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          KBL Mining Begun Production From Discovered, High Grade Copper at Red Terror

          increase font size  reduce font Add date: 2016-11-25  Hits:68
          Core prompt: KBL Mining has begun production from the recently discovered, high grade copper gold Red Terror Lodes at its Mineral Hill Mine in New Sout

          KBL Mining has begun production from the recently discovered, high grade copper gold Red Terror Lodes at its Mineral Hill Mine in New South Wales.

          The immediate three month rolling mine plan will source about 50% of the ore feed from Red Terror and 50% from the Parkers Hill ore body, a new copper-gold discovery below current mining.

          Since mid-August continued exploration success at the new discovery has enabled the start of development to access the lodes. Last week the first stope of 18,000 tonnes, 75% of the monthly ore budget within the Red Terror Lodes was fired which will allow the commencement of mining.

          To date, development material from a drive through the high grade southern area of Red Terror has been processed through the plant with a material improvement in production characteristics over current ore from the Parkers Hill ore body.

          Key production improvements include higher head grades, with a target of 2.5% copper and 2 grams per tonne gold, improved recoveries, lower production costs and consistent mined ore quality with minimal dilution.

          High grade drill assays;
          Underground and surface drilling at the Red Terror deposit to date has identified significant and high grade copper gold intersections. The drilling program is ongoing and is expected to expand the extent of mineralization, which is open along strike and at depth towards the east. This drilling has identified a number of near vertical mineralized structures with the most significant designated as Southern Lode, South West Lode and North East Lode.

          Further drilling is expected to add significant tonnage to this copper and gold system, which currently has an exploration target of 150,000 to 250,000 tonnes at 2 to 2.5% copper and 1.5 to 2 gram per tonne gold. The latest results from an ongoing underground diamond drilling program include:

          1. 10.9 meters at 2% copper and 15.3 gram per tonne gold including 1.7 meters at 3.9% copper and 29.3 gram per tonne gold and 3 meters at 3.8% copper and 37 gram per tonne gold;
          2. 3.1 meters at 3.7% copper and 13 gram per tonne gold and
          3. 10.7 meters at 5.3% copper and 1.3 gram per tonne gold.

          Results from further surface reverse circulation drilling have also been received and include 11 meters at 4.2% copper and 1.1 gram per tonne gold including 3 meters at 12.4% copper and 1.1 gram per tonne gold and 4 meters at 10.7% copper and 0.4 gram per tonne gold. The Southern Lode is the most extensively drilled and developed to date and is the focus of the next three months’ production. However, recent results from drilling on the South West Lode indicate that it has higher gold characteristics and is open to the northeast.

           
           
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