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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.