KGL Resources is a publicly listed Australian resources company with a high grade copper project in the Northern Territory of Australia.
A$74.35 million at 8 August 2019
Copper, silver, zinc, lead
Mr Dennis Wood
T: +61 7 3071 9003
To find out more about Investment Attraction in the Northern Territory contact the:
Minerals and Upstream Energy Investment
Australia’s Northern Territory Government
Department of Trade, Business and Innovation
T: +61 8 8999 1385
Jervois is the largest and most advanced high-grade copper project in the Northern Territory.
KGL Resources has secured most of the necessary licenses and approvals needed for mining, including granted mining licenses, and is in the final stages of gaining environmental approval.
The project’s October 2015 pre-feasibility study forecasted a robust open cut and underground mining operation, offering a 35% IRR, a moderate $189.5 million pre-production capital cost and one of the lowest operating costs among the world’s probable new mines.
These numbers were based on 21,000 tpa copper production and an 8.25 year mine life. However, subsequent optimisation work and the announcement of a higher quality mineral resource in 2018 have extended the forecasted mine life to 12+ years.
In 2018 the company announced a significant upgrade to the resource at Jervois, with higher copper and silver grades and an 18% increase in contained copper. The indicated and inferred mineral resource estimate now stands at 26.6 Mt at 1.47% Cu and 24.7 g/t Ag, containing 390,600 t copper and 21.1 Moz silver. 65% of the copper resource at Jervois is now in the indicated resource category.
The Jervois mineralisation is a metamorphosed massive sulfide deposit, contained within the Proterozoic Bonya Metamorphics (1,790 Ma) which has been folded to form a J-shaped, near isoclinal and steeply north-plunging, synform.
Since 2011 KGL Resources has actively explored at Jervois, including extensively using state of the art down hole electromagnetic technology (DHEM) to identify drilling targets with consistent success.
Numerous prospects have been identified along the J-shaped outcropping structure, with the current mineral resource at Jervois-based on only four of them – Rockface, Reward, Marshall and Bellbird. Drilling in 2017 and 2018 focused on expanding and infilling the resources at Rockface and Reward. Two drill rigs operated almost nonstop at Jervois throughout 2018, drilling 107 holes for 38,351m.
While KGL’s primary focus remains on infill resource drilling at Rockface and Reward to increase confidence in the resource ahead of planned development, exploration drilling did take place in 2019 at the Amigo,
Krak Ridge, Bellbird and Ma’a Salama prospects. All holes intercepted mineralisation, with results at Amigo showing similarities to the high-grade Rockface deposit.
Located on a sparsely populated pastoral lease 360km by road northeast of Alice Springs on the Plenty Highway, the project comprises the 19.5km2 Jervois mining leases and 127km2 of exploration licenses. Water is available from an on-site borefield as well as from a limestone aquifer 15km from site. KGL Resources plans to transport concentrate by truck along the existing Plenty Highway to Alice Springs where it will be taken by the existing Adelaide to Darwin railway and railed to a port in Darwin or South Australia for export.
KGL Resources is interested in either off-take agreements for concentrate from Jervois, or the sale of a minority interest in the Jervois project with an investment partner able to contribute to the capital cost of construction.
The updated measured, indicated and inferred mineral resource reported on 20 August 2019 at 0.5% copper cut-off comprises:
|Category||Tonnes (Mt)||Cu (%)||Ag (g/t)||Cu (kt)||Ag (Moz)|
This document includes information provided by third parties. The information is general in nature and is for information purposes only. The Northern Territory Government makes no representation about the veracity or accuracy of information provided by third parties. You must rely on your own due diligence before proceeding. You should consider seeking independent professional advice.
© Northern Territory Government, August 2019