KGL Resources Limited (ASX: KGL) has released high-grade drill results at the KGL’s 100 per cent owned Jervois Copper Project approximately 300km north east of Alice Springs. KGL share price surged in 40 per cent growth in the first two days of trading on the ASX this week.

Shares of KGL Resources Limited (ASX:KGL) has traded 12.903% up in Wednesday’s trade. Around $311.82 million changed hands on the counter. The stock opened at $0.160 and touched an intra-day high and low of $0.180 and $0.160 respectively. The stock quoted a 52-week high of $0.292 and a 52-week low of $0.094. 

Highlights include assays from a drill hole KJCD416 at Rewards South that produced this high silver and additional high grade copper also intercepted at the Reward Main Lode hole KJCD418 at the bottom of the proposed Reward pit. Rewards Deep hole KJCD417 also confirmed resource growth potential closer to the surface.

“The latest intersection of high grade copper at the bottom of the proposed pit outline at Reward will improve further the options for the mine planning now under way, including increased production and reduced costs,” KGL Chairman Mr Denis Wood said.

However, delays are expected to project financing due to the impact of COVID-19 on global markets.

Drilling was halted at Jervois and the site was closed to minimize the exposure of on-site staff and the local community to personnel flying in and out from around Australia, the company said in a statement.

Denis Wood said they expect a favourable environment to develop Jervois after the COVID-19 pandemic.

“Internationally, economic recovery in China, which consumes half of the world’s copper, is forecast to increase copper demand more rapidly than production growth, creating a supply deficit and an increase in the copper price from the recent low levels caused by COVID-19,” he said.