Bulong Taurus Gold Project

Gold mineral rights

The Bulong project consists of 39 granted tenements, covering an area of approximately 81 km², located about 25–35 km east to east south-east from Kalgoorlie.

The main group of tenements – consisting of 35 tenements – are located just to the east and south of the Bulong Nickel Project processing plant and associated pits. These tenements also contain a pronounced line of northeast trending historical gold workings. Historical records indicate grades of around 13 g/t Au were recovered. There have been extensive more recent gold mining activities (mainly based on eluvial occurrences and detection of nuggets by private individuals since the 1980s) in this area.

• The historic Taurus mining centre has been mined by prospectors since the 1890s
• Tenure continuity at the Taurus gold mining centre (first time in decades)
• Gold Rights on 39 tenements (M:9, E:1, P:29), all in good standing
• 35 km east of Kalgoorlie on sealed and gravel roads
• Major Gold fertile structures run through the project and provide outstanding opportunity and pedigree to surface and near-surface high-grade gold near Kalgoorlie --- The Goddard Fault zone is the major gold controlling structure regionally at Daisy Milano mine, Mt Monger and is also controls mineralisation at Bulong targets
• Taurus Gold Mining Centre and battery: established 1896. Almost continuous mining by prospectors since.
• Sheeted vein complex at La Mascotte and other prospects
  • Intense bleaching and pyritic vein selvages
  • Locally coarse gold results in high grade assay results
• Vein array complexes provide high ounce-per-vertical-metre potential
• Bulong Taurus Project consists of multiple prospects and targets:
  • La Mascotte prospect, which incorporates La Mascotte (where it outcrops), Golden Jumble, Valkyrie and Great Lode
  • Numerous, historically mined areas stretching over an area of more than 3,000 by 3,000 metres
  • New discoveries including Knockhill and Royal Star prospects
• In addition to identified prospects above, there are many other areas of prospector workings and targets for future work streams to assess. See figure 4.
• KalGold work programs focus on systematically exploring the Bulong-Taurus project, prioritising the La Mascotte prospect and surrounding targets, and aim to fast-track an initial JORC resource.

Recent activity

KalGold MD and CEO, Dr Matt Painter, said:

“Systematic appraisal of the La Mascotte project and its surrounds continues. With outcropping and shallow gold mineralisation extended to 700m strike length, down-dip extension of high-grade fresh mineralisation is next on our list. Structural analysis of drill core should provide clear targets for KalGold’s next phase of drilling. Excitingly, recently discovered gold mineralisation unearthed by prospectors immediately west of KalGold’s drilling can also be targeted by this program.”

Definition of down-dip targets at La Mascotte is ongoing:

• Systematic investigation of La Mascotte and surrounds continues according to plan.
• High-grade gold mineralisation is open down-dip from only 120m beneath surface. KalGold will test gold mineralisation extensions following structural analysis of drill core to define final drill hole locations.
• Next RC program scheduled for August (subject to rig availability) to test the down-dip, high-grade extensions.
• Independent gap analysis to define any shortcomings of historic data used to define a pre-JORC 1990s resource estimate is also underway.

Recently discovered, outcropping gold mineralisation at La Mascotte west of recent drilling:

• Mineralised vein excavated and investigated over several hundred metres, located west of KalGold’s drilling at La Mascotte. New drill program will also test this and similar structures to expand the rapidly growing extents of the La Mascotte mineral system.

March–May 2022

Results from KalGold’s 400-hole auger drill program defined extensive gold anomalism from an unexplored part of the Bulong Taurus project near La Mascotte (ASX announcement, 15 March 2022).

Phase 2 RC drill program completed in early 2022, with assay results reported in April (ASX announcement, 20 April 2022). Phase 2 RC drill program significantly extends footprint of confirmed gold mineralisation at and around La Mascotte.

• All new drill holes (12 in total) intercepted gold mineralisation.
• Near-surface oxidised gold mineralisation is common. Gold mineralisation outcrops and is open along strike and down dip.
• Confirmed La Mascotte footprint extended by over 200m to at least 500m.
• Assay results on the northern side of La Mascotte include:
  • BLRC22008: 6m at 1.47 g/t Au from 17m
    2m at 16.27 g/t Au from 43m
    1m at 7.70 g/t Au from 56m
  • BLRC22009: 4m at 1.28 g/t Au from 73m
• The southern extension was targeted based on structural targets and discovery of nuggets at surface. First-pass results are very encouraging:
  • BLRC220001: 6m at 1.16 g/t Au from 73m
  • BLRC220002: 4m at 2.29 g/t Au from 46m
  • BLRC220006: 6m at 1.18 g/t Au from 57m

Diamond drill program completed at La Mascotte.

• Visible gold in BLDD220002 at 75m depth.

Follow-up La Mascotte Phase 3 RC program is underway.

• Currently testing extensions of La Mascotte over 2,200m strike.
• Pyritic alteration and undocumented underground workings intercepted north of La Mascotte.

December 2021

Prior to KalGold’s exploration programs, a review of historical data from La Mascotte (also known historically as “Central” and “Central Taurus”) showed that gold mineralisation outcrops over an area of around 200x200m and is open down-dip to the west, as well as along strike to the north and south. La Mascotte therefore represents an open ended open pit mining opportunity with potential for underground extension.

Highlights of this review:

• Over 90 drill holes to 40x20m density mostly from 1980s to 1990s:
  • Predominantly RC drilling, with limited diamond drilling;
  • Gold intercepted to 140m beneath surface over 300x300m area.
• Open pit potential, where gold mineralisation from surface is open down‑dip to the west and open along strike to the north and south.
• Near surface intercepts include:
  • ARC47: 7m at 14.87g/t Au from surface
  • BLRC210001: 18m at 1.23g/t Au from 1m incl. 2m at 4.95g/t Au from 15m
  • BURC047: 2m at 141.15g/t Au from 8m
  • ARC70: 3m at 7.25g/t Au from 11m
  • MRC020: 2m at 31.13g/t Au from 12m
  • ARC38: 21m at 1.08g/t Au from 23m incl. 1m at 5.89g/t Au from 32m
  • ARC36: 21m at 1.16g/t Au from 44m incl. 4m at 2.08g/t Au from 54m
• Potential to extend to depth is indicated by results including:
  • BD6: 10m at 39.14g/t Au from 128m and 2m at 12.41g/t Au from 149m
  • BD12: 1m at 84.1g/t Au from 67m
  • MRC092: 4m at 9.07g/t Au from 118m
  • MRC094: 5m at 7.11g/t Au from 130m