News: KGL Resources acquires exploration licences, up to 19% copper rock chips

KGL Resources (ASX:KGL) has acquired two additional exploration licences in the Northern Territory.

The tenements are geologically similar to the company's advanced Jervois Copper Project, and can be considered highly prospective after surface samples included:

- 19% copper, 0.26g/t gold and 25g/t silver; and - 11.85% copper, 34.4g/t silver and 36.8g/t gold.

Jervois is located 150 kilometres east of Yambah.

KGL will now use exploration methods developed during the last four years at Jervois can be applied to the new tenements at Yambah.

The large drilling program conducted at Jervois over the last 18 months, in
combination with research by CSIRO and the NTGS (outlineed below), has brought a much improved understanding of the mineralisation and alteration.

The acquisition comprises Tenements E28340 and E28271 which are part of Mithril Resources' (ASX:MTH) Yambah Project, 50 kilometres north of Alice Springs.


Best drill results

Modern exploration commenced on E28340 in the mid-1960s with the focus on surface occurrences at the Red Rock Bore prospect.

Between 1995-7 Pasminco Exploration drilled 28 holes at Red Rock Bore
intersecting mineralisation over a strike length of 1 kilometre, with highlights:

- 12.3 metres at 3.7% zinc and 0.6% lead from 131 metres, including 1 metre at 13.6% zinc and 0.1% lead.

This was followed up with an electromagnetic survey by Teck / BHP Billiton (ASX:BHP) in 2002.


Why the Yambah Project was acquired

In 2013, KGL commenced a co‐funded project with CSIRO to characterise the style of mineralisation at Jervois.

Concurrently the Northern Territory Geological Survey (NTGS) commenced remapping of the Jervois Range 1:100,000 sheet with the primary aim of investigating the geological evolution and resource potential of the Jervois region.

Following the research work there is now consensus that base metal mineralisation at Jervois is a hybrid sedimentary exhalative (SEDEX) – volcanic massive sulphide (VMS) mineral system.

Hybrid SEDEX‐VMS deposits are generally large and examples include deposits of the Namaqua‐Natal Metamorphic Belt in South Africa e.g. Prieska and Black Mountain.

The new classification will allow exploration models and methods specific to these deposit styles to be applied to Jervois.

The Yambah Project was acquired because of a correlation recently made by the NTGS between the Bonya Metamorphics that host Jervois and the Strangways Metamorphic Complex (SMC) that also forms part of the Palaeoproterozoic eastern Arunta Region.

Chlorite schists, calcsilicates and quartzmagnetite rocks of the SMC are also common in the Bonya Metamorphics in the Jervois Range.

Base metal occurrences at Yambah are interpreted to be syn‐sedimentary and have affinity with the VMS style.