Kula Gold Limited is pleased to announce the commencement of the reverse circulation (“RC”) drill programme at the Company’s 51% acquired Mt Palmer Gold Mine located near Marvel Loch WA in the Southern Cross Goldfields. The historic Mt Palmer Gold Mine (formerly known as the Yellowdine Mine) was last commercially mined in 1944 down to the 6th Level (~160m) at 15.9 grams/tonne.
HIGHLIGHTS
- Mt Palmer drill programme commences today
- The historic Mt Palmer Gold Mine (formerly known as the Yellowdine Mine) was last commercially mined in 1944 down to the 6th Level (~160m) at 15.9 grams/tonne
- Significant desktop work has progressed on the surrounding tenements to test the full extent of the 10km long greenstone belt with high priority targets to discover high-grade gold mineralisation
- 15km from the Marvel Loch gold processing plant and infrastructure, and 90kms from the Edna May gold plant, aligns with Kula’s strategy of exploring near to existing operations to fast track any discovery to monetary success
Kula’s Managing Director Ric Dawson comments:
“This historically rich ‘half ounce’ gold mine has had ~200 work hours of analysis by Kula’s technical team and shows solid targets for high-grade gold mineralisation extending down plunge.
This acquisition aligns with the Company’s strategy to explore near to existing operations to fast track any discovery to monetary success.”
Figure 1: Kula’s Marvel Loch Projects (noting that Marvel Loch Mine, Nevoria Mine, Yellowdine North and Yilgarn Star are not assets of Kula, refer Appendix A).
About the Mt Palmer Gold Mine
The mine produced over 150,000 ounces of gold at 15.9 grams/tonne in the period 1934 to 1944 and is north of the Nevoria Gold Mine (+600,000 ounces of gold), east of the circa 2.4million ounce Marvel Loch Gold Mine. The mine closed in part due to the continuation of World War 2 severely restricting access to labour and materials and subsequently the mine flooded and was never reopened. Limited exploration since that time has been carried out, largely targeting open pit (less than 100m from surface) opportunities.
RC Drilling Programme
The planned RC drill programme will test the down plunge, along strike extensions to the historically known orebody as detailed in the Figure 2 below.
Figure 2: Mt Palmer Mine open stopes, drives and proposed RC drill traces (MP1-6)
Figure 3: Mt Palmer Gold Mine- Historical Traverse Section at 170ft South.
Mining records indicate that the high-grade shoots were developed within stratabound veins on the limbs and closures of pre-existing folds. Individual lodes were mined over a strike length extending up to 200m and to depths of 155m below surface. The shoots are up to 10m wide and 30 to 70m long and were best developed in the Main and East Lobes.
The mine lease and surrounding areas have excellent exploration potential for the discovery of additional deposits, given limited systematic exploration to date.
Figure 4: Mt Palmer Gold Mine-Historical Long Section with face samples (refer Appendix B- drive plans ASX Release – Mt Palmer Gold Mine Acquisition & Placement, dated 31 May 2024). .
Additional Gold Prospects
The Kula team is continuing to further develop existing gold prospects in the Marvel Loch Project; Stingray Prospect, Nevoria North Prospect and G-Star Prospect as well as starting to assess prospects along the 10km of greenstone belt that hosts the Mt Palmer Gold Mine.
Figure 5: Regional magnetic image_RTP with tenements, prospects and historical gold shafts
Competent Person Statement
The information in this announcement that relates to geology, exploration and visual estimates is based on, and fairly represents, information and supporting documentation compiled by Mr. Ric Dawson, a Competent Person who is a member of the Australian Institute of Mining and Metallurgy. Mr. Dawson is a Geology and Exploration Consultant who has been engaged by Kula Gold Limited and is a related party of the Company. Mr. Dawson has sufficient experience, which is relevant to the style of mineralisation, geology and type of deposit under consideration and to the activity being undertaken to qualify as a competent person under the 2012 edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (the 2012 JORC Code). This market announcement is issued with the prior written consent of Mr. Dawson as to the form and context in which the exploration results, visual estimates and the supporting documentation are presented in the market announcement.
References:
ASX Release (AUN) – Mt Palmer Exploration Update – 20 October 2021
ASX Release- Kula to Acquire Historic Mt Palmer Gold Mine & Placement- 31 May 2024
BOOMERANG DEPOSIT
ASX Release – Boomerang Kaolin Deposit- Maiden JORC Resources – 20 July 2022
News Release
Date: 17 July 2024 | ASX Code: KGD
About the Company
Kula Gold Limited (ASX: KGD) is a Western Australian mineral exploration company with expertise in the discovery of new mineral deposits in WA. The strategy is via large land positions and structural geological settings capable of hosting ~+1m oz Gold or equivalent sized deposits including Lithium.
The Company is advancing projects within the WA goldfields at the Mt Palmer Gold Project at Marvel Loch Southern Cross, the South West region of WA for Lithium and Gold at Kirup and Brunswick – near the world class Greenbushes Lithium Mine, as well Lithium at the Taliah-Nadia-Sasha Prospects at Southern Cross, and Gold and PGE at Westonia (adjacent to the producing Edna May Gold Mine – owned by ASX:RMS).
Kula discovered the large 93.3mt Boomerang Kaolin deposit near Southern Cross WA – Maiden resource announced 20 July 2022. This project is in the economic study phase and moving to PE funding or trade JV.
The Company has a history of large resource discoveries with its foundation being the Woodlark Island Gold project in PNG, (+1m oz Gold) which was subsequently joint ventured and sold to Geopacific Resources Limited (ASX: GPR).
Contact the Company Secretary for more information – +61(08) 6144 0592 or cosec@kulagold.com.au
Appendix A:
Kula Gold’s Marvel Loch, Southern Cross, Rankin Dome and Westonia Projects, location of regional gold mines (Edna May, Marvel Loch Mine, Nevoria Mine, Yellowdine North, Yilgarn Star, Split Rocks and Mt Holland Lithium Mine are not assets of Kula*) and pre-existing infrastructure
