Jervois Pre-Feasibility Study Shows Strong Economics
Brisbane, Oct 16, 2015 AEST (ABN Newswire) - KGL Resources Limited (
ASX:KGL) (KGOLF:OTCMKTS) is pleased to announce the results of the completed Pre-Feasibility Study (PFS) of KGL's 100% owned Jervois Copper-Silver Project in the Northern Territory.
Pre-Feasibility Study shows strong economics of KGL's Jervois Copper-Silver Project
- Low C1 cash cost of US$0.88/lb over mine life
- 3.2 years payback
- A$807M operating cash flow
The initial PFS, announced in December 2014, found Jervois to be technically and commercially feasible. Work since then has enhanced the project significantly.
Simon Milroy, Managing Director of KGL, commented:
"Jervois is confirmed as a robust, mid-level scale mining project with an initial annual production of more than 20,000 tonnes of copper, one million ounces of silver, plus lead and zinc, with a mine life of more than 8 years."
"In 2015, we increased and upgraded the mineral resource, simplified the metallurgical processing and reduced the operating costs."
"The additional studies now show Jervois to be:-
- a conventional copper flotation project with strong economics
- with a C1 (cash) cost of US$0.88/lb and C3 (including depreciation, amortisation and royalty) cost of US$2.13/lb
- among the lowest cost of the world's probable new mines."
"The PFS benefited from the upgrading of mineral resources and increases in silver, lead and zinc tonnages."
"With 12km of strike length, all current orebodies remain open, and the potential for substantial new discoveries is demonstrated by the recent intersection at the Rockface prospect in an area that is not included in the current mining inventory used in the PFS. The strongly mineralised 14m intersection is currently being assayed."
To view the full report, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-KGL-885308.pdf
About KGL Resources Ltd
KGL Resources (ASX:KGL) is an Australian mineral exploration company focussed on increasing the high grade Resource at the Jervois Copper-Silver-Gold Project in the Northern Territory and developing it into a multi-metal mine.
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