KGL Resources has discovered more massive sulphides at the Jervois Copper-Silver-Gold Project in Australia’s Northern Territory. The company is completing a surface and downhole electromagnetic survey this month to assist in defining the limits of the high grade zone for targeting further drilling.
Diamond drilling at the Marshall-Reward deposit has delivered an 8 metre-wide, 6.65% copper equivalent, zone of massive and semi-massive sulphide containing visible copper, lead and zinc sulphide mineralization.
Another hole delivered a 57 metre extension of the 18 metre-high grade zone in Marshall Reward with lower grade, 1.26% copper equivalent, mineralization in the footwall.
Results from the end of 2013 include 18 metres @ 0.88% copper, 19.63% lead, 3.77% zinc, 732.3 grams/tonne silver, 0.61 grams/tonne gold from 287 metres, including 9 metres at 1.48% copper, 22.08% lead, 3.07% zinc, 740 grams/tonne silver and 0.53 grams/tonne gold.
Adding to the prospectivity of the area, the Marshall Reward deposit continues to be open along strike and down dip.
KGL Resources had $7.8 million in cash at the end of December 2013, and is currently completing the sale of the Murchison Gold Project to Monument Mining for $15 million. With 140 million shares on issue, this provides a cash backing of $0.157 per share, which is well above the $0.125 last traded price. KGL’s current valuation therefore doesn’t even include Jervois, further highlighting the undervaluation of the company.