KGL Resources Limited Drilling Extends the Lead-Zinc-Copper Zones at Jervois

Brisbane, Australia (ABN Newswire) - KGL Resources (ASX:KGL) is pleased to announce that reverse circulation (RC) drilling at Jervois has continued to extend high-grade mineralisation. Significant results from this program include:


Marshall

14m @ 2.53% Cu, 0.18% Pb, 1.71% Zn, 27.8g/t Ag, 0.22g/t Au from 263 m (KJC122)

Incl. 5m @ 6.12% Cu, 0.2% Pb, 2.42% Zn, 31.4g/t Ag, 0.48g/t Au from 263 m

4m @ 0.51% Cu, 7.91% Pb, 4.4% Zn, 163.3g/t Ag, 0.13g/t Au from 393 m(KJC121)

Reward

19m @ 0.6% Cu, 3.36% Pb, 2.26% Zn, 104.2g/t Ag, 0.11g/t Au from 235 m (KJC123)

Incl. 6m @ 0.96% Cu, 8.37% Pb, 4.64% Zn, 162.9g/t Ag, 0.16g/t Au from 235 m

A ~10,000m RC drilling program was commenced in early February at the Bellbird, Marshall-Reward and Green Parrot Resources. Particular emphasis was placed on targeting poorly drilled areas outside the current resources that have potential for high-grade mineralisation and are within the proposed open pits or close to planned underground mine development.

Holes KJC121-3 were designed to extend the polymetallic mineralisation at Marshall-Reward.

Marshall-Reward contains several lenses of lead-zinc-copper sulphide within the larger copper resource, including the high-grade massive sulphide lens intersected by hole KJCD048 that was reported in December 2013 (18m @ 0.88% Cu, 15.66% Pb, 3.77% Zn, 726g/t Ag, 0.61g/t Au from 287m). The massive sulphide is associated with carbonate rocks and has been separated into discrete lenses during later deformation.

KJC123 was designed to extend the polymetallic zone at the northern end of the Reward open pit. The hole intersected a broad zone of moderate grade copper-lead-zinc that included a one metre interval of 22.4% lead. Consistently high silver grades were also recorded along the 19m interval that averaged 104.2g/t Ag.

At Marshall, KJC121 and KJC122 also intersected broad zones of polymetallic mineralisation with a high-grade zone within KJC122 of 5m @ 6.12% Cu, 0.2% Pb, 2.42% Zn, 31.4g/t Ag, 0.48g/t Au from 263 m that include a best copper grade of 14.15% Cu. The intersection is ~50m below the base of the current pit shell. Following completion of the mid-year resource update and re-optimisation the depth of the pit may be extended.

Simon Milroy, the Managing Director of KGL Resources comments, "The polymetallic nature of parts of the Jervois mineralisation is adding value to the economics of the project as a whole. In addition to the copper, lead and zinc we are typically seeing much higher silver and gold grades than the predominantly copper parts of the resource".

"The recent metallurgical test work on the lead-zinc-silver ore has shown that it can be batch processed through the copper plant to produce a high grade mixed lead-zinc concentrate. This means that the additional capital that was planned to be spent in the third year of operations to construct separate lead and zinc circuits will no longer be required"

Drilling is now completed with additional geological mapping, soil sampling and research work planned. Further assay results from the drilling are anticipated over the next three weeks with results from over 3,000 samples still outstanding. These will feed into the updated resource estimation that is forecast to be completed in July 2015.

To view all tables and figures, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-KGL-858296.pdf


About KGL Resources Limited:

KGL Resources Ltd. (ASX:KGL) is an Australian mineral exploration company focussed on increasing the high grade Resource at the Jervois Copper-Silver-Gold Project in the Northern Territory and developing it into a multi-metal mine.



Contact:

KGL Resources Ltd.
Mr Simon Milroy, Managing Director
Phone: (07) 3071 9003