Zelica

Laverton Tectonic Zone

All mineral rights

KalGold’s 100%-owned Zelica project is located around 180 km north-northeast from Kalgoorlie and 70 km east of Kookynie and is easily accessible on high-quality unsealed roads from every direction. Zelica is located on the Celia Tectonic Zone, one of the major crustal structures of the Eastern Goldfields province, and around 115 km northwest of KalGold’s new Kirgella Gift and Providence targets at the Pinjin Project.

• Reconnaissance work at Zelica has identified a gold-mineralised corridor extending from the Zelica gold mine (off tenure to the north), through to the southern margin of KalGold tenure.
• The mineralised corridor comprises the following on KalGold’s E39/2188:
  • 6.8 km total strike length, commencing 600 m south of the historic Zelica gold mine;
  • High-grade gold mineralisation in near-surface quartz veining including 39.60 g/t Au (KAL012563) and 6.44 g/t Au (KAL012567) within shallow excavations at the West Nest prospect;
  • Moderate grade mineralisation and strong anomalism between 0.08 g/t Au and 1.08 g/t Au in samples from Eucalyptus Bore; and
  • Excised prospector workings at Murphy Well 2 and 3.
• Zelica is being assessed for systematic first-pass exploration for later in the year, likely to initially comprise auger sampling and mapping.

Bordering the northern margin of the Zelica South tenement and trending north are the Zelica/Eucalyptus workings. These were mined historically, reportedly producing around 270 kg of gold, and more recently was the site of dry blowing and modern mining activities. There is a current Indicated and Inferred Mineral Resource Estimate (MRE) of 577 Mt at 1.63 g/t Au for the Zelica deposit, in which the overburden was stripped but no gold produced.

• Prospects include: Zelica South, Bar Twenty, several new prospectors’ workings
• South of main Eucalyptus mining centre
• Folds and second-order faults next to the Celia TZ provide numerous targets
• Numerous gold deposits:
  • Zelica (excised) contains 577,000t at 1.63g/t Au for >30koz (WAMEX A98026, Exterra Resources, 2013). Targeting southern extensions.
  • Targets south along strike from Zelica open cut gold mine undrilled.