Kula Gold Limited presents its Quarterly Activity Report for the period ended 30 June 2024.
Figure 1: Kula’s Southern Cross Projects (noting the non-Kula projects in green).
MT PALMER GOLD MINE – 51% (earning to 80%)
The Company has acquired 51% and earning to 80% of the historical Mt Palmer Gold Mine, located near Marvel Loch in the Southern Cross Goldfields in Western Australia, last commercially mined in 1944 down to only the 6th level (~160m) at 15.9 grams/tonne.
Kula acquired 51% of the tenements (M77/0406, E77/2210, E77/2423 & E77/2668) from Aurumin Limited (“Aurumin”) via the issue of 25,000,000 fully paid ordinary shares at the deemed issue price of $0.01, following shareholder approval.
Kula can earn-in a further 29% by incurring exploration expenditure of $1m for a period of up to 3 years. Aurumin has, in the event Kula does not earn the additional 29% interest, the right to purchase back a 2% interest for $1.
Thereafter Kula and Aurumin contribute on a prorated basis or Aurumin dilutes. Aurumin’s equity position converts to a 1% net smelter royalty if diluted to less than 10%. (Refer ASX Announcement, dated 31 May 2024, Mt Palmer Gold Mine Acquisiton and Placement).
MARVEL LOCH PROJECT – 100%
Figure 2: Kula’s Marvel Loch Projects (noting the non-Kula projects in green).
Boomerang Gold Prospect
A planned close spaced ultra fine fraction (UFF) geochemical soil sampling programme was completed on a 20m x 20m grid which defined a gold anomaly over 200m in length at the Boomerang Gold Prospect at the Marvel Loch Project, near Southern Cross WA.
RC drilling commenced during the week ended 3 May 2024, testing for gold and rare earth elements. (Refer ASX Announcement, dated 3 May 2024, RC Drilling Commenced – Boomerang Gold Prospect).
The short reconnaissance Boomerang RC drill programme of 4 holes below a soil anomaly did not return any gold assays of significance but intersected 27-32m of Kaolin which is in the process of being assayed to add to the Boomerang Kaolin resource.
Further gold targets are prospective around the previous 1m @ 2.6g/t drill return, for which further analysis is required, including refining the understanding of the surface geochemistry versus the depth profile. (Refer ASX Announcement, dated 23 May 2024, Exploration Update – Cammilleri Mine & Surrounds).
Boomerang Kaolin Deposit
The Company continued discussions during the quarter to advance development of the large Boomerang Kaolin Deposit of 93.3 million tonnes, near excellent infrastructure in Southern Cross WA.
Engineering studies continued for downstream processing on site to produce metakaolin products for the Green Construction Industry. Mineralogical/metallurgical test work by Sedgman has been completed confirming the suitability of the raw material for green cement as well as many uses such as paint, rubber and pesticide production. Discussions with potential acquirers and developers of the project continue with a view to monetising this asset.
BRUNSWICK PROJECT – 100%
Cammilleri Prospect
Kula completed a rock chipping and mapping programme in the vicinity of the historical Cammilleri/Donnybrook Mine with an assay result of up to 11.19g/t gold.t The Company completed a more intensive mapping of the outcropping veins that have haematite alternation. Following the rock chipping and mapping programme, exploration activities progressed quickly.
Extensive relogging and re-assaying of a 2023 drill programme completed by Range Resources Ltd plus gold was panned by the Company’s geologist in hole DBRC08 at the interval 27-28m depth. (Refer ASX Announcement, dated 4 April 2024, Brunswick Project Update – Sample to 11.2g/t Gold).
Figure 3: Outcropping predominantly hematite altered chalcedonic quartz veins within shallowly dipping sandstones. No visual sulphides are evident.
RANKIN DOME PROJECT – 100%
Joint Venture partner, Australian Critical Minerals (ASX: ACM), currently earning a 51% interest in the Rankin Dome Project, provided an update on the metallurgy testing of RC drill samples and composites.
Australia’s Nuclear Science and Technology Organisation (ANSTO) commenced preliminary leach tests on selected samples from RC drilling completed at Rankin Dome in September 2023. Seven head samples (four composites and three individual samples) were prepared out of 18 samples provided. Sample head grades ranged from 1,148ppm to 1,674ppm TREO.
ACM intends to investigate whether rare earth mineralogy can vary with depth in the weathering profile or between areas within extensive TREO anomaly outlined to date at Rankin Dome. (Refer ACM ASX Announcement, dated 23 April 2024, Beverley and Rankin Dome Explora on Update).
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: 30 July 2024 | 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 WA goldfields at the Mt Palmer Gold Project at Marvel Loch Southern Cross, 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 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
