Sydney, Oct 30, 2006 (ABN Newswire) - The focus remains on Akbel and the drill testing there. Our work during the year has continued to confirm the high prospectivity of the area and just recently an independent review by a well-known consultant, Rob Dawney (AUSMEC Geoscience, Brisbane), has confirmed and validated the drill site positions and the priorities we’ve put on those holes.
Back in June we were encountering difficult ground conditions at Akbel. Those conditions unfortunately have continued and have delayed our drilling program at Akbel. However we’ve now identified that there is a larger rig available. We’ve identified that rig and are mobilising it from Mongolia to Kyrgyzstan via rail.
We will be drilling through the winter months, which start from pretty well now on in. We’re planning to use the big rig, an RD 1500 rig, to drill the pre-collars through the difficult moraine cover, set the casing.
Then we have the option of either drilling on with the big rig through into bedrock into the target zones, or indeed we can actually use the smaller RD 850 rig to do the same job, as long as it doesn’t have to drill that very difficult near-surface ground condition. So the smaller rig has the capability of doing the diamond tails, once the casing’s been set.
We’re much more hopeful now with this 2-rig capability that we’ll be able to achieve our objectives. And our objectives are the drilling of approximately 6 holes for a total of 2,300 metres of drilling in the coming months.
In addition to Akbel, we’ve been working on projects in the Alai Valley in the southern part of the country, and also at Kuylu and Kerkak Tepchi in the Bashkol licence which surrounds the Kumtor mine. There we’ve now completed our program for the year.
The results for the exploration program this year in areas outside of Akbel will be coming in the next few months.
We see particular value in identifying more advanced projects and reviewing those. To that end we’ve recently reviewed and completed due diligence on a number of gold opportunities. That work’s ongoing.
We’re also looking at potential partners to help us going forward with our plans. The partners we have identified are in the gold sector, people who traditionally look at letting the juniors do their exploration, their identifying, and these are people who’ve got the capability of assessing (and financing) projects and developing them.
We remain confident about the chances of success for Kentor and particularly at Akbel, where the opportunity to find a multimillion ounce deposit is very real.
We’ve learnt many lessons over the last year about how to drill this property under extremely difficult conditions. But now with the two rigs arriving on site, we believe that finally we’ve got the opportunity to complete the program as planned and deliver results for the company.
About KGL Resources Ltd
KGL Resources (ASX:KGL) is an Australian mineral exploration company focussed on increasing the high grade Resource at the Jervois Copper-Silver-Gold Project in the Northern Territory and developing it into a multi-metal mine.
