Investor Presentation
Released
Released
Announcement PDF
Proactive Investors
4th August 2015
1
Corporate Overview
ASX code
KGL
Issued shares
141.5 million
Options
2.8 million
Share Price
13.5 cents
Market capitalisation (3 Aug 15)
$19.1 million
Cash (30 June 2015)
$4.8 million
Debt
Nil
Board of Directors & Management
Simon Milroy
Managing Director
Chris Bain
Acting Chairman
Brad Ellis
Non-Executive Director
John Taylor
Non-Executive Director
Denis Wood
2
Non-Executive Director
1. Jervois Copper Project
2. Jervois PFS Optimisation
3. Resource Update
4. Geophysics Results
3
Jervois Project Setting
On the Plenty Highway
Concentrate to be trucked from
site to Alice Springs then
transported by rail to Darwin port
In the 1960’s, ore was trucked
from Jervois to Mt Isa
4
Geological Setting
•
•
•
5
Hosted by Bonya Metamorphics in
Eastern Arunta
Northerly Plunging Syncline
Hybrid SEDEX-VMS
Reward Prospect looking south
Reward
Marshall
Cox’s Find Green Parrot Rockface
6
6
Bellbird
PFS Optimisation
7
Jervois Pre-Feasibility Study
Dec 2014
2 mtpa Flotation Plant
7 Year Mine Life
21,000 tpa Copper Production
1 M ozpa Silver Production
Initial Capex $189m
C1 cost US$1.51/lb*
* (After by-product credits and using an exchange rate of A$/USD
0.845 and silver price of USD 20/oz)
8
PFS Optimisation
1.
2.
3.
4.
Geotechnical – Steeper Pit Walls
Metallurgy – Increased recovery of Copper and Silver
Resource Drilling
Operating Costs – Reductions in mining costs
Pre-Feasibility Study Update – October 2015
9
Resource Update
10
Mineral Resources Update
30.5 Mt @ 1.07% Cu for 327,000 t Cu
30.5 Mt @ 23 g/t Ag for 22.6 M oz Ag
25
350
Contained Silver (Moz)
Contained Copper Metal (kt)
300
250
200
150
100
15
10
5
50
0
May
2011
July
2011
Jan
2012
Nov
2012
Copper Indicated
11
20
Sep
2014
July
2015
Copper Inferred
0
May
2011
July
2011
Jan
2012
Silver Indicated
Nov
2012
Sep
2014
July
2015
Silver Inferred
Highlights of Resource Update
21% increase in Total Resource to 30.5Mt
36% increase in Indicated Resources to 11.5Mt
17% increase in contained copper to 327,000 tonnes
26% increase in contained silver to 22.6Moz
12
Lead and Zinc Resources
50
160
45
140
Contained Zinc Metal (kt)
Contained Lead Metal (kt)
40
120
100
80
60
40
30
25
20
15
10
20
5
0
0
May
2011
July
2011
Jan
2012
Nov
2012
Sep
2014
Lead Indicated
Lead Inferred
13
35
July
2015
May
2011
July
2011
Jan
2012
Nov
2012
Sep
2014
July
2015
Zinc Indicated
Zinc Inferred
59% increase in contained lead‐zinc to 190,000 tonnes
Geophysics
14
3D Induced Polarisation
Survey (IP)
(0-500m depth)
Magnetotelluric (MT)
(500m-1,500m depth)
15
IP Survey Results
TARGET
A
TARGET
G
TARGET
F
TARGET
B
TARGET
TARGETD
E
BELLBIR
D SOUTH
PIT
BELLBIRD
CENTRAL
PIT
TARGET
Z
TARGET
X
TARGET
C
Resistivity 400 Ohm-m
Chargeability 25 mrads
Chargeability 18 mrads
16
IP Results
The IP results show excellent correlation with known mineralisation.
Known copper mineralisation is both conductive (low resistivity) and
chargeable.
The IP survey generated a number of new anomalies which are both
conductive and chargeable in areas that have not previously been explored.
Drilling to test these targets will commence in two weeks.
