Kula Gold has intersected visible gold in quartz reefs during its maiden diamond drilling at the historic Mt Palmer Gold Project, with assay results eagerly awaited. This marks a promising step in the company’s efforts to unlock new high-grade gold resources in a historically rich region.
- Visible gold found in multiple quartz veins between 30m and 36.5m depth
- First diamond drill hole completed to 54m with strong mineralisation indicators
- Mt Palmer historically produced over 150,000 ounces of gold at high grades
- Assay results pending to confirm economic potential
- Follow-up reverse circulation drilling planned to test deeper targets
Historic Gold Meets Modern Exploration
Kula Gold Limited has reported a significant milestone in its exploration campaign at the Mt Palmer Gold Project in Western Australia's Southern Cross Goldfields. The company’s first diamond drill hole of the current program, completed to a depth of 54 metres, intersected several quartz reefs exhibiting visible gold and trace sulphides. These visual indications, while not a substitute for laboratory assays, suggest promising mineralisation within a historically productive gold district.
Visible Gold in Quartz Veins
The drill core revealed visible native gold at multiple depths; specifically at 31.4m, 35.4m, 35.85m, 36.1m, and 36.45m; within a broader 5-metre wide shear zone. This structural setting is typical for gold mineralisation at Mt Palmer, where quartz reefs hosted within mafic shear zones have historically yielded high-grade gold. The presence of trace sulphides such as arsenopyrite and pyrite further supports the potential for economic mineralisation.
A Legacy of High-Grade Production
Mt Palmer’s mining history dates back to the 1930s and 1940s, during which it produced over 150,000 ounces of gold at an impressive grade of 15.9 grams per tonne before operations ceased due to World War II. The project’s proximity to other prolific mines, including the Nevoria Gold Mine and the Marvel Loch Gold Mine, underscores the region’s rich endowment. Kula’s current drilling aims to delineate extensions of these mineralised zones, leveraging modern techniques and detailed structural analysis to uncover new orebodies.
Next Steps and Market Implications
While the visual evidence of gold is encouraging, Kula Gold is awaiting assay results to quantify the grade and continuity of mineralisation. The company plans to follow up with a reverse circulation drilling program targeting deeper extensions and additional prospects. This phased approach reflects a methodical exploration strategy designed to build a robust geological model and resource base.
Managing Director Ric Dawson expressed cautious optimism, highlighting the importance of assay confirmation but noting the strong visual signs of mineralisation. The integration of diamond core data with structural geological insights will be crucial in guiding future drilling and advancing the project toward resource definition.
Bottom Line?
As assays come in and further drilling unfolds, Kula Gold’s Mt Palmer project could redefine the region’s gold potential.
Questions in the middle?
- What grades will the pending assays reveal, and how consistent is the mineralisation?
- How will the structural analysis influence the targeting of future drill holes?
- What are the timelines and funding plans for the upcoming reverse circulation drilling?