Kula Gold Limited reports the quarterly activity report for the period ended 31 March 2023.
HIGHLIGHTS – (View PDF)
- DBGM Prospect – Lithium soil anomaly extended to 1.7km.
- Two drone magnetic surveys were completed and has enhanced the drill target potential at the Brunswick Project.
- Rock chip sampling at Marvel Loch – Airfield Project has resulted in anomalous lithium and tantalum results of up to 59.8ppm and 40.2ppm lithium and 55.5ppm tantalum, along a magnetic structure of up to 4km.
- Shareholder approval was obtained to acquire a 70% interest in the lithium and related minerals in the Kirup Project which has an area of 117km2 and located within 25km of the world class Greenbushes Lithium Mine.
- Airborne helicopter VTEM and a drone magnetic survey defined an ‘eye’ structure at the Westonia Project adjacent to the Edna May Gold Mine.
- An Air Core & RC drilling program was completed to test six high-priority targets at the Westonia Project.
BRUNSWICK PROJECT
Brunswick Lithium Project – 100% owned
During the quarter under review, the Company reported excellent progress on potential lithium bearing pegmatites at its 100% owned Brunswick Project, approximately 45km north of the world’s largest hard rock lithium mine, Greenbushes Lithium Mine in Western Australia.
The Company continued ground exploration work and increased the number of pegmatite targets being mapped and rock chipped. Rock chip samples were sent to the laboratory for multi-element analysis that includes not only Lithium (Li) detection but also the additional pathfinder elements Caesium (Cs), Niobium (Nb) and Tantalum (Ta) and will be reported in due course.
(Refer ASX Announcement dated 20 February 2023, Lithium Drill Target 1.7km Strike – Brunswick Project)
DBGM Prospect – 100% owned
Following a recent soil program in the northern portion of the tenement, the target has increased by over 700m in strike for a total potential strike of 1.7km with up to 102ppm lithium which is encouraging for surface sampling.
(Refer ASX Announcement dated 20 February 2023, Lithium Drill Target 1.7km Strike – Brunswick Project)
A prospect scale drone magnetic survey has been completed and has allowed for interpretation of zones of dilation or movement that would allow pegmatites to come to the near surface. This is now a drill ready target and permitting approvals have been received.
(Refer ASX Announcement dated 21 March 2023 – Tantalum & Gold Targets – Brunswick Projects)
Figure 1: DBGM Prospect with new drone magnetics over regional magnetics TMI_RTP with anomalous lithium geochemistry analysis and interpreted pegmatite adjacent to the historic Donnybrook Gold Mine.
Hippy Lady Prospect – 100% owned
Recent reconnaissance mapping and rock chip sampling has detected anomalous tantalum readings of 46ppm and 14ppm. The significance cannot be overstated on virgin ground and now provides Kula’s exploration team to do substantially more mapping, rock chipping and now soil sampling will be added to the activities during the next quarter.
(Refer ASX Announcement dated 20 February 2023, Lithium Drill Target 1.7km Strike – Brunswick Project).
Reconnaissance mapping and rock chip sampling continued and has detected anomalous tantalum readings of 74.8ppm and 45.1ppm. This is the second highly anomalous analysis for Kula’s exploration team. The drone magnetic survey was flown and the interpreted strike of the Hippy Lady Prospect which is now nearly 2km long.
(Refer ASX Announcement dated 21 March 2023 – Tantalum & Gold Targets – Brunswick Projects).
KIRUP PROJECT – 70% owned
On 31 March 2023, the Company held a General Meeting and received shareholder approval to complete the acquisition of a 70% interest in the lithium and related minerals in a key tenement, E70/5452 (“Kirup Project”) to complement the existing Brunswick Project.
The Kirup Project has 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. $70k of the cash consideration was paid in the previous quarter and the remaining $130k was paid subsequent to the end of this quarter. The 12m fully paid ordinary shares were also issued subsequent to the end of this quarter.
(Refer ASX Announcement dated 3 March 2023, Notice of General Meeting/Proxy Form).
Figure 2: Kula’s Kirup & Brunswick Projects, the DBSZ and proximity to Greenbushes Mine and Infrastructure.
Figure 3. U2 Th, Kirup Project E70/5452 within 25km West of Greenbushes.
MARVEL LOCH-AIRFIELD PROJECT – 100% owned
The Company reported reconnaissance field mapping and sampling on a lithium and tantalum bearing pegmatite at its 100% owned Marvel Loch-Airfield Project, approximately 90km north of the hard rock Mt Holland Lithium Mine in Western Australia.
The program detected anomalous readings of 59.8ppm and 40.2ppm lithium and a reading of 55.5ppm tantalum. A follow-up field mapping and rock chip program is schedule for the next quarter.
(Refer ASX Announcement dated 27 March 2023, Lithium & Tantalum Target – Marvel Loch–Airfield Project).
WESTONIA PROJECT – 100% owned
The Company defined an ‘eye’ structure and 3 conductors at various channels, following the completion of a helicopter VTEM and a drone magnetic survey at its 100% owned Westonia Project (tenement E77/2766) located 5km from the Edna May Gold Mine. As well as anomalous copper reported on 28 October 2022, with 498.3ppm copper anomalism, co-incident with magnetic structures and gossanous outcrop (Figure 4).
(Refer ASX Announcements dated 28 October 2022, Amended – Anomalous Copper & PGE – Westonia & 23 January 2023, ‘Eye’ Structure Defined – Westonia Project).
On 30 January 2023, the Company commenced a reconnaissance drilling program to test three high-priority intrusive targets at the Westonia Project.
(Refer ASX Announcement dated 30 January 2023, Drilling Commenced at ‘Eye’ Structure – Westonia Project).
On 10 February 2023, the Company announced that an Air Core and RC drilling program to test six high priority targets had been completed at the ‘eye’ structure at the Westonia Project. The drilling program consisted of 1 Air Core hole and 26 RC holes for 2,292m of drilling. The drilling intersected encouraging rock types consistent with an Archean Greenstone sequence and similar to surrounding greenstones. There were zones of alteration with potential mineralisation to be determined. 614 composite samples from drill cuttings were sent to the laboratory for analysis.
(Refer ASX Announcement dated 10 February 2023, Drilling Completed At ‘Eye’ Structure – Westonia Gold Project).
Fire assay results received for gold, platinum and palladium provided no intersections of significance but multi-element analysis is still pending and will be announced in due course.
Figure 4: Anomalous copper in auger and rock chips with magnetics RTP image.
OTHER TENEMENTS
During the quarter, the binding Farm-In Agreement with Australian Critical Minerals Pty Ltd was extended for 3 months to 30 June 2023 by mutual agreement.
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.
News Release
Date: 24 April 2022 | 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
