KGL Resources Limited - Drilling Returns More High-Grade Results

Brisbane, Australia (ABN Newswire) - KGL Resources (ASX:KGL) is pleased to announce that reverse circulation (RC) and diamond drilling at Jervois has continued to extend high-grade mineralisation.

Significant results from this program include:

Green Parrot (KJC129)
11m @ 1.93% Cu, 2.61% Pb, 1.25% Zn, 218.1g/t Ag, 0.25g/t Au from 153 m
Including 4m @ 3.58% Cu, 4.61% Pb, 1.7% Zn, 393.8g/t Ag, 0.56g/t Au from 160 m
4m @ 3.44% Cu, 2.95% Pb, 0.74% Zn, 252.2g/t Ag, 1.76g/t Au from 177 m

Johannsen (GTD004)
1m @ 2.3g/t Au, 8.1g/t Ag from 63 m
3m @ 4.1% Cu, 0.82% Pb, 0.3% Zn, 189.2g/t Ag, 0.29g/t Au from 64 m
Reward (KJC114)
5m @ 0.88% Cu, 13g/t Ag, 0.32g/t Au from 244 m
7m @ 1.4% Cu, 0.56% Pb, 28.5g/t Ag, 0.32g/t Au from 256 m

A ~10,000m RC drilling program was commenced in early February at the Bellbird, Marshall-Reward and Green Parrot Resources. Particular emphasis was placed on targeting poorly drilled portions of these resources that have potential for high-grade mineralisation and are within the proposed open pits or close to planned underground mine development.

KJC129 at Green Parrot was drilled to follow up intersections in holes JOC222-223 drilled last year below the planned open pit shell. Two zones of mineralisation were intersected that are likely to result in a resource extension and deepening of the pit. The increase in gold and over 200g/t silver in both intervals at depth is particularly encouraging.

GTD004 was drilled at the edge of the planned Reward open pit. A zone of supergene enriched copper was intersected in a mineralised trend parallel to the main Reward resource at the Johannsen prospect. Although mineralisation at Johannsen is less continuous, its close proximity to Reward is likely to have a positive impact on the pit shell.

Drilling at the northern end of Reward in KJC114 intersected good mineralisation at depth, adjacent to existing designed UG development.

Simon Milroy, the Managing Director of KGL Resources comments, "The resource extension drilling program was conducted as part of a study to optimise the economics of the Jervois Project. Drill results received so far have met our expectations and are likely to result in an increase in the resource and the size of the pit shells".

"The Green Parrot results are particularly encouraging as we continue to hit very high grades of mineralisation, including gold and silver, well below the base of the current pit design but also well within conventional open pit depths."

Drilling is now complete with additional geological mapping, soil sampling and research work planned. Assay results from the drilling are anticipated over the next 4 weeks with over 5,000 outstanding. These will feed into an updated resource estimation that is anticipated to be completed in July 2015.

To view figures, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-KGL-856781.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