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Parkers Hill

Resources

Previous resource estimates for Parkers Hill have been described by 2 block models since 2009. A sulphide (primary) resource model was constructed in 2008 and an oxide resource in 2009. The boundary between these models has not been precise. Also the drilling in 2009 targeting the oxide resource had relevance to the sulphide resource but no re-calculation took place. Since 2009 a small number of metallurgical holes have been drilled and a great deal of work fine tuning the drill hole data base has been undertaken.  More recently detailed geological modelling of key structures and contacts has been undertaken by Kimberley Metal Ltd geologists. 

The resource has been remodelled using all available information, based on interpreted geology on sections 10m apart. The oxide and sulphide resource have been remodelled and are now contained within one single 3 dimensional block model.

Oxide Resource

The oxide resource has been modelled as two zones, an upper supergene zone where the original rock fabric has been completely destroyed and a saprock zone with relic geological texture.

Set out in the table below are the Resources for the Parkers Hill Oxide Zone as at September 2011.

Sulphide Resources

The sulphide resource is contained in fresh rock and consists of semicontinuous zones of sulphide vein sheets, closely spaced within a variably mineralised, lode domain.  The Total Sulphide Resource at a 0.6% copper cut-off grade.

In 2010 the sulphide resource was estimated at a 0.6% copper cut off grade using the 2009 model of the fresh rock/weathered rock contact.  This estimate yielded:

1.29mt @ 1.9% copper, 1.2% lead, 1.2% zinc and 35g/t silver

The modest increase in tonnage to 1.5Mt is due to more rigorously modelled domain boundaries brought about by additional information.

Set out in the table below are the Resources for the Parkers Hill Sulphide Zone as at September 2011.

Extending Parkers Hill Resource

KBL isis planning to build another stoping level at Parkers Hill below current development (1190RL). This new stoping level is currently not in Reserves.

KBL is targeting extending Parkers Hill Resource to the North East.