Kula, Aurumin hit paydirt at historic WA Mt Palmer | Australian Markets

Channel sampling on the tailings dump at Kula Gold and Aurumin Limited’s historic Mt Palmer gold mine in Western Australia’s Southern Cross Goldfields has hit paydirt with grades as high as 17.9 grams a tonne (g/t) gold.

Kula owns 51 per cent of the three way partnership (JV) and has the option of transferring to 80 per cent by spending $1 million on exploration drilling throughout three years.

Overall, 146 waste pile survey samples had been taken that averaged an spectacular 1.7g/t gold. The outcomes verify a concept that the very primary restoration course of utilized by the outdated timers 80 years in the past has allowed loads of gold to slide by to the keeper.

Management says the initial findings recommend a extremely nuggety gold distribution, which could open the door to a easy and cost-effective restoration course of.

Given the present surging gold price, which is sitting at an all-time high and barely shy of the magic $5000 mark, these trenching outcomes are doubtless to provide the project a main increase because the JV companions look to show a fast buck with a fast and straightforward toll therapy train.

In tandem with the latest sampling, the JV has carried out a 658-metre air core program at the dump to drill out 46 holes, 14m deep, utilizing a systematic grid sample.

The fast marketing campaign was designed to find out the precise measurement of the waste pile – which is estimated at 200,000 tonnes – and supply a more detailed image of the gold distribution left behind. Assay outcomes are anticipated within the subsequent couple of weeks.

We are transferring this shortly to detailed sampling and increasing this system throughout all outdated mine dumps in addition to surveying volumes and conducting metallurgical take a look at work for potential low-cost gravity extraction.

Kula and Aurumin’s leases at Mt Palmer cowl a 10-kilometre stretch of the extremely potential Southern Cross gold belt. When the outdated mine was energetic within the late Thirties and the early Nineteen Forties it produced more than 150,000 ounces of the yellow steel at a gorgeous 15.9g/t grade. Operations at website closed down in 1944 on account of struggle conscription and by no means reopened.

Beyond the promising dump samples, the JV can also be ramping up a wider exploration strategy, with a reverse circulation drilling program kicking off this week to check high-grade targets alongside the gold belt.

With the quickly bettering prospects of some type of near-term manufacturing, the broader plan is to make use of any cashflow to put in the direction of a more aggressive exploration marketing campaign round and underneath the historic mine.

Since the outdated workings solely reached down to 150m underground and solely seven holes have been drilled beneath them, the company is eager to do more detailed exploration within the firm perception that more treasure could lie beneath.

Kula’s latest outcomes seem like catching the market’s consideration with the company’s share price hitting 0.8 cents right this moment, up as a lot as 100 per cent this week on its best quantity in weeks.

The JV companions predict the air core assays to drop any day now, which implies laser-focussed punters are prone to be watching carefully as they search for alternatives to money in on the present gold rush.

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