KalGold's 400-hole auger drill program at the Bulong Taurus Project, 35km east of Kalgoorlie has delivered highly encouraging results. Kalgoorlie Gold Mining Ltd. (`KalGold' or `the Company') aimed to define low-level anomalism and identify new prospects in virgin exploration territory adjacent to the La Mascotte gold prospect. The recent 400-hole auger drill program at Bulong Taurus defines extensive, continuous and strong gold
anomalism along several trends over several thousand metres. Two main trends are evident that are contiguous with mineralisation at and around La Mascotte: An east-southeast trend covering over 2,300 metres, extending from Turnpike in the west, through the La Mascotte and adjacent Exchange mining areas and to the east. No clear structural controls are evident throughout this trend, which may be a result of the interaction of the various
sets and generations of structures interpreted throughout the area. A south-southeast trend over 1,800 metres that extends from the northern end of La Mascotte, through the southern La Mascotte target, the adjacent Golden Jumble, Exchange, and Baronet mining areas, and to the south. This trend parallels an interpreted cluster of SSE-striking structures that appear to control gold to some degree at La Mascotte. This trend coincides with some historic drilling containing gold mineralisation, with the auger program clipping its north-eastern extent. Interestingly, other historic holes another 150m along strike to the south are beyond the extent of the auger anomalism but show mineralisation at depth. Several smaller areas of anomalism are
also recorded, commonly associated with interpreted structures. The very north-eastern corner of the survey area also corresponds to anomalism that may be along strike from the Bennett Dam area, the subject of first-pass RC drilling in January (results pending). If continuous, this would represent a 900m long trend. The Company will investigate extending the auger program to fully define this anomaly for future drilling. The results of this auger program have motivated further assessment and interpretation of geophysical datasets that cover the area. The data will inform the design and implementation of the forthcoming diamond drill program at La Mascotte (imminent) and RC phase 3 program (May). The 400-hole auger program was undertaken to test an area within the Bulong Taurus project to the southeast of La Mascotte that had little to no historic exploration. Auger drill holes are sub-1.5m depth. In areas of subcrop and shallow cover, this technique is very effective at sampling deeply weathered rock in the subsurface, so the anomalous areas in the west and north of the survey area are very reliable. Overall, anomalism is much stronger and is more coherent here, diminishing to the south and east. This may be a function of thicker transported material in the south and east that was not penetrated by the auger drilling. Anomalous results are at levels of 40ppb Au and above. This is consistent with similar programs throughout the Eastern Goldfields province of Western Australia. The maximum value for the program was a highly anomalous 385ppb Au. These results are being used as first-pass data in conjunction with geophysical datasets and the Company's in-house experience and are defining new gold targets at depth beneath the anomalous areas.