KalGold Validates Lighthorse Gold Discovery, Boosts Cash to $6.4M

Transformational Quarter at Pinjin

Kalgoorlie Gold Mining Limited (ASX: KAL) reported a landmark quarter ending 31 March 2025, highlighted by the Lighthorse gold discovery within its Pinjin Gold Project, situated in the prolific Laverton Tectonic Zone approximately 140 kilometres northeast of Kalgoorlie. This discovery validates the company’s systematic exploration approach and opens a promising chapter for resource expansion.

The Lighthorse prospect, previously undrilled and concealed beneath roughly 30 metres of transported cover, was initially flagged by broad-spaced aircore drilling revealing extensive gold anomalism. Follow-up infill aircore and confirmatory reverse circulation (RC) drilling during the quarter have delineated primary shear- and vein-hosted gold mineralisation extending at depth and along strike, with mineralisation remaining open in multiple directions.

Drilling Results and Geological Insights

Sixteen RC holes totaling 2,446 metres were completed on a nominal 100 by 80 metre grid, confirming coherent gold intercepts including high-grade zones such as 9 metres at 3.52 g/t Au and 5 metres at 2.64 g/t Au. The mineralisation is associated with typical orogenic gold deposit features, including sericite-silica-carbonate-chlorite-pyrite alteration and quartz veining. Notably, a supergene gold blanket was identified near surface, indicative of weathered gold systems common in Western Australia’s Eastern Goldfields.

KalGold’s geological interpretation suggests a steeply west-dipping primary trend with potential secondary structures, though further drilling, both RC and diamond, is planned to refine the structural controls and extend the known mineralised footprint.

Expanding the Lighthorse Corridor

The Lighthorse discovery appears to be part of a larger mineralised corridor extending approximately 13 kilometres along strike, with multiple undrilled targets identified both north and south of the current footprint. These include structurally prospective zones beneath transported cover and historic prospects such as T15, where previous drilling was limited or ineffective. KalGold is actively planning further aircore and RC drilling to test these targets, aiming to build on the initial success and define a substantial gold system.

Resource Base and Corporate Strength

KalGold’s total JORC Code (2012) Inferred Mineral Resource remains at 214,300 ounces of gold, combining 76,400 ounces at Pinjin (Kirgella Gift and Providence deposits) and 137,900 ounces at Bulong Taurus (La Mascotte deposit). These resources are near surface and amenable to open pit mining, underpinning the company’s low-cost, shallow resource strategy.

Financially, the company strengthened its position with a cash balance of $6.4 million and no debt as of 31 March 2025. This follows a $4 million placement to institutional and sophisticated investors and $1.4 million raised from share option conversions during the quarter. Exploration expenditure was approximately $389,000, focused on drilling and tenement costs.

Farm-In Completion and Future Outlook

KalGold completed all drilling commitments under its Pinjin farm-in agreement and expects to exercise its option to secure a 75% interest in the farm-in tenements shortly. This consolidation enhances the company’s control over a strategically significant landholding in a highly prospective gold province.

Meanwhile, work continues at the Bulong Taurus Project, where discussions with traditional owners and regulatory progress on a new mining licence at La Mascotte are advancing. The company is exploring opportunities for a small-scale mining operation targeting shallow oxide gold mineralisation, potentially generating early cash flow.

Other projects in the portfolio remain under reconnaissance, with no material results reported this quarter. The company has relinquished the Pianto Project to focus resources on higher priority gold targets.

Strategic Positioning in the Eastern Goldfields

KalGold’s portfolio, anchored by the Pinjin and Bulong Taurus projects, situates it within the Laverton Tectonic Zone, a prolific gold-producing region hosting multi-million-ounce deposits. The Lighthorse discovery and ongoing exploration programs position KalGold to capitalize on this geological setting, with the potential to significantly grow its resource base and advance towards development.