KGL Resources Limited Geophysics Identifies New Targets at Jervois

Brisbane, Australia (ABN Newswire) - KGL Resources Ltd. (ASX:KGL) announce a program of DHEM was conducted by Gap Geophysics in several holes at Marshall and Reward prospects using a DigiAtlantis sensor with HPTX70 transmitter system. The results of these surveys have been analysed and modelled by Newexco to generate targets for future drilling.


Highlights

- Several new off-hole conductors recorded in down-hole electromagnetic survey (DHEM) at Marshall-Reward.

- Further areas identified for drilling to extend Marshall-Reward high grade lead zone

- Future drilling planned to test these targets


KJD010W1

The deep hole at Reward, KJD010W1 was surveyed from 810m to 1,330m with the DHEM tool.

Multiple narrow anomalous responses were observed at downhole depths of about 1030m, 1060m and 1100m. This corresponded with a silty sandstone with blebs and veins of pyrite and chalcopyrite from 1032m to 1040.5m, a zone of semi massive galena and sphalerite from 1062 to 1063.6m and bands of strongly disseminated pyrite and chalcopyrite from 1100.2m to 1102.5m respectively (See Figures 1, 2 & 3 in link below).

The weak to moderate near off-hole conductive response observed at 1100m was modelled to be below and to the north of the drill hole. The modelled response observed at 1030m indicates that the source has been intersected, or passed very close to the hole at this depth and is centred above and to the north of the hole.


RJ237W1

A strong on-hole anomaly consistent with high-grade on-hole mineralisation was observed in RJ237W1 coincident with the mineralised intercept (25m @ 1.74% Cu, 35.9g/t Ag 0.82g/t Au from 518m including 8m @ 3.96% Cu, 82.2g/t Ag, 2.38g/t Au from 531m). The modelled off-hole conductor is interpreted to be down dip of the strong on-hole anomaly indicating that the high grade mineralisation is most likely continuing below and slightly to the north of RJ237W1. This places the strong conductor below hole RJ169 (72m @ 3.27% Cu, 51.33g/t Ag and 1.16g/t Au) and extending down dip for 200m.


KJCD075

A strong off-hole anomaly was observed at 325m in KJCD075 consistent with modelled conductors from KJCD058 and RJ237W1. Two anomalies consistent with on-hole Cu mineralisation were observed in KJCD075 at 490m and 515m (2m @ 1.54% Cu, 13.7g/t Ag, 0.14g/t Au from 515m) leading off-hole. These are probably the northern edge of the conductive sources observed in RJ237W1.

The DHEM survey in KJCD075 has only responded to high grade copper mineralisation even though it intersected a ~15m zone of lead mineralisation including 7m @ 5.7%Pb, 106.6g/t Ag at 498m.

This is in contrast to the much higher grade lead mineralisation such as in Hole KJCD048 (18m @ 0.88% Cu, 19.63% Pb, 3.77% Zn, 732.3g/t Ag, 0.53g/t Au from 291m) that does give a strong EM response.

The DHEM surveys suggest that further high grade mineralisation associated with Reward is located in between RJ237W1 and KJCD075 and below RJ169, see Figure 2 (in link below) long section.

A weak and high frequency anomaly is observed in both KJCD075 and RJ237W1 over the East Reward mineralisation indicating the poor EM response to lower grade mineralisation. It has proven difficult to identify lower grade (<2% Cu) using this system.


KJCD092

Hole KJCD092 was surveyed with DHEM to test for extensions to the intersected high grade mineralisation that included 11m @ 1.00% Cu, 12.00% Pb, 5.04% Zn, 126.4g/t Ag, 0.18g/t Au from 385m. An Interpreted on-hole conductive source was identified coincident with this intercept and is interpreted to be a small conductive plate though is poorly constrained due to poor quality data.

Hole KJCD092 also detected an off-hole conductive source identified at a downhole depth centred at 330m. This large conductor has a modelled strike length of 200m and depth extent of 100m and is interpreted to be sub-vertical consistent with the Reward copper mineralisation. The centre of the conductor is interpreted to be above and to the south of the drill hole. This conductor coincides with the Reward mineralisation and an off-hole conductive source identified in drill hole KJCD034 in March 2014.

Simon Milroy the managing director of KGL Resources comments "These results are very encouraging as copper mineralisation up to about 2% Cu generally presents as a weak conductor.

Stronger anomalies like the one we are seeing below RJ169 historically correlate well with much higher grades. That's just what we like to see in these deeper parts of the deposit."

"Further drilling is currently being designed to test some of the stronger down-hole EM conductors. This drilling will be focussed in areas that add the greatest value to the Jervois project"

To view figures, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-KGL-415369.pdf


About KGL Resources Limited:

KGL Resources Ltd. (ASX:KGL) is an Australian mineral exploration company focussed on increasing the high grade Resource at the Jervois Copper-Silver-Gold Project in the Northern Territory and developing it into a multi-metal mine.



Contact:

KGL Resources Ltd.
Mr Simon Milroy, Managing Director
Phone: (07) 3071 9003