Kula Gold strikes additional high-grade gold at Mt Palmer in expanded drilling push

Kula Gold (ASX: KGD) continues to hit high-grade gold in the current drilling campaign at its 80%-owned Mt Palmer project in Western Australia.

The company has intersected numerous north-to-south-trending mineralised structures in its ongoing drilling program at the historical Mt Palmer project.

Kula plans to undertake follow-up drilling at these intersections for resource definition, with most situated on a granted mining lease.

Numerous new targets

Kula’s recent work has also identified numerous new targets along a 10-kilometre belt, all owned by the joint venture Mt Palmer it has established with Aurumin (ASX: AUN), which owns the remaining 20%.

“These new high-grade results from Kula’s Mt Palmer gold project confirm that there is a lot more to find here,” managing director Ric Dawson said.

“The numerous shallow plus half an ounce [more than 15 grams] of gold per tonne results are demonstrating the quality of this emerging project and bode well for our team to be able to value-add very quickly.”

WW2 mining hiatus

Mt Palmer’s mining production history traces back from 1939 to 1944 – before it shut due to the war as a result of a lack of supplies and workers – after which it never re-opened.

However, the mine’s previous history has left a sizeable mound of tailings, with Kula close to wrapping up resource definition work on the historic dirt.

Kula’s recent activities included exploration at the ‘new lode’, where drilling targeted an interpreted shallow-plunging fold closure in the quartz reef beneath historic workings.

The company identified higher-grade gold in similar structural positions in the other mine lodes at Mt Palmer.

Early drilling priority

Kula has identified an alluvial lead from surface as an early priority for pattern drilling.

The company also reported a 6m mineralised zone at 0.35 grams per tonne gold in the first hole into the ‘A spot’, a structural target newly interpreted by the mine geologist in 1944.

The ‘A spot’ target is a potential parallel system to the Mt Palmer main lode that produced most of the historic production.

Mt Palmer is located just 28km from Kula’s operational Marvel Loch gold mine.