Kula Gold increases Woodlark

THE BOURSE WHISPERER: Kula Gold has increased the global resource base at its 100 per cent-owned Woodlark Island gold project in Papua New Guinea.

 

Project location. Source: Company announcement

 

The Global Mineral Resource for the Woodlark Island project now stands at 42.4 million tonnes at 1.5 grams per tonne gold for 2 million ounces cut or 2.15 million ounces uncut.

 “Achieving a two million ounce project resource is a key milestone in building our expanding global resource base and in the advancement of our project, while demonstrating the continuing strong prospectivity of Woodlark Island,” Kula Gold managing director Lee Spencer said in the company’s announcement to the Australian Securities Exchange.

“The discovery of Kulumadau East beneath young cover sediments confirms our belief that Kulumadau represents a significant mineralised system with the potential to add further shallow resources and that significantly more mineralisation will be found on Woodlark Island under shallow cover.

“While we continue to add additional resources, Kula Gold is focused on delivering a Feasibility Study and advancing the project into the permitting stage in 2012.”

The infill drilling program at Kulumadau East followed previous reconnaissance drilling carried out in early 2011, as part of engineering assessments for the proposed Kulumadau West Pit.

This drilling had confirmed mineralisation 500 metres east of the proposed Definitive Feasibility Study (DFS) pit collar.

A JORC Inferred Resource has been estimated for Kulumadau East of 5.2 million tonnes at 1.2g/t gold for 200,000 ounces, which increases to 240,000 ounces at 1.4g/t gold if no topcuts are used.

The majority of the resource is contained within the Inferred Category.

Kula Gold said its DFS on the Woodlark gold project is scheduled for completion at the end of March 2012.