Kula Gold completes Mt Palmer RC drilling near Southern Cross

Kula Gold has completed track-mounted reverse circulation drilling at the company’s Mt Palmer gold project in WA’s Southern Cross goldfields. The program involved 17 holes for a total of 701 metres to a maximum depth of 54m, targeting multiple high-potential prospects, including the Epis, Main Lode, Palmerston, Bryant, J2, El Dorado and East Lode prospects.

Samples are now in transit to the laboratory for assaying. The company expects to receive the assay results shortly.

The shallow drilling program follows positive momentum from Kula’s earlier exploration activities at Mt Palmer, where drilling commenced in early September with an initial eight holes.

That work built on standout historical and recent intercepts, such as 18m assaying 4.4 grams per tonne (g/t) gold, including 2m at 31.3g/t gold at the Epis Lode and 6m going 36g/t gold, including 2m at 53g/t gold, at New Lode. All the prospects remain open along strike and to depth.

The company kicked off a diamond core program of about 300m shortly afterwards to provide essential structural data to map the plunge of mineralised zones. This will be followed by a higher-capacity RC drill rig slated to test deeper targets.

Kula Gold managing director Ric Dawson said: “Management is pleased with progress at the Mt Palmer gold project… Regular results will be forthcoming as we now move through diamond drilling and deeper RC drilling towards resource drill-out stage.”

The historic Mt Palmer gold mine has a rich history and is currently operated under a joint venture with Aurumin Limited. Kula holds an 80 per cent interest in the joint venture.

The mine produced more than 150,000 ounces of gold at an impressive average grade of 15.9g/t gold in 1934 and 1944, before closing abruptly due to World War II manpower and materials shortages.

Remarkably, only seven diamond holes have probed below the old workings since the mine closed, including two put in by Kula last year – highlighting the untapped potential in this underexplored asset.

No historical core remains available, making modern exploration programs, such as this one, crucial for understanding the geology and defining extensions.

Mt Palmer sits in the prolific Southern Cross greenstone belt, a key part of Western Australia’s goldfields that kicked off with the Southern Cross discovery in 1888. The region now hosts more than a 10-million-ounce gold endowment.

It lies north of the 600,000-plus-ounce Nevoria gold mine and east of the 3-million-ounce Marvel Loch operation and is 15 kilometres from the Marvel Loch processing plant and 90km from Edna May, with excellent local infrastructure supporting low-cost development pathways.

Recent channel sampling and drilling has confirmed Mt Palmer’s potential for shallow, high-grade ore bodies, while a maiden inferred tailings resource of 98,534t at 0.63g/t gold adds potential near-term, easily exploited upside.

Kula’s focused strategy, exploiting structural analysis and phased drilling, positions Mt Palmer as a cornerstone of its portfolio amid gold prices surpassing $5500 per ounce.

The JV’s 10km-long gold belt offers scope for multiple discoveries, with potential for fast-tracking to production. More results are expected from its RC and diamond drilling programs, keeping the anticipation building at this historic high-grader.

Kula’s steady progress at Mt Palmer underscores the enduring allure of WA’s goldfields and testifies to the company’s patient exploration in a rising market.

With a new batch of assays on the horizon, good results from the latest work could prove to be another positive step towards uncovering the project’s full potential.

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