Kalgoorlie Gold Mining : La Mascotte drilling to test high-grade extensions

ASX Announcement & Media Release | ASX: KAL | 9 June 2022

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La Mascotte drilling to test high-grade extensions

and outcropping gold mineralisation

Definition of down-dip targets at La Mascotte is ongoing:

1. Systematic investigation of La Mascotte and surrounds continues according to plan.

1. High-gradegold mineralisation is open down-dip from only 120m beneath surface. KalGold will test gold mineralisation extensions following structural analysis of drill core to define final drill hole locations.

1. Next RC program scheduled for August (subject to rig availability) to test the down-dip,high-grade extensions.

1. Independent gap analysis to define any shortcomings of historic data used to define a pre-JORC 1990s resource estimate is also underway.

Recently discovered, outcropping gold mineralisation at La Mascotte west of recent drilling:

1. Mineralised vein excavated and investigated over several hundred metres, located west of KalGold's drilling at La Mascotte. New drill program will also test this and similar structures to expand the rapidly growing extents of the La Mascotte mineral system.

Emerging WA-focused gold explorer, Kalgoorlie Gold Mining (ASX:KAL) ('KalGold' or 'the Company'), is pleased to provide an update on its ongoing exploration activities along with the discovery of outcropping and subcropping gold mineralisation recently unearthed by the Company's prospecting partners at La Mascotte, part of KalGold's lead Bulong Taurus project, 35km to the east of Kalgoorlie-Boulder.

KalGold MD and CEO, Dr Matt Painter, said:

"Systematic appraisal of the La Mascotte project and its surrounds continues. With outcropping and shallow gold mineralisation extended to 700m strike length, down-dip extension of high-grade fresh mineralisation is next on our list. Structural analysis of drill core should provide clear targets for KalGold's next phase of drilling. Excitingly, recently discovered gold mineralisation unearthed by prospectors immediately west of KalGold's drilling can also be targeted by this program."

Targeting down-dip mineralisation at La Mascotte

Having successfully defined the extent of the surface footprint of gold mineralisation at La Mascotte, work is underway to define high-grade targets down-dip of drilled mineralisation. At its deepest, gold mineral-

Kalgoorlie Gold Mining Limited | ACN 645 666 164

Level 1, 1209 Hay St, West Perth WA 6005, Australia | PO Box 1433, West Perth WA 6872

T: [phone] | E: [e-mail] | www.kalgoldmining.com.au

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isation is entirely within 150m of surface. Some of the highest grades are within 120m of surface, including (Figure 3, see KAL ASX announcement 8 Dec 2021):

BD6:	10m at 39.1g/t Au from 128m
	2m at 12.41g/t Au from 149m
MRC094:	5m at 7.11g/t Au from 130m
	7m at 2.12g/t Au from 145m

With a shallow to moderate dip of ~25° to the west, some of the highest-grade intercepts are open down-dip, so testing of these will be straightforward.

To give KalGold the best chance of success, in-depth analysis, and interrogation of the structural controls on gold mineralisation in drill core is underway with several possible models currently being assessed. One of these shows a plunge of high-grade mineralisation to the west to northwest (Figure 2).

Figure 1 - Veining and alteration from La Mascotte is under investigation (BLDD220005, ~135-140m).

Figure 2 - Cross section of La Mascotte, looking north-northwest. Note that the highest grades of mineralisation are towards the western end of the section. One of the models being tested (Figure 3) shows mineralisation plunging down to the northwest, out of this section (into the page from the left side of the diagram). To test this model, drilling would be undertaken to the north of this section and to the west of most drilling, thereby intercepting mineralised surface features identified by prospectors.

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Figure 3 - La Mascotte prospect, showing projected outcropping footprint of gold mineralisation (yellow, dashed outline). Outcropping gold-mineralised vein (yellow, black outline) dips moderately westward. Several geological models are being assessed, but one shows a down-dip extension of gold mineralisation plunging shallowly to the northwest (yellow arrows). The green area shows the likely area in which to collar drill holes to assess this model. Other models are also being assessed by ongoing structural analysis of diamond drill core. NOTE: some historic drill holes in the target area of interest do not appear to be deep enough to intercept the projected mineralised band.

