Kula Gold Limited has released its Annual Report (End 31 December 2022) to shareholders, including updates on key Company Projects and a Letter from the Chairman.
HIGHLIGHTS [View PDF]
- Letter from Chairman to Shareholders
- Overviews of the Brunswick Project, Westonia Project, Boomerang Kaolin Deposit and Rankin Dome Project.
Letter from Kula Gold Chairman to Shareholders
Dear Shareholder
2022 was a year that saw some great success, starting with the discovery and drill-out of our maiden JORC resource of 93.3mt Boomerang Kaolin Deposit near Marvel Loch/Southern Cross.
Following this we advanced our land acquisition and preliminary work on our early-stage Brunswick Lithium Project with over 300km2 near the Greenbushes Lithium Mine. Kula continued its project generation taking prospects to drill stage, including the ‘Eye’ structure at the Westonia Project, located within 5km from the Edna May Gold Mine in the Southern Cross region.
We are now marketing the Boomerang Kaolin following the mining lease application. Our focus is lithium, gold and/or base metals, across a range of our projects. We have a wide range of carefully targeted drill programs in progress or emerging, towards the next discovery.
During the year, Simon Adams retired from the Board, who had been with the Company since 2019 and was instrumental in the early growth phases. We wish Simon all the best with his future endeavours.
We welcomed the appointment of Ric Dawson as the Company’s CEO, an experienced geologist and CEO who is providing our great team of geologists with insight and leadership.
We thank all of our team, contractors and consultants for their untiring efforts over the past year, and look forward to seeing the Company develop to the next stage.
“The reliability of exploration is based not on certainty but on a radical lack of certainty. That’s the challenge and exciting part of this business”
Yours sincerely,
Mark Stowell
Chairman, Kula Gold Limited
Brunswick Lithium Project (South West Region, WA) 100% owned
The Company commenced electromagnetic surveys across two key targets during the year targeting lithium, and gold principally.
The Brunswick Project is in the Western Gneiss Terrain within Australia’s Southwest and is prospective for lithium, archean gold and copper, epithermal gold (Donnybrook Gold Mine Prospect), porphyry gold and copper (White Sands Prospect) and ‘Julimar-style’ nickel, copper and platinum group elements.
Incredibly overlooked area, given the prospective geology, for example, the most recent material drilling program in the project area was BHP in 1985 for gold under a ~$5m JV farm-in.
Positive results from soil sampling and rock chip sampling at the Donnybrook Gold Mine Prospect (which hosts the historical Donnybrook Gold Mine) revealed a strong, continuous gold-in-soil anomaly of over 250m wide and extending over 650m along strike (open in both directions). The soil sampling program also resolved an area of anomalous copper values, which does not appear to be spatially related to the gold mineralisation.
The Company recognised a new prospect area, White Sands, where gold micro-nuggets were panned from a suspected volcanic tuff, which provides evidence for extrusive volcanism. Geologically speaking, this is an extremely exciting find for the Company. Volcanism of this kind has not been previously recognised in the region, nor has the heat & metal source for the epithermal gold mineralisation at Donnybrook Gold Mine been determined. Geologists of the Company theorise that the volcanism at White Sands could be the geological driver of the Donnybrook Gold Mine epithermal system; the presence of gold micro-nuggets at White Sands suggests that there is potential for gold mineralisation within a volcanic pipe-like structure.
If White Sands is mineralised, at the time of volcanism, it is possible that interaction of the resultant gold-bearing hydrothermal fluids with meteoric fluids facilitated the epithermal gold mineralisation at the Donnybrook Gold Mine (located just 6km away). Recognition of a potential porphyry gold-copper system near the town of Donnybrook means there is also potential for other nearby, undiscovered epithermal gold deposits.
Westonia Gold Project (Southern Cross WA) 100% owned
The Company completed a maiden exploration program over the central portion of E77/2766 returning auger geochemical results of up to 125ppb platinum, palladium and up to 35ppb of gold, as well as 1.85g/t gold in a quartz vein rock sample from a lateritic breakaway.
Subsequent to the year, the Company completed an air-core and RC reconnaissance drilling program testing six high-priority targets at the ‘eye’ structure. 614 composite samples have been sent for analysis and 90 of those samples have been requested for expedited processing as it appears the Westonia Project is situated on the same structural system as the 2Moz operating Edna May Gold Mine less than 5km away.
Boomerang Kaolin Deposit (Southern Cross Region WA) 100% owned
During 2022, RC drilling of the Boomerang Kaolin Deposit was completed at the 100% owned Marvel Loch-Airfield Project. Logging of the RC holes outlined that the white kaolin clays had an average vertical thickness of 29m, intercepted from around 5.7m vertically below surface.
Two diamond drill holes were completed to obtain necessary samples for required metallurgical test work, which was managed by Sedgeman, this work has now been completed.
HGMC were appointed to complete a resource estimate on the extensive kaolinised area outlined during the RC program with the Company announcing a maiden JORC resource of 93.3mt of kaolinised pegmatite.
The Company is continuing commercialisation studies with the focus on showing more opportunities for bulk volume of Metakaolin production including for the Green Construction Industry.
Kula’s Senior Geologists are still in the process of a technical review of the RC and diamond drilling data which has a major change to existing interpretations and the potential for further exploration activities.
The Company has lodged applications for a Mining Licence ML77/1302 & a Miscellaneous Licence L77/359.
Rankin Dome Project (Southern Cross WA) 100% owned
The Company has entered into a binding Farm-In Agreement with Australian Critical Minerals Pty Ltd (“ACM”) in respect of the Company’s non-core Rankin Dome Project comprising of three tenements being E77/2709, E77/2753 and E77/2768. Subsequent to the year-end the Farm-In Agreement has been extended 3 months to 30 June 2023.
News Release
Date: 29 March 2023 | ASX Code: KGD
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, 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 Lithiumy, Caesium ot Tantalum near the world class Greenbushes Lithium Mine.
Contact the Company Secretary for more information – +61(08) 6144 0592 or cosec@kulagold.com.au
