KBL Mining (ASX:KBL) is raising funds through a share purchase...

KBL Mining (ASX:KBL) is raising funds through a share purchase plan priced at $0.036 per share to fund delineation of the A lode, develop the ore drives and install a zinc circuit at Mineral Hill in New South Wales.

The offer price represents a 13.7% discount to the 30 day volume-weighted average price of KBL’s shares traded on the ASX in the period ending on 6 November 2014.

Recent development into the A lode on 40 level has confirmed the mineralisation extends to 40 level some 350 metres below surface.

KBL is planning drilling to infill and extend the A lode areas that were previously restricted due to historical workings.

This drilling will focus on the area between 120mRL and 80mRL as the mineralisation has strong continuity above and below this area.

The A lode has been accessed on 40mRL and capital is required to open the stoping blocks on 40 level, drive a 400 metre incline from 80 level to 120 level and develop infrastructure to allow the commencement of mining in early 2015.

KBL has also sourced available second hand equipment to fulfil required modifications to the existing process plant at a low capital cost.

This includes the installation of 6 flotation cells for zinc, two cleaners, 8 metre concentrate thickener, storage and associated equipment.

Mineral Hill Mine is located in the northern part of the Lachlan Fold Belt in central-western New South Wales, 50 kilometres from Condobolin.

It was mined as early as the late nineteenth century though modern mining operations commenced at Mineral Hill mine from 1987.

The Southern Ore Zone has a Resource of 1.98 million tonnes at 1.2% copper, 1.8 grams per tonne gold, 19g/t silver, 1.4% lead and 1.1% zinc.