This morning Kentor Gold released the results of additional drilling that has taken place at their Jervois project. The result was certainly well received by the market with the share price hitting a high of 12.5 cents in early trade (currently trading around 11 to 11.5 cents).
The significance of this announcement cannot be underestimated as it goes some way to confirming the “potential for a major mine at Jervois”. Previous drilling results had only confirmed a mineralisation to a depth of 200m, although at the time management was confident that it extended further. This was confirmed today with “mineralisation at Reward Prospect open at depth of 450m below surface and to the north along strike.
The best drilling result was 72m intersection at 3.27% copper, 51.33 g/t silver and 1.16 g/t gold (true with of 16m). And assays of up to 8.8% copper, 276 g/t silver and 19 g/t gold were recorded from individual samples within the hole.
Not only does this highlight the potential for an ore body with a higher grade than the current resource estimate (113,000 tonnes at 1.3%) but also the potential for significant gold and silver credits as well. Management had previously flagged the potential of a gold mineralisation, however historical drilling focused on copper and there was not enough data to include gold within the initial resource estimate. This could allow for some significant upside from any future resource update.
So overall I am very pleased with the announcement and look forward to future drilling results from Jervois and Kentor Gold’s other projects.
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