Kalgoorlie Gold Mining : Strong auger results define new gold targets

ASX Announcement & Media Release | ASX: KAL | 15 March 2022

For personal use only

Strong auger results define new gold targets

New auger results define extensive gold anomalism from an unexplored part of the Bulong Taurus project near La Mascotte.

• Strong, continuous gold anomalism throughout the area studied is contiguous with the La Mascotte gold prospect, defining extensive mineralisation trends:

1. An east-southeast trend covering over 2,300 metres, extending from Turnpike in the west, through La Mascotte mining area and to the east.

• 1. A south-southeast trend over at least 1,800 metres that extends from the northern end of La Mascotte, through several mining areas, and to the south.
• The presence of highly anomalous gold mineralisation under shallow cover at the southern end of La Mascotte indicates that a large gold system is rapidly being defined by KalGold's systematic exploration.
• Recent KalGold drilling will be expanded in forthcoming programs to begin testing new targets defined by this auger program.

Other programs are advancing:

• Diamond drilling at La Mascotte to commence shortly.
• Next phase of RC drilling to commence late April/early May will expand drill programs at previously drilled sites and at new targets. Targets at Ninga Mia gold project near Kalgoorlie to be drilled.
• Assay results from January's RC program still pending.

KalGold's 400-hole auger drill program at the Bulong Taurus Project, 35km east of Kalgoorlie has delivered highly encouraging results. Kalgoorlie Gold Mining Ltd (ASX:KAL) ('KalGold' or 'the Company') aimed to define low-level anomalism and identify new prospects in virgin exploration territory adjacent to the La Mascotte gold prospect.

Commenting on the Auger Program, KalGold Managing Director and CEO, Dr Matt Painter, explains that

"The recent auger drill program was undertaken to assess the prospectivity of an unexplored part of the Bulong Taurus project southeast of the La Mascotte gold prospect.

Kalgoorlie Gold Mining Limited |	ACN 645 666 164
Suite 2, 45 Ord St, West Perth WA 6005, Australia |	PO Box 1433, West Perth WA 6872

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

For personal use only

We could not have hoped for better results with new targets to be drill tested as a priority when an RC rig next returns to site. The results confirm gold anomalism extending nearly the full breadth of the program. Several mineralisation trends are defined that cover up to 2,300m strike length and incorporate historically mined areas.

Importantly, where historic assay results are present, they are consistent with the new auger anomalies. Structures at depth interpreted by KalGold appear to exert a degree of control over the distribution of the auger gold anomalism. This suggests a genetic relationship to mineralisation over what is emerging as a large gold-mineralised system."

Figure 1 - Extensive, strong and continuous gold anomalism (yellow) has been defined by the recent auger drill program that covered unexplored parts of the Bulong Taurus project. Projection MGA 94 Zone 51.

Results of the auger drill program

The recent 400-hole auger drill program at Bulong Taurus defines extensive, continuous and strong gold anomalism along several trends over several thousand metres.

Page 2

Two main trends are evident that are contiguous with mineralisation at and around La Mascotte:

For personal use only

• An east-southeasttrend covering over 2,300 metres, extending from Turnpike in the west, through the La Mascotte and adjacent Exchange mining areas and to the east. No clear structural controls are evident throughout this trend, which may be a result of the interaction of the various sets and generations of structures interpreted throughout the area.
• A south-southeasttrend over 1,800 metres that extends from the northern end of La Mascotte, through the southern La Mascotte target, the adjacent Golden Jumble, Exchange, and Baronet mining areas, and to the south. This trend parallels an interpreted cluster of SSE-striking structures that appear to control gold to some degree at La Mascotte. This trend coincides with some historic drilling containing gold mineralisation, with the auger program clipping its north-eastern extent. Interestingly, other historic holes another 150m along strike to the south are beyond the extent of the auger anomalism but show mineralisation at depth. Several smaller areas of anomalism are also recorded, commonly associated with interpreted structures. The very north-eastern corner of the survey area also corresponds to anomalism that may be along strike from the Bennett Dam area, the subject of first-pass RC drilling in January (results pending). If continuous, this would represent a 900m long trend. The Company will investigate extending the auger program to fully define this anomaly for future drilling.

Forthcoming drill programs

The results of this auger program have motivated further assessment and interpretation of geophysical datasets that cover the area. The data will inform the design and implementation of the forthcoming diamond drill program at La Mascotte (imminent) and RC phase 3 program (May).

Figure 2 - Indicative timeline for active exploration projects and programs from KalGold portfolio.

Page 3

For personal use only

About the auger program

The 400-hole auger program was undertaken to test an area within the Bulong Taurus project to the southeast of La Mascotte that had little to no historic exploration.

Auger drill holes are sub-1.5m depth. In areas of subcrop and shallow cover, this technique is very effective at sampling deeply weathered rock in the subsurface, so the anomalous areas in the west and north of the survey area are very reliable. Overall, anomalism is much stronger and is more coherent here, diminishing to the south and east. This may be a function of thicker transported material in the south and east that was not penetrated by the auger drilling.

Anomalous results are at levels of 40ppb Au and above. This is consistent with similar programs throughout the Eastern Goldfields province of Western Australia. The maximum value for the program was a highly anomalous 385ppb Au. These results are being used as first-pass data in conjunction with geophysical datasets and the Company's in-house experience and are defining new gold targets at depth beneath the anomalous areas.

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

For further information regarding KalGold, please visit kalgoldmining.com.auor contact:

Matt Painter

Managing Director and Chief Executive Officer

Tel [phone]

Page 4

Page 5

Follow KalGold on social media

• Other projects, including the Kalgoorlie Project, that offer numerous conceptual targets that will be refined and tested through ongoing field and desktop programs.

• The Keith-Kilkenny and Laverton Tectonic Zone Projects, which will focus on overlooked areas of these highly prospective terranes. Broad areas containing nickel laterite deposits have not been assessed for gold in decades, and KalGold will initially focus on assaying archived samples from historic programs. Other areas contain recent prospector discoveries that have not been previously explored.

• The Bulong Taurus Project, 35km east of Kalgoorlie- Boulder, which offers opportunity for rapid conversion of new and historic drill results to JORC resources. The Taurus gold mining centre was discovered in the 1890s gold rush and has been almost continuously worked by prospectors since. KalGold is the first company in generations to assemble the full tenement package over the mining centre to fully and properly assess this highly mineralised area for significant gold deposits.

onlyKalgoorlie Gold Mining (KalGold, ASX:KAL) is an ASX-listedresources company, with a large portfolio of West Australian projects, focussed on:

For usepersonal

About KalGold