Kagara is pleased to announce that it has completed the A$6.5 million purchase of the Maitland copper deposit and associated tenements from Glengarry Resources Ltd. The deposit which is at an early stage of exploration has an indicated and inferred resource of 1.49 million tonnes of 1.5% copper and 0.02% molybdenum and an additional indicated resource of 115,000 tonnes at 0.8% copper and 0.17% molybdenum. Maitland is located approximately 50 kilometres from Kagara’s Balcooma mining operations and is within trucking distance of either the Thalanga or Mt Garnet copper treatment plants. The deposit has excellent depth potential and is expected to support a significant underground operation which will supplement production from the Balcooma copper mine. The deposit has been lightly drilled with intersections of up to 30 metres at 3.9% copper and 38 metres at 2.1% copper including 12 metres at 6.7% copper, demonstrating the potential of the deposit to host a significant underground operation (see attached plans). The deposit contains high grade molybdenum mineralisation which is associated with the copper mineralisation and is open down plunge and appears to be increasing in thickness with depth. In addition to the Maitland deposit, the acquisition includes three EPM’s covering the strike potential plus a base metal gossan and geochemical anomaly known as T3. This prospect has returned rock chip samples up to 11% lead and 8% zinc which occur in a similar geological setting to the Balcooma base metal deposits and will require further follow up drilling.
KZL Price at posting:
$2.15 Sentiment: None Disclosure: Held