Mineral Resources

The Woodlark Island Gold Project has a JORC-compliant Mineral Resource of 2.1Moz at a 0.5g/t gold lower cut-off of 45.1 million tonnes at 1.5 g/t gold.

See below table for full details:

Table 1: Woodlark Island Gold Project Mineral Resources at a 0.5 g/t Au lower cut off

Table 1
Note 1: Totals may appear incorrect due to rounding
Note 2: The Busai Indicated Resource includes 0.4Mt @ 1.4/t Au for 20,000oz from overlying alluvial mineralisation
Note 3: The Busai Inferred Resource includes 0.4Mt @ 1.2/t Au for 15,000oz from overlying alluvial mineralisation and 3.9Mt @ 0.9g/t Au for 110,000oz from Munasi (2km southeast of Busai)
Note 4: The Woodlark King Inferred Resource includes 0.3Mt @ 3.0g/t Au for 30,000oz from Watou (1.5km south of Woodlark King)

Resources at Busai and Woodlark King were estimated by Hellman and Schofield Pty Ltd, using Multiple Indicator Kriging (MIK) methodology which models the Resources into large blocks based on drill spacing and assay density. This method was considered appropriate for the disseminated style of mineralisation at these deposits.

Resources at Kulumadau were estimated by Continental Resource Management Pty Ltd using Inverse Distance Squared (IDS) methodology which was considered appropriate for the narrower, multiple sheeted, nuggetty style of mineralisation.

For the purposes of the Feasibility Study, Project Resources are tabulated at a 1.0g/t Au lower cut-off as shown in the table below.

Table2: Woodlark Island Gold Project Mineral Resources at a 1.0 g/t Au lower cut off

Table 2

Ore Reserves

The Woodlark Island Gold Project has a 2004 JORC-compliant Ore Reserve of 766,000oz of gold for the Kulumadau, Busai and Woodlark King deposits.

Table3: Woodlark Island Gold Project Ore Reserves at a 1.0 g/t Au cut off

Table 3

The Ore Reserves for the Project were estimated by independent engineers, L.J.Putland & Associates. Open Pit optimisations were prepared for each of the deposits using a gold price of US$1200 per ounce and a processing throughput of 1.8 million tonnes per annum.  Pit slope angles for the various open pits were based on specific drilling and analysis by geotechnical and hydrological experts.  Metallurgical recoveries were based on the results from specific metallurgical test work.

Within the open pit designs there are additional Inferred Resources which cannot be classified as Reserves under JORC guidelines.  The mine plan assumes the treatment of in-pit Inferred Resources and a low grade stockpile which is below cut-off grade but above 0.5g/t Au.  In the final years of the project, it is assumed that the project will be operated in a manner that makes the low grade stockpile economic to process.

Bankable Feasibility Study

Kula Gold has completed 1.8Mtpa BFS for gold production of >100,000 ounces per year

  • High-grade open pit with 2.2g/t gold Reserve at US$1200 per ounce
  • Standard 1.8Mtpa CIL processing plant with total recovery of >90%
  • 9 year project life with all in sustaining costs of US$868 per ounce