KGL Resources has acquired the Unca Creek exploration project which borders KGL’s Jervois Copper-Silver-Gold Project in the Northern Territory. KGL considers the acquisition to have significant strategic value as the tenement offers geological similarities to Jervois.
|Drilling at the Jervois Copper-Silver-Gold Project in the Northern Territory.|
The acquisition almost trebles the project area from 37.9sqkm to 110.8sqkm and offers multiple walk-up drill targets in a relatively under-explored area.
Work undertaken by previous tenement holders demonstrated the exploration potential. This includes the northern strike extension of the sequence of rocks that host the Marshall-Reward deposits which represent a substantial part of the current Jervois resource.
Copper mineralisation at KGL’s Boundary Prospect can be observed in outcrop extending on to the newly acquired tenement. Further along strike to the north, drilling at prospects including Becana and YoHoHo have intersected mineralisation.
In the northeast part of the new tenement lies Hamburger Hill prospect where several mineral occurrences have been discovered. Holes drilled intersected mineralisation associated with calcsilicate rocks that closely resemble those at Jervois. This 2km strike extension has the potential to host economic mineralisation that can be mined by open pit or underground mining methods.
There is further potential in the southern area where very little previous exploration has been undertaken.
The Jervois project was recently awarded major project status by the Northern Territory Government. This includes a Project Facilitation Agreement (PFA) between the government and the company, which requires both parties to work together to progress the project through the required approvals processes.
KGL is pursuing a strategy of increasing and upgrading the Jervois resource through exploration to one of the world’s lowest cost rankings before proceeding to development. Modern, cost-effective exploration, largely at Rockface prospect, has discovered extensive additional mineralisation at increasingly higher grades of copper.
Recent drilling at Rockface has intersected further strong copper mineralisation. The first hole of a 9-hole 2017 program designed to investigate the high potential conductor zones on the eastern side of the prospect intersected the mineralisation while targeting Conductors 6 & 7 at a depth of 50 metres below and 25 metres along strike to the east of where a previous hole intersected Conductor 6, returning 5.95 metres from 449.85 metres @ 4.94% copper, 25.9 g/t silver and 0.45 g/t gold.