KBL Mining Ltd.: Pearse North - More High Grade Gold Results

Sydney, Australia - KBL Mining Ltd. (ASX:KBL) ("the Company") is pleased to announce recent diamond and reverse circulation drilling has intersected high grade gold mineralisation at Pearse North, less than 200 metres from the currently operating Pearse Open Cut at the Mineral Hill Mine.

Pearse North

The Pearse North deposit, only 200 metres northwest of the operating Pearse open cut gold mine, is a shear-hosted epithermal gold-silver deposit of the same style as Pearse. At the Pearse deposits, gold is associated with a fine-grained pyrite-arsenopyrite-stibnite assemblage hosted in altered siliceous volcaniclastic rocks within a zone marked by a strong shear fabric. The Pearse North deposit has a strike length of over 100m.

Results have been received from one additional diamond drill hole and six (of total thirteen) RC holes drilled as infill between existing historical RC drill holes and testing for extensions to the deposit along strike to the north. The location of the new drill holes are displayed on Figure 1 in link below.

Particularly encouraging results were returned from holes testing the near-surface oxide mineralisation in the northern part of the deposit, previously intersected by KMHDD030 (7m at 6.7g/t Au and 7.4g/t Ag; and 35m at 8.6g/t Au and 133.5g/t Ag; results released 9 February 2016). The new results on section 2210N are depicted in Figure 2 in link below and include:

- 5 metres at 9.1g/t Au and 57g/t Ag from 35m; and

4 metres at 4.4g/t Au and 48g/t Ag from 43m (KMHRC160);

- 17 metres at 4.5g/t Au and 9g/t Ag from 4m

including 8m at 7.6g/t Au and 12g/t Ag (KMHRC161)

Assay results from drilling in the far northern part of the deposit (KMHRC162-164), testing for extensions along strike, were in line with the historical drilling, with predominantly low-grade Au mineralisation encountered. However, in the centre of the deposit area, the identification of a major cross cutting shear zone in KMHDD032 combined with the stronger than expected results from KMHRC165 at the eastern extremity has potentially revealed a secondary mineralised trend that has not been adequately tested by the current drill pattern. A similar cross-cutting structural trend has been identified at the northern end of the Pearse open cut and planning is underway for follow-up with shallow RAB drilling and geochemical sampling in an area of poor outcrop between and to the east of the Pearse deposits.

Further results from the most recent diamond and RC drilling include:

- 13.1 metres at 3.7g/t Au and 43g/t Ag from 54.25m,

including 4.95m at 6.5g/t Au and 57g/t Ag (KHMDD032);

- 8 metres at 2.9g/t Au and 11g/t Ag from 25m (KMHRC165)

The complete significant intercepts at specific grade cut-offs are presented in Table 1 in link below. Final results are expected from the last seven RC drill holes in the next two weeks.

The Pearse North deposit has an Inferred Mineral Resource estimate of 203kt @ 2.1g/t Au and 21.1g/t Ag*. An updated Mineral Resource estimate incorporating these new drill results and additional geological data will now be undertaken to support future Ore Reserve estimation and potential mine planning. The deposit is located on Exploration Lease EL1999 and an application for a Mining Lease over the deposit has been submitted (see Market Release "Pearse North Mining Lease Application Lodged - Further Drilling Results Pending", 22 March 2016).

Mineral Hill is highly underexplored in terms of modern exploration, as evidenced by recent discoveries of Red Terror, Pearse and Pearse North. The geological team are continuing to evaluate several other targets at the Mineral Hill project located near to the flotation and CIL processing facilities, which have the potential to add further resources.

To view tables and figures, please visit:
http://abnnewswire.net/lnk/F3P19HQ5


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