KGL Resources : Further High-Grade Drill Results at Jervois Copper Project

Further High-Grade Drill Results at KGL's Jervois Copper Project

For personal use only

28 July 2022

• Assay results of 23-hole drilling program received
• Significant copper intersection from Reward East (FW) Lode

1. KJCD533: 11.21m1 @ 1.71% Cu, 20.3 g/t Ag from 329.7m

And:	1.62m @ 4.86% Cu, 67.2 g/t Ag from 348.14m

• Reward (Marshall) Lode deep potential enhanced - remains open at depth o KJCD529: 4.42m @ 2.21% Cu, 19.9 g/t Ag, 0.14 g/t Au from 763.2m
• Bellbird Mineral Resource update drilling program completed

1. 16 reverse circulation (RC) holes for 2,801 metres - assays awaited

KGL Resources Limited (ASX: KGL) (KGL or the Company) is pleased to report the final assay results from a recently completed 23-hole drilling program, testing brownfields targets within and nearby the Reward Deposit, at Jervois.

Drilling was carried out to test 4 target areas and each will be reported individually.

1. Reward Gap and East Lodes
2. Reward Marshall Deeps
3. Reward South (including Reward Silver)
4. Reward North

KGL Executive Chairman Denis Wood comments.

• The potential at depth for additional mineralisation at >2% copper and at minable thicknesses is clearly demonstrated by the drilling at Marshall Deeps, at the southern end of Reward. Hole KJCD529 will be included in the next phase of DHEM surveys which will help us design follow-up drilling.

"The now-completed RC drilling program at Bellbird was necessary to improve the ratio of Indicated to Inferred mineral resources, which is expected to result in an increase in ore reserves contained within the proposed open pit design. Assaying of these samples is prioritised and an updated Bellbird mineral resource and ore reserve estimates will follow."

1 All intersections reported are estimated true thicknesses unless otherwise specified

KGL Resources Limited | Drill Results

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Further High-Grade Drill Results at KGL's Jervois Copper Project

For personal use only

Reward Gap and East Lodes

The 4 holes in this program were drilled to follow up on a previous intersection from the Reward Gap which had not been incorporated in the latest mineral resource model. A secondary aim was to increase the confidence in the Reward East Lodes, with drilling results confirming a high-grade intersection of copper:

∙ KJCD533:	11.21m @ 1.71% Cu, 20.3 g/t Ag from 329.7m
And:	1.62m @ 4.86% Cu, 67.2 g/t Ag from 348.15m

The complete record of significant intersections from these 4 holes is reported in Table 1 below.

Hole_ID	Depth_From	Depth_To	Downhole	Estimated	Cu	Ag	Au	Pb	Zn
Thickness	True Thickness	Target
	m	m	m	m	%	g/t	g/t	%	%
KJD532	151.39	152.30	0.91	0.66	1.44	14.1	0.19	0.01	0.10	Reward Gap
	325.30	326.47	1.17	0.96	1.97	5.2	0.12	0.00	0.02	East Lode (FW)
KJCD533	309.40	310.60	1.20	0.80	1.02	6.0	0.02	0.01	0.06	East Lode (HW)
	329.70	343.30	13.60	11.21	1.71	20.3	0.13	0.02	0.06	East Lode (FW)
	348.15	350.12	1.97	1.62	4.86	67.2	0.16	0.05	0.15	East Lode (FW)
KJCD534	229.60	230.61	1.01	0.47	1.62	10.3	0.54	0.07	0.32	Reward Gap
	258.54	261.62	3.08	1.79	2.53	27.6	1.12	0.06	0.17	Reward Deeps Sth
	363.00	369.03	6.03	4.37	0.75	10.9	0.11	0.01	0.03	East Lode (FW)
	400.20	401.06	0.86	0.62	1.11	6.3	0.04	0.00	0.02
KJCD535	134.26	135.38	1.12	0.86	0.11	12.5	0.01	1.86	0.91	Reward
	155.00	156.00	1.00	0.77	0.12	2.0	0.02	1.24	0.10	Reward Deeps Sth
	186.47	187.41	0.94	0.73	0.14	13.5	0.02	2.62	0.25

Table 1: Significant Intersections from the Reward Gap and Reward East Lodes

Reward Marshall Deeps

Two holes were drilled to test the depth potential of the Marshall Lode at Reward. The deepest hole, KJCD529 yielded the best results. The first mineralised interval corresponds with the downwards projection of the Marshall Lode:

• KJCD529: 4.59m @ 1.02% Cu, 8.8 g/t Ag, 0.07 g/t Au from 704.9m

The hole continued deeper to discover 2 new zones of mineralisation, with better grade, to the east of Marshall:

• KJCD529: 3.65m @ 1.55% Cu, 17.7 g/t Ag, 0.11 g/t Au from 750.5m

And:	4.42m @ 2.21% Cu, 19.9 g/t Ag, 0.14 g/t Au from 763.2m

The results of the two Marshall deeps holes are listed in Table 2 below. Note the intervals of gold mineralisation that occur separately to the main copper lodes in KJCD529.

KGL Resources Limited | Drill Results

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Further High-Grade Drill Results at KGL's Jervois Copper Project

For personal use only

Hole_ID	Depth_From	Depth_To	Downhole	Estimated	Cu	Ag	Au
Thickness	True Thickness	Target
	m	m	m	m	%	g/t	g/t
	704.90	710.17	5.27	4.59	1.02	8.8	0.07
KJCD529	719.00	720.00	1.00	0.88	0.04	6.7	2.83	Marshall Deeps
737.17	738.40	1.23	1.11	0.05	1.4	1.13
	750.50	754.50	4.00	3.65	1.55	17.7	0.11
	763.20	768.00	4.80	4.42	2.21	19.9	0.14
KJCD531	415.00	416.00	1.00	0.67	1.21	6.1	0.07	Marshall Deeps
	496.00	498.00	2.00	1.34	1.46	16.3	0.33
	524.00	525.00	1.00	0.67	1.17	6.6	0.09

Table 2: Significant Intersections from Reward Marshall Deeps

The results of KJCD529 are important as they demonstrate a continuity of the copper mineralisation at depth, in the southern part of Reward. The results enhance the prospectivity of the nearby IP and gravity anomalies at depth and to the south (Figure 1 and 2).

KGL Resources Limited | Drill Results

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use only		Further High-Grade Drill Results at KGL's Jervois Copper Project
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Figure 1 Cross Section of Marshall Deeps hole KJCD529. Notable are 2 new zones of copper mineralisation situated east of the interpreted main
		Marshall deeps lode
KGL Resources Limited | Drill Results
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use only		Further High-Grade Drill Results at KGL's Jervois Copper Project
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Figure 2 Long projection of the Reward Deposit. Mineral Resource Block model depicted as a product of copper grade and thickness. IP

inversion model shown as large pink-yellow blocks (warmer colours depict stronger IP chargeability). Recent results from KJCD529 enhance the prospectivity at depth and south of the Marshall Lode resource model.

KGL Resources Limited | Drill Results

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