Southern Cross Projects
Kula Gold’s active tenements at Southern Cross include:
- Marvel Loch-Airfield Gold Project:
- Boomerang Kaolin Project.
- Crayfish Prospect,
- G-Star Gold Prospect,
- Westonia Project
- Rankin Dome Project
Marvel Loch-Airfield Gold Project
Kula Gold Limited’s Marvel Loch-Airfield Gold Project (EL77/2621) sits over the south-central part of the Ghooli Dome near Marvel Loch in the Southern Cross region of Western Australia.
The Project is located 5km east of the town of Marvel Loch, a major gold mining centre in Western Australia. This locality has a number of current and historical mining operations nearby, providing valuable infrastructure and services for potential future development including the Marvel Loch mine and mill, which are in production under the ownership of Minjar Gold.
⛏️ The Southern Cross Greenstone Belt itself is a strongly deformed, metamorphosed synformal remnant of a once larger greenstone assemblage.
Within the Marvel Loch-Airfield Gold Project sits the Boomerang Kaolin Project, Crayfish Gold Prospect and G-Star Gold Prospect. With Crayfish and G-Star identified as High Priority gold targets within the newly discovered greenstones.
The Southern Cross Greenstone Belt has been shaped and attenuated by the emplacement of syn-tectonic granitoids (Gee, 1995). These granitoid domes include the Ghooli, Parker and Rankin Domes (Gee, 1982; Keats, 1991).
On a regional scale, sheared lithological contacts are the primary control on the distribution of gold mineralisation. Most of the belt’s production has been derived from shear-hosted deposits (Marvel Loch, Yilgarn Star and Frasers) and to a lesser extent fold hinge deposits, usually in Banded Iron Formation (Copperhead, Golden Pig and Bounty).
G-Star Gold Prospect
Kula Gold Limited announced the identification of the G-Star Gold Prospect at its Marvel Loch-Airfield Gold Project (KGD 100%) in November 2021.
- G-Star Gold Prospect identified from first pass Auger geochemistry sampling.
- 217 follow up auger geochemistry samples recently completed.
- Results of up to 18ppb gold define a northwest- southeast striking geochemical anomaly that extends over 2,200m and is open to the northwest.
- Located 3.5km north of the Nevoria Gold Mine (+600,000oz gold), and 9km east of the 3 Moz Marvel Loch Gold Mine, the G-Star Prospect sits within the Ghooli Dome.
- Kula geologists consider the possibility that G-Star is underlain by amphibolite and BIF greenstone (the predominant host rock of most of the gold deposits in WA).
Figure 1. Kula’s new G-Star Gold Prospect identified from results of first pass auger geochemistry sampling (yellow, green and blue dots), and location of the recently completed follow up auger geochemistry samples (white dots).
Sahara Operations (Australia) Pty Ltd completed first pass auger geochemistry sampling on behalf of Kula in April 2021 (refer ASX releases 12th April 2021 and 2nd July 2021), with 215 samples taken over the G-Star area (Figure 1).
Samples were taken at a median depth of 2m and targeted the interface below the transported cover. Results of up to 18ppb gold define a northwest- southeast striking geochemical anomaly that extends over 2,200m and is open to the northwest (Figure 2).
Kula engaged Sahara’s Mobile Auger Rig to complete a further 217 infill auger geochemistry samples at G-Star during October 2021.
Company geologists were onsite for the start of the program to ensure sampling of the correct horizon via appropriate sampling technique. Haematitic lateritic soils and saprolite clays—a favourable sampling medium—were observed. Sample locations are provided in Figure 1.
Kula geologists consider the possibility that G-Star is underlain by amphibolite and BIF greenstone (the predominant host rock of most of the gold deposits in WA).
G-Star may be much like the previously unmapped greenstone discovered by Kula in a major technical breakthrough during RC drilling at the nearby Crayfish Gold Prospect (refer ASX release 2nd July 2021).
The highly prospective greenstone belts of the Southern Cross Region have produced over 15m ounces of gold to date, at an average of 3-5g/t gold and are the reason Kula staked this region as its lead project.
Boomerang Kaolin Prospect
Kula Gold Limited made a significant discovery of Kaolin and Halloysite during RC Drilling on the Airfield Gold Project tenement in April 2021, when drilling intersected thick >42m vertical kaolin clay development over the 300m drilled length, creating the Boomerang Kaolin Prospect.
Figure 1. Diamond Drilling in progress at the Boomerang Kaolin Prospect.
Westonia Gold Project
Kula Gold Limited have four new exploration licenses adjacent to the Edna May Gold Mine to create the ‘Westonia Gold Project‘, making it an additional focus for Kula’s Southern Cross exploration programs in 2021.
Figure 1 – Map of Kula Gold’s new Westonia Project.
The licenses cover an area of ~357km² and contain gravity and magnetic targets identified by Kula from reprocessing publicly available data.
This acquisition continues Kula’s focus of drilling near to operating gold mines as geologically proven areas for discovery, and importantly the development and mining of any discovery is potentially much quicker and any development of future projects would require far less capex than a green fields new mine development.
