The KGL Resources Ltd (ASX: KGL) share price soared to a 5-month high today. The meteoric rise in the company's shares comes as KGL announced positive assay results from the Rockface diamond drill hole.
At the time of writing, the miner's shares have risen 14.17% to 68.5 cents. It's worth noting that during early afternoon trade, KGL shares touched the 70.5 cent mark, a level not seen since June 2021.
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Why has the KGL shares accelerated?
In the release, KGL advised it has intersected a zone of massive sulphides containing copper minerals, bornite and chalcopyrite.
Received assay results confirmed high-grade copper deposits as well as silver content from its diamond drill hole KJCD481D3 (D3).
In addition, KGL noted a new intersection of massive sulphides in hole KJCD481D6 (D6). The targeted Rockface North lode area is around a 40 metres up-plunge from the original intersection in D3.
As such the highlighted results are listed below:
- 23.6% copper (Cu) & 503 grams per tonne of silver (Ag) over 3.5 metres from a 725.35 metre downhole
- Includes 37.4% Cu & 1,106 g/t Ag over 1.51 metres from 725.35 metre downhole
- Includes 40.9% Cu & 1,427 g/t Ag over 0.78 metres from 725.35 metre downhole
- 40.9% Cu is the highest assay ever obtained in Jervois drilling
KGL revealed that follow-up drilling continues on the western side of Rockface while the second rig has now commenced drilling the shallower Reward Gap targets.
Samples from D6 have been prioritised as Australian laboratories manage through the workload. The assay results are expected to be delivered within the next several weeks.
KGL managing director, Simon Finnis commented:
Over 100,000 drill samples have been assayed for copper over the decades at Jervois and it is very gratifying to obtain the highest ever copper assay in the most recent set of results from Rockface.
Even more encouraging is the fact that 3 follow-up holes drilled after the KJCD481D3 discovery have all intersected zones of copper – bearing massive sulphides. The most recent hole, KJCD481D6, appears particularly significant due to its visually estimated high bornite content and it position 40 metres up- plunge from D3, indicating a scale of the high-grade target beyond expectations from the recent down- hole EM modelling.
About the KGL Resources share price
Looking back to the last 12 months, the KGL share price has accelerated over 120% for shareholders. The company's share price reached a 52-week high of 84.5 cents in April.
KGL commands a market capitalisation of roughly $272.66 million and has approximately 392.32 million shares outstanding.
