Kula cores visible gold at historic Mt Palmer mine, near Southern Cross

Diamond drilling at Kula Gold’s Mt Palmer project near Southern Cross has cored visible gold in the first hole of the program, about 35 metres down-hole depth, within a broader 5m-wide shear zone.

The drill hole, completed to 54m, intersected multiple iron-rich quartz reefs from 30.1m downhole, hosting trace sulphides and visible gold on fracture surfaces at depths of 31.4m, 35.4m, 35.85m, 36.1m, and 36.45m. Kula expects to receive assay results within two to three weeks.

The old Mt Palmer mine, which produced 150,000 ounces at 15.9 grams per tonne (g/t) gold between 1934 and 1944, lies near major deposits such as the 600,000-plus-ounce Nevoria and 3-million-ounce Marvel Loch gold mines. Mt Palmer was closed due to World War II supply and manpower shortages, with the abrupt cessation of activity leaving potential deposits undiscovered.

A recent reverse circulation (RC) drilling program confirmed high-grade shallow gold at the project, including 6m assaying 36g/t at Kula’s New Lode prospect and 18m going 4.4g/t at the Epis Lode target. All remain open along strike and to depth.

We are pleased to report the strong visual indications of mineralisation at the Mt Palmer gold project. We look forward to further updating the market on the assay results and what the broader results are from the drilling programs.

The current program includes eight HQ3 diamond core holes totalling 342m, targeting five prospects: New Lode, East Lode, Busey, Epic and Bryant.

A wireline HQ3 core barrel is used to retrieve larger core samples, with a core diameter of 61.1 millimetres and a hole diameter of 96mm. It uses a triple-tube system, which includes an inner tube liner that can be pumped out to preserve the in-situ state of fragile core in difficult drilling conditions, such as soft or friable clays or fractured rock.

Kula’s drilling program, expected to take 10 days, aims to define plunge extensions of mineralised zones through detailed structural analysis. Core samples are being halved, with one half sent for gold analysis and the other retained for further study and structural interpretation.

A mafic-hosted shear zone was intersected from 38.35m to 40.75m, following amphibolite-high magnesium basalt, with quartz reefs appearing to be the primary gold host. The company is planning to bring in a higher-capacity RC drill rig to probe deeper extensions.

The historically bountiful Southern Cross Goldfield has garnered increased attention recently due to its past productivity, underexplored potential, high grades and the lure of higher gold prices.

Kula’s focus on shallow, high-grade targets gives it a solid footing from which to capitalise on this renewed interest, which has already translated to a 60 per cent hike in the company’s share price today.

The company’s astounding initial success, with multiple instances of easily visible gold from its first drill core at Mt Palmer, signals strong potential for new discoveries, with upcoming assays and further drilling looking set to offer additional insights into the rich Mt Palmer field.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au