Kula Gold Discovers Visible Gold in First Diamond Drill Hole at Mt Palmer Project

Kula Gold KGD has identified visible gold in the company’s first diamond hole in a new drilling campaign at the Mt Palmer project in Western Australia’s Southern Cross Goldfields. The company successfully completed the hole to 54m and intersected several quartz reefs containing trace sulphides from 30.1m, along with native visible gold at a number of levels. Kula is now awaiting the assays from the program, which is targeting numerous shallow gold prospects and coring near recent high-grade results. Shallow Gold Prospects The diamond core drilling will also provide information for detailed structural analysis by defining the plunge extensions and directions of the mineralised zones. Kula currently expects the program to take approximately 10 days on the drilling plan, although it may end up adding more holes. The company recently completed a track rig reverse circulation (RC) campaign at Mt Palmer, and has scheduled deeper RC drilling after the diamond program, as Kula moves towards a resource drill-out stage. JV Interest Retained Kula reported earlier this month that joint venture partner Aurumin AUN had elected to retain its 20% equity interest in Mt Palmer and to continue to contribute to exploration expenditure on a pro-rata basis. “I am encouraged by our partner retaining its equity interest, demonstrating confidence in Kula’s team maintaining a high standard of technical success as we continue to advance the Mt Palmer gold project,” managing director Ric Dawson said. “With gold exceeding $5,500 per ounce, our path to cashflow gets shorter with every success.” Historical Production The historical Mt Palmer mine sits north of the 600,000oz Nevoria gold mine and east of the approximately 3Moz Marvel Loch mine, and produced more than 150,000oz of gold at 15.9 grams per tonne between 1934 and 1944. The mine closed due when the miners left for World War 2, and it never re-opened. Kula sees this abrupt end to production as an opportunity to unearth other undiscovered orebodies, and the company’s recent high-grade, shallow gold results have only increased its confidence in this regard.