KGL Resources Advances Jervois Copper Project with $405M NPV and Strong Drilling Results
KGL Resources has reported a robust quarterly update for its Jervois Copper Project, highlighting a strong feasibility study with a $405 million NPV and successful drilling that extends high-grade copper resources. The company also secured $4.2 million in new capital and is progressing strategic financing to target production by 2027.
- Feasibility study confirms Jervois Project’s economic robustness with A$405 million NPV
- Drilling program extends high-grade copper resources at Reward, Bellbird, Cox’s Find, and Crowe’s Nest
- Successful $4.2 million entitlement offer strengthens cash position to A$2.495 million
- Corporate leadership update with Jeff Gerard as Executive Chairman and ongoing CEO search
- Active engagement with Northern Territory government and stakeholders to support sustainable development
Robust Feasibility Study Underpins Jervois Copper Project
KGL Resources Limited has delivered a compelling quarterly activities report for the period ended 31 March 2025, underscoring the economic strength of its Jervois Copper Project in the Northern Territory. The recently updated Feasibility Study (FSU25) reveals a base case net present value (NPV) of A$405 million (8% real, after tax), supported by attractive capital efficiency and strong operating margins over a projected 10-year mine life. The study assumes a copper price of US$4.58/lb, with upside sensitivity to higher prices, reflecting the project's leverage to copper market dynamics amid global supply shortfalls.
Key enhancements in the feasibility update include an expanded open-pit plan that increases ore tonnage and smooths capital expenditure peaks by deferring underground development. Processing capacity improvements and refined reserve classifications further de-risk the project, positioning Jervois as one of Australia's highest-grade undeveloped copper deposits in a top-tier mining jurisdiction.
Drilling Success Extends High-Grade Resources
The March quarter saw significant progress in KGL’s 2024 drilling program, focused on resource extension and infill at multiple deposits within the Jervois project area. Notable results include broad zones of strong copper mineralisation at the Reward Main and Reward Deeps deposits, with assays such as 7.5 meters at 2.24% copper and 5 meters at 2.61% copper, respectively. Reward East drilling confirmed lateral extensions of mineralisation, supporting open-pit potential near surface.
At the Bellbird deposit, drilling targeted shallow depths to bridge resource gaps between known lodes, intersecting high-grade copper and associated lead-zinc-silver mineralisation that could enhance mine life and support underground extraction. Meanwhile, exploration at Cox’s Find and Crowe’s Nest prospects identified promising copper mineralisation aligned with geophysical anomalies, highlighting the potential for new discoveries along the structurally complex Jervois Fault system.
Exploration and Structural Insights Drive Growth Potential
Complementing drilling, KGL has advanced geophysical and structural studies with Viridien Multiphysics, employing gravity and magnetic inversion analyses to refine exploration targets. These efforts aim to unlock additional high-value polymetallic deposits within the Jervois and Unca Creek tenements, which remain underexplored despite their strategic location along a major crustal-scale fault. The work builds on insights from leading geologist Dr. Warwick Crowe, who supports a fluid migration model for mineralisation sourced from deep tectonic intrusions.
Corporate Developments and Financing Progress
On the corporate front, Jeff Gerard has stepped in as Executive Chairman while the company continues its search for a dedicated CEO. KGL successfully completed a non-renounceable pro-rata entitlement offer in March, raising approximately A$4.2 million before costs, bolstering its cash reserves to A$2.495 million at quarter end. The company has appointed Cutfield Freeman & Co as joint corporate advisors to secure optimal strategic financing and partners, with a goal to commence production by 2027.
Engagement with Northern Territory government officials, local councils, and community stakeholders has been active and supportive, reflecting KGL’s commitment to sustainable development, employment, and long-term value creation in the region. Presentations to brokers, institutional investors, and potential debt providers across major Australian cities and offshore markets have laid the groundwork for forthcoming financing discussions.
Outlook
With a robust feasibility foundation, ongoing drilling success, and strategic financing initiatives underway, KGL Resources is well-positioned to advance the Jervois Copper Project through development and into production. The company’s integrated approach balances economic returns with sustainability and stakeholder engagement, aiming to capitalise on a tightening copper market and deliver shareholder value.
Bottom Line?
KGL’s next critical phase will be securing strategic financing and finalising leadership to drive Jervois into production by 2027.
Questions in the middle?
- How will KGL structure its upcoming financing to balance dilution and project control?
- What timeline and criteria will guide the appointment of a permanent CEO?
- Can ongoing drilling and exploration sustain resource growth to extend mine life beyond current estimates?
