Early Mustang Drill Results Raise Stakes but Economic Viability Still Unclear

• Maiden RC drilling at Mustang Gold Prospect yields 2m @ 2.3g/t gold from 34m
• Western Australian Government's Exploration Incentive Scheme co-funds drilling
• Mustang target covers an 800m strike length soil anomaly
• Nearby Cammilleri Gold Mine historic high-grade production supports potential
• Follow-up drilling and geophysical surveys planned to define system extent

A Promising Start at Mustang

Kula Gold Limited (ASX: KGD) has announced a compelling first result from its maiden reverse circulation (RC) drilling program at the Mustang Gold Prospect, part of its Kirup Project in Western Australia. The initial drillhole intersected 2 metres grading 2.3 grams per tonne (g/t) gold from 34 metres depth, confirming the presence of a previously unrecognized gold system.

Located approximately 110 kilometres southwest of the Boddington Gold Mine, Mustang represents a fresh exploration frontier for Kula. The discovery follows systematic grassroots exploration involving field mapping and ultrafine fraction (UFF) soil sampling that delineated an 800-metre strike length gold anomaly. This intercept validates the company’s early-stage targeting approach and highlights the prospect’s potential scale and grade.

Government Support Bolsters Exploration Momentum

The Western Australian Government’s Exploration Incentive Scheme (EIS) has provided co-funding for the drilling program, covering 50% of direct drilling and mobilisation costs up to $180,000. This financial backing underscores the strategic importance of Mustang within the state’s mineral exploration landscape and reduces the capital risk for Kula as it advances the project.

Managing Director Ric Dawson emphasised the significance of being an early mover in a new exploration search space, citing renowned geologist Dr. Jon Hronsky’s philosophy that the largest deposits are often found where data is scarce. Kula’s discovery at Mustang exemplifies this principle, positioning the company to capture a disproportionate share of the emerging gold system.

Geological Context and Regional Analogues

The Mustang Prospect lies within the Southwest Terrane Greenstones of the Yilgarn Craton, a region known for hosting significant gold mineralisation. Notably, the nearby Cammilleri Gold Mine, situated just 10 kilometres north on a similar structural setting, historically produced 236 ounces at an exceptional grade of 130 g/t from 51 tons of ore. This proximity and geological similarity lend credence to the potential for Mustang to evolve into a high-grade gold deposit.

Geophysical data, including magnetic signatures coincident with the gold assays, further support the targeting model. The company plans to follow up with detailed soil geochemistry, close-spaced drone magnetic surveys, and additional RC and aircore drilling to delineate the system’s extent both along strike and at depth.

Next Steps and Market Implications

While the initial intercept is encouraging, Kula acknowledges that further drilling and exploration are essential to define the resource potential and economic viability of Mustang. The company’s strategic landholding, combined with government funding and a disciplined exploration approach, positions it well to unlock value from this emerging gold system.

Investors will be watching closely for upcoming assay results and geological updates that could confirm Mustang’s status as a significant new gold discovery in Western Australia’s prolific gold belt.

Bottom Line?

Kula Gold’s Mustang discovery is an early but promising chapter in what could become a major new gold system in WA.

Questions in the middle?

• How extensive and continuous is the gold mineralisation along the 800m soil anomaly at Mustang?
• What are the next drilling targets and timelines for follow-up exploration at Mustang?
• Could Mustang’s geology support a high-grade resource comparable to nearby historic mines?