KBL shares soar on new discoveries
PERTH (miningweekly.com) – The share price of base- and precious metals developer KBL Mining increased by more than 27% on Friday as the company added more resource to its Mineral Hill operation.
The junior told shareholders that ongoing underground drilling at the Red Terror deposit had continued to identify new areas of copper/gold mineralisation.
While current mining operations were focused on the Southwest Lode, and the previously released resource estimate at Red Terror had focused solely on this deposit, recently completed resource definition drill programmes have defined the Central and DDD lodes to support an upgrade of the Joint Ore Reserves Committee-compliant resource estimate.
KBL reported that the Red Terror deposit was now estimated to host some 287 920 t, at 1.6% copper and 1.8 g/t gold, with some 81% of the resource in the measured category, while the balance was classified as indicated and inferred.
The new Red Terror resource estimate added weight to the underground Mineral Hill copper/gold resource, which now stood at 1.32-million tons, averaging 1.5% copper, 3.1 g/t gold and 11 g/t silver.
To date, some 12 000 t had been blasted and mined at Red Terror, with grades averaging 3.31% copper and 0.5 g/t gold, which was significantly better than the 2.53% copper forecast.
The mining of Stope 15 and associated development was expected to continue into August this year, with a further 30 000 t available at an expected average grade of 2.24% copper.
A second production area, Stope 17, was also planned to complement the high-grade production from Stope 15, during this period.
After August, activities would focus on adjacent lodes to the north, specifically the DDD lode, which remains open to the north-east and was in the next target area for underground drilling.
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