⛏️ Kula Gold Limited reports the quarterly activity report for the period ended 31 December 2022.
HIGHLIGHTS – (View PDF)
- The Heli VTEM & Magnetic Survey was extended to define intrusive drill targets at Kula’s Westonia Nickel/PGE/Copper Project. A drilling program has been designed and commenced today.
- The ground exploration at Kula’s Brunswick Lithium Project identified 11 pegmatite targets, including a large 2km long and up to 300m wide mapped pegmatite.
- A technical review of the RC & diamond drilling data from the Boomerang Kaolin Deposit has revealed new potential at the Ballantine-White Gold & Crayfish Gold Prospects.
- Kula entered into an agreement to acquire a 70% interest (subject to the completion of satisfactory due diligence, shareholder and other regulatory approvals) in the lithium and related minerals in a key tenement to complement the existing Brunswick Project. The Kirup Project with an area of 117km2 and located within 25km of the world class Greenbushes Lithium Mine.
- The Company completed the second tranche of the Placement and is now well funded to expedite exploration activities in the first half of 2023.
BRUNSWICK PROJECT
Brunswick Lithium Project
The field program was significantly extended following good progress with field mapping and sampling of the numerous pegmatite occurrences on tenements E70/5513 & E70/5599 at the Company’s 100% Brunswick Project in the Southwest of WA, approximately 45km North of the world class Greenbushes Lithium Mine.
The exploration on ground is showing extensive prospective areas as the pegmatite targets increased from 6 to 11.
(Refer ASX Announcement dated 7 October 2022 – Brunswick Lithium Field Program Extended)
(Refer ASX Announcement dated 17 October 2022 – New Pegmatite Targets Identified – Brunswick Project)
On 14 November 2022, the Company reported excellent progress on the potential lithium bearing pegmatites, with a large 2km long and up to 300m wide pegmatite mapped.
(Refer ASX Announcement dated 14 November 2022 – Large Pegmatite Mapped – Brunswick Project).
No significant rock chips were received in this Quarter as part of this initial LCT program in these mapped pegmatites, however important geochemical data is being used to support future targeting and a review of the results is ongoing given known regional prospectivity for high fractionated and mineralised pegmatites.
Rock chips currently in for analysis from other areas will be released if of significance to the exploration of this large project area.
Donnybrook Gold Mine Prospect
Additional UFF soil sampling at DGBM Prospect to extend the strike to the north and east of the lithium anomaly are to be provided this Quarter.
The Company anticipates that further exploration work on this project will continue in the second quarter of 2023, following the acquisition of the Kirup Project, which is subject to Shareholder approval at a General Meeting to be held before 31 March 2023.
Kirup Lithium Project
On 28 November 2022, the Company entered into an agreement to acquire a 70% interest (subject to the completion of satisfactory due diligence, Shareholder and other regulatory approvals) in the lithium and related minerals in a key tenement, E70/5452 (“Kirup Project”) to complement the existing Brunswick Project.
The Kirup Project with an area of 117km2 and located within 25km of the world class Greenbushes Lithium Mine.
The acquisition consideration includes a cash reimbursement of exploration expenditure of $200,000, 12m fully paid ordinary shares and a deferred consideration component being $2m payable in fully paid ordinary shares upon announcing a JORC maiden resource of a minimum of 10mt of ore at a grade of 1% lithium or greater.
Figure 1: Kula’s Brunswick Project, the proposed Kirup Project, the DBSZ and the proximity to Greenbushes Mine and infrastructure.
The Company remains very excited regarding this acquisition and will provide further information contained within a Notice of Meeting to be sent to Shareholders for a General Meeting to be held on or before 31 March 2023.
On 19 December 2022, the Company announced a field reconnaissance trip as part of the due diligence to acquire the Kirup Project to add to the existing Brunswick Project.
Figure 2: Rock chip sampling in Kirup Project E70/5452 over the U2/Th ratio of the publicly available region airborne magnetic/radiometric survey data, within 25kms West of Greenbushes Mine.
As noted above in Figure 2, the very strong anomalous signature (red) provides a good target for Kula’s technical team to explore following the acquisition of the tenement, which remains subject to Shareholder approval at a General Meeting to be held on or before 31 March 2023.
