Pinjin Group – including the Kirgella gold tenements and Rebecca West

Laverton Tectonic Zone

The Pinjin Group, located 130 km northeast from Kalgoorlie, consists of:

Highlights

Commenting on the results, KalGold Managing Director Matt Painter said:

“We are very excited by new drill results at Providence and Kirgella Gift. The highly significant results combined with newly digitised historic data extend the Kirgella–Providence corridor from around 300 m strike length to more than 1,150 m, with gold mineralisation open in every direction.

The Providence target is suddenly rising to the fore. For the first time since its discovery (by previous explorers) almost a decade ago, KalGold has confirmed shallow, high-grade, shear-hosted gold mineralisation at Providence. From only 32 m depth, 11 m at 2.51 g/t Au was intercepted, including 4 m at 5.63 g/t Au from 39 m. New RC and aircore drill programs are being designed to follow-up.

At Kirgella Gift, results also extend the prospect beyond previous estimates. Shallow gold mineralisation is open within 40 m of surface. Once again, thick, shear-hosted gold mineralisation has been intercepted and, promisingly, new RC intercepts at Kirgella North confirm gold mineralisation open to the north.

We look forward to updating shareholders on KalGold’s future RC and aircore drill programs over this priority area.”

About the Pinjin Project

Located 140 km east-northeast of the City of Kalgoorlie-Boulder, KalGold’s Pinjin Project is hosted within the NW-SE trending regional structural domain known as the Laverton Tectonic Zone (LTZ). The LTZ hosts over 20 significant gold deposits including Sunrise Dam, Wallaby, Granny Smith, Red October, Anglo Saxon, Rebecca and several gold fields which cumulatively contain more than 30 million ounces of gold.

However, the southern part of the Laverton Tectonic Zone (and neighbouring Celia Tectonic Zone) is less explored than the northern area, largely due to poorer outcrop. KalGold believes this is why some of the largest discoveries in recent years, like Rebecca (Ramelius Resources ASX: RMS) and Lake Roe (Breaker Resources ASX: BRB), are located in this region.

With KalGold recognising the significant potential of the area to host large-scale gold deposits, the Company has, since listing, focussed on building a ground position in the area. KalGold aims to continue to establish a significant land holding in what it believes is one of the most prospective parts of the Eastern Goldfields province.

In May 2023, KalGold added significantly to their tenement holding through an acquisition which includes an option to acquire 75% interest in tenure at Kirgella and Pinjin South, at the southern end of the Pinjin goldfield. In addition, the Company will acquire a 100% interest in tenure at Rebecca West (E28/3135-36). The total tenement package covers ~48.9 km² on an immature Archean greenstone belt within a world-class gold precinct which hosts Ramelius Resources’ 1.1 Moz Rebecca Gold Project immediately to the south along strike.

The new tenure, and KalGold’s granted tenure and applications cover a distinct flexure in the Laverton Tectonic Zone which controls and hosts mineralisation at Sunrise Dam, Wallaby and many other deposits. Moving southward, the flexure re-orients the structures from SE-striking at Pinjin to north-south-striking near Kirgella and further southward. Much of this area is unexplored or very poorly explored.

Kirgella Gift & Providence

The main area of historic focus on the new tenure is at Kirgella Gift, around 13 km south of Anglo Saxon pit. Here, thick, high-grade mineralisation was discovered at shallow levels along 250 metres of strike and remains open in all directions.

Kirgella Gift sits within a geological package of strongly sheared magnetic and sulphidic rocks that extend for a length of approximately 5 km. An associated pronounced geochemical anomaly extends over 5 km by 1 km. Gold mineralisation coincides with distinct breaks and demagnetised zones in a magnetic ridge.

Historic drilling at Kirgella Gift (prior to 2011) identified shallow, high-grade gold mineralisation. Impressive results included:

These holes were drilled by different companies using different drill methods and variable assay suites (with inherently different detection limits and sensitivities).

In early 2023, KalGold completed three new RC drill holes in the vicinity of the above historic holes to:

  1. Confirm and validate the presence of the historic intercepts.
  2. Confirm the geology and alteration styles related to gold mineralisation.
  3. Enable direct comparison to historic drill holes that used different assay suites and techniques.

Broad zones of shearing and alteration contained poly-deformed, zoned, quartz-carbonate(-pyrite) veining approximately corresponding to historic mineralisation intercepts. Visible gold was identified at 50m depth in drill hole KGRC23002. Cautionary Statement: Visible gold does not provide precise, accurate, or repeatable indications of gold grade. Laboratory assay results are required to determine the widths and grades of any mineralisation reported in preliminary geological logging.

Results are expected to provide geological confidence for targeting in the next phase of drilling. Gold-only assays are being fast-tracked with the laboratory in Kalgoorlie and are expected to be returned promptly. Multielement data, which will be used to characterise the mineralisation, identify mineralisation vectors, and accurately discriminate host rock lithologies, is expected to take longer.

On 25 October 2023, Kalgold announced exceptional results from the next phase of RC drilling.

The Providence prospect is situated only 700m south of Kirgella Gift and likewise corresponds with demagnetisation on a break in a magnetic ridge. The prospect’s discovery was one of the last actions taken by the previous explorer and was never systematically followed up. Prior RC drilling is limited to only two holes for 290m. Within these, a significant intercept was defined: 10m at 2.11g/t Au from 71m, including 3m at 3.41g/t Au from 78m, in KGRC020.

From the little information available, the geology at Providence is consistent with Kirgella Gift. KalGold’s targeting model suggests continuity between the prospects, which will be tested by drilling programs as the project evolves.

