Kula Gold Advances Wozi Niobium Project with Maiden Drilling Planned for 2025

Strategic Entry into Niobium Exploration

Kula Gold Limited (ASX: KGD) has announced a strategic expansion into the critical minerals sector with the acquisition of a 75% interest in the Wozi Niobium Project, located in Malawi. This move diversifies Kula’s portfolio beyond its established gold assets, tapping into the growing demand for niobium and tantalum, metals essential for high-tech and clean energy applications.

The Wozi Project lies within the Mozambique Orogenic Belt, part of the East African Rift Valley System, an area known for its complex geology and mineral potential. Kula’s joint venture partner, African Rare Metals Pty Limited, retains a 25% free-carried interest and a 2% net smelter return royalty, underscoring a balanced risk-sharing approach.

Promising Historical Data Underpins Exploration Plans

Historical exploration by Mantra Resources in 2007-2008 revealed substantial niobium mineralisation near surface, with trench intercepts such as 145 meters at 0.55% Nb2O5 and 192 meters at 0.49% Nb2O5, accompanied by tantalum values exceeding 100 ppm. These wide zones of mineralisation, hosted in pyrochlore within nepheline syenite intrusions, suggest a large-scale deposit with significant upside potential.

While these results predate the JORC Code 2012 and require independent validation, Kula is confident in their reliability and plans to confirm and expand upon them through systematic fieldwork, including soil sampling, geological mapping, and rock-chip sampling, ahead of a maiden drilling campaign slated for the second quarter of 2025.

Logistical Advantages and Environmental Considerations

The project benefits from excellent infrastructure, situated just 2 kilometers from Malawi’s major M1 highway, providing direct access to regional hubs Lilongwe and Mzuzu, as well as the Nacala Rail Corridor to the Indian Ocean. This connectivity could facilitate efficient transport of future concentrates.

However, the grant of the exploration licence remains conditional on the completion of an Environmental and Social Management Plan (ESMP), currently underway. This highlights Kula’s commitment to responsible exploration practices in line with local regulatory requirements.

Financial and Operational Outlook

Kula has earmarked an initial US$100,000 budget for exploration activities, funded through a director-related loan facility with competitive terms. This investment aims to rapidly advance the project from historical data review to active drilling, potentially unlocking a new revenue stream complementary to Kula’s flagship Mt Palmer Gold Mine in Western Australia.

Managing Director Ric Dawson emphasised the low-cost, high-impact nature of the Wozi opportunity, reflecting the company’s strategic agility in capitalising on emerging critical mineral markets while maintaining its core gold exploration focus.