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Quarterly Activity Report period ending 30/09/20

Kula Gold Ltd (“Kula” or the “Company”) reports on activities for Q3 2020 (period ending 30 September 2020).

Highlights:

  • Airfield Gold Project -Drilling to Commence.
  • Brunswick Ni-Cu-PGE Project Acquired.

1. Exploration Projects.

1.1 Airfield Gold Project, Marvel Loch (Kula – 100%)

Kula was granted its exploration license EL77/2621 over the south-central part of the Ghooli Dome in the Marvel Loch area of Western Australia, which is known as the Airfield Gold Project, in September 2020.

The Marvel Loch-Airfield Gold project covers an area of 120km2 over the south-central part of the Ghooli Dome, 5km east of the town of Marvel Loch, a major gold mining centre.  This region has seen over 15Moz of historical gold production and the Marvel Loch mine and mill continue production under the ownership of Minjar Gold.  Historic exploration was carried out by Sons of Gwalia Ltd (“SOG”) in the late 1980’s, and closing reports recommended follow-up drilling of these targets.  There is no evidence of any drilling work conducted since that time.

Crayfish Prospect (red circle) magnetics and historical Sons of Gwalia geochemistry results.

Crayfish Prospect (red circle) magnetics and historical Sons of Gwalia geochemistry results.

Kula has received the POW approval and subsequently completed track clearing work ahead of a proposed auger drilling program to commence in early November.

The auger drilling program is designed to test previously reported SOG  generated gold in soil anomalies, as well as Kula generated targets from reprocessed and re-interpreted magnetics.  The highest grade SOG sample of 311ppb Au is located on the North West trending structure which extends through the licence from the mineralised amphibolite’s to the South East of the licence. The North West extensions to this structure will be tested by several lines of Auger sampling.

Kula will use the services of a light vehicle mounted auger drilling unit that has the capacity to drill through the 3-7m sand cover to generate a consistent geochemical sampling medium.

 

Vehicle mounted auger drilling unit.

Vehicle mounted auger drilling unit.

1.2. Rankin Dome Gold Project, Southern Cross Projects (Kula – 100%)

During the quarter, Kula applied for an exploration license EL 77/2709 referred to as Rankin Dome Gold Project.  This tenement covers 160 km2 and is located 15km west of Southern Cross.

A field trip was completed in September which successfully located a 1988 water bore drill hole which had been assayed for gold, and identified gold values of 0.46g/t Au over 2m from 10m vertical downhole in amphibolite.  3 historic RC drill holes were located during the field visit which are not in the DMIRS database.  The drill cuttings were logged as amphibolite (greenstone possibly meta High Mg Basalt) unit with a soapy feel, although the area is mapped as granite.  The amphibolite is over 1km wide which adds significantly to the prospectivity of this project. The amphibolite is not obvious in the open file magnetics which show a granite signature suggesting the amphibolite is overlying the granite in this area.

Landowner agreement has been secured over a significant portion of the licence including the area with amphibolite.  On granting of the license, the initial work plan will comprise of a shallow geochemical aircore drilling program over each target area totalling approximately 200 holes.

Location of Kula’s Southern Cross Gold Projects.

Location of Kula’s Southern Cross Gold Projects.

1.3. Brunswick Project (Kula – 100%)

The Company applied for an exploration license (ELA70/5599) which covers 240 km2 which is located between the towns of Donnybrook and Brunswick Junction, approx. 150km south of Perth.  The licence is located in the highly prospective Western Gneiss Terrain which hosts Chalice Gold Mines, Julimar Ni-Cu-PGE Project to the North.

Studies of the open file magnetic data showed some subdued magnetic highs which Kula considered were worth investigating further to see if the subdued magnetic response was masking potential Ultramafics in the licence area.

The open file magnetics within the licence area were reprocessed to highlight the magnetic highs which will be field checked in the coming weeks to verify the actual rock types.  Comparison of the open file and re-processed magnetics are shown in the images below.

The licence area also contains an historical gold project east of Brunswick junction known as Brunswick and is also prospective for Lithium bearing pegmatites.

Brunswick Ni-Cu-PGE Prospect Location Map.

Brunswick Ni-Cu-PGE Prospect Location Map.

Images showing the comparison between reprocessed magnetics (left) and the open file magnetics (right) with red areas in the reprocessed magnetics interpreted to be potential Ultramafics – subject to field verification. Gold stars show historical gold projects, White stars are known pegmatites, Blue stars are rock/laterite quarries in the area

Images showing the comparison between reprocessed magnetics (left) and the open file magnetics (right) with red areas in the reprocessed magnetics interpreted to be potential Ultramafics – subject to field verification. Gold stars show historical gold projects, White stars are known pegmatites, Blue stars are rock/laterite quarries in the area

1.4. Lake Rebecca Gold Project, Kurnalpi, WA (Kula – 100%)

Kula completed a drilling program to test six discrete targets at its Lake Rebecca Project tenement (EL 28/2942).  The targets had been identified using a combination of geophysical and remotely sensed anomalies. A total of 59 aircore drillholes were completed for a total of 2100 meters.  The drilling program and sampling was supervised by the company’s consulting geologist and was carried out by experienced drilling contractor Raglan Drilling.

Assay results from the drilling confirmed key structures in the tenement located with aeromagnetic interpretation and remotely sensed imagery, with drilling showing some quartz veining, minor sulphides, and extensive hematite alteration, however gold mineralization was not intersected in the 6 targets drilled.

Kula’s Lake Rebecca tenements E28/2942 and ELA28/3029, 125km east of Kalgoorlie, adjacent to leases being explored by Apollo Consolidated (ASX: AOP) and Bulletin Resources (ASX: BNR)

Kula’s Lake Rebecca tenements E28/2942 and ELA28/3029, 125km east of Kalgoorlie, adjacent to leases being explored by Apollo Consolidated (ASX: AOP) and Bulletin Resources (ASX: BNR)

The next exploration program will focus on four new areas identified in Kula’s large 194km2 tenement holding, associated with chalcopyrite reflectance spectra zones from remotely sensed satellite imagery, and coincident interpreted structural targets.

A work plan comprising shallow geochemical auger drilling over each area totalling approximately 200 holes will be carried out.

During the quarter, an application was made for an exploration license (EL 28/3029) which is adjacent to the southern border of the original E28/2942 claim.  This additional 47 km2 license covers anomalies that that have been identified from geophysical analysis and open file geochemical gold anomalies which extend beyond the southern boundary of E28/2942.

By order of the Board.

– Media Release –
Date: 26 October 2020 | ASX Code: KGD


About the Company
Kula Gold Ltd (ASX: KGD) is a Western Australia gold exploration company focussed on large land positions and structural geological settings capable of hosting ~1m oz deposits.
The company has projects within the Southern Cross WA region including Rankin Dome and Marvel Loch, as well as near Kurnalpi and Brunswick. The company has a history of large gold resource discoveries with its foundation Woodlark Island project in PNG.
Contact the Company Secretary on Tel: +61(08) 6144 0592 or via info@kulagold.com.au

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