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KGL Resources has a very healthy cash balance

Published: 11:58 05 May 2014 AEST

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KGL Resources' (ASX: KGL) quarterly report has outlined its substantial cash reserves of $19 million, compared to its market cap of just $12 million.

In February, KGL received a cash consideration of $15 million, settling the sale of the Murchison Gold project in Western Australia to Monument Mining.

The funds are being used to complete the Pre-Feasibility Study for the Jervois copper project in the Northern Territory and continue its exploration and development. 

Jervois is a high grade project at 1.25% copper, and currently hosts resources of 170,000 tonnes of copper and 11 million ounces of silver.

Recent extension drilling at Jervois confirmed continuity of the mineralised zone between the Bellbird and Bellbird North deposits.
   
Results from the first batch of drilling also indicated that mineralisation remains open at depth and delineated a new zone of copper, lead and zinc mineralisation to the east of Bellbird.

Best results included:

-    5 metres at 3.9% copper, 11.1g/t silver, 0.9g/t gold from 375 metres;
-    3 metres at 1.79% copper, 7.1g/t silver, 0.23g/t gold from 106 metres;
-    2 metres at 2.25% copper, 20.4g/t silver, 0.22g/t gold from 219 metres; and
-    3 metres at 1.88% copper, 10.1g/t silver, 0.26g/t gold from 137 metres.

Drilling is continuing at the Reward and East Reward zones to expand the current known resource.

The next drilling results are highly anticipated.

Proactive Investors maintains a share price target of $0.13 to $0.15 for KGL Resources in the next 6 to 9 months, which was first applied in November 2013.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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