Kula drill program hits gold to a heady 23.4g/t | Australian Markets

Kula Gold has nailed good gold outcomes from a stage two drilling program on the company’s previous Mt Palmer gold mine, 40 kilometres southeast of Southern Cross within the Western Australian goldfields. The company has revealed a best hit of 18 metres at 4.7 grams per tonne (g/t) gold from floor, together with 3m at 23.4g/t gold.

Other outcomes from the program embrace 6m assaying 8.1g/t gold from floor, together with 3m at 15.3g/t gold, 12m working 2.3g/t gold from 15m, together with 6m going 3.5g/t gold and a 9m hit at 1.9g/t gold from floor, together with 3m grading 3g/t gold.

These are distinctive outcomes from Kula’s Mt Palmer gold project and are beginning to show the actual potential that our workforce noticed on this asset. Just a few shallow intersections of high-grade outcomes over half an ounce of gold per tonne are simply what we needed to see at this early stage of exploration.

The company is exploring its 80 per cent-owned historic Mt Palmer gold mine, which it holds in a three way partnership with Aurumin Limited. Old data level to about 150,000 ounces of gold at about 15.9g/t gold produced by the mine from 1934 to 1944, earlier than a World War II labour and supplies scarcity compelled the mine to close.

Subsequent mine flooding discouraged re-opening of the operation and it has been all however dormant, with little additional exploration. Five diamond holes had been put into the previous workings by third events since mine closure, however none of the core might be situated.

Kula picked up the cudgel final October, sinking two triple-tube HQ3 holes into the previous show to purchase structural knowledge and hopefully get a peek on the riches that the previous mine data indicated may lie at depth.

The company’s detailed structural evaluation has allowed it to determine the placement and plunge extensions of the ultra-rich gold seams mined traditionally.

Management figures there needs to be a good likelihood to uncover potential ore extensions within the previous workings and likewise new alternatives to find new mineralisation at depth, maybe laterally and alongside strike.

Kula’s channel sampling of previous mine dumps across the mine produced 146 samples that averaged 1.7g/t gold and a peak outcome of 17.9g/t gold, with an average grade from all of the samples of 1.7g/t gold.

The sampling has revealed a high degree of grade variation, with generally discovered high grades pointing to nuggety gold that would have potential for easy low-cost extraction.

The outcomes have prompted Kula to conduct additional detailed sampling to prolong the program throughout all of the previous mine dumps on the property. The company will survey the dump volumes to get a deal with on their mixed gold content material and discover potential gravity extraction of coarse gold, which may offer nearly fast money stream.

Kula can also be taking a look at a low-cost, shallow drilling program to consider the historic mine’s previous tailing which, within the occasion of a profitable final result, could lead on to different metallurgical testwork to see if the tailings sands might be handled on the close by Marvel Loch gold plant.

It is early days since Kula acquired its first curiosity in Mt Palmer solely 10 months in the past. The company has already made a solid-gold begin vital enough for it to see a clear exploration path, which can also be completely timed to take benefit of the present heady gold price atmosphere.

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