Kalgoorlie Gold Mining has received RC assay results from a down-dip target at the La Mascotte gold prospect within the Bulong Taurus project, 35km to the east of Kalgoorlie-Boulder. These are the final results prior to release of the first JORC (2012) Resource Estimate to be calculated at the outcropping La Mascotte prospect, due this quarter. A total of four RC holes for 880m were drilled during the Phase 4 drill program at La Mascotte.

The program was designed to test the down-plunge extent of gold mineralisation from historic high-grade mineralisation. The holes effectively provide a north-south fence of some 80m strike coverage across an area of the projected down plunge mineralised zone. Results from the program showed that the host intermediate volcanics and volcaniclastics contain increasing disseminated sulphide (pyrite) content at depth in all holes, up to 5% by volume.

This is commonly associated with silica-sericite-chlorite-K-feldspar ± magnetite alteration, typical of gold mineralisation throughout the Taurus and Bulong goldfields, as well as elsewhere throughout the Eastern Goldfields. Across the La Mascotte prospect, these zones typically correspond to broad sub-grade mineralised zones with strongly mineralised intercepts hosted within these envelopes. The northern two holes (BLRC220088-89) showed improved grades through target zones at drilled depths of greater than 160m.

While intercepts were narrow at 1-2 g/t Au, they are hosted within broad, sub-grade mineralised zones that increases to the north. This is consistent with the observations regarding alteration detailed above and are an encouraging sign supporting a northwest plunge to the gold mineralisation. The results of the new drilling have helped constrain mineralisation and refine target definition for extensions to La Mascotte.

Figure 1 shows these refined targets projected to surface but it should be noted that gold content is shown at the collar location of each east-dipping drill hole, to the west of its vertical projection. The targets are also shown in their relative positions in long section. The Primary Plunge Target (pink) extends to the northwest.

The results of this program suggest that this drilling has clipped its southern limits. The Secondary Plunge Target (orange) is south of the deep high-grade zone and defines a distinct trend within the deeper high-grade zone. High grade intercepts are open to the south, and this trend extends into an area undrilled due to deviations in historic drill hole traces and earlier- stage historic drilling of insufficient depth.

The Depth Repeat Target (green) is located directly below the shallow and the deep high-grade zones and assumes cyclical repetition of mineralisation continuing to depth.