Kula Gold’s Cash Crunch Looms Amid Promising Drilling and Project Approvals

Strong Drilling Results at Mt Palmer

Kula Gold Limited’s latest quarterly report highlights a series of high-grade gold intercepts from its Stage 2 reverse circulation drilling program at the Mt Palmer Gold Mine in Western Australia. Notable results include 18 metres at 4.4 grams per tonne gold starting from surface, including a 2-metre section grading 31.3 grams per tonne, and other significant intercepts such as 7 metres at 7.7 grams per tonne. These shallow drill widths suggest potential for low-cost open pit mining, pending further drilling and mining studies.

The company has now met its expenditure requirements to earn an 80% interest in the Mt Palmer JV, securing a major stake in a promising 10-kilometre gold belt located just 28 kilometres from the operating Marvel Loch gold mine. This milestone marks a pivotal step in Kula’s strategy to build a substantial gold resource in the region.

Advancing Kirup and Wozi Projects

Beyond Mt Palmer, Kula is advancing exploration at the Kirup Project’s Mustang Prospect, supported by Western Australia’s Exploration Incentive Scheme. Recent rock chip sampling returned a new high-grade gold assay of 4.3 grams per tonne, located 200 metres from a previous drill intercept. The company plans follow-up soil geochemistry, drone magnetic surveys, and further drilling to refine targets.

Meanwhile, in Malawi, Kula has received formal approval for the Wozi Niobium Project tenement. This critical minerals project will soon undergo field programs to validate historic niobium and tantalum results, with maiden drilling anticipated in the fourth quarter of 2025. The Wozi project adds a strategic dimension to Kula’s portfolio, diversifying its exploration focus beyond gold.

Financial Position and Outlook

Financially, Kula reported cash reserves of just $206,000 at quarter-end, including unused financing facilities. The company recorded $387,000 in exploration expenditures during the quarter, reflecting active field programs. With estimated funding to cover less than half a quarter of current outgoings, Kula is implementing cost reductions by relinquishing lower-potential tenements and focusing resources on high-potential projects like Mt Palmer.

To support ongoing operations, Kula has access to a $500,000 unsecured loan facility from an entity related to its chairman and an At-the-Market equity capital agreement with Acuity Capital, providing up to $1 million in standby funding through early 2029. The board remains confident in securing additional capital as needed to advance its exploration agenda.

Strategic Implications

Kula Gold’s recent drilling success at Mt Palmer reinforces the project’s potential to evolve into a significant gold resource, especially given its proximity to existing mining infrastructure. The company’s diversified exploration approach, including critical minerals at Wozi and gold at Kirup, positions it well to capitalize on multiple commodity markets. However, the tight cash position underscores the importance of timely capital raising and disciplined expenditure management as Kula seeks to translate exploration success into resource definition and eventual development.