Kula Gold has successfully intersected multiple, thick kaolin sections at its Boomerang Kaolin prospect at the company’s Marvel Loch-Airfield gold project in the Southern Cross region where drilling is ongoing. Logging of 25 RC drill holes to date shows an average vertical thickness of 30m of white kaolin clays starting from approximately 6.5 metres vertical depth.
A total of 25 RC drill holes for a total of 1,316m of drilling has been completed at the Boomerang prospect so far.
Drilling is designed as a step out program from Kula’s kaolin discovery hole at Boomerang and has confirmed the presence of a shallow kaolin deposit.
The Boomerang kaolin prospect was generated following thick intersections of white kaolin clays earlier in the year from three initial RC drill holes. Notable results include one hole that returned 10m grading a solid 7 per cent halloysite from 40m downhole within a wider 55m intercept from 5m downhole.
RC drilling is aiming to define the lateral and vertical extent of kaolin and halloysite mineralisation in addition to defining the preliminary resource potential.
Kula says drill results are encouraging given the thick layer of white kaolin clay intersected in the majority of the drill holes. Kula geologists have logged an average visual kaolin clay thickness of 30m from all holes that intersected kaolin.
Approximately 3,500m from 62 vertical holes is planned to test the kaolin and halloysite resource potential at Boomerang. A coincident gold target will also be tested below the kaolin horizon by extending drillholes approximately 10 to 15m into the fresh rock.
Remaining RC drilling is designed to test to the north and south of drilling already completed to explore the lateral and vertical extent of the kaolinized horizon. Drilling is also designed to infill between recent drilling in areas where deeper kaolin alteration was observed.
Kaolin is primarily used to increase gloss, smoothness and brightness in the paper industry where it is used as a filler or coating, accounting for more than 40 per cent of market share. Kaolin is also used in fibreglass manufacturing to create lightweight composites for the automotive, marine, aerospace and other industries.
Halloysite and kaolin developers are beginning to be embraced by the market, with the approximately $400 million market-capped Andromeda Metals leading the charge following the discovery of its Great White deposit in South Australia. Andromeda looks to be at the forefront of the emerging sector with its deposit near Poochera propelling its share price of $0.006 in April 2019 to around $0.162 today.
With global demand for kaolin only expected to increase, Kula is in an intriguing position with both kaolin and gold assets under its belt and plenty of drilling ahead in the lead up to Christmas.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
