WA Mt Palmer mine shines for Kula, Aurumin with | Australian Markets

Kula Gold and Aurumin Limited have continued to resurrect a forgotten gem in Western Australia’s Southern Cross Goldfields after hauling in one other sequence of dazzling drill hits on the historic Mt Palmer mine.

The share price of Kula, which owns 80 per cent of the project, rocketed practically 30 per cent to 0.009 cents on the back of the blockbuster drill outcomes. The rise was fuelled by a surge of investor curiosity that noticed close to 25 million shares change palms on the company’s greatest trading day in a month.

The latest stage two reverse circulation drilling marketing campaign delivered some severe eye sweet for gold bugs, with a standout shallow intercept of 3 metres at 35.9 grams per tonne (g/t) gold from simply 17m, together with 1m at a whopping 83.6g/t.

Other hits embody 3m grading 29.7g/t gold from 37m, 2m at 18.1g/t gold from 23m and 18m at 1.9g/t gold from 22m, together with a 7m part working at 9.4g/t.

The company says the scorching grades – many from depths of much less than 40m – and Mt Palmer’s robust geological fundamentals are building an early case for a low-cost, high-return open-pit operation on the web site.

According to management, the outcomes are additionally simply the tonic to assist aggressive ongoing exploration efforts to delineate the longer-term development potential of a mine that when produced 150,000 ounces at 15.9g/t earlier than World War II halted manufacturing.

The latest stage two one-metre break up assay outcomes from Kula’