(Refer ASX Announcement dated 19 December 2022, Lithium Potential – Brunswick & Kirup Projects)
WESTONIA NICKEL-PGE-COPPER PROJECT
The Company completed a maiden exploration auger drill program on its 100% owned Westonia Project, which is situated less than 5km South of the Edna May Gold Mine.
The program returned anomalous rock chip sample results of up to 498.3ppm copper anomalism, coincident with magnetic structures in gossanous outcrop as well as a 15.5ppb PGE.
(Refer ASX Announcement dated 28 October 2022 – Amended – Anomalous Copper & PGE – Westonia Project)
Following the successful and exciting results of the maiden exploration program, the Company commenced a helicopter VTEM & magnetic survey across the entirety of tenement E77/2766 in the South of the Westonia Project.
(Refer ASX Announcement dated 30 November 2022 – Heli VTEM & Mag Survey Commenced – Westonia Project)
The original survey comprising 417 line-kilometres with 200m line spacing was extended on 6 December 2022 to include additional infill 30 line-kilometres with 100m line spacing.
The Company was confident that the extended program would define high-priority intrusive drill targets. The drilling commenced in late January 2023 at the ‘Eye’ structure intrusive targets.
(Refer ASX Announcement dated 6 December 2022 – Heli VTEM & Mag Survey Extended – Westonia Project)
MARVEL LOCH–AIRFIELD PROJECT
Boomerang Kaolin Project, Ballantine-White Gold Prospect & Crayfish Gold Prospect
Kula’s Senior Geologist presented at the AIG MEGWA monthly meeting following a technical review of the RC and diamond drilling data from the Boomerang Kaolin Deposit drill-out, which included extending RC drill holes through to fresh rock. For further information on the major change to existing interpretations and the potential for further exploration activities refer to the MEGWA Presentation: The Marvel Loch Story located on the Company’s website.
OTHER TENEMENTS
During the quarter, the Company withdrew from one pending application for Lake Rebecca-Kurnalpi, tenement E28/3137 and from two pending applications for Marvel Loch, tenements E77/2807 & E77/2808.
The Company has lodged applications for a Mining Licence ML77/1302 & a Miscellaneous Licence L77/359 on the Boomerang Kaolin Deposit Project.
CORPORATE ACTIVITIES
As the number of prospective projects grows within the Company, on 26 October 2022, the Board was pleased to announce the appointment of experienced geologist and mining executive, Mr Ric Dawson as Chief Executive Officer.
During the quarter under review, we saw the resignation of Mr Simon Adams as a Non-Executive Director so he could focus on other business ventures. The Board extended their gratitude to Mr Adams for his valued contribution to the Company and wished him well for the future.
News Release
Date: 30 January 2023 | ASX Code: KGD
Competent Person Statement
The information in this report that relates to geology and exploration is based on information compiled by Mr. Ric Dawson, a Competent Person who is a member of the Australian Institute of Mining and Metallurgy. Mr. Dawson is a Geology and Exploration Consultant who has been engaged by Kula Gold Limited. Mr. Dawson has sufficient experience, which is relevant to the style of mineralisation, geology and type of deposit under consideration and to the activity being undertaken to qualify as a competent person under the 2012 edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (the 2012 JORC Code). Mr. Dawson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
About the Company
Kula Gold Limited (ASX: KGD) is a Western Australian mineral exploration company with expertise in the discovery of new mineral deposits in WA. The strategy is via large land positions and structural geological settings capable of hosting ~+1m oz gold or equivalent sized deposits including Lithium.
The Company is advancing projects within the South West region of WA for Lithium and Gold at Brunswick and Kirup, as well as Gold and PGE at Westonia adjacent to the producing Edna May Gold Mine (owned by ASX:RMS) in the WA goldfields.
The Company has a history of large resource discoveries with its foundation being the Woodlark Island Gold project in PNG, (+1m oz Gold) which was subsequently joint ventured and sold to (ASX: GPR).
Kula’s recent discovery was the large 93.3mt Boomerang Kaolin deposit near Southern Cross WA– Maiden resource announced 20 July 2022. This project is in the economic study phase and moving to PE funding or trade JV.
The exploration team are busily working towards the next mineral discovery, potentially Lithium near the world class Greenbushes Lithium Mine.
Contact the Company Secretary for more information – +61(08) 6144 0592 or cosec@kulagold.com.au
