As a result of gold price fluctuations since the 2012 feasibility study, and subsequent post feasibility study analysis, the board of Kula has determined that:
(a) additional gold reserves in the order of 300,000 – 500,000 ozs will increase the project’s financial robustness, potentially even in a lower gold price environment; and
(b) there are a number of resource extension opportunities recently identified within the company’s tenement holding, and mostly within the mining lease. These opportunities are within trucking distance to the proposed plant, and may host significant additional gold resources.
The funds raised will be utilised for continued exploration and analysis of the Woodlark Island Gold Project as detailed below, as well as working capital.
About the Kulumadau Area
The Kulumadau area has not been fully explored and there is potential to add significant further ounces to the project. This potential is indicated by:
(a) approximately 80,000 ozs of Measured and Indicated Resources may be converted to Ore Reserve, with in-fill drilling between the Kulumadau West and East deposits;
(b) the Kulumadau West deposit is still open down plunge and to the South;
(c) the Adelaide Zone is open down plunge and to the North West on strike; and
(d) some 397,000ozs of Inferred Resource peripheral to Ore Reserves in the Eastern Zone and Adelaide Zone could fall into an enlarged open pit.