Kula Gold Limited reports drilling has commenced at the Company’s Mt Palmer Gold Mine in joint venture with Aurumin Limited (ASX: AUN) located in the Southern Cross Goldfields.
Kula’s Managing Director Ric Dawson comments:
“With gold approaching $A4,800 per ounce, our Mt Palmer Gold Project is finally getting the undivided attention to hopefully set Kula on a serious growth path to cashflow.”
HIGHLIGHTS
- An Aircore drill programme has been completed at the Mt Palmer Gold Mine with results pending
- An RC drill programme to commence later in the week, targeting numerous shallow gold prospects on the 10km belt including:
- Bryant: 4m @ 3.02 g/t gold from 18m, 7m @ 3 g/t gold from 15m – open along strike and depth
- El Dorado: 6m @ 8.3 g/t gold from 28m
- Old tailings for potential early cashflow
Figure 1: Aircore drilling commences at the Mt Palmer Gold Mine.
Mt Palmer Gold Mine
The mine produced over 150,000 ounces of gold at 15.9 g/t in the period 1934 to 1944 and is north of the Nevoria Gold Mine (+600,000 ounces of gold), east of the circa 3 million ounce Marvel Loch Gold Mine. The mine closed in part due to World War 2 when the miners left to join the war and it never re-opened.
Since then, only seven diamond holes have been drilled below the old workings, two of which were by Kula recently. No old core is available, so Kula drilled two diamond HQ3 core holes in October 2024 for structural data on the fabulously rich old workings.
Detailed structural analysis continues to define the location/plunge extensions of the fabulously rich old seams of gold mined historically. Given the abrupt end to mining in 1944, the opportunity for other undiscovered orebodies is a high probability and key focus of exploration work.
Figure 2: Kula’s Marvel Loch Prospects (refer Appendix A).
Drilling Programmes
An aircore drill programme of 658m has been completed with samples in transit to the lab, results will be released in due course.
An RC drill programme will commence later in the week targeting numerous shallow gold prospects in the 10km belt including:
- Bryant: 4m @ 3.02 g/t gold from 18m, 7m @ 3 g/t gold from 15m – open along strike and depth
- El Dorado: 6m @ 8.3 g/t gold from 28m
Figure 3: Aircore drilling rig onsite at the Mt Palmer Gold Mine.
Tailings
A low-cost drill programme to determine the gold content in the historic tailings is part of the drill programme, then metallurgical testwork to determine economics for treatment at the nearby Marvel Loch gold plant 28km by road.
Figure 4. Proposed collars of the tailings drilling
Mt Palmer – Meiers Find Prospect
A new UFF soil programme has assessed the Meiers Find Prospect as having a 600m long gold anomaly and correlates with interpreted magnetic structures. Historical drill results including YD-7 with an intersection of 1m @ 15.4 g/t gold from 36m, 2m @ 1.7 g/t gold from 30m and MFRC2009 with an intersection of 1m @1.7 g/t gold from 33m.
Further results will be reported in due course.
Appendix A
Kula Gold’s Marvel Loch, Southern Cross, and Westonia Projects, location of regional gold mines (Edna May Gold Mine, Hopes Hill, Golden Pig, Marvel Loch, Nevoria, Frasiers, Yilgarn Star, Split Rocks Lithium Deposit and Mt Holland Lithium Mine are not assets of Kula*) and pre-existing infrastructure.
FIGURE 4
Figure 5. Map of Kula’s projects and tenements across the Southern Cross Region of WA
* Publicly available historical gold production or current resources of other parties:
Project / Historic Production / Past Production / Current Owner
Marvel Loch 3m oz 1905 -2019 St. Barbara Barto Gold Mining Nevoria 600,000 oz 1917 -2013 Sons of Gwalia Barto Gold Mining Yilgarn Star +2m oz 1991 -2002 Gasgoyne Gold Barto Gold Mining Edna May +2m oz 1911 – current Westonia Mines Limited Rameluis Resources Mt Holland Resource as stated Wesfarmers Wesfarmers Split Rocks Resource as stated Zenith Minerals Zenith Minerals Frasers +840,000 oz 1986 -1992 Frasers Gold Mining Barto Gold Mining Golden Pig 502,000 oz 1894-2003 Sons of Gwalia Cygnet Gold Hopes Hill 216,000oz 1888-1990 Greater Western Cons. Golden Horse Minerals Pilot 54,000oz 1961- 1994 Troy Resources Golden Horse Minerals/Barto Gold Mining
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. All drill results reported are drill widths unless otherwise noted.
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
ASX Release – Diamond core drilling commences at Mt Palmer Gold Mine-11 September 2024
ASX Release -Mt Palmer Gold Mine – El Dorado Prospect historical 6m @ 8.3g/t gold to follow up -26 September 2024
ASX Release- Mt Palmer Gold Mine- East Prospect -10 October 2024
ASX Release – Gold Exploration Update- 27 November 2024
BOOMERANG DEPOSIT ASX Release – Boomerang Kaolin Deposit- Maiden JORC Resources – 20 July 2022
News Release
Date: 18 March 2025 | 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
