Kula Gold’s share price peaked up 60 per cent higher today on news its latest drill program at its Mt Palmer gold project in the Southern Cross goldfields has hit 12 metres at 3.4 grams per tonne (g/t) gold.
The hit confirms previous intercepts in two other holes that are 10m up and down-dip on section. The new intercept ran from 24m depth.
Kula says it has also met the spending requirements to take a major position in 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 previous up-dip intercept that jagged 4m going 3.02g/t gold from 18m, while 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 section up to about 5m thick, which remains open towards the surface and to depth below the 2m intercept.
The section sits 10m south of a previous section where one hole threw up a 7m run at 3g/t gold, including 1m at a handsome 10.6g/t gold.
Together, these intercepts indicate the potential for decent thickness and grade within the interpreted Bryant Lode, which is open to the north and lies 500m south of Kula’s main high-grade Mt Palmer lode.
A further 15m south of the headline section, an earlier hole intercepted 2m assaying 3g/t gold – suggesting the lode has some legs.
Kula’s interpretation suggests it is open to the south and at depth on all sections.
Suitably encouraged, Kula is continuing its drill campaign, with 16 holes completed to date for 808m and more results to come.
We are very pleased to report this excellent result kicking off our second drill campaign at Mt Palmer with 12m at 3.4g/t gold from 24m. The next batch of assays will be very interesting. Kula has now met its expenditure requirement to earn to 80%.
Kula acquired the historic Mt Palmer gold mine in May last year in a joint venture 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 town of Southern Cross in the Southern Cross greenstone belt.
Kula said its acquisition was in line with its strategy to add assets near existing operations to fast-track any discovery to success. The company views the old “half-ounce” Mt Palmer gold mine as possessing huge potential for high-grade gold. It is now a priority drilling target.
Marvel Loch has operated intermittently under multiple ownerships between 1905 to 2019. The name is derived from the 1906 issue of gold mining leases to prospectors Markham, Doolette, Leneberg and Le Breton, who named their lease Marvel Loch after the horse that won the Caulfield Cup in 1905.
The area of gold mining operations within a 50km radius of Kula’s Mt Palmer ground hosts many other gold operations and is widely regarded as being a richly-endowed exploration and mining locality.
The Mt Palmer mine produced 150,000 ounces of gold. Gold production for a handful of the area’s better-known operations totals more than 7M ounces.
Armed with its latest results – and with more to come soon – Kula seems to be homing in on fulfilling its strategic objective with the Mt Palmer acquisition.
Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au
https://thewest.com.au/business/bulls-n-bears/kula-mine-near-southern-cross-blooms-with-new-gold-hits–c-18244284
