A Junior Explorer Ticking All Boxes

Hi Friends,

All the drill results that are flowing in points to something really BIG in Jervois and further positive results could change future of the company for good. We have a strong news flow in coming months to hold the SP strong and move ahead. Some highlights,

* Drill results shows that we have poly metallic deposits and if proved commercial in PFS with good margins, it would put SP in dollars and secure the cash-flow for years to come

* Near surface results are good for open pit mining and as per Simon Milroy, we could have open pit mining for 3 years before moving on to Underground Production. Added advantage is positive reversal in metal prices and demand in market

* Below was the planned drilling program for 2013-14
Resource Extension Drilling (DD & RC)
• Reward
• Marshall
• Green Parrot
• Bellbird North
• Bellbird

Exploration Drilling (RC)
• Morley
• Sykes
• Cox’s Find
• Rockface
• Chubko


We had good drill results in all extension drilling areas and positive results from exploration drilling areas. Some drill results,

Reward:
Drilling of near surface copper mineralisation at the Reward deposit has delivered consistently high grade copper intervals in RC drilling including the highest copper grade recorded in drilling at Jervois of 26% Cu in hole JOC028

7m @ 7.27% Cu, 1.12% Pb, 1.35% Zn, 140.2g/t Ag, 0.38g/t Au from 8 m (Hole JOC028)
o Including 2m @20.98% Cu, 1.53% Pb, 1.11% Zn, 302.5g/t Ag, 0.77g/t Au from 9 m
19m @ 3.54% Cu, 0.19% Pb, 0.84% Zn, 57.2g/t Ag, 0.57g/t Au  from 45 m (Hole JOC045)
o Including 5m @7.04% Cu, 0.14% Pb, 0.83% Zn, 68.4g/t Ag, 1.44g/t Au from 56 m
28m @ 2.65% Cu, 0.41% Pb, 0.3% Zn, 89.2g/t Ag, 0.29g/t Au from 58 m (Hole JOC046)
o Including 8m @ 5.71% Cu, 0.48% Pb, 0.55% Zn, 132.8g/t Ag, 0.63g/t Au from 63 m

Several lead assays in holes JOC024, 25, 26, 28 are over-limit and have been cut to 20% lead.
18m @ 0.26% Cu, 16.39% Pb, 0.95% Zn, 279.1g/t Ag, 0.13g/t Au from 33 m (Hole JOC026)
Including 6m @0.57% Cu, 37.72% Pb, 1.92% Zn, 551.5g/t Ag, 0.22g/t Au from 39 m

Near surface drilling at the northern end of Reward and outside the existing resource continues to encounter good copper mineralisation including:
- 20m @ 1.35% Cu, 0.28% Pb, 0.24% Zn, 19.6g/t Ag, 0.15g/t Au from 36 m (Hole JOC005)

Marshall:
Near surface drilling at Marshall builds on the recently announced intersections with further mineralisation including:
- 12m @ 4.92% Cu, 78.6g/t Ag, 0.37g/t Au, 0.11% WO3 from 27 m (Hole JOC047)

Green Parrot:
Resource extension drilling of near surface mineralisation north of the Green Parrot deposit has intersected the highest copper grade ever recorded in drilling at Jervois of 31.5% Cu in hole JOC062. Significant intervals include:

- 18m @ 4.92% Cu, 1.54% Pb, 0.75% Zn, 240.5g/t Ag, 0.14g/t Au from 10 m (Hole JOC062)  
Including 2m @ 31.5% Cu, 5.96% Pb, 1.77% Zn, 1,240g/t Ag, 0.07g/t Au from 23 m

“The very high grade result of 18m @ 4.92% Cu, 1.54% Pb, 0.75% Zn, 240.5g/t Ag, 0.14g/t Au from hole JOC062 was intersected less than 10m below the surface in an area to the north of Green Parrot pit in which we had never previously drilled. This opens up a new area for further exploration.”

Bellbird North:
At Bellbird North both width and grade of zinc mineralisation appears to be increasing from south to north. Previously announced results from the most northerly line of drilling in this program, recorded an intersection in hole JOC126 of 10m @ 0.15% Cu, 2.83% Pb, 7.81% Zn, 44.4g/t Ag, 0.02g/t Au from 46 m including assays of up to 17.3% zinc.

