EL 28082 Unca Creek Project Annual Report for the reporting period 30 December 2016 to 29 December 2017

Abstract

In May 2017 KGL completed the acquisition of the exploration tenement EL 28082 that adjoins the Jervois Project. Known as the Unca Creek Exploration Project, the acquisition has considerable strategic value to the Company. It has almost trebled the size of the Jervois Project to 110.8 km. It offers geological similarities to the Jervois Project, and although it has been relatively underexplored, work undertaken by previous tenement holders indicates exploration potential and offers multiple walk-up drill targets. A review of previous exploration confirmed a strong copper trend extending north into Unca Creek from the Marshall-Reward deposits which represent a substantial part of the current Resource at Jervois. The Company reprocessed a previous IP survey revealing a strong chargeability anomaly from the tenement boundary to the Pioneer prospect 1.2 km to the north. At the Hamburger Hill prospect to the north-east, reprocessing of existing SAM (Sub-Audio Magnetics) data has recovered information showing a good chargeability anomaly coincident with known mineralisation and has outlined an untested northern extension of the anomaly. A gravity survey was implemented to improve the understanding of the geology, and in combination with existing drilling results, previous geophysical surveys and structural mapping, to define and refine new and existing drill targets. Early results have highlighted residual gravity anomalies coincident with mineralisation at both Pioneer, located on the northern extension of the Marshall-Reward trend and at Hamburger Hill. This link between gravity anomalies and mineralisation has been evident at the known deposits at Jervois. Residual gravity anomalies have been identified previously at all of the major deposits - Bellbird, Rockface, Green Parrot and Marshall-Reward. This is due at least in part to the association of higher density minerals such as magnetite and garnet with the sulphides minerals which themselves have a high density.