ASX Announcement
15 November 2011
WOODLARK ISLAND GOLD PROJECT DEVELOPMENT
UPDATE
Kula Gold Limited (ASX:KGD) is pleased to announce an update on the
project development and feasibility studies at its 100% owned Woodlark
Island Gold Project, one of the new generation gold projects in Papua New
Guinea.
Kula Gold is currently completing a Definitive Feasibility Study (DFS), with
top tier consultants with extensive PNG experience, which will provide the
development blueprint and foundation for financing and permitting.
Directors
Ore processing is anticipated to commence at 1.5 Mtpa (million tonnes per
David Frecker annum) with an initial mine life of at least six years. Provision for ramp up
Independent Chairman and to 2.6 Mtpa on the back of conversion of existing Inferred Resources to
Non-Executive Director Reserves and future exploration success is to be included in the DFS.
Known Inferred Resources below and around the Kulumadau Reserve and
Lee Spencer
Managing Director and recent results east of Kulumadau such as: 66 metres at 4.5g/t Au and 26
CEO metres at 6.2 g/t Au, provide support for possible future scale up of the
plant. Drilling around Kulumadau is currently constrained by existing
John Watkins infrastructure, but will be possible during 2012.
Executive Director and CFO
The various components of the DFS including geotechnical studies (Peter
Louis Rozman O’Bryen and Associates), hydrology (Klohn Crippen Berger), metallurgy (R
Non-Executive Director W Nice and Associates), process and infrastructure design work (GR
Engineering), tailings disposal (Coffey Environments) and tails dam
Mark Stowell
design (Knight Piesold), are all progressing well.
Independent Non-
Executive Director
During 2011, extensive geotechnical drilling and assessment has been
completed to design pit walls, dam foundations and infrastructure;
extensive hydrological studies have been undertaken to assess water
management and supply; and metallurgical testwork has confirmed that
ASX Code: KGD the processing plant will achieve up to 92% recovery utilising a
conventional gravity/CIL circuit at a reasonably coarse grind.
112.6 million ordinary
shares Concurrently with the DFS, the company has significantly progressed all
2.3 million unlisted options the elements of the Environmental Impact Study (EIS) required by the
PNG Government as part of the permitting process. Kula has been advised
by Coffey Environments in this process.
The company continues to provide project update briefings to the PNG
Government and other statutory bodies to progress the permitting process
which is the main critical path item in the overall project development
schedule.
Kula Gold Managing Director, Lee Spencer said, “All of the studies
required for a successful permitting process culminating in a Mining Lease
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being granted to allow project development to start are progressing satisfactorily, although there have
been some unexpected delays caused by weather and the challenge of competing for consultants whilst
other projects in PNG and Australia are also demanding similar technical assessments. We are on target
to complete the DFS and EIS by April 2012.
The enthusiastic support for the project by the local Woodlark Islanders and the PNG Government has
been instrumental in the company achieving its development milestones to date.”
Geotechnical Drilling at the Mill Site
Core taken for Engineering Assessment
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Draft Layout of the Proposed 1.5Mtpa Processing Plant for Woodlark
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The Schramm rig has been used for RC exploration drilling at
Kulumadau East and for Hydrology drilling at both Kulumadau and
Busai.
