Perth-based explorer Kula Gold is closing in on the finish line of a diamond drilling campaign at its Boomerang kaolin prospect, part of the larger Marvel Loch – Airfield project near Southern Cross in Western Australia. According to the company, the campaign marks its final stage of fieldwork for resource studies and says its metallurgical test work is nearing a conclusion.
Drilling is expected to be completed by the end of the week, with the drill core subsequently being directed to an assay laboratory for specific gravity and metallurgical test work.
Kula has appointed mineral processing outfit Sedgman to manage the test work and Hyland Geological and Mining Consultants to wrap up the resource estimation activities.
Kula discovered its Boomerang kaolin prospect last year after a trio of RC drill holes revealed thick intersections of white kaolin clays. One hole yielded a 10m hit grading a solid 7per cent halloysite from 40m downhole, within a larger 55m intercept from 5m.
Kaolin is primarily used in the paper industry as a ‘filler’ to improve gloss, smoothness and brightness. The mineral is also employed in the production of lightweight composites for a variety of sectors, including the aerospace, automotive and marine industries.
According to Kula, it has started strategic planning to examine the potential uses for its Boomerang kaolinite and says it is currently reviewing the mineral’s application across a number of segments and end-products.
Explorers began turning to kaolin after the $595.8 million market-capped Andromeda Metals shot to prominence in 2019 following the discovery of its Great White kaolin deposit near Poochera in South Australia.
The discovery helped push its share price from $0.006 back in April 2019 to around $0.20 today and positioned Andromeda at the forefront of the emerging sector.
Kula has been pursuing kaolin, gold, and base metals through four project areas in Western Australia's Southern Cross region and recently discovered lithium at its Rankin Dome project.
Interestingly, Rankin Dome is located around 130 kilometres north-west of the world-class Mt Holland Lithium mine and adds flavour to a commodity portfolio that already seems to be bursting at the seams.
Kaolin demand was 30.6 million tonnes in 2017 and within three years that is expected to hit 43.1 million tonnes.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
