Kula stumbles across a massive lithium pegmatite at WA Brunswick Project

Kula Gold’s (ASX:KGD) shareholders have responded with impatience towards the company’s announcement today it has uncovered a 300m x 2km long pegmatite system at its 100% owned, 300km2 Brunswick project in the south of WA. 

The microcap’s shares are in the red as we head into the end of lunchtime trades, down nearly -7% to 4cps. 

Kula Gold, which was formerly a gold explorer (huge surprise there) has recently become interested in lithium and a possible future operating in the battery metals supply chain, like no shortage of other smallcaps on the bourse.

The company also has its eyes on kaolin and halloysite. 

But currently, it is seeking to expand its lithium footprint.

On top of Brunswick, now confirmed to host pegmatites of interest, Kula today notes it remains open to further lithium play acquisitions.

So far, the company only has evidence of lithium as translated by soil samples, and a review of a 1990 publication which shows the Donnybrook-Bridgetown Shear Zone (DBSZ) transverses the company’s Brunswick project envelope. 

Kula also highlights the world’s largest hard rock lithium mine, the Greenbushes play, is located only 45km south. 

What has Kula found? 

Today’s pegmatite discovery comes from the most recent fieldwork carried out at Brunswick, with today’s large pegmatite target named PT1. 

Pegmatites were first sniffed out at Brunswick in September, which saw Kula log six different ‘target zones.’ 

By October, that number had grown to 11 pegmatite targets. 

To be fair, the presence of a visible pegmatite system and soil results supporting possible lithium mineralisation are generally the kind of things which on any other day could easily see a company’s share price go up, even before assays are returned. 

So why are shares in the red? 

It is possible shareholders are waiting to see what kind of pegmatite has been found; lepidolite, or spodumene. Spodumene, for downstream processing reasons, is widely perceived as the more desirable kind of rock to discover, but lepidolite deposits are becoming more and more mainstream, as far as smallcap discoveries go. 

Worth noting is that in today’s announcements, no photos of outcrop or rock chips were included. 

Regardless, PT1 represents a new target for the company to focus on moving ahead into 2023. 

Lithium and gold before kaolin and halloysite 

“Today’s update is a solid advancement on the Brunswick Project, showing a large target on the well know Donnybrook-Bridgetown Shear Zone which hosts Greenbushes,” Kula CEO Ric Dawson said. 

“[This is on our radar in addition to] a new target next to our advancing Donnybrook gold project.” 

The company has previously found rock samples indicating gold mineralisation of up to 7.95 grams of gold per tonne of ore (7.95g/t), firmly placing it above the 5g/t ‘high-grade’ cut off endorsed by investment information provider service Undervalued Equity. 

Kula Gold's three month charts.