Kimberley Metals Limited (ASX:KBL) Updates on Sorby Hills 2011 Drilling Campaign
Sydney, Oct 27, 2011 AEST (ABN Newswire) - Kimberley Metals Limited (
ASX:KBL) is pleased to announce on behalf of the Sorby Hills Joint Venture that it has received the results for a further 50 drill holes from the Sorby Hills Project, near Kununurra in the East Kimberley region of Western Australia. The drill holes form part of a major reverse circulation drilling program conducted during September and October of this year, and follow on from the exceptionally high grade results announced to the market on 28 September. Sorby Hills is the largest undeveloped silver-lead deposit at open cut depth in Australia and is jointly owned by Kimberley Metals Ltd (75%) and China's largest lead and silver smelter, Henan Yuguang Gold and Lead Company Ltd (25%).
The drilling program was designed to support the Joint Venture's strategic plan to commence a 500,000 tonnes per annum open cut mining operation from 2013 and has predominantly targeted the shallow higher grade D-E Deposit (formerly known as D & E Pods). The program also included a number of sterilisation drill holes in areas of proposed mining infrastructure.
To date results have been received for 78 of the 109 holes drilled during the program. Consistent with the previously announced drill holes, the results have returned some exceptionally high grade intersections including but not limited to 25 metres at 8.4% Pb and 85 g/t Ag in hole KSHRC046, 11 metres at 14.2% Pb and 116 g/t Ag in hole KSHRC071, and 11 metres at 7.8% Pb and 197 g/t Ag in hole KSHRC037.
All drill holes are vertical and mineralised intervals are close to true thickness as the orebody dips shallowly to the east. A full list of significant intersections from the most recently received drill holes is presented in Table 1 (see link at the bottom of the release).
The new results give the Joint Venture further confidence that the drilling program will lead to a significant conversion of Inferred Resources to the Indicated Resource category and an upgrade in metal content for the D-E Deposit. Work on the new Resource Estimate will begin as soon as the remaining results have been received and should be completed by early December 2011.
The D-E Deposit remains open down dip to the east in most areas, with the recent results suggesting it is likely to merge along strike to the north with the F Deposit. The Joint Venture's strategy remains to focus on shallow high grade mineralisation (<70m deep) amenable to low cost open pit mining operations in C-DE deposits.
Kimberley Executive Chairman Mr Jim Wall said today "These latest results give added emphasis to the potential for a low cost, high margin open cut operation to be established at Sorby Hills from 2013."
For the complete Kimberley Metals announcement including figures and tables, please view the following link:
http://media.abnnewswire.net/media/en/docs/70276-ASX-KBL-563414.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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