Rockface Assay Results

For personal use only

14 February 2022

  • Rockface resource development drilling program has been completed
  • Final assay results for all 12 drillholes have been received
  • All holes intersected reportable copper mineralisation
  • Some notable intersections1 at Rockface include:
  1. KJCD481: 6.28m @ 2.39% Cu, 20.6 g/t Ag, 0.29 g/t Au from 716.07m

Including:

0.79m @ 6.54% Cu, 38.3 g/t Ag, 0.12 g/t Au from 716.07m

And incl.:

0.91m @ 4.00% Cu, 53.2 g/t Ag, 1.09 g/t Au from 719.00m

  1. KJCD481D3: 4.45m @ 18.88% Cu, 396.8 g/t Ag, 0.42 g/t Au from 725.35m

Including:

1.51m

@ 37.41% Cu, 1,105.5 g/t Ag, 0.59 g/t Au from 725.35m

And incl.:

1.16m

@ 21.98% Cu, 73.1 g/t Ag, 0.41 g/t Au from 728.06m

  1. KJCD481D6: 4.00m @ 19.80% Cu, 298.6 g/t Ag, 1.10 g/t Au from 698.88m

Including:

0.74m @ 61.4% Cu, 521.0 g/t Ag, 0.11 g/t Au from 698.88m

  1. KJCD481D7: 2.17m @ 12.81% Cu, 218.4 g/t Ag, 0.71 g/t Au from 692.00m

Including:

1.24m @ 21.49% Cu, 374.1 g/t Ag, 1.20 g/t Au from 692.97m

  • Rockface North high-grade copper mineralised domain confirmed
  • Rockface mineral resource estimation underway

KGL Resources Limited (ASX: KGL) (KGL or the Company) is pleased to report that the recent resource development drilling program of the Rockface deposit was successfully completed on 12th December 2021, and that all final assay results have now been received. Work has commenced on an update to the mineral resource model for Rockface and, together with the already finalised Reward and Bellbird resource estimates, will form the basis for revised and optimised feasibility study mine designs.

Rockface drill intersections above 1% copper cut off are presented in Table 1 below.

Like Reward and Bellbird, Rockface assays broadly confirm the existing mineral resource model and will result in refinements to the geological interpretations. The results also confirm the discovery of a higher- grade domain located near the western margin of the Rockface North lode.

Figure 1 below shows a longitudinal projection of the lower portion of the Rockface North lode, plotting the positions of the relevant copper intercepts.

KGL Managing Director, Mr. Simon Finnis remarked, "The receipt of the final set of assays from Rockface is an important step on the critical path for delivery of the Jervois feasibility study. The results support the overall continuity of the mineralisation and confirm the exciting discovery of a high-grade copper shoot in the west of the deposit. Importantly, the receipt of these assays allows us to immediately move to resource estimation of Rockface which, once completed, will combine with Reward and Bellbird updated resources to inform the mine design, Reserve and feasibility study.

1 All intersections reported are estimated true thicknesses.

KGL Resources Limited | Rockface Assay Results

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For personal use only

Rockface Assay Results

"At the present stage of knowledge, the intersection in KJCD481D8, of 3.04% copper (Table 1), in the Rockface Main lode is the deepest confirmed indication of reportable copper at Rockface and the second deepest for the whole of Jervois after a 4.7% Cu intercept in hole KJCD010W1, at Reward Deeps North. "

Table 1: 2021 Rockface drill intercepts (lower cut off Cu ≥ 1%)

KGL Resources Limited | Rockface Assay Results

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For personal use only

Rockface Assay Results

Figure 1: Long Section of Rockface North showing the position of the 2021 drill intersections in relation to the 2020 resource model and PFS mine plan silhouettes. Also shownare the DHEM conductor models interpreted from the DHEM surveys of KJCD481D3 and KJC481D4.

This announcement has been approved by the directors of KGL Resources Limited.

KGL Resources Limited | Rockface Assay Results

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Rockface Assay Results

onlyMetallurgy. Mr Levings is Principal Geologist for the Company. Mr Levings has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which is being undertaking to qualify as a Competent Person as defined in the 2012 Edition of 'Australasian Code for Reporting of Exploration

Competent Person Statement

The i formation in this announcement that relates to Exploration Targets and Exploration Results is based on data

c mpiled by John Levings BSc, a Competent Person who is a Fellow of The Australasian Institute of Mining and

R sults, Mineral Resources and Ore Reserves'. Mr Levings consents to the inclusion in the announcement of the matt rs based on his information in the form and context in which it appears.

The following drill holes were originally reported on the date indicated and using the JORC code specified in the table.

