KBL gets closer to drilling at Pearse North
KBL Mining (ASX:KBL) is one step closer to drilling the Pearse North deposit, saying it’s on track to receive final environmental approvals by late 2016.
KBL previously told shareholders that it would start drilling the Pearse corridor in August, but this represents the first confirmation of the timetable for drilling the Pearse North deposit.
The deposit, which lies about 200m north west of the operating Pearse open cut gold mine, has an ore reserve estimate of 179,000 tonnes at 2.5 grams per tonne gold and 21 grams per tonne silver.
This is an estimate and there are no firm numbers at this stage, so don’t use these numbers as the foundation of any investment decision with regard to this stock and invest with caution.
The submission of its Statement of Environmental Effects is the last major work to be completed by KBL before it gets the approval to start mining at the deposit.
The company said as part of the statement, it was able to confirm that 50 people would be employed at the project on an ongoing basis in addition to 30 contractors.
KBL is aiming to develop Pearse North as a shallow, open pit to get gold to market as quickly as possible given the sentiment for gold at the moment.
The sentiment was in evidence last week during the annual Diggers&Dealers event in Kalgoorlie.
Thanks to an upswing in the gold price, 29 of the 43 presenters were from the gold sector.
About KBL and Mineral Hill
KBL’s flagship project in the Mineral Hill project in the centre of NSW.
The project includes several deposits, including the Pearse which is producing, and the Pearse North deposit which is next on the slate for development.
Prospective targets include the Jack’s Hut, and the A,B, G, and H lodes within the Southern Ore Zone.
During the first quarter of 2016, KBL’s Mineral Hill operation produced 9,209oz of gold and 111,826oz of silver, with gold production up 95% and silver 226% from the previous quarter.
KBL’s deposits and targets are all within close proximity to the company’s 100% owned CIL and floatation production plant which has recently received over $30 million worth of upgrades, allowing it to process various ore types and improve recovery rates by over 50%.