Next Steps

This initial program will be followed up as soon as possible. Both RC and aircore drill programs are being considered. On-ground mapping and structural analysis is ongoing. In addition, KalGold is monitoring active exploration programs in the area. All information is being collated to provide the highest confidence exploration programs that can be used to extend gold mineralisation within the Kirgella-Providence corridor.

KalGold has undertaken a complete reinterpretation of the geology and structure of the entire Pinjin region using publicly available geophysical datasets that have been amalgamated and reprocessed. The Company has identified numerous targets throughout the new tenure area and on existing granted tenure and applications. Interpretation work is ongoing as targets continue to be refined and new targets identified and ranked. Several targets identified on KalGold’s tenure applications throughout the area will also be tested upon granting.

T12 Prospect

The T12 Prospect lies 1.5 km north of Kirgella Gift and was defined by Newmont in 2008.

A number of anomalous aircore and RAB end of hole anomalies were followed up by RC or DD drilling. However, follow-up drilling failed to identify anomalies at depth and the vast majority of these anomalies were cancelled.

The most significant DD intersection included 5.9m @ 7.2 g/t Au from 89.7 m in NEWPJDD0001. The interval is reported to be within a near vertical quartz-chlorite-carbonate-chalcopyrite-pyrite vein.

However, follow up diamond drilling to the immediate north and south of NEWPJDD0001 by Newmont and later by Renaissance reportedly failed to reproduce the high-grade results. A number of additional anomalous aircore anomalies remain to be followed up, including 6m @ 1.4 g/t Au from 93m (NEWPJAC0044).

T15 Prospect

The T15 Prospect lies on E28/2654 and is located 1.5 km southwest of Kirgella Gift.

Renaissance conducted reconnaissance aircore drill testing of the prospect in 2011 with results confirming the presence of significant anomalous gold. A total of 47 aircore holes were completed following up anomalous gold identified by historical Newmont drilling.

All holes were drilled vertically on a broad grid spacing of 50m x 100m. The aim of the program was to drill to blade refusal, through the transported regolith and into the underlying bedrock.

Fourteen holes intersected anomalous gold (+100 ppb Au) beneath transported overburden in weathered bedrock, with the program identifying a significant bedrock gold anomaly covering ~600 metres in strike that remains open to the north and south and potentially several hundred metres in width.

First pass drill results included:

At the time, Renaissance reported it was extremely encouraged by the initial results and was planning a follow up drilling program that would include step out and further infill aircore drilling and some deeper holes.

However, there was limited deeper follow-up RC and DD drilling due to Renaissance’s refocus on high-grade gold exploration in Cambodia. Of note, scissor diamond holes below aircore hole NEWPJAC00465 (4m @ 1.1 g/t Au from 94m) failed to show any primary gold mineralisation.

There are several other aircore anomalies that have not had follow up drilling with deeper RC, including 1m @ 30.1 g/t Au in NEWPJAC0229 from 90m.

Wessex and the Harbour Lights southern extension

The Wessex and Harbour Lights prospects are located on tenure immediately adjacent to the new farm-in tenements to the south of the Anglo Saxon gold mine at Pinjin South. In both cases, there has been no exploration on the farm-in tenure.

At Wessex, historic drilling intercepted gold mineralisation right up to the P31/2102 tenement boundary. To the east of the tenement boundary, the Wessex prospect has never been drill tested. There is no outcrop at Wessex nor along its strike extent.

At Harbour Lights, significant intercepts were the focus of exploration efforts by several historic companies including Little River Resources in the mid 1980s. The strike extent of the Harbour Lights mineralised system extends onto KalGold’s E31/1127, following a disrupted magnetic ridge into the farm-in tenure. Historic intercepts occur around 400-800 m north of the E31/1127 tenement boundary. The extent of this mineralised system has not been followed into KalGold’s ground.

Both prospects are hosted by the sheared volcano-sedimentary sequence that constitutes the Laverton Tectonic Zone at Pinjin. Mineralisation is associated with quartz-carbonate veining and alteration selvages at both prospects, similar to that at Anglo Saxon to the north and Kirgella Gift to the south. KalGold is presently validating and digitising historic exploration results on this adjacent tenure to provide the best possible database to inform future exploration programs.

Rebecca West

The Rebecca West tenure lies between the Pinjin Mining Centre and Ramelius’s Rebecca Gold Project. E28/3135 is located only 1.5 km west of the Rebecca Project tenure, and only 9 km west of the proposed Rebecca gold processing plant site.

The tenure is peripheral to (but does not include) an internal granite within the Laverton Tectonic Zone. Though superficially similar to the Wallaby deposit (northern Laverton Tectonic Zone) in terms of geometry, much more work is required before it can be determined whether any such target exists on the tenure.

Historic exploration on the tenure has been very limited, with only a single line of shallow aircore holes of any note. Preliminary targeting by KalGold has identified a number of structural targets that will require further examination and ranking before exploration can commence.

Jungle Dam prospect

The Jungle Dam prospect is a gold-in-granite prospect located on E31/1119 that was last explored during the 1990s. Anomalism is associated with a rupture within the internal Jungle Dam Granite. That granite has intruded into the supracrustal sequence that has been strongly deformed by the Celia and the Laverton Tectonic Zones. Work is ongoing to identify and digitise all historic datasets.

Additional gold plays are also apparent around the margins of the Jungle Dam Granite and elsewhere in the shear zones that wrap around it.

Though only gold has been explored and assayed historically, the area may also be prospective for lithium.