Kimberley Metals Limited (ASX:KBL) Received Final Results For Infill Drilling At Sorby Hills Silver-Lead Project
Sydney, Jan 18, 2011 AEST (ABN Newswire) - Kimberley Metals Limited (
ASX:KBL) is pleased to announce that The Sorby Hills Joint Venture (75% Kimberley Metals and 25% Hunan Yuguang Gold & Lead Co., Ltd) has received the remaining assay results for a 99 hole RC and diamond drilling program at the Sorby Hills Silver-Lead project. The program was completed late in 2010 and tested the C, D and I Pods. The drilling program was designed to extend and convert the existing Inferred Resource of 17 Mt @ 4.6% Pb, 56 g/t Ag and 0.7% Zn into Indicated Resources as part of the project Feasibility Study. Drilling aimed at upgrading the E and F Pods is due later this year.
A full list of results for the infill drilling at the C, D and I pods is given in Appendix 1 (see link at the bottom of the release). Plans showing the location of the drill holes are also given in the Appendix. The number of mineralised drill holes returned, along with their size and grade, generally validate the previously modelled Inferred Resources for Sorby Hills. The Joint Venture considers these results to be very positive for the remodelling and upgrading of the resource to Indicated status, due to be completed during the first quarter of 2011.
Scoping Study
The drilling results highlight that substantial thicknesses of ore exists at shallow depths for the C and D Pods. This is also true for the Inferred Resources at the E and F Pods, which will be targeted for infill drilling during the dry season. Based on this recent exploration work and past drilling results, the Joint Venture plans to commence a scoping study on the staged development of mining operations at Sorby Hills. The first stage will focus on mining ore pods up to a maximum of between 50 and 60 metres in depth. The C, D and E Pods have significant resources at shallow depths sufficient to support an initial open cut mining operation at production rates of 400,000 tpa for 8 to 10 years. In particular, the high grade D Pod should provide significant cash flow in the early years.
Stripping and mining at these shallow depths is expected to be low cost due to free dig conditions to 15 metres. The water table is located at a similar depth, ensuring minimal initial pumping and dewatering. An extensive hydrology test work program, due to commence later this year, will define the pumping parameters for the initial open cut operations, as well as investigate the potential for mining in deeper zones such as at the I Pod. The mineralisation at the I Pod commences at 40 metres depth but deepens to the north. The high grades and significant thicknesses make this pod an attractive target for future mining following on from the shallower C, D, and E Pods.
Sorby Hills is a carbonate hosted Mississippi-style base metals deposit contained in dolomites that have soft grinding characteristics and high metallurgical recoveries. Previous test work has shown the high grade lead and silver concentrates produced from the deposit typically have grades greater than 65% lead, making it highly attractive to lead smelters.
For the complete Kimberley Metals Limited announcement including Appendix and figures, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/65020-ASX-KBL-524758.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.
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