Kula mine near Southern Cross blooms with new gold | Australian Markets

Kula Gold’s share price peaked up 60 per cent greater immediately on news its latest drill program at its Mt Palmer gold project within the Southern Cross goldfields has hit 12 metres at 3.4 grams per tonne (g/t) gold.

The hit confirms earlier intercepts in two different holes which are 10m up and down-dip on part. The new intercept ran from 24m depth.

Kula says it has additionally met the spending necessities to take a main place within the promising 10-kilometre gold belt. The company’s share price hit a high of 0.008 cents on a turnover of 16 million shares during the day.

The latest drill hit follows a earlier up-dip intercept that jagged 4m going 3.02g/t gold from 18m, whereas a down-dip intercept gave up 2m at a grade of 1.23g/t gold from 42m downhole.

The new trio of intercepts highlights a mineralised envelope on that part up to about 5m thick, which stays open in direction of the floor and to depth beneath the 2m intercept.

The part sits 10m south of a earlier part the place one gap threw up a 7m run at 3g/t gold, together with 1m at a good-looking 10.6g/t gold.

Together, these intercepts point out the potential for first rate thickness and grade within the interpreted Bryant Lode, which is open to the north and lies 500m south of Kula’s primary high-grade Mt Palmer lode.

An additional 15m south of the headline part, an earlier gap intercepted 2m assaying 3g/t gold – suggesting the lode has some legs.

Kula’s interpretation suggests it’s open to the south and at depth on all sections.

Suitably inspired, Kula is continuous its drill marketing campaign, with 16 holes accomplished up to now for 808m and more outcomes to return.

We are very happy to report this wonderful consequence kicking off our second drill marketing campaign at Mt Palmer with 12m at 3.4g/t gold from 24m. The subsequent batch of assays can be very fascinating. Kula has now met its expenditure requirement to earn to 80%.

Kula acquired the historic Mt Palmer gold mine in May final 12 months in a three way partnership partnership with Aurumin Limited. The mine is about 30km east of Barto Gold Mining’s historic 3-million-ounce Marvel Loch Gold operation, which is 32km southeast of the city of Southern Cross within the Southern Cross greenstone belt.

Kula stated its acquisition was in line with its strategy so as to add property near current operations to fast-track any discovery to success. The company views the previous “half-ounce” Mt Palmer gold mine as possessing big potential for high-grade gold. It is now a precedence drilling goal.

Marvel Loch has operated intermittently beneath a number of ownerships between 1905 to 2019. The identify is derived from the 1906 challenge of gold mining leases to prospectors Markham, Doolette, Leneberg and Le Breton, who named their lease Marvel Loch after the horse that received the Caulfield Cup in 1905.

The space of gold mining operations within a 50km radius of Kula’s Mt Palmer ground hosts many different gold operations and is broadly considered being a richly-endowed exploration and mining locality.

The Mt Palmer mine produced 150,000 ounces of gold. Gold manufacturing for a handful of the world’s better-known operations totals more than 7M ounces.

Armed with its latest outcomes – and with more to return quickly – Kula appears to be homing in on fulfilling its strategic goal with the Mt Palmer acquisition.

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