Core 2015 Geophysics and Drilling Collaboration Program Bellbird Diamond Drilling EL 25429 Jervois Project

Abstract

In 2015, KGL Resources was granted funding from the Northern Territory Government as part of the Geophysics and Drilling Collaborations Program. The funding was for a diamond hole to test a coincident chargeability and conductivity induced polarization (IP) target at the Bellbird prospect at the Jervois Project. The Jervois Cu-Pb-Zn-Ag-Au project is located 250km ENE of Alice Springs and has a total endowment of 327kt copper, 190kt of lead-zinc and 22.6Moz of silver. Mineralisation is hosted by the Palaeoproterozoic Bonya Metamorphics within the Aileron Province of the Eastern Arunta. The Bonya Metamorphics comprises of siltstones, sandstones and limestone that have been metamorphosed to amphibolite grade schists, quartzite and marble. The main copper resources are at Reward and Bellbird with smaller lead-zinc resources at Green Parrot and Bellbird North prospects. The resources are made up of several steeply dipping sulphide lenses that are stratabound within a mineralisaed trend that extends for 12km within KGL's project area. An Induced Polarisation survey was conducted in 2015 covering the Bellbird resource and east to Rockface. The survey located a large coincident chargeability and conductivity anomaly to the east of Bellbird. The anomaly was interpreted to be either a folded or faulted repetition of the Bellbird resource or a new mineralized horizon. A 550m diamond hole (KJCD168) was designed to test the IP anomaly. KJCD168 intersected a broad package of cordierite/andalusite schist to 379m and then schists interbedded with calcsilicate/marble to 556m. From 556m to the end of hole at 710m the sequence was predominantly quartzite/psammite with decreasing schist. Copper, zinc and tungsten values were weakly anomalous within the calcsilicate with maximum values of 0.13% Cu, 0.21% Zn and 0.13% W. The sedimentary sequence intersected in KJCD168 is different to the sequence that hosts the Bellbird resource. It was concluded that the IP anomaly is not a folded or faulted repetition of Bellbird but a weakly mineralized horizon stratigraphically above the Bellbird resource. Although the copper values were only weakly anomalous the results are considered significant. The hole was designed to test the location where the IP chargeability and conductivity anomalies coincide. An additional hole will be required to test the centre of the chargeability anomaly that is considered to be a more prospective target.