KGL Resources Boosts Jervois Copper Resource by 17.4% Amid CEO Transition

Drilling Success Drives Resource Growth

KGL Resources Limited (ASX: KGL) has delivered a robust quarterly update, highlighting a 17.4% increase in its Jervois Mineral Resource Estimate (MRE) to 27.45 million tonnes. This uplift was underpinned by a comprehensive 2024 drilling program comprising 75 holes over 23,037 metres, which confirmed significant copper mineralisation across key zones including Reward Deeps, Reward Underground, and Rockface.

Notably, drill holes KJD637 and KJD638 at Reward Deeps South lode intersected wide zones of copper mineralisation with grades up to 2.57% Cu, while hole KJD639 at Reward Deeps North lode revealed a massive sulphide zone grading 4.05% Cu. At Reward Underground, multiple holes confirmed the continuity and extension of the Reward Main Shoot, with copper grades consistently supporting the resource model. Rockface drilling extended mineralisation 70 metres below the current resource, indicating open-ended potential at depth.

Resource Quality and Metal Content

Alongside the tonnage increase, contained copper metal rose from 472,000 tonnes to 513,000 tonnes. Silver and gold contained within the resource also grew by 14.7% and 11.3% respectively, reaching 22.4 million ounces of silver and 215,000 ounces of gold. While there was a slight dilution in average copper grade from 2.02% to 1.87%, the overall metal inventory expansion enhances the project's value proposition.

Advancing the Feasibility Study

The company is advancing its Feasibility Study Update (FSU) with multiple Tier 1 contractors engaged to refine mine design, scheduling, and civil works. RPMGlobal has been appointed as the Independent Technical Engineer and Environmental and Social Consultant, tasked with conducting a two-phase review to satisfy financial lender requirements. Phase 1, a critical issues review, is targeted for completion by late January 2025, followed by a detailed independent review.

To bolster project delivery capabilities, KGL has also engaged Axiom Project Services to supplement its internal team with experienced personnel. This strategic resourcing aligns with the company’s focus on delivering a robust and bankable feasibility outcome.

Corporate Developments and Market Context

On the corporate front, KGL reported a cash balance of $5.36 million as of 31 December 2024. However, the quarter saw a significant leadership change with CEO Philip Condon resigning to pursue other opportunities. Chairman Jeff Gerard has stepped into the Executive Chairman role on an interim basis while a search for a new CEO is underway.

The timing of these developments coincides with a copper market facing tightening supply and increasing demand, driven by the energy transition and technological advancements. KGL’s Jervois Project is well-positioned to capitalize on this environment, offering high-grade copper resources at a time when global supply deficits are projected to deepen.

Looking Ahead

With the drilling program complete and resource upgrades in hand, KGL’s immediate priority remains the delivery of the Feasibility Study Update and Independent Technical Engineer’s report. These milestones will be critical in setting the stage for project financing and development decisions. Meanwhile, the leadership transition introduces an element of uncertainty, underscoring the importance of stable governance as the company advances its flagship asset.