Woodlark Island Gold Project

Kula Gold is developing the Woodlark Island Gold Project in Papua New Guinea, with near-term production prospects and significant potential exploration upside. In 2012 Kula Gold submitted a Feasibility Study and Mining Lease Application to the Mineral Resources Authority of Papua New Guinea.

Woodlark Island is positioned within a region of proven large scale gold mines, such as Misima and Porgera (Barrick Gold Corporation), Lihir Island, (Newcrest Mining Limited) and Hidden Valley (Harmony Gold Mining Co. Ltd and Newcrest Mining Limited), and was itself the site of historic gold mining from the late nineteenth century until the early 1960s.

Kula Gold’s wholly owned subsidiary, Woodlark Mining Limited (WML), holds exploration tenements covering over 450km2 in an area that management sees as largely underexplored for gold mineralisation.

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On Woodlark Island Kula Gold has access to key infrastructure, including a network of roads and tracks that were constructed by logging operators, an airstrip that was built in World War II, and a deep water harbour capable of accommodating coastal shipping. In addition, Kula Gold has established an 80 man exploration camp in close proximity to the bulk of the current gold resource.

Woodlark Island is part of a Tertiary-aged volcanic island arc complex, part of the Woodlark Oceanic Rise, one of a succession of composite east-west trending island arcs in the eastern region of PNG. The island is generally a low, swampy raised coral platform but with a central core of Tertiary basement rocks exposed as a low, northerly trending range with some isolated hills in the central part of the island.

Development

In PNG, for a Mining Lease to be granted, the Company is required to submit a Feasibility Study and Development Proposal together with an Environmental Impact Statement in conjunction with various social agreements with the local landholders, local level government, provincial government and the PNG national government.

These key milestones were completed during the year including the Compensation Agreement signed in April 2012 and the Relocation Agreement with the landowners in and around Kulumadau was signed in March 2012. These two agreements provide the framework for the Company’s dealings with the local landowners as the Project moves towards development.