The KGL Resources Ltd (ASX: KGL) share price is soaring again today, continuing the strong gains seen throughout the week.
This meteoric rise in the company's shares comes off the back of yesterday's announcement that it received a mining management plan approval, which saw its share price rise by 24.53% in one day.
So far today, the miner's shares have risen another 12.12% to 37 cents. This reflects a significant increase in the KGL share price of more than 37% since the start of the week.
Why has the KGL share price accelerated?
Yesterday, KGL announced the Northern Territory government has given the green light for a mining management plan for the company's Jervois copper project.
A primary objective of a mining management plan is to formalise mining developments that will be carried out on site. The plan ensures that the environment is impacted at a minimum over the course of the mine life.
The approval was a key requirement in developing the Jervois project as a low-cost copper mine. The company estimates the site to have 9.4 million tonnes of copper at a high grade of 2.41%. This comes as the world is seeing a decrease in quality of the base metal, thus highlighting the superiority of the Jervois mine.
KGL believes that demand for copper will surge as the market moves to using more green energy and electric vehicles. In addition, demand from traditional applications that use copper such as construction, electricity transmission, communication and consumer goods is also expected to rise.
Following the approval, Kentor Minerals (owned by KGL) will seek to develop the mine, which will include processing and production of a copper concentrate and lead/zinc concentrate.
What did KGL management say?
KGL chair Mr Denis Wood commented on the pleasing outcome, saying:
The recently announced Pre-Feasibility Study (PFS) results show that the high-grade Jervois deposit will support a robust initial 7.5-year mining operation. We are confident the drilling about to start in the new year will improve the quality and size of the resource.
The new information will be fed into the full Feasibility Study (FS) which now has the Company's highest priority. Work is already well advanced on the FS which we expect will improve the economics of Jervois even further.
With the PFS completed and the authority to mine now in place, discussions have begun on project financing and the marketing of the mine's concentrate.
About the KGL share price
Looking back to the last 12 months, the KGL share price has risen over 60%. The miner's shares suffered a dip during the March crash where investors were able to pick up its shares for 9.4 cents, but shares have since rebounded strongly.
On current prices, KGL has a market capitalisation of $110.79 million.