Bellbird:
Several holes drilled into central high grade zone at Bellbird with all intersecting copper mineralisation. Reverse circulation and Diamond drilling at Bellbird has focussed on extending the resource at depth and testing an interpreted steep northerly plunge to the deposit. The north plunge is supported by recent results from KJC031 that intersected 4m @ 4.91% Cu from 253m. KJCD056 located at depth in the central part of the resource also intersected high-grade mineralisation. A significant increase in the Bellbird resource is anticipated and the north plunge, between KJC031 and KJCD026, is still open.

Further Jervois results inc. 11.55% copper and 55.7g/t silver. Near Surface high grade copper at Bellbird deposit at Jervois.
13m @ 5.75% Cu, 23.2g/t Ag, 0.32g/t Au from 20 m (Hole JOC090)
Including 3m @ 11.55% Cu, 55.7g/t Ag, 0.52g/t Au from 20 m
19m @ 2.94% Cu, 16.3g/t Ag, 0.11g/t Au from 66 m (Hole JOC089)
Including 3m @ 9.64% Cu, 48.3g/t Ag, 0.24g/t Au from 73 m

Rockface:
Drilling of near surface copper mineralisation at the Rockface prospect has further defined two zones of mineralisation along the Rockface trend with mineralised intercepts including:
 12m @ 1.33% Cu, 6.5g/t Ag, 0.1g/t Au from 61 m (Hole JOC140)
 11m @ 1.96% Cu, 10.3g/t Ag, 0.1g/t Au from 85 m (Hole JOC141)
 3m @ 1.36% Cu, 2.8g/t Ag from 15 m (Hole JOC142)
 5m @ 1.28% Cu, 4g/t Ag from 20 m (Hole JOC142)
 11m @ 1.31% Cu, 7.4g/t Ag from 8 m (Hole JOC143)

Morley:
Reconnaissance RC drilling at the Morley prospect to the east of East Reward intersected a new zone of shallow mineralisation located beneath outcropping gossans including 14m @ 2.01% Cu, 7.7g/t Ag, 0.06g/t Au from 17 m. The mineralisation is in alignment with an intersection in the RC pre collar for diamond hole KJCD074 (11m @ 0.86% Cu, 9.8g/t Ag from 12m) also interpreted to be part of the Morley trend.  Additional drilling is scheduled for later in the year to test for extensions along strike to the north and south

Chubko:
Recent article from Minesite highlighted the prospectivity of Chubko for Copper-Gold and ASTER mapping points to high grade gold deposit. Further drilling would throw insights to it and would be cherry on the cake if commercial Gold deposits are proven

We have had good results in Cox's find and not sure of anything released in Sykes. Below comments are more significant for near term SP movement,

Simon Milroy the managing director of KGL Resources comments “This is very significant for the project because we have now identified four separate parallel trends of mineralisation at the northern end of Jervois. From west to east we have Green Parrot, Marshall/Reward, East Reward and now Morley.”

“Further results are still pending from the previous drilling programme at Cox’s Find, Bellbird deeps and at Green Parrot.”

“Further drilling is currently being planned for the Jervois project which is expected to commence in September”.

I understand the pain of long term SH as I went through the same in some holdings but Jervois looks worth it and could very well reward everyone on long term. Most of the results were excellent and with more results to come and further drilling planned in September, we have more probability of uncovering a gem of a resources. I believe, we are trading below what we have already proved and in for a re-rating in coming months. More importantly, we have good strike lengths extending at depth with good grades and parallel zones, all pointing to only one thing (ONE HELL OF A RESOURCE WAITING TO BE DISCOVERED).  If Finance for the project is secured and positive PFS is released, I expect a very bright future for the company. Hope history does not repeat with Jervois and Management show their worth this time around.

Ozblue & reasearchandwin, thanks for your posts. Would not be able to go to Melbourne presentation due to work commitments. It would be great, if you can add below points if not in your list already,

1. Is there a change in strategy for JV as all results points to a huge resource upgrade in Jervois ? Is there a chance, we could good for 100% ownership and do not enter into JV ? If there is a JV, are you sure fair Market value would be paid to secure a partnership ?

2. What is the drill plan for near term and long term ?

3. What is the plan to fund our part of start up Production costs ? How confident is the Management that finance will be secured for bringing the project to Production and what is the backup plan ?

4. Because of poor sentiment in resources sector, there are many Junior explorers who has exciting projects dumped into back burner to preserve cash or left with no cash to proceed. Is there a possibility, we could acquire or enter to a JV with a company which has good proven resources or having more prospective licenses ?

5. Website is the face of the company for potential investors. KGL website is poor and needs enhancement. Is there a plan to update the website and include more research and broker reports ?