EXPLORATION is expected to continue for Kula Gold in 2016 and the company hopes to identify growth opportunities with a review of its Woodlark Island database.
Amid the commodity price slump Kula said exploration will continue in 2016 but on a reduced and campaign basis.
A review and analysis of the historic geological database at the Woodlark Island Gold project has commenced with the company hoping to identify opportunities.
“One of the aims of the review is to identify additional resource growth opportunities in close proximity to the known ore reserves and on a regional scale,” the company said.
During the December quarter, Kula continued its regional pan concentrate drainage sampling program around the Watou prospect.
The program aims to identify exploration and potential resource targets.
Kula collects drainage pan concentrate samples from a 30 square kilometre area of sub-cropping prospective Okiduse volcanics within trucking distance of the plant site.
In addition, Kula completed applications for five lease for mining purposes and two mining easement tenements and expected a response from the Mining Advisory Council in the first part of 2016.
Kula reported cash of about $1.1 million as at 31 December 2015.
Kula is developing the 100 per cent owned Woodlark Island Gold project which is located 600 kilometres east of Port Moresby in Milne Bay province.
The company has been granted the environment permit and mining lease for the project.