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KGL Resources shoots higher after Jervois copper project approval

Kitco News

Kitco News has launched its 2021 Outlook, which offers the most comprehensive coverage of precious metals markets in the new year. Trillions of dollars were pumped into financial markets in 2020 and that won't come without consequences. Economists expect that investors will be Bracing For Inflation in 2021.

(Kitco News) - Shares in KGL Resources (KGL:ASX) rose 41% in two sessions after the Northern Territory Government has approved KGL Resources’ mining management plan to develop the Jervois copper project following a pre-feasibility study.

Results from the pre-feasibility outlined an initial 7.5-year mining operation at Jervois, extracting high-grade copper with a mineral resource of 9.4 million tonnes at 2.41 per cent copper reserve.

KGL chairman Denis Wood said, “We are confident the drilling about to start in the new year will improve the quality and size of the resource,”.

He added “Jervois is exceptionally well placed to enter the world copper market as a supplier. It is a high-grade deposit at a time of declining copper grades among the major copper mines and constrained copper production generally.".

Lastly, he stated, “At the same time, demand is expected to increase strongly for copper in both emerging green energy and electric vehicle uses, as well as traditional construction, electricity transmission, communication and consumer goods applications.”.

As you can see from the daily price chart below the price shot up over the past two sessions backed by decent volume. There was some hesitation at the top of the channel marked in blue. If the price does move lower the previous wave high could provide some support. At the moment it seems, the bulls are clearly in charge. 

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