Sydney, Feb 15, 2007 (ABN Newswire) - I’ve just come back from reviewing the winter drilling programme at Akbel and it’s proceeding really well, we’ve completed three holes to date. Those holes have penetrated through bedrock and to some depth.
We’ve now got two rigs on site and once we have that two drill rig programme well under way, production should increase markedly and we’re anticipating that the programme should be well and truly completed by April.
In terms of the results so far, we’ve been encouraged that the holes we have drilled in this programme, in the winter programme, have given us quite a bit of information. We’re pleased that in at least two of those holes we have penetrated through the host rocks that host the Kumtor mine, they’re black carbonation shales.
In addition to that we’ve actually drilled through what we believe to be the Kumtor fault zone, which is a series of parallel graphitic filled fault zones, in the projected areas where we expect to see them. And we are really looking forward to the results coming from the assays of those intervals.
The idea of the licensing agreement with Monaro [Mining NL] is that Monaro, who is a uranium company operating both in Kyrgyzstan and Australia, will use our extensive database that we’ve accumulated over the last four years or more. They’re going to use that data to assess their own licences for uranium specifically.
Now the arrangement we have with Monaro is that, in addition to a fee [of US$50,000] that they’ll pay for the data, we will also have, this is Kentor, will have a first right of refusal [to farm-into] any base metal or gold opportunities that are generated by the processing of that data.
We see that as a favourable thing to Kentor in that it will provide hopefully a stream of new projects to add to the portfolio and at the same time we will have a good partner in Kyrgyzstan.
In December, Kentor raised $625,000 through a placement to Hayward Securities of Canada. That came at a critical time for Kentor in that we’ve now secured these funds to allow us to complete our drilling. It also broadens our shareholder base by being exposed to Hayward’s extensive network in both North America and Europe.
Kentor is actively seeking other business opportunities, not just in Kyrgyzstan but elsewhere. We’ve evaluated and reviewed something like 40 projects in recent times. That process is ongoing.
The key objectives for Kentor looking forward are the drill assessment of the remaining geophysical and geochemical targets at Akbel, where we’re looking for multi-million ounce gold deposits under the cover.
In addition to that, we will renew our effort to find other business opportunities, both in Kyrgyzstan and elsewhere, where Kentor believes it’s got a competitive edge.
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.
