KGL Resources (ASX:KGL) has announced a resource update at its Jervois project where it now has outlined a total tonnage of just over 25 million tonnes. As the grades are very decent (1.1% copper, 22g/t silver) and as there’s an interesting lead-zinc zone, the Jervois project now contains just over 600 million pounds of copper, 18 million ounces of silver and 250 million pounds of lead and zinc. The company estimates there’s an additional exploration target of 100-300 million pounds of copper and if this could be realized at approximately the same grades, the Jervois project could be a very interesting asset.
The main copper-silver zone has an average rock value of $90/t which is very decent. However, we would like to see additional metallurgical test work before jumping to conclusions. A lot of work needs to be done, but Jervois could be bigger than we originally anticipated.
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Disclosure: The author holds no position in KGL Resources. Please see our disclaimer for current positions.
