29072021_KulaGoldMedia_QtrActReportendjune2021_July2021

Quarterly Activity Report – Period Ending 30/06/21

⛏️ Kula Gold Limited is pleased to update exploration activities for the quarter ended 30 June 2021.

29072021_KulaGoldMedia_QtrActReportendjune2021_July2021

HIGHLIGHTS

  • Boomerang Kaolin Prospect discovery – average 42m true thickness, including 10m downhole Halloysite in southern drillhole.
  • Previously unmapped Amphibolite (greenstone) intersected at Crayfish Prospect Southern Cross WA.
  • Three large exploration licences applied for where field mapping has confirmed Amphibolite interpreted from the magnetics.
  • Brunswick EL’s all granted by DMIRS.
  • Acquisition of 100% of E70/5560 adding to the large Brunswick PGE-Ni-Cu, Gold project which hosts some of the historical Donnybrook Gold Mine workings.
  • First pass soils completed over numerous geophysical targets at Brunswick PGE-Ni-Cu, Au Project.

1. Southern Cross-Airfield/Boomerang Kaolin Discovery

The Company received the assays for the previous RC drilling at the Crayfish Prospect on the 100% owned Airfield Project in Southern Cross, with only low-level gold intercepted.

Three holes drilled at the Boomerang Prospect (Airfield Project) intersected thick kaolin clays over weathered granite. A total of 28, 5m composite kaolin samples were sent to Bureau Veritas and CSIRO in Adelaide for wet sieving, XRF, Brightness and XRD analysis to determine the Kaolinite-Halloysite content of the -45µm fraction. Results showed approx. 47% reported to the -45µm fraction and has an average ISO Brightness of 81. The fraction also contained an interval with 10m downhole at 7% Halloysite. The fine fraction also averages 96% Kaolinite-Halloysite content.

The Boomerang Kaolin prospect lies in a favourable location, being ~25km from the Kalgoorlie water pipeline and Highway 94 Perth to Kalgoorlie, and 42km to the Southern Cross rail yard. Whilst Kula’s results are preliminary, the Company believes that the initial assays are significant in grade and extent and require further drilling. An RC rig is booked to continue drilling at the Boomerang Prospect in mid-August to test the exploration target of 30-100mt. (ASX announcement 13 July 2021).

Figure 2. White Kaolin Clays at the Airfield Project from 5 to 60m BMRC001

Figure 1. Bright white Kaolin clays at the Boomerang Project at Airfield Gold Marvel Loch.

2. Southern Cross -Airfield Project (Gold) (KGD 100%)

The Airfield gold project discovered amphibolite in the maiden RC drilling program. Amphibolite is a “greenstone” rock which hosts most of the 15million oz of gold mined and discovered in the Southern Cross region as shown in Fig 2 (below) in green.

Figure 2. The Southern Cross project includes 3 new ELA’s near Marvel Loch at Southern Cross.

Figure 2. The Southern Cross project includes 3 new ELA’s near Marvel Loch at Southern Cross.

Discovery of this prospective gold-hosting rock with anomalous gold values has been a major technical breakthrough, as it was historically mapped as granite (ref Fig 2 above in pink) and was never explored other than with some shallow auger work in 1988 by Sons of Gwalia Ltd (SOG).

As a result, the company’s technical team has been able to identify numerous other occurrences of similar geology and Kula acquired 3 new large ELA’s which encompass those prospects. Fieldwork on ground within days of acquisition confirmed that several prospects host amphibolite/greenstone. (Ref ASX release 2 July 2021).

3. Brunswick Cu–Ni–PGE, Au Li Project (KGD 100%)

During the quarter Kula expanded the Brunswick project area after it reached agreement to acquire E70/5560 of 2.9km2 from a private prospecting group for $15,000. This granted EL hosts the Donnybrook Gold mine (historic) and includes some of the historical shafts and drives still in existence from the mine which operated in 1897-1903, then 1930’s to 40’s as Hunter Venture mine. Subsequent to the end of the quarter, all of the Company’s Brunswick tenements were granted, with the granting of the principle tenement E70/5599 covering an approx. 45km north/south length.

Figure 3. Reprocessed Magnetics showing Kula’s tenements and the Donnybrook Gold Mine (gold star).

Figure 3. Reprocessed Magnetics showing Kula’s tenements and the Donnybrook Gold Mine (gold star).

The Company is presently compiling historical data for the Donnybrook Gold Mine licence area and plans to complete some surveying of the old shafts and use downhole cameras to survey the crosscut drives. Pending landowner agreement, a small surface channel sampling program will be used to define the gold distribution at surface before planning further work.

Fig 4. The Hunter Venture Headframe Donnybrook Gold Mine WA. Source: www.donnybrookgold.com.au

Fig 4. The Hunter Venture Headframe Donnybrook Gold Mine WA.
Source: www.donnybrookgold.com.au

At the larger Brunswick project, fieldwork by the Company’s geological team has identified potential for three types of mineralisation and these are now the focus of exploration work comprising a large soil sampling program which is well underway with a large quantity of assays pending:

1. Julimar Style Ni-Cu-PGE mineralisation.

2. Epithermal gold mineralisation– as evidenced by the historic Donnybrook Goldmines Ltd south of the licence with production of 1,100oz from 1,497 tons of ore between 1897 and 1904. (Ref: BHP Minerals Ltd DMIRS report of 1 Feb 1987 for exploration work 1985-87)

3. Archean Cu-Au mineralisation analogous to Newmont’s Boddington Copper-Gold Mine 75km NE which is one of the largest gold mines in the world, producing approximately 700k oz Au and 35kt Cu p.a. (Refer ASX release 29 March 2021)

The Company has submitted 840 samples to Bureau Veritas for sieving and Au, Pt, Pd analysis with multielements to be determined using pXRF in house. Laboratory turnaround times have increased substantially in the last three months and assays were still pending for the majority of the samples at quarter’s end.

4. Westonia Project at Southern Cross (KGD 100%)

Fig 6. Transported clays over calcrete Westonia Area

Fig 6. Transported clays over calcrete Westonia Area

A field visit to the Westonia area has confirmed extensive laterite development coincident with the gravity target south of Westonia Mine. Once granted an extensive auger program is planned to commence in this area which shows good calcrete development under transported material (Photo below).

Fig 5. Kula’s tenements in the Westonia area

Fig 5. Kula’s tenements in the Westonia area

5. Kurnalpi-Lake Rebecca Gold Project (KGD 100%)

The Company’s Lake Rebecca Gold project is readying for the next phase of exploration following neighbouring company Apollo Consolidated’s (ASX: AOP) recent announcement on 20 April 2021 of a 50% increase in Indicated gold resources at their Lake Rebecca Gold discovery. An auger program is planned to commence in Q3.

Fig 7. Kula’s Kurnalpi project tenement location, with neighbouring explorers.

Fig 7. Kula’s Kurnalpi project tenement location, with neighbouring explorers.

6. Indicative Exploration Timeline for the Next 3 Quarters

Indicative Kula Exploration Timeline for the Next 3 Quarters.

Indicative Kula Exploration Timeline for the Next 3 Quarters 2021-2022

7. Corporate

After quarter end, the Company completed a placement of 36m shares to raise $1.8m under its 7.1 and 7.1A share issuance capacity managed by Foster Stockbroking Pty Ltd.

– News Release –
Date: 29 July 2021 | 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 Marvel Loch, Rankin Dome and Westonia, 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 cosec@kulagold.com.au

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