Kalgoorlie Gold Mining provided an update on its ongoing exploration activities along with the discovery of outcropping and subcropping gold mineralisation recently unearthed by the Company's prospecting partners at La Mascotte, part of KalGold's lead Bulong Taurus project, 35km to the east of Kalgoorlie-Boulder. Having successfully defined the extent of the surface footprint of gold mineralisation at La Mascotte, work is underway to define high-grade targets down-dip of drilled mineralisation. At its deepest, gold mineral-isation is entirely within 150m of surface.

With a shallow to moderate dip of ~25° to the west, some of the highest-grade intercepts are open down-dip, so testing of these will be straightforward. To give KalGold the best chance of success, in-depth analysis, and interrogation of the structural controls on gold mineralisation in drill core is underway with several possible models currently being assessed. One of these shows a plunge of high-grade mineralisation to the west to northwest.

KalGold's prospector partners continue to work the ground at and around La Mascotte. Recently their work has focused to the west and northwest of the main zone and has identified outcropping gold mineralisation and undocumented historic workings in the hanging wall of the known zone of gold mineralisation. Outcropping and subcropping gold mineralisation is present in a roughly north-south striking vein.

The intensity of gold mineralisation appears to vary along strike with patches of "jewellery box" style gold mineralisation recovered. Shallow excavation of the structure shows a moderate westerly dip, consistent with some veins observed in drill core. Approximately 200m of strike has been identified, with likely continuity to the north and south under cover.

KalGold will be targeting these structures with future drilling, with the aim of significantly increasing the known extents of gold mineralisation within the rapidly growing La Mascotte mineral system. The La Mascotte work program continues according to KalGold's plan. Step 2 is likely to finish this month.

Assessment of additional surface targets (Step 3) will continue, with Step 4 (test mineralisation extents to depth), expected to commence in August pending rig availability. An expert third party is currently assessing the historic dataset collated by KalGold at La Mascotte. This dataset was used to estimate a pre-JORC, near surface, open pit mining resource in the 1990s.

Effectively, a gap analysis of this dataset should provide details of any deficiencies to be rectified by KalGold prior to estimation of a new resource. In theory, deficiencies could require additional drilling in forthcoming programs. Consequently, this analysis attempts to minimise the time, effort, and cost associated with any further works required at La Mascotte.