Kula Gold Limited notes with interest an ABC news report on Talison Lithium’s plans to run a multi-million-dollar study to examine the feasibility of reopening a railway line near Donnybrook in Western Australia, not used for more than 15 years.
Talison operates the Greenbushes Lithium Mine – the world’s largest hard rock lithium mine – and Kula’s Kirup and Brunswick Lithium Projects are within 25km of Greenbushes, meaning the prospect of the railway reopening is intriguing to the Company.
Kula is currently undertaking an RC Drilling program at its Cobra Lithium Prospect (approximately 20km from Greenbushes), with the Board approving a doubling of the program from 1,000m to 2,000m earlier this week.
Kula Managing Director Ric Dawson commented:
“With Talison’s Greenbushes Mine ramping up production, and in doing so, looking to safely delivery more ore to its processing plant in Kemerton via this major rail infrastructure investment, Kula is in the box seat for any discovery of Lithium mineralisation found at either of our Kirup or Brunswick Projects, located nearby to Greenbushes.
With our current drilling program progressing at the Cobra Lithium Prospect, which sits within Kirup, Kula would be well positioned to utilise this revitalised rail line given it runs through Kula tenements.”
Kula could expect serious interest from the majors who own Greenbushes (such as Albemarle, IGO, Tanqui) on any deposits of Lithium discovered in the ongoing drill programs at its projects.
Figure 1. Rail Map showing the currently disused Donnybrook to Greenbushes line – running through Kirup.
Figure 2. The disused railway line runs directly through the centre of Donnybrook. (ABC News: Georgia Loney)
The ABC reports: (Nov 2023)
The operator of the world’s largest lithium mine is weighing up the community impact – and cost — of re-opening a long-abandoned railway line in WA’s South West.
Key points:
- Talison Lithium is considering re-opening a disused rail line for shipments from its Greenbushes mine
- The line runs directly through the centre of Donnybrook
- The community is open to working with miner, but wants more research
There have long been concerns in the towns surrounding Talison Lithium’s Greenbushes mine about the constant rumbling of trucks along the highway.
About 2 million tonnes of lithium concentrate is set to be extracted from Talison’s mine each year as global demand increases, putting an extra 200 truck movements a day on the highway between Greenbushes and Bunbury.
A multi-million-dollar study is examining the feasibility of re-opening a railway line not used for more than 15 years.
Trucks versus rail
There have long been calls for the railway to re-open – but now there are questions about what that would actually mean.
The proposal would mean eight train trips a day to replace the estimated hundreds of truck movements.
The old railway runs through many small towns, including Donnybrook, where it is metres away from the Apple Fun Park, a major tourist attraction and heritage precinct, and the visitor centre.
Talison Lithium held a community meeting in Donnybrook this week to field people’s queries.
The company’s general manager of project development, Ian McGuire, said the rail proposal was motivated by safety.
“We are conscious of the increasing traffic on that section of road,” he said.
“There is the opportunity where we could take a portion of that traffic, and put it on to rail, which is seen as a safer option.”
He told the meeting there would be safety measures around critical pedestrian crossings and the level crossings.
“It’s a government driven process to evaluate the risks, of reinstating the rail line, particularly around the crossings, but also as the train would pass through the towns,” he said.
He said the outcome of the study was not a foregone conclusion.
Figure 3. Kula drilling at its Cobra Lithium Prospect – 20km from Greenbushes.
News Release
Date: 30 November 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 Kirup and Brunswick – near the world class Greenbushes Lithium Mine, as well Lithium at the Taliah-Nadia-Sasha Prospects in the WA goldfields at Southern Cross, and Gold and PGE at Westonia (adjacent to the producing Edna May Gold Mine – owned by ASX:RMS).
Kula discovered 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 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).
Contact the Company Secretary for more information – +61(08) 6144 0592 or cosec@kulagold.com.au
