KBL Mining Ltd.: G Lode Underground Sampling Confirms High Grade Gold

Sydney - KBL Mining Ltd. (ASX:KBL) ("the Company") is pleased to announce the results of underground sampling of the G Lode that confirm high grade gold values.

G Lode is an important future source of underground gold/copper production at the Southern Ore Zone, Mineral Hill. As reported in a drilling update released 2 July 2013, the G Lode contains very high-grade intersections of Au-Cu mineralisation, including 26m at 3.6 g/t Au and 0.9% Cu from 59.5m; and 10m at 60.6 g/t Au and 2.2% Cu from 112m in underground drill hole KUSOZ001.

Presenting the historical results at a cut-off of 3g/t Gold Equivalent gives the following intercepts which better reflect the tenor of the mineralisation in KUSOZ001:

- 5.9m at 4.9g/t Au, 1.1% Cu and 5g/t Ag from 67.1m;

- 6.5m at 6.7g/t Au, 1.0% Cu and 7g/t Ag from 79m; and

- 5.6m at 108.5g/t Au, 3.8% Cu and 18g/t Ag from 113.7

[true widths are less than the reported drill intersections as the hole was drilled at a low angle to the dip of the mineralisation]

KBL commenced development on G Lode in 2015 at the 1025mRL level (approximately 300m below surface) This has provided the first access for underground mapping and sampling of the G Lode mineralisation. Wall sampling of the exposed breccia zones contained highly elevated gold, with individual one metre intervals yielding gold grades up to 81.8g/t (Figure 1 in link below)

The gold mineralisation is associated with a distinctive pyrite-rich quartz breccia near the western margin of G Lode (Photograph 1 in link below). The G Lode also hosts a more copper-rich breccia zone along the eastern footwall side. This zone contains several packages of strong Cu-Au mineralisation up to approximately 5m thick over a strike length of approximately 180m.

G Lode breccia intervals with highly elevated gold grades, have been recognised in drilling for about 60m along strike, and over 50m below the current development level (Figure 2 in link below). A grade control drilling program is planned to determine the boundaries of potential mining blocks and establish internal grade continuity between the 1025mRL and the 990mRL development levels. There are numerous other historical drill holes which have encountered elevated gold in the near vicinity of the underground sampling (detailed in the Appendix in link below) highlighting the potential of the gold-rich G Lode breccia as a priority resource extension drilling target.

To view figures, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-KBL-755726.pdf


About KBL Mining Ltd:

KBL Mining Ltd. (ASX:KBL) is an Australian resource Company listed on the ASX with a focus on producing precious and base metals. KBL's main assets include the Mineral Hill copper-gold-silver-lead-zinc mine near Condobolin in New South Wales and Sorby Hills lead-silver-zinc project in Western Australia. The Company has been operating the refurbished processing plant at Mineral Hill since October 2011 to produce copper-gold concentrates and in 2013 commenced producing a separate lead-silver concentrate. Sorby Hills (KBL holds 75% with Henan Yuguang Gold & Lead Co. Ltd (HYG&L) holding 25%) is a large near surface undeveloped silver-lead deposit close to port infrastructure and a short distance from Asian markets. A PFS for stage 1 of the project (400,000tpa open cut ore processed) was released on 6 December 2012 Environmental approvals for stage 1 were granted in 2014. A BFS is in progress to be followed by project financing.



Contact:

Greg Starr, Managing Director
KBL Mining Ltd.
Ph: +61-2-9927-2000