A full structural assessment is expected to be finished by end of June, with targets defined shortly thereafter. Pending rig availability, drill testing should begin in August.

Active surface workings continue to highlight untested mineralisation

KalGold's prospector partners continue to work the ground at and around La Mascotte. Recently their work has focused to the west and northwest of the main zone and has identified outcropping gold mineralisation and undocumented historic workings in the hanging wall of the known zone of gold mineralisation.

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Figure 4 - "Jewellery box" gold mineralisation excavated from immediately west of KalGold's drilling at La Mascotte. Prospectors have excavated the vein to several metres' depth and along strike for several hundred metres. Gold mineralisation varies in intensity along strike from well mineralised to no visible gold. (Recovered from surface workings at approximately 389250mE 6601400mN. These nuggets were found by a prospector working under an agreement with the Company and do not belong to the Company. They will not be assayed by the Company and no estimate has been made as to their gold content.)

Outcropping and subcropping gold mineralisation is present in a roughly north-south striking vein. The intensity of gold mineralisation appears to vary along strike with patches of "jewellery box" style gold mineralisation (Figure 4) recovered. Shallow excavation of the structure shows a moderate westerly dip (Figure 4), consistent with some veins observed in drill core.

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Approximately 200m of strike has been identified, with likely continuity to the north and south under cover. KalGold will be targeting these structures with future drilling, with the aim of significantly increasing the known extents of gold mineralisation within the rapidly growing La Mascotte mineral system.

La Mascotte Work Program

The La Mascotte work program continues according to KalGold's plan (Table 1). Step 2 is likely to finish this month. Assessment of additional surface targets (Step 3) will continue, with Step 4 (test mineralisation extents to depth), expected to commence in August pending rig availability.

An expert third party is currently assessing the historic dataset collated by KalGold at La Mascotte. This dataset was used to estimate a pre-JORC, near surface, open pit mining resource in the 1990s. Effectively, a gap analysis of this dataset should provide details of any deficiencies to be rectified by KalGold prior to estimation of a new resource. In theory, deficiencies could require additional drilling in forthcoming programs. Consequently, this analysis attempts to minimise the time, effort, and cost associated with any further works required at La Mascotte.

Table 1: Expanding gold mineralisation distributions and defining a new JORC resource. Current work includes measuring and collating structural data to define controls on gold mineralisation, and definition of surface workings. Yellow-coloured steps are current.

Program step

Method

Status

Further work

1.

Establish gold

RC drilling of strike extents to north

Largely completed, peripheral

Likely further testing as required.

mineralisation

and south.

mineralisation open to north and

footprint

south.

2.

Define structural

Oriented diamond drilling of known

Oriented drilling completed

No further diamond drilling

controls on gold

mineralised zones and peripheral

April 2022.

required at this time.

mineralisation

areas.

Structural data collection and

Data collection underway.

Completion of data collection.

interpretation.

Interpretation to use this data to

Data interpretation to define

define additional targets.

preferred orientation and plunge of

mineralisation.

3.

Define additional

Field reconnaissance and mapping.

Ongoing.

Assessment of new findings as

surface targets.

Ongoing prospecting activities with

they arise, incorporation into

partners.

ongoing programs. Assessment of

Incorporation of surrounding historic

surrounding historic workings and

mine workings into a larger

their relationship to La Mascotte.

mineralised system.

4.

Test

Drill targets along defined dip(s) and

To be undertaken upon completion

Forthcoming drill program (3rd

mineralisation

plunge(s) of gold mineralisation to

of structural analysis.

quarter 2022).

extents to depth

intercept high grades zones at

depth. (RC and/or diamond drilling)

5.

Define initial JORC

Independent JORC resource

Independent experts appointed.

Opportunities for resource

resource estimate

estimation.

Initial collation of all suitable

expansion to be identified.

for La Mascotte

historic data completed,

Identification of any deficiencies in

historic datasets.

Authorised for lodgement by the Board of Kalgoorlie Gold Mining Limited.

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