Kula-Gold-Logo-80

Woodlark Island Gold Project Delivers Further Exciting Exploration Results

  • Watou Prospect confirms continuity of significant surface gold mineralisation

  • Two continuous ore grade zones delineated and a third zone identified with mineralisation open along strike, including trench assay results of:

 – 8 metres @ 4.46g/t Au
– 23 metres @ 2.03 g/t Au

  • Mineralisation located in close proximity to the Woodlark King Deposit

  • Watou mineralisation demonstrates the potential for Woodlark to deliver additional resource ounces

     

Kula-Gold-Logo-80

Fosters Stockbroking – Production-ready project with scalable upside

Investment Highlights:

  • KGD owns 100% interest in the Woodlark Island Gold Project in Papua New Guinea, which is fully permitted with grant of mining lease and receipt of environment permit. The Project has 2.1Moz of JORC Resource gold at 1.5g/t, including a higher grade JORC Reserve of 766koz at 2.2g/t.
  • KGD has completed a Feasability Study on a 1.8Mtpa operation the Woodlark Project, as well as a Scoping Study for a 4Mtpa scenario. Mining is open pit of three deposits located within close proximity and conventional gravity/CIL plant.
  • We demonstrate that further conversion of inferred resources to reserves, as well as exploration can markedly improve valuation of Woodlark Project, by underpinning a longer life 1.8Mtpa operation or a staged 4Mtpa expansion.
  • In order to identify drill targets under the sedimentary cover, KGD undertook a helimag survey, which has improved on previous operator’s aeromag. Initial results from targets identified by helimag have been promising, with a successful drill hole and trenching results. This provides us with confidence that the Woodlark Project can grow in size and life.
  • KGD has minimized social risk to the Project, with completion of both a compensation and relocation agreements with the local communities. The company is also in the final stages of completing a Memorandum of Agreement with the National, Provincial, and Local government, as well as local landowner communities. The PNG government has decided to take 5% equity in the Project which should further align government and KGD’s interests.
  • The Project is currently supported by reasonable flat terrain, a well serviced camp, good network of roads, and airstrip.
Kula-Gold-Logo-80

Fosters Stockbroking – Watou trenching results reinforce exploration upside

Investment Highlights:

  • KGD announced last week the results of its infill trenching program at Watou.
  • A total of 1,378m of infill trenches were completed. Some of the best results included 8m @ 4.46/gt Au and 23m @ 2.03g/t Au.
  • Watou is located within 1km from the existing Woodlark King gold deposit, the latter containing a JORC Resource of 4Mt @ 1.4g/t for 180koz of Au. Given its close proximity, it is possible that Watou could be an extension of the Woodlark King deposit.
  • The results reinforce Watou as a prospective exploration target, possessing the likely potential to add at shallow ounces to the existing 2.1M JORC Resource ounces of the Woodlark Island Gold Project.
  • Given the positive results, Kula will continue further low-cost trenching at Watou in the March quarter.

 

Kula-Gold-Logo-80

$6.5 million Equity Fundraising Completed

  • Company now debt free and funded to add value at the Woodlark Island Gold Project

  • Debt facility closed with the conversion of debt into equity

  • Second tranche of Placement shares issued, funds received

  • Exploration activities continue on cost constrained basis targeting increasing higher grade Resources

  • Project development funding plans commenced in readiness for faster project development

 

Kula-Gold-Logo-80

RESULTS OF ANNUAL GENERAL MEETING

Kula Gold Limited (ASX: KGD), provides the following information regarding the results of the General Meeting of the Company held on 26 November 2014 in accordance with Listing Rule 3.13.2 and Section 251AA of the Corporations Act 2001 (Cth).

Resolution 1: Ratification of Issue of Shares

This resolution was passed, as an ordinary resolution on a show of hands.

The valid proxy votes lodged for this resolution were:

FOR AGAINST OPEN ABSTAIN
92,521,423 519,449 116,403 700

 

Resolution 2: Approval of Issue of Shares

This resolution was passed, as an ordinary resolution on a show of hands.

The valid proxy votes lodged for this resolution were:

FOR AGAINST OPEN ABSTAIN
86,508,089 519,449 116,403 499,033

 

Resolution 3: Approval of Issue of Options

This resolution was passed, as an ordinary resolution on a show of hands.

The valid proxy votes lodged for this resolution were:

FOR AGAINST OPEN ABSTAIN
86,458,089 569,449 116,403 499,033

 

Resolution 4: Approval of Shares and Options to RMB

This resolution was passed, as an ordinary resolution on a show of hands.

The valid proxy votes lodged for this resolution were:

FOR AGAINST OPEN ABSTAIN
110,819,545 569,449 116,403 5,700

 

Resolution 5: Approval of Shares and Options to Related Parties

This resolution was passed, as an ordinary resolution on a show of hands.

The valid proxy votes lodged for this resolution were:

FOR AGAINST OPEN ABSTAIN
43,630,573 565,249 137,487 28,603,758

 

Resolution 6: Approval of Shares and Options to Mr David Frecker

This resolution was passed, as an ordinary resolution on a show of hands.

The valid proxy votes lodged for this resolution were:

FOR AGAINST OPEN ABSTAIN
123,360,410 653,246 125,603

 

Resolution 7: Approval of Shares and Options to Mr Louis Rozman

This resolution was passed, as an ordinary resolution on a show of hands.

The valid proxy votes lodged for this resolution were:

FOR AGAINST OPEN ABSTAIN
123,360,410 653,246 125,603

 

Resolution 8: Approval of Shares and Options to Mr Mark Stowell

This resolution was passed, as an ordinary resolution on a show of hands.

The valid proxy votes lodged for this resolution were:

FOR AGAINST OPEN ABSTAIN
123,354,520 653,246 131,493

For and on behalf of the Board.
Leanne Ralph
Company Secretary

Kula-Gold-Logo-80

Technical Report on Review of Exploration Targets Based on 2014 Helimag Program

Kula Gold has recently completed a high quality helicopter magnetics survey and reviewed this along with the current geological knowledge gained from the discovery of the 2.1 million ounce Mineral Resource. The highlights of this work have been presented in a number announcements and investor presentations. A detail report of the work has now been completed.

A copy of the report can be found on the below link