Kula Gold has dished up thick, shallow hits of bright white kaolin from a maiden drilling program at its 100 per cent owned Airfield project near Southern Cross in Western Australia. All three holes hit kaolin clay zones averaging 42m thickness from just 5m below surface, sending the company’s share price soaring by over 50 per cent in morning trading.
Kula Gold has dished up thick and shallow hits of bright white kaolin from a maiden drilling program at its 100 per cent owned Airfield project near Southern Cross in Western Australia. Three out of three holes hit kaolin clay zones averaging 42m thickness from just 5m below surface, sending the company’s share price soaring by over 50 per cent in morning trading.
Resource definition drilling is now on the horizon.
The three holes were drilled across a 300m line to test a magnetic anomaly at the newly named Boomerang kaolin prospect.
A total of 28 five-metre samples underwent XRF and ISO brightness analysis, followed by XRD analysis to gauge the kaolin and halloysite grades.
XRD analysis in one hole returned a 10m interval going 7 per cent halloysite and 89 per cent kaolinite from 40m.
All three holes delivered aluminium oxide with low impurities at about 37 per cent grade and high brightness going more than 80 per cent ISO.
The grades and indicators are said to be comparable to “higher quality” recently reported results in the industry.
Kula now plans to test the extent of the mineralised zone in August with a 2,000m resource definition drilling program.
Curiously, the drilling will also test a geophysical gold target some 10m beneath the kaolin. Other areas where kaolin was previously identified close to surface will also be drilled.
The company has tabled an exploration target at Boomerang ranging between 30 million tonnes and 100Mt of kaolin material.
Kaolin has a variety of uses including in paper, ceramics, plastics and paint manufacturing.
Industrial applications of halloysite are numerous including as feedstock for high purity alumina, or “HPA”, used in smartphone screens, controlled release drug delivery, carbon capture and medical-grade ceramics.
HPA is also a key ingredient in the prevention of electric vehicle battery degradation. Demand for HPA is projected to increase substantially in the coming years, according to Kula.
Management says the price of kaolinite end-product could go as high as $700 per tonne. Higher grade halloysite and some HPA products are said to fetch up to $30,000 per tonne after processing.
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