The Edna May gold mine is a substantial producer in the Southern Cross region, owned by Ramelius Resources Ltd (ASX:RMS). It has a notable production history as detailed later in this release, including historical production 1911-1991 of 700,000 Oz, Since re-starting in 2010 has produced approximately 80-100,000 Oz p.a. and hosts resources of 28mt @1.0 g/t gold for 930,000 Oz as at 31 December 2020. (Ramelius Resources Ltd Annual Report 31 December 2020).
In total, the Edna May gold mine has an endowment of over 2 million Oz gold.
Read the history of Edna May here.
No historical gold drilling has been undertaken on the southern section (E77/2766), as per the WAMEX database.
Kula plans to test the gravity anomaly shown in Figure 2 below with deeper auger drilling to adequately test for gold anomalism below the interpreted transported soil cover.
Figure 2 – Gravity anomaly (red circle) on E77/2766 with gold deposits as yellow triangles at Kula Gold’s new Westonia Project.
The gravity anomaly of interest is similar in tenor to surrounding anomalies which host gold mineralisation (yellow triangles in the figure below) and include the Edna May gold deposits.
Figure 3 – Reprocessed TMI-RTP magnetics showing potential greenstones north of Westonia.
The licences, to the northeast of Edna May, were acquired based on magnetic targets which suggest a potential northern extension of the greenstone belt as shown in Figure 3 below.
Previous exploration in Kula’s Northern Westonia license has consisted of surface sampling which did not reveal any significant gold anomalies. Kula’s concept is that the previous surface soil sampling work was ineffective in testing the areas for gold mineralisation, therefore Kula will employ deeper auger type geochemical sampling to better test the gold potential of the licences at low cost.
Further work on the Westonia project is in progress, and results will be reported in due course.
Figure 4 – Kula’s Southern Cross region projects (Kula licenses are outlined in gold).
⛏️ The acquisition of the Westonia Gold Project brought Kula’s projects at Southern Cross to a total of three – alongside Airfield Gold at Marvel Loch and Rankin Dome.
Rankin Dome Project
Kula Gold Limited’s Rankin Dome Gold Project is located 10km west and 26km north west (respectively) of Southern Cross.
In August 2022 – Kula Gold Limited announced that as part of its strategy to prioritise the commercialisation studies at its 100% owned Boomerang Kaolin Project and exploration work at its other emerging projects at Westonia, Marvel Loch and Donnybrook, the Company has entered into a binding Farm-In Agreement (‘Agreement’) with Australian Critical Minerals Pty Ltd (‘ACM’) (ACN 658 906 159) in respect of the Company’s non-core Rankin Dome Project comprising of three tenements being E77/2709, E77/2753 and E77/2768 (‘Rankin Dome Project’).
Full ASX release – 9 August 2022
Advancements at Rankin Dome in 2022:
⛏️ In February 2022, auger drilling identifies anomalous Lithium results at Rankin Dome Project
⛏️ In May 2022, results from the Phase 2 geochemical program were released identifying 70% of the 375 samples from Rankin Dome sampling were above 115ppm Total Rare Earth Elements (REE), with 2 samples peaking at 1080ppm.
⛏️ In July 2022 Kula reported anomalous total Rare Earth Element (tREE) results from stage 2 geochemical sampling at Rankin Dome.
- Total Rare Earth Elements (tREE) values of up to 1,080ppm have returned from combined auger geochemical samples, with 74% of samples above 115ppm tREE.
- Target definition and exploration program design in progress.
Previous Rankin Dome Advancements and Information
Rankin Dome 1’s ELA77/2709 was applied for in July 2020 which covers approx 160km2 and is located 10km west of Southern Cross.
Location of Rankin Dome 1 Project (ELA77/2709) and Rankin Dome 2 Project (E77/2753)
A field trip was completed in September 2020 which successfully located a 1988 water bore drill hole which had been assayed for gold, and identified gold values of 0.46g/t Au over 2m from 10m vertical downhole in amphibolite. 3 historic RC drill holes were located during the field visit which are not in the DMIRS database.
The drill cuttings were logged as amphibolite (greenstone possibly meta High Mg Basalt) unit with a soapy feel, although the area is mapped as granite. The amphibolite is over 1km wide which adds significantly to the prospectivity of this project. The amphibolite is not obvious in the open file magnetics which show a granite signature suggesting the amphibolite is overlying the granite in this area.
Landowner agreement has been secured over a significant portion of the licence including the area with amphibolite. On granting of the license, the initial work plan will comprise of a shallow geochemical air-core drilling program over each target area totalling approximately 200 holes.
Field team examines a waterbore from 1988 that is located within the Rankin Dome Project.
Rankin Dome 2 (E77/2753) was acquired in February 2021 after a field visit in late 2020 showed ultramafics outcropping in the north-west corner of the licence application.
The magnetic interpretation shows about 6km of potential Ultramafic strike and a further 3.5km of strike in the south-east corner of the licence which require testing. Historical drilling in 1972 by International Nickel Australia intersected 27m @ 0.17% Ni validating the prospective nature of the Ultramafics which trend SE into the new licence.
This licence abuts and extends the company’s existing Rankin Dome 1 Project (E77/2709).
E77/2753 Magnetics at Rankin Dome 2
Rankin Dome 3 will cover other ultramafic potential identified by the company’s geological team and is worthy of follow-up exploration.