8 June 2012
Kula Gold appoints Arccon Mining Services; potential EPC contractor Directors David Frecker Independent Chairman and Non-Executive Director Lee Spencer Managing Director and CEO John WatkinsExecutive Director and CFO
Louis RozmanNon-Executive Director
Mark Stowell Independent Non- Executive Director
ASX Code: KGD
112.6 million ordinary shares
5.2 million unlisted options
Kula Gold Limited (ASX:KGD) has appointed Arccon (WA) Pty Ltd
(Arccon), a wholly owned subsidiary of Allmine Group Limited
(ASX:AZG), as engineering design consultant to revise the
Company's process plant and site infrastructure design and
capital cost estimates so that the Company can optimise its
feasibility study.
Arccon also has the capacity to provide engineering,
procurement and construction ('EPC') services to construct
the Woodlark Island Gold Project and has expressed interest
in doing so.
Arccon provides EPC services to mineral resource development
projects in Australia and overseas, including Papua New
Guinea where Arccon is currently engaged on a major mine
development project.
Arccon will assist Kula to complete the final stages of the
Company's feasibility study due in Q3, 2012. At that time,
Arccon will offer a lump sum turnkey EPC contract for the
development and delivery of Kula's Woodlark Island Gold
Project ('WIGP').
Through its alliance partner, China Non Ferrous Industry's
Foreign Engineering and Construction Company ('NFC'), Arccon
has access to lower capital cost process plant equipment and
lower fabrication costs which will be considered during the
current capital cost review of the WIGP.
NFC also has capacity to provide capital funding to projects
where its services are employed.
Kula Gold is currently proceeding with a further drilling
program to infill Mineral Resources which are currently in
the JORC Inferred category and so are unable to be included
in the Ore Reserve. It is expected that this infill drilling
will result in an increase in the Ore Reserve of the project.
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Background: Woodlark Island Gold Project, PNG For further information, contact:
Lee Spencer John Watkins
Chief Executive Officer Chief Financial Officer Kula Gold
Limited Kula Gold Limited lspencer@kulagold.com.au jwatkins@kulagold.com.au
P. 02 9262 5651 P. 02 9262 5651
Kula Gold Limited is developing the 100% owned Woodlark
Island Gold Project, located 500 kilometres east of Port
Moresby in the Milne Bay Province, Papua New Guinea. The
island is located in a region of world class gold deposits
such as Barrick's Porgera Mine (24 Moz), Newcrest's Lihir
Mine (50 Moz) and Harmony/Newcrest's Hidden Valley Mine at
Morobe (16 Moz).
Forward Looking Statement
All statements other than statements of historical fact included in this announcement including, without limitation, statements regarding future plans and objectives of Kula Gold Limited (Kula Gold) are forward-looking statements. When used in this announcement, forward-looking statements can be identified by words such as 'may', 'could',
'believes', 'estimates', 'targets', 'expects' or 'intends' and other similar words that involve risks and uncertainties.
These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of this announcement, are expected to take place. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the
company, its directors and management of Kula Gold, that could cause Kula Gold's actual results to differ materially from the results expressed or anticipated in these statements.
The company cannot and does not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this announcement will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements. Kula Gold does not undertake to
update or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained in this announcement, except where required by applicable law and stock exchange listing requirements.
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