Date

JORC Reported

Hole

originally

use

Reported

Under

KJCD

481D3

11/10/2021

2012

KJCD

481D4

4/11/2021

2012

KJCD

481D5

4/11/2021

2012

KJCD

481D6

10/11/2021

2012

KJCD

481D7

8/12/2021

2012

KJCD

481D8

8/12/2021

2012

KJCD

010W1

15/01/2015

2012

personaland uncertainties. Although

every effort

has been made to verify such forward-looking statements, there can be no

Forward Looking statements

This elease includes certain forward-looking statements. The words "forecast", "estimate", "like", "anticipate", "project", "opinion", "should", "could", "may", "target" and other similar expressions are intended to identify forward looking

stat ments. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding forecast cash flows and potential mineralisation, resources and reserves, exploration results and future expansion plans and development objectives of KGL are forward-looking statements that involve various risks

assurance that such statements will prove to be accurate and actual results and future events could differ materially Forf om those anticipated in such statements. You should therefore not place undue reliance on such forward-looking

statements.

Statements regarding plans with respect to the Company's mineral properties may contain forward looking statements. Statements in relation to future matters can only be made where the Company has a reasonable basis for making those statements.

JORC Code, 2012 Edition - Table

Rockface Assay Results

only

1.1 Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria

JORC Code explanation

Commentary

Sampling

Nature and quality of sampling (e.g. cut channels, random

At Reward diamond drilling and reverse

t chniques

chips, or specific specialised industry standard measurement

circulation (RC) drilling were used to obtain

use

tools appropriate to the minerals under investigation, such as

samples for geological logging and

down hole gamma sondes, or handheld XRF instruments,

assaying. The core samples comprised a

etc). These examples should not be taken as limiting the

mixture of sawn HQ quarter core, sawn NQ

broad meaning of sampling.

half core and possibly BQ half core

Include reference to measures taken to ensure sample

(historical drilling only). Sample lengths are

representivity and the appropriate calibration of any

generally 1m, but at times length were

personal

measurement tools or systems used.

adjusted to take into account geological

Aspects of the determination of mineralisation that are

variations. RC sample intervals are

Material to the Public Report.

predominantly 1m intervals with some 2

In cases where 'industry standard' work has been done this

and 4m compositing (historical holes only)..

would be relatively simple (e.g. 'reverse circulation drilling

RC samples are routinely scanned by KGL

was used to obtain 1 m samples from which 3 kg was

Resources with a Niton XRF. Samples

pulverised to produce a 30 g charge for fire assay'). In other

assaying greater than 0.1% Cu, Pb or Zn

cases more explanation may be required, such as where

are submitted for analysis at a commercial

there is coarse gold that has inherent sampling problems.

laboratory.

Unusual commodities or mineralisation types (e.g. submarine

Mineralisation at all deposits is

nodules) may warrant disclosure of detailed information.

characterized by disseminations, veinlets

and large masses of chalcopyrite,

associated with magnetite-rich alteration

within a psammite. The mineralisation has

textures indicative of structural

emplacement within specific strata i.e. the

mineral appears stratabound.

Documentation of the historical drilling

(pre-2011) for Reward is variable.

Drilling

Drill type (e.g. core, reverse circulation, open-hole hammer,

The KGL and previous Jinka-Minerals RC

techniques

rotary air blast, auger, Bangka, sonic, etc) and details (e.g.

drilling was conducted using a reverse

For

core diameter, triple or standard tube, depth of diamond tails,

circulation rig with a 5.25-inch face-

face-sampling bit or other type, whether core is oriented and

sampling bit. Diamond drilling was either

if so, by what method, etc).

in NQ2 or HQ3 drill diameters.

Metallurgical diamond drilling (JMET holes)

were PQ

There is no documentation for the historic

drilling techniques.

Diamond drilling was generally cored from

surface with some of the deeper holes at

Rockface and Reward utilizing RC pre-

collars.

Oriented core has been measured for the

recent KGL drilling.

Drill sample

Method of recording and assessing core and chip sample

The KGL RC samples were not weighed

recovery

recoveries and results assessed.

on a regular basis but when completed no

Measures taken to maximise sample recovery and ensure

sample recovery issues were encountered

representative nature of the samples.

during the drilling program.

Whether a relationship exists between sample recovery and

Jinka Minerals and KGL split the rare

grade and whether sample bias may have occurred due to

overweight samples (>3kg) for assay.

preferential loss/gain of fine/coarse material.

Since overweight samples were rarely

reported no sample bias was established

between sample recovery and grade.

KGL Resources Limited | Rockface Assay Results

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KGL Resources Limited published this content on 13 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 February 2022 23:21:02 UTC.