La Mascotte Gold Project

Bulong Taurus

Gold mineral rights


KalGold Managing Director and CEO Matt Painter said:

“The definition of 138,000 oz of gold from surface only 35 km east of Kalgoorlie Boulder is a major milestone in KalGold’s short history. It reinforces our objective of discovering and defining gold resources in the Eastern Goldfields of Western Australia.

“La Mascotte is one of the few remaining outcropping gold deposits in the Eastern Goldfields. This initial JORC (2012) Mineral Resource Estimate highlights our cost-efficient approach to building a mineral resource base and strengthens KalGold’s credentials as a highly effective gold discovery company. For example, the incorporation of historic drill data into this JORC (2012) Mineral Resource Estimate has saved the Company $1.6 million in drilling-related costs, delivering a realised discovery cost of only $5/oz. With gold mineralisation remaining open at depth, KalGold will progress the La Mascotte mineral resource with additional work. We look forward to updating investors on our progress throughout CY2023.”

Inferred JORC Resource Estimate

The new Inferred JORC (2012) Mineral Resource Estimate (MRE) for the La Mascotte deposit is the first for a deposit in the Taurus goldfield. While an earlier, non-code compliant polygonal resource estimate was compiled by Manor Resources in the 1990s (WAMEX report a45341), KalGold’s recent work has significantly grown this previous resource base.

The Inferred Resource of 3.61Mt at 1.19g/t Au for 138,000 ounces is open at depth, with recently identified targets offering an opportunity for resource growth.

The resource is amenable to higher cut-offs, offering significant ounces at higher grades. For example, a 1.0 g/t cut-off defines over 83,000 oz at 1.9 g/t Au. Similarly, a 1.5 g/t cut-off defines over 55,000 oz at 2.7 g/t Au. See ASX announcement dated 7 March 2023 for a full description and grade-tonnage curve of KalGold’s La Mascotte resource.

Grade-tonnage curve for the La Mascotte Mineral Resource Estimate. Figures used are shown in Table 1.
Table 1 – Global grade-tonnage tabulation for the La Mascotte Inferred JORC Mineral Resource Estimate, showing the effects of various cutoff grades on the resource calculation
Cutoff (g/t Au) Tonnage (tonnes) Metal (oz) Grade (g/t Au)

Additionally, material type categorisation shows limited oxide material at La Mascotte (Table 2). This is largely a function of the outcropping or subcropping nature of the deposit.

Table 2 – Oxide, transitional, and fresh categorisation of the La Mascotte resource model
Deposit Category Material Type Tonnes (Mt) Grade (g/t Au) Au (oz)
La Mascotte Inferred Oxide 0.50 1.15 19,000
Transitional 0.48 1.05 16,000
Fresh 2.62 1.22 103,000
Totals 3.61 1.19 138,000

For full details and JORC Statement, see ASX announcement dated 7 March 2023

Extensions to mineralisation

KalGold recently defined several targets at depth (see ASX announcement dated 20 January 2023) that are supported with the new La Mascotte resource model (e.g. Figure 2). Figure 4 shows these refined targets projected to surface (note that gold content is shown at the collar location of each east-dipping drill hole, to the west of its vertical projection). The targets are also shown in their relative positions in long section (Figure 5).

Each of these targets are being assessed for future drill testing in light of the development of the new La Mascotte resource model.

Next steps

Future work programs at La Mascotte, including upgrades to the resource, are likely to include:

KalGold is currently moving forward examining the best way to progress the La Mascotte Project to extract maximum value for the Company’s shareholders.

About La Mascotte

The La Mascotte prospect, previously also known as Central and Central Taurus, is an outcropping area of gold mineralisation at Bulong Taurus, located about 25–35 km east to east south-east from Kalgoorlie. La Mascotte is KalGold’s lead gold project.

The Bulong Taurus project consists of 39 granted tenements, covering an area of approximately 81 km². This large, highly prospective area includes the entire historic Taurus mining centre in the northeast, part of the Bulong mining centre at Hammersmith, and historic gold batteries. Measuring over 16 km north-south by up to 9 km east-west, Bulong Taurus comprises 9 granted mining tenements surrounded by 26 prospecting licences (35 tenements in total). In addition, KalGold holds 3 prospecting tenements and an exploration licence at West Bulong, located 4 km further west towards Kalgoorlie.

KalGold is the first company in generations to assemble the full tenement package over the mining centre to fully and properly assess this highly mineralised area for significant gold deposits.

The main group of 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.

Work commenced on the ground at Bulong Taurus prior to the Company’s ASX debut with target identification from the compilation and digitisation of all historic work programs, including soil and surface sampling, and RC and diamond drill programs. As a result of this work, KalGold now possesses the first digital record of all historic work undertaken over the entire Taurus Gold Mining Centre and have planned and completed four phases of drilling of identified targets (see details).

The JORC (2012) Code Mineral Resource Estimate (MRE) (see details) integrated the Company’s recent RC and diamond drilling over the greater La Mascotte prospect area (39 RC holes for 4,324 m and 7 Diamond holes for 895.6 m) in addition to historic RC and diamond drilling data (162 RC holes for 12,135 m and 14 Diamond holes for 2,424 m).

KalGold has been particularly diligent in sourcing historic drill records, which include assays, lithology, downhole surveys, and laboratory certificates amongst many other data items. Combined, these satisfied JORC (2012) Code criteria for inclusion in the MRE, saving the Company approximately $1.6 million in re-drilling and re-assay costs over the immediate La Mascotte area. This saving is reflected in a resource conversion cost to KalGold of only ~ A$5/oz, based on direct drilling and assay expenses.

The modelled resource footprint measures 700m north-south by 500m east-west to 220mRL or 140m below surface. Gold mineralisation continues below the 220mRL with this deeper area the subject of some of the Company’s newly refined targets.

Modelling identified numerous mineralised horizons whose grade varies along strike. The stacked vein system envelope at La Mascotte is up to ~175m thick and outcrops at several locations with gold mineralisation remaining open at depth.