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Woodlark Resource Summary – May 2011
WML Woodlark Resource Summary at 0.5g/t Au lower cut-off grade
Deposit Category Resource Grade Grade Au Au
(Mt) (Uncut) (Cut) (Uncut) (Cut)
(g/t Au) (g/t Au) (Oz) (Oz)
Kulumadau Measured 4.5 2.0 1.9 290,000 275,000
Kulumadau Indicated 2.8 1.7 1.5 150,000 140,000
Kulumadau Inferred 5.3 1.8 1.5 310,000 270,000
Kulumadau Totals 12.6 1.85 1.7 750,000 685,000
Busai Measured 3.6 1.5 1.5 175,000 170,000
Busai Indicated 7.1 1.6 1.5 370,000 350,000
Busai Inferred 10.0 1.5 1.4 470,000 460,000
Busai Total 20.7 1.5 1.5 1,015,000 980,000
Boniavat Indicated 3.0 1.3 1.2 125,000 115,000
Boniavat Inferred 1.0 1.9 1.8 60,000 60,000
Boniavat Total 4.0 1.4 1.4 185,000 175,000
All Measured 8.1 1.8 1.7 465,000 445,000
All Indicated 12.9 1.7 1.5 645,000 605,000
All Inferred 16.3 1.6 1.5 840,000 790,000
Totals* 37.3 1.6 1.5 1,950,000 1,840,000
* Totals may appear incorrect due to rounding
Note 1: The Busai Inferred Resource includes 3.9 Mt @ 0.9g/t for 110,000oz Au from Munasi (2km southeast of
Busai).
Note 2: The Boniavat Inferred Resource includes 0.3Mt @ 3.0g/t for 30,000oz Au from Watou (1.5km south of
Woodlark King).
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Background: Woodlark Island Gold Project, PNG
Metres:
Kula Gold Limited, which was listed in November 2010, is developing the 100% owned Woodlark Island
Gold Project, located 500 kilometres east of Port Moresby in the Milne Bay Province, Papua New
Guinea. The island is located in a region of world class gold deposits such as Barrick’s Porgera Mine (24
Moz), Newcrest’s Lihir Mine (50 Moz) and Harmony/Newcrest’s Hidden Valley Mine at Morobe (16 Moz).
For further information, contact:
Lee Spencer John Watkins
Chief Executive Officer Chief Financial Officer
Kula Gold Limited Kula Gold Limited
lspencer@kulagold.com.au jwatkins@kulagold.com.au
P. 02 9262 5651 P. 02 9262 5651
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Competent Persons Statement
The information in this report that relates to Exploration Results is based on information compiled by Lee Spencer.
Lee Spencer is the CEO of Kula Gold Limited. Mr. Spencer is a Member of The Australasian Institute of Mining and
Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004
Edition of the ’Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr.
Spencer consents to the inclusion in the report of these matters based on information in the form and context in
which it appears.
The information in this announcement that relates to the in-situ Mineral Resource estimates for Kulumadau, Busai
and Boniavat is based on information compiled by Mr. John Doepel, Principal Geologist for Continental Resource
Management Pty Limited (Resource Report, Woodlark Island, May 2011). CRM has acted as independent
consulting geologist to WML since 2005 and has undertaken several visits to the island and to the sample
preparation facilities. Mr. Doepel is a Member of The Australasian Institute of Mining and Metallurgy and has
sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to
the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the
’Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Doepel
consents to the inclusion in this announcement of these matters based on information in the form and context in
which it appears.
Forward Looking Statement
All statements other than statements of historical fact included in this announcement including, without limitation,
statements regarding future plans and objectives of Kula Gold Limited (Kula Gold) are forward-looking statements.
When used in this announcement, forward-looking statements can be identified by words such as ‘may’, ‘could’,
‘believes’, ‘estimates’, ‘targets’, ‘expects’ or ‘intends’ and other similar words that involve risks and uncertainties.
These statements are based on an assessment of present economic and operating conditions, and on a number of
assumptions regarding future events and actions that, as at the date of this announcement, are expected to take
place. Such forward-looking statements are not guarantees of future performance and involve known and unknown
risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the
company, its directors and management of Kula Gold, that could cause Kula Gold’s actual results to differ materially
from the results expressed or anticipated in these statements.
The company cannot and does not give any assurance that the results, performance or achievements expressed or
implied by the forward-looking statements contained in this announcement will actually occur and investors are
cautioned not to place undue reliance on these forward-looking statements. Kula Gold does not undertake to
update or revise forward-looking statements, or to publish prospective financial information in the future, regardless
of whether new information, future events or any other factors affect the information contained in this
announcement, except where required by applicable law and stock exchange listing requirements.
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