17
Resistivity and Chargeability 200m RL (160m below Surface)
18
Resistivity and Chargeability 100m RL (260m below Surface)
19
Resistivity and Chargeability 0m RL (360m below Surface)
20
Schedule
RC and Diamond drilling to test IP targets to commence in 2 weeks
MT Results complete in September
PFS Update in October
21
For more information contact
Simon Milroy on +61 7 3071 9003
or info@kglresources.com
or visit www.kglresources.com
ASX code: KGL
Level 7, 167 Eagle Street
Brisbane, QLD 4000
AUSTRALIA
Forward-Looking Statements:
This presentation includes certain “Forward-Looking Statements”. All statements, other than statements of historical fact, included herein, including without
limitation, statements regarding forecast cash flows and potential mineralisation, resources and reserves, exploration results and future expansion plans
and development objectives of KGL Resources are forward-looking statements that involve various risks and uncertainties. There can be no assurance that
such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
22
July 2015 Jervois Resource
Jervois
Copper Resources
Marshall
Copper
Reward
Copper
East Reward
Bellbird
Cox’s Find
Rock Face
TOTAL
Jervois
Lead/Zinc Resources
Reward
Lead/Zinc
Green Parrot
Lead/Zinc
Bellbird North
TOTAL
2015 Combined
2014 Combined
2015/2014
23
Category
Tonnes
Mt
1.4
0.3
5.0
7.6
2.0
4.1
4.3
0.7
0.7
10.5
16.2
26.7
Copper
%
1.45
0.90
1.14
1.02
0.82
1.22
1.29
0.87
0.82
1.21
1.06
1.12
Silver
g/t
35.6
20.2
25.3
22.2
7.1
7.7
8.5
2.8
3.1
19.8
14.6
16.6
Lead
%
Zinc
%
Copper
kt
20.1
2.5
57.1
78.0
16.9
49.9
55.9
6.0
6.0
127.0
172.1
299.1
Silver
Moz
1.6
0.2
4.1
5.4
0.5
1.0
1.2
0.1
0.1
6.7
7.6
14.3
Lead
kt
Zinc
kt
Cut‐off
Cu%
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5
Indicated
Inferred
Indicated
Inferred
Inferred
Indicated
Inferred
TOTAL
Tonnes
Mt
0.5
0.8
0.5
1.4
0.7
1.0
2.8
3.8
Copper
%
0.74
0.51
0.99
0.81
0.57
0.87
0.67
0.72
Silver
g/t
70.7
90.9
64.0
78.0
17.9
67.3
67.6
67.5
Lead
%
6.8
8.6
0.9
1.8
1.7
3.8
3.7
3.7
Zinc
%
0.9
1.2
0.6
0.9
2.5
0.8
1.4
1.2
Copper
kt
3.6
4.1
5.1
11.1
3.8
8.7
19.0
27.7
Silver
Moz
1.1
2.3
1.1
3.4
0.4
2.2
6.2
8.4
Lead
kt
33.6
69.4
4.7
24.4
11.3
38.3
105.1
143.4
Zinc
kt
4.4
9.4
3.2
12.8
16.7
7.6
38.9
46.5
Cut‐off
Cu%
None
None
0.3
0.3
0.2
TOTAL
TOTAL
% Variance
30.5
25.3
21
1.07
1.10
23.0
22.1
327
280
17
22.6
18.0
26
143
84
72
47
36
30
Indicated
Inferred
Indicated
Inferred
Inferred
Indicated
Inferred
Inferred
Inferred
Indicated
Inferred
TOTAL
Category
Competent Person Statement
The Jervois Exploration data in this report is based on information evaluated by Martin Bennett, who is a member of the Australian
Institute of Geoscientists and a full time employee of KGL Resources Limited. Mr. Bennett has sufficient experience which is relevant
to the style of the mineralisation and the type of deposit under consideration and to the activity to which he is undertaking, to qualify
as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves. Mr. Bennett has consented to the inclusion of this information in the form and context in which it
appears in this report.
The Jervois Resources information and Exploration Potential were first released to the market on 29 July 2015 and complies with
JORC 2012. The company confirms that it is not aware of any new information or data that materially affects the information included
in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the
relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context
in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.’
The Jervois Pre-Feasibility Results were first released to the market on 8 December 2014 and complies with JORC 2012. The
company confirms that it is not aware of any new information or data that materially affects the information included in the original
market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market
announcement continue to apply and have not materially changed. The company is in the process of optimising the pre-feasibility
study, the results of which will be released to the market in October 2015.
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