Melua, your target of 2% Cu equ is not that difficult. There were plenty of high grade hits down deeper that were not included in the Jorc because of sparse drilling (as I am sure you know). If infill drilling confirms, then the overall resource grade will be higher, but this will be partly offset by the fact that costs will be higher for the underground mining. However we may also get close to 2% Cu equ on the open pit ore when gold is added to the Jorc. For anyone not familiar, the gold was not included because there were not enough holes assayed for gold. From the ones that were, there is clearly a significant gold credit on top of the silver credit. With the silver credit we are already at 1.6% equ using $34/oz silver. This is a rough estimate only and will need to be adjusted for recoveries. We don't have that detail yet, but the silver price is higher now as well boosting the Cu equ. For anyone that thinks 1.6% is low grade, it's the equivalent to around 3.1g/t gold. Anyone with a gold deposit averaging 3.1g/t on an open pit deposit would be very happy. If a gold credit boosts the Cu equ to 1.9% as I expect it may, then the gold equ is around 3.7g/t. That would be an excellent grade on an open pit mine.I may even be conservative. I urge shareholders to look at the drill result details for Jervois-ann 17 May 2011 ASAP to see for themselves. http://asx.com.au/asxpdf/20110517/pdf/41yplwq4zqz9zh.pdf There are just as many very good gold grades in shallow drilling as deep. When you look at the gold grades and number of hits, you can easily see why the gold credits could end up being worth more than the silver and why I believe this stock is rediculously cheap.
KGL Price at posting:
$1.05 Sentiment: Buy Disclosure: Held
