Has Kula’s Rankin Dome JV made a rare earths discovery?

• 249 hole auger program to define rare earths anomaly now completed over Rankin Dome project
• 900m of deeper RC drilling (6 x 150m deep) currently underway to test rare earths targets
• On completion, rig will move to Kula’s Kirup lithium project

Drilling is ongoing at Kula’s Rankin Dome JV near Southern Cross in the hunt for rare earths paydirt.

Rankin Dome was originally explored for gold, but the focus shifted to critical minerals after shallow auger drilling in early 2022 identified anomalous lithium. Later that year, a soil sampling campaign returned rare earths up to 1,080ppm TREO in 74% of the samples.

This led to the definition of a +8km2 rare earths target zone.

Lithium-focused Kula Gold (ASX:KGD) subsequently signed an agreement with Australian Critical Minerals (ASX:ACM) which granted the latter the right to earn up to 51% in Rankin Dome project by spending $200,000 on exploration including at least 2,000m of reverse circulation drilling.

On completion of this requirement, the two companies will form a joint venture with Kula having the option to retain a 49% interest and contribute to the project’s development.

Drilling now underway

Australian Critical Minerals has now completed the auger program over a 100m-by-100m grid in the northwestern portion of the rare earths anomaly, which features scant outcrop and thus lacks bedrock depth information.

As such, the grid program included 1 in 10 holes drilled to refusal to gain further information, including bedrock depth.

This program is expected to dial in on potential paydirt to guide future drilling.

Meanwhile, a 900m RC program is currently underway on the northwest section of the Rankin Dome project, where the bedrock is close to surface, to test areas of rare earths anomalism in soils.

“We extend our sincere gratitude to Stark Drilling for their exceptional support in facilitating our decision to mobilise drilling resources in the most efficient and cost-effective manner,” Kula chief executive officer Ric Dawson said.

“Our primary objective continues to be the swift completion of our drill program at the Kirup lithium project.

“However, we are also closely monitoring the progress made by ACM at the Rankin Dome Project, as it has piqued our keen interest.”

Coming up

Besides the ongoing drilling and pending assays from the auger geochem program at Rankin Dome, Kula is waiting on assays from initial drilling at its Kirup project near the world-class Greenbushes lithium mine.

This drilling had intersected stacked pegmatites with observed visual pegmatites and will be followed by more drilling once the rig completes the RC program at Rankin Dome.

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This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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