 3% grade.

“Also included is the recent high-grade underground extension at Reward, which is still in its early stages of exploration,” Mr Wood added.

In early morning trade, KGL Resources’ share price was steady at A$0.395.