Kula Gold Limited presents its Quarterly Activity Report for the period ended 30 September 2024.
HIGHLIGHTS
- The historic Mt Palmer Gold Mine (formerly “Yellowdine Mine”) was last commercially mined in 1944 down to the 6th level (~160m) at 15.9g/t gold
- Results of the RC and Diamond drilling programmes during the quarter included:
- 4m @ 3.02g/t gold including 1m @ 6.66g/t gold from 18m near surface, aligning with historic holes of up to 7m @ 3g/t gold including 1m @ 10.6g/t gold at the newly identified Mt Palmer Bryant Lode
- 6m @ 8.3g/t gold from 28m at the El Dorado Prospect
- 1m @ 9.2g/t gold from 36m at the Meiers Find Prospect
- RC drilling programmes towards resource estimates to commence at the newly identified Bryant Lode, El Dorado and Meiers Find Prospects
- Work will also commence at the Mt Palmer East Prospect following up historical multiple repeat assays of varying highly anomalous gold grades over 3m from 86-89m varying from 102g/t to 0.56g/t
- The Mt Palmer Gold Mine provides an exciting opportunity given the low-cost value add exploration approach, proximity to existing gold plants and infrastructure and records highs in the gold price.
Figure 1: Kula Gold’s Mt Palmer Gold Mine Region Map incl. Prospects.
MT PALMER GOLD MINE – 51% (earning to 80%)
RC Drill Programme
RC pre-collars were completed in 3 holes and the diamond drill programme will extend those holes to test the down plunge, along strike extensions to the historically known orebody as detailed in the Figure 3 below.
Figure 2: Kula’s Marvel Loch Project
The Company identified a new shallow gold lode from a reverse circulation (“RC”) drill programme at the Mt Palmer Gold Mine located near Marvel Loch in the Southern Cross Goldfields of Western Australia.
Figure 3: Mt Palmer Gold Mine open stopes, drives, RC holes and RC pre-collars ready for diamond drilling extension through the main interpreted mineralised zones below the historical underground workings.
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’ were fire assayed FA25T due to Kula’s technical team being suspicious of anomalous multi-element reading but low gold assay results, the resultant work provided results as tabled in Appendix D of the ASX Announcement – Mt Palmer Gold Mine – El Dorado Prospect Update dated 26 September 2024.
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.
Diamond Core Drill Programme
Diamond HQ3 core drilling was completed for 307.4m in 2 holes to extend the 2 pre-collared RC holes 24MPKC001 and 24MPKC009 to test the down plunge extensions to the historically known orebody.
Mt Palmer – Bryant’s Lode Prospect
The new advancing prospect Mt Palmer Bryant’s Lode returned 4m @ 3.02g/t gold including 1m @ 6.66g/t gold from 18m near surface (24MPKC005) aligning with historical 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 new lode is 500m south of the main workings and demonstrates a contiguous zone of shallow gold mineralisation open north and south at depth, warranting further drilling towards resource estimates.
Figure 4. Mt Palmer Bryant Lode cross section.
Mt Palmer – Meiers Find Prospect
Desktop studies and ground truthing by the Kula technical team during the recent drilling programmes 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 5. 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 gold from 28m including 1m @ 45.4g/t gold from 30m drilling 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 6: Mt Palmer El Dorado Prospect with planned UFF programme over regional magnetics RTP_NW_AGCS_NL with historical drill collars, soils and rock chips.
Mt Palmer – East Prospect
Geophysical interpretations have identified a possible parallel structure over 8km in length east of the Mt Palmer Gold Mine (shown in red oval in Figure 7 below). Geochemical sampling has been commenced over a test area to advance this large totally unexplored target next to a past producer gold mine.
Figure 7: Mt Palmer East Prospect image over TMI_RTP with historical air core hole locations.
CORPORATE ACTIVITIES
Terra Drilling has agreed that if Kula extends the diamond core drill programme with additional holes down plunge, or down dip to the existing planned 3 holes to provide equity funding for their services for these additional holes. Kula is appreciative and encouragement by this sign of confidence by Terra Drilling in Kula’s technical abilities and the prospectivity of the Mt Palmer Gold Project.
Competent Person Statement
The information in this report that relates to geology and exploration is based on information 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. 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). Mr. Dawson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
References:
MT PALMER GOLD MINE
ASX Release – RC Drilling Commences at the Historic Mt Palmer Gold Mine – 17 July 2024
ASX Release – New Lode to 6.66g/t Gold – RC Drilling – Mt Palmer Gold Mine – 29 August 2024
ASX Release – Diamond Core Drilling Commences at Mt Palmer Gold Mine – 11 September 2024
ASX Release – Mt Palmer Gold Mine – El Dorado Prospect Update – 26 September 2024
ASX Release – Mt Palmer Gold Mine – East Prospect – 10 October 2024
BOOMERANG PROSPECT
ASX Release – Boomerang Kaolin Deposit – Maiden JORC Resources – 20 July 2022
News Release
Date: 31 October 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 at 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
