Like a few other astute explorers, Kula Gold has tenements surrounding the Greenbushes lithium mine. Pic via Getty Images.
Next week Kula is drilling Cobra, a massive target next to the world’s largest lithium mine
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- Drilling to start next week at Kula Gold’s 3km long, 500m wide Cobra lithium prospect
- $650,000 to be raised for a maiden drill program
- Company also optioned more ground to expand wider Kirup lithium project by 48km2
- Kirup tenements are adjacent to Greenbushes, the world’s biggest lithium mine
Special Report: Kula Gold is launching a maiden drill program at Cobra, a juicy 3km-long lithium target near the world’s largest lithium mine in southwest WA.
Kula Gold’s (ASX:KGD) underexplored Kirup tenements are right next door to the Greenbushes mine, owned in a JV between US-based Albemarle and Chinese miner Tianqi Lithium.
Albemarle’s 49% slice of Greenbushes’ lithium production will feed into its Kemerton processing plant south of Perth, WA, where it’s spending $1.5bn to turn it into a monster 100,000tpa chemical factory – expected to be the largest outside China.
Chinese miner Tianqi Lithium, which owns 51% in a JV with IGO (ASX:IGO), is also commissioning its own 24,000tpa plant in Kwinana to process its share of concentrate from the 1.5Mtpa spodumene operation.
This huge boost to Australia’s lithium refining capacity has the Greenbushes JV looking to expand its resource, as evident when Albemarle recently forked out $30m to snap up tenements near the mine from Lithium Power International (ASX:LPI) back in June.
IGO is expanding in the region too, inking a deal back in May to earn-in up to 70% of Venus Metals (ASX:VMC) in a $4m farm-in agreement and is currently conducting exploration across the tenements, also close to Greenbushes.
Striking at Cobra
The main lithium target at Kirup is Cobra, where mapping and sampling has increased the strike to a “substantial” ~3km and up to 500m wide.
Backed by a $650,000 raise, KGD expects to launch into a maiden 1000m RC drilling campaign at Cobra next week.
“The Cobra lithium prospect is our primary target for this RC drilling program with a RC rig and booster initially planning to drill to 150m downhole but with capacity to drill to 250m if required,” managing director Ric Dawson said.
“The program has been designed to test the entirety of this large pegmatite for LCT mineralisation at depth (below the known weathered zone) in a mafic host country rock.”
Other lithium targets include Mustang, where multiple targets with strikes up to 1km long and 200m wide have been found, as well as three parallel pegmatite units at the Thunderbird prospect.
KGD has also optioned to buy a 48km2 tenement for $50,000 from Airdrie Exploration south of Cobra prospect and has firm commitments in a share placement to raise $650,000 for exploration and due diligence on the new tenure.
“Kula has the option to acquire a new tenure directly abutting to the south of the existing Kirup project, increasing our portfolio of lithium exploration potential in a regional area aggressively under focus by major local and international companies as evidenced by Albemarle $30m purchase of tenements nearby,” Dawson said.
This article was developed in collaboration with Kula Gold, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
