KGL Resources Advancing One of Australia's New Copper Projects

• KGL Resources is focused on developing its Jervois copper project in Australia, which has over 10 years of mine life and an average grade of over 2% copper.
• The company is working on optimizing the project to reduce costs and labor requirements, including increasing equipment size and contracting external partners for construction and operations. The goal is to ensure the project is done on time and on budget.
• Key next steps are infill drilling at the Reward open pit and hiring key personnel like a CEO, finance director and project director to strengthen the team for development and operations.
• Financing is targeted for late 2023 or early 2024, likely with a 50/50 debt-equity split and $150 million in equity. First production is targeted for 2025.
• The company is focused on copper due to strong demand projections, with the US government recently listing copper as a critical mineral. Higher copper prices will improve the financing prospects.

About KGL Resources

KGL Resources is an Australian exploration and development company focused on bringing its 100% owned Jervois Copper Project in the Northern Territory into production. The company has been exploring the project for over 10 years and under the leadership of Executive Chairman Dennis Wood for the past 7 years.

KGL Resources is a mineral exploration and development company focused on copper. Its main asset is the Jervois Copper Project located about 450km north east of Alice Springs in the Northern Territory. The company has been exploring the project for over 10 years and has delineated a large copper resource with a mine life of over 10 years. KGL is led by Executive Chairman Dennis Wood, who has decades of experience building and operating mines around the world.

Interview with Denis Wood, Executive Chairman of KGL Resources

Optimizing the Jervois Copper Project

Over the past few years, KGL has been focused on optimizing the Jervois Copper Project to improve project economics. This has included focusing on mining higher grade areas of the deposit first to reduce costs. The company recently completed a feasibility study for the project outlining a 10+ year mine life producing 25,000 tonnes of copper per year at an average grade of 2.1% copper. The study estimates capital costs of A$298 million and a net present value of A$240 million using a copper price of $3.60/lb.

KGL is now working on further optimizing the project to reduce costs and ensure the 18-month construction timeline can be met. This includes using larger mining equipment to reduce labor requirements, partnering with contractors for plant construction and operation, and securing early equipment orders to avoid inflationary pressures. The company is also evaluating opportunities for government assistance to fund infrastructure upgrades like roads, water pipelines and camps.

Advancing Towards a 2023/2024 Production Start

With optimization studies progressing well, KGL Resources is aiming to be ready for project financing in late 2023 and start copper production at Jervois in 2025. The company has now completed about 1/3 of its infill drilling program at the Reward deposit and is on track to upgrade resources to reserves by the end of 2023. Additional exploration drilling is also underway to expand resources at the high-grade Rockface underground deposit.

On the personnel side, KGL is actively searching for a CEO, Finance Director and Project Director to strengthen its team. Executive Chairman Dennis Wood plans to stay closely involved through project financing and development but bring in additional expertise as the company transitions towards becoming an Australian copper producer.

Conclusion

KGL Resources provides investors with exposure to one of the most advanced new Australian copper projects. With copper demand and prices expected to rise over the coming decade, projects with low operating costs will generate strong returns. The Jervois Copper Project stands out for its long mine life and high grades that will put it in the lowest half of the global copper cost curve.

As KGL navigates the final feasibility and financing stages over the next 12-18 months, investors have an opportunity to position themselves in a future Australian copper producer ideally timed to benefit from rising copper markets. The company's experienced leadership team brings significant mine building expertise that reduces execution risk once project development commences. For investors looking for leveraged copper exposure, KGL Resources presents a compelling risk/reward opportunity.