ASX-listed Kula Gold has formed a joint venture (JV) with an unrelated third party called African Rare Metals to apply for an exploration licence on the Wozi niobium project, in Malawi.

The terms of the deal involve Kula holding 75% of the JV and African Rare Metals the balance. Kula will fund the initial exploration programme valued at $100 000, while African Rare Metals will receive a 2% net smelter return royalty.

African Rare Metals may dilute to a 10% shareholding following which it will be free carried until a decision to mine is taken.

Once an exploration licence is granted, Kula will start with a field programme to confirm the historic drill work and results on the project, including further rock-chip and soil sampling, to outline the scale potential of the project.

This work will help inform a maiden drilling programme to be launched by the second quarter of the year.

The Wozi project is believed to host niobium and tantalum mineralisation from surface in the mineral pyrochlore within a nepheline syenite intrusive stock.

Nepheline syenites are highly prospective targets for peralkaline intrusive-related niobium and tantalum mineralisation.

Some of the historical systematically sampled trench results include 145 m of niobium oxide grading 0.55% and 119 parts per million (ppm) of tantalum pentoxide, 41 m of niobium oxide grading 0.54% and 122 ppm tantalum pentoxide and 192 m of niobium oxide grading 0.49% and 158 ppm tantalum pentoxide.

Kula MD Ric Dawson says that, amid a robust global gold market, Kula has identified the Wozi project as an interesting high-impact, low-cost niobium/tantalum opportunity to add to the company’s portfolio, while advancing the flagship Mt Palmer gold mine near Southern Cross in Western Australia.

“We look forward to quickly advancing Wozi towards a maiden drilling programme over the next few months. Kula’s board and team have considerable experience in Africa in discovery, construction and successful mining operations,” Dawson concludes.