KGL Resources Enhances Jervois Project with Updated Mineral Resource Estimate
KGL RESOURCES LIMITED (KGL) Share Update November 2024 Monday 25th
KGL Resources Boosts Jervois Project Mineral Resource Estimate by 17.4%
KGL Resources Ltd (ASX:KGL) has unveiled an updated Mineral Resource Estimate (MRE) for the Jervois Copper Project, marking a significant milestone in its development strategy. The update reflects a substantial increase in the project's mineral resources, driven by successful exploration efforts and strategic planning.
Instant Summary:
- The Jervois Mineral Resource has increased by 17.4% from 23.37Mt to 27.45Mt.
- Contained copper has risen from 472Kt to 513Kt, a 41Kt increase.
- Silver and gold resources have increased by 14.7% and 11.3%, respectively.
- Exploration efforts have focused on extending resource life and improving confidence levels.
- Feasibility Study Update nearing completion with independent technical review underway.
Mineral Resource Estimate Update
The updated Mineral Resource Estimate for the Jervois Copper Project represents a 17.4% increase, bringing the total to 27.45 million tonnes. This growth is primarily attributed to the success of the 2024 underground drilling program, which added 4.1 million tonnes to the underground resource.
Contained metals have seen significant increases, with copper rising by 41,000 tonnes to 513,000 tonnes, silver by 2.8 million ounces to 22.4 million ounces, and gold by 22,400 ounces to 215,000 ounces. These gains are the result of both the drilling program and an independent review of cut-off grades.
Exploration and Feasibility Study
KGL Resources has completed its 2024 drilling program ahead of schedule, allowing for additional exploration to delineate near-surface resources potentially recoverable through open cut mining. Results from this additional drilling are expected in early 2025.
The Feasibility Study Update is progressing well, with project capital and processing parameters under review. An Independent Technical Expert report will be completed before the final Feasibility Study is issued, ensuring a comprehensive analysis of all project aspects.
The increase in mineral resources at the Jervois Project is a positive development for KGL Resources, potentially enhancing the project's economic viability and attractiveness to investors. The updated resource estimate could lead to a reevaluation of the project's value, influencing KGL's stock performance positively.
Investor Reaction:
Analysts are likely to view this update favorably, as the increased resource estimate strengthens KGL's position in the copper market. The successful completion of the drilling program and the ongoing feasibility study could boost investor confidence in the company's strategic direction.
Conclusion:
Investors should keep an eye on the upcoming Feasibility Study Update and additional drilling results in early 2025. These developments will be crucial in assessing the long-term potential of the Jervois Project and KGL Resources' growth prospects.