Kula Gold Limited reports Diamond Core Drilling has commenced at the Company’s Mt Palmer Gold Mine Project located near Marvel Loch in the Southern Cross Goldfields of WA.
HIGHLIGHTS
- Diamond HQ3 core drilling commences under historic Mt Palmer Gold Mine with past production run of mine (ROM) being 15.9g/t gold
- Plan to drill 320m of HQ3 diamond core with Terra Drilling from 3 existing RC holes pre-collared to 102m- 156m
- Terra Drilling has agreed to provide their services for equity funding in any additional diamond core drilling holes over the planned 3 holes
- 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 and Terra Drilling on location for Diamond Drilling at Mt Palmer Gold Mine
Kula’s Managing Director Ric Dawson comments:
“This is an exciting next phase in our first round of our maiden drilling programme at Mt Palmer. This historically rich ‘half ounce’ gold mine is now ready for this next stage of the drilling programme with the diamond drilling planned to test below the production stopped by 1944 exodus of miners due to World War 2 and never re-opened.
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.
With the current gold price over $US2,500/ounce ($A3,800), this is an opportune time for Kula to be exploring and advancing a previously producing high grade gold mine whilst other ASX listed high grade gold developers are being fully appreciated with significant market capitalisations.
This acquisition aligns with the Company’s strategy to explore near to existing operations to fast track any discovery to monetary success.”
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 2.4 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.
Diamond Core Drilling Programme
Diamond HQ3 core drilling has commenced in 3 planned holes to extend those 3 pre-collared RC holes 24MPKC001, 24MPKC009 and 24MPKC0010 to test the down plunge, along strike extensions to the historically known orebody as detailed in the Figure 2 below.
Figure 2: Mt Palmer Gold Mine open stopes, drives, RC holes and RC pre-collars and diamond core drilling extension through the main interpreted mineralised zones below the historical underground workings.
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: Diamond drill rig in operation at Mt Palmer with Terra Drilling and Kula personnel.
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). .
Figure 5: Regional magnetic image RTP with Kula tenements, prospects and historical workings.
The Company is continuing to assess other prospects along the 10km of greenstone belt that hosts the Mt Palmer Gold Mine.
Further results will be reported in due course, including any logging observations from the diamond tails into the Mt Palmer lodes.
Terra Drilling
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 three holes to provide equity funding for their services for these additional holes. Kula is appreciative and encouraged by this sign of confidence by Terra Drilling in Kula’s technical abilities and the prospectivity of the project.
Figure 6: Kula’s Marvel Loch Projects (refer Appendix A).
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 BOOMERANG DEPOSIT ASX Release – Boomerang Kaolin Deposit- Maiden JORC Resources – 20 July 2022
News Release
Date: 11 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
