Kula Gold Limited reports its Diamond Drilling Program at the Company’s Mt Palmer Gold Mine is complete, and provides an exploration update with the identification of new Gold Prospects at El Dorado 6m @ 8.3g/t Gold and Meiers Find 1m @ 9.2g/t Gold within the Mt Palmer Project located near Marvel Loch in the Southern Cross Goldfields of WA.
Kula’s Managing Director Ric Dawson comments:
“The diamond core had excellent recovery and will provide excellent structural data for analysis on this exciting high-grade project last mined in 1944. Following structural analysis, the core will be cut and assayed and results reported thereafter, which will lead to further drilling as knowledge of the high-grade zones improves and becomes more predictable.
Historic data reviewed by Kula’s technical team shows solid targets for high-grade gold mineralisation extending below 160m, the past mining level, shallow by today’s modern operating practices.
Excellent new prospects such as the El Dorado (6m @ 8.3g/t gold from 28m including 1m @ 45.4g/t gold from 30m with no follow-up) are being advanced to drill ready status for a planned RC programme.
This acquisition aligns with the Company’s strategy to explore near to existing operations to fast track any discovery to monetary success.”
HIGHLIGHTS
- Diamond drilling completed 307.4m of HQ3 diamond core with Terra Drilling from two existing RC drilling pre-collared to approximately 250m each
- Previously announced anomalous RC drilling results have been re-assayed with Leachwell digestion confirming good recovery characteristics for carbon-in-leach (CIL) processing
- Three new prospects advanced- including 6m @ 8.3g/t Gold from 28m at El Dorado and 1m @ 9.2g/t Gold from 36m at Meiers Find
- Mt Palmer Gold Mine is ~15km from the Marvel Loch gold plant and infrastructure, and ~90km from the Edna May gold plant, which aligns with Kula’s strategy of exploring near to existing operations to fast track any discovery to monetary success
Figure 1: Kula’s Marvel Loch Projects (refer Appendix A).
About the Mt Palmer Gold Mine
The mine produced over 150,000 ounces of gold at 15.9 g/t in the period 1934 to 1944 and is north of the Nevoria Gold Mine (+600,000 ounces of gold), east of the circa 2.4 million 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.
Figure 2: Mt Palmer Gold Mine recent diamond drilling programme – orientation, logging and preparation for assaying by Kula Team.
Diamond Core Drilling Programme
Diamond HQ3 core drilling has been completed for 307.4m in 2 holes to extend the 2 precollared RC holes 24MPKC001, and 24MPKC009 to test the down plunge extensions to the historically known orebody.
Selective Re-assaying of Recent RC Drilling Programme
A selection of previously fire assayed FA50 1m intervals from the recent RC programme were re-assayed with a Leachwell digestion LW1000 and then the residue ‘tails’ was fire assayed FA25T due to the Kula technical team suspicious of anomalous multi-element reading but low gold assay results, the resultant work provided positive results as tabled in Appendix D.
The low refractory ‘tail’ is encouraging for future potential CIL processing with an expectation of a high extraction percentage from cyanide leach. Further bulk testing is required to be definitive.
Mining records indicate that the high-grade shoots were developed within strata-bound 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 Lodes.
The mine lease and surrounding areas have excellent exploration potential for the discovery of additional deposits, given limited systematic exploration to date.
Figure 3. 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)
Mt Palmer – Bryant’s Lode
The Kula team is continuing to develop gold prospects in the Marvel Loch Project, with the new advancing prospect Mt Palmer Bryant’s Lode returning 4m @ 3.02g/t gold from 18m near surface (24MPKC005) aligning with historic holes of up to 7m @ 3g/t gold including 1m @ 10.6g/t gold (MPRC078). These are drill widths, true width to be confirmed with future drilling.
This lode is 500m south of the main workings and demonstrates a contiguous zone of shallow gold mineralisation open north and south and at depth.
Figure 4. Mt Palmer Bryant’s Lode cross section.
Working is now in the planning stage to follow up this prospect with a planned RC programme over the coming weeks/monthly subject to RC rig availably and logistics timing.
Figure 5. Mt Palmer Bryant’s Lode plan view showing drill collars and mineralised envelope, which is open north, south and at depth.
Mt Palmer – Meiers Find Prospect
Desktop studies and ground truthing by the Kula technical team during the recent drilling programme has assessed the Meiers Find Prospect as having strike extensions to the historic Mt Palmer Gold Mine from surface geochemical sampling and historical drill results including YD-7 with an intersection of 1m @ 15.4g/t gold from 36m, 2m @ 1.7g/t gold from 30m and MFRC2009 with an intersection average over 1m @1.7g/t gold from 33m with no follow-up drilling.
A modern UFF programme is planned to provide a tighter definition for RC drilling. These are drill widths, true width to be confirmed with future drilling.
Figure 6. Mt Palmer Meiers Find Prospect with planned UFF programme over regional magnetics RTP_NW AGCS_NL with historic drill collars, soils and rock chips.
Mt Palmer – El Dorado Prospect
Exploration work by the Kula technical team during the diamond drilling programme has assessed a newly named El Dorado Prospect as having strike extensions north of the historic Mt Palmer Gold Mine with a significant RC drill intersection of 6m @ 8.3g/t from 28m including 1m @ 45.4g/t gold from 30m drilled in 1986 which has had no follow-up work.
A modern UFF programme is planned to provide a tighter definition to be a drill ready prospect. These are drill widths, true width to be confirmed with future drilling.
Figure 7. Mt Palmer El Dorado Prospect with planned UFF programme over regional magnetics RTP_NW AGCS_NL with historic drill collars, soils and rock chips.
Mt Palmer – Mt Palmer East
Geophysical interpretations have identified a possible parallel structure over 8km in length east of the Mt Palmer Mine (shown in red oval in Figure 8 above). Geochemical sampling has been commenced over a test area to advance this large totally unexplored target next to a past producer gold mine.
Figure 8: Regional magnetic image TMI_RTP with Kula tenements, prospects and historical workings and Mt Palmer East in red (E77/3231 in application).
Further results will be reported in due course.
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
ASX Release- RC Drilling Commences at Historic Mt Palmer -17 July 2024
ASX Release -New Lode to 6.66g/t Gold in Shallow RC drilling- Mt Palmer 29 August 2024
ASX Release – Diamond core drilling commences at Mt Palmer Gold Mine-11 September 2024
BOOMERANG DEPOSIT ASX Release – Boomerang Kaolin Deposit- Maiden JORC Resources – 20 July 2022
News Release
Date: 26 September 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 (ASX: GPR).
Contact the Company Secretary for more information – +61(08) 6144 0592 or cosec@kulagold.com.au
