Kalgoorlie Gold Mining Limited announced the first JORC (2012) Mineral Resource at the La Mascotte gold deposit within the Bulong Taurus project, 35km to the east of Kalgoorlie-Boulder. The JORC (2012) Mineral Resource Estimate at La Mascotte has been estimated at: 3.61 Mt @ 1.19 g/t Au for 138,000 oz at a 0.6 g/t cut-off (Inferred). This includes a higher-grade component of 1.35 Mt @ 1.92 g/t Au for 83,000 oz at a 1.0 g/t cut-off.

The La Mascotte Gold Deposit: The La Mascotte gold deposit is one of the few remaining outcropping gold deposits near Kalgoorlie- Boulder in the Eastern Goldfields of Western Australia. Located less than 35km east of the city on the sealed Bulong Road, the deposit can be accessed within 30 minutes' drive from Kalgoorlie. La Mascotte is located within the (historic gold rush era) Taurus Goldfield, immediately to the east of the Bulong Goldfield.

Geologically, the deposit is hosted by a deformed, metamorphosed, felsic-intermediate volcanosedimentary sequence locally intruded by ultramafic to felsic porphyry pods and dykes. This sequence is juxtaposed against a nickel-mineralised ultramafic sequence to the west and north. Separating these sequences is the regionally extensive, deformed Goddard Fault.

KalGold believes this fault to be the controlling structure for gold mineralisation throughout the Taurus Goldfield. Further south along strike, this hosts the high-grade Daisy Milano gold mine operations in the Mt Monger Goldfield. Although outcrop at La Mascotte is poor, gold-mineralised quartz veining and altered felsic-intermediate volcaniclastic rocks are evident as subcrop and float over several hundred metres.

Gold nuggets have also been recovered by our prospector partners over the area. Furthermore, shallow excavations in these areas exhibit a prevailing shallow westerly dip of strata, foliation, and veining. Inferred JORC Resource Estimate: The new Inferred JORC (2012) Mineral Resource Estimate (MRE) for the La Mascotte deposit is the first for a deposit in the Taurus goldfield.

While an earlier, non-code compliant polygonal resource estimate was compiled by Manor Resources in the 1990s (WAMEX report a45341), KalGold's recent work has significantly grown this previous resource base. The Inferred Resource of 3.61Mt at 1.19g/t Au for 138,000 ounces is open at depth, with recently identified targets offering an opportunity for resource growth. The resource is amenable to higher cut-offs, offering significant ounces at higher grades.

For example, a 1.0 g/t cut-off defines over 83,000 oz at 1.9 g/t Au. Similarly, a 1.5 g/t cut-off defines over 55,000 oz at 2.7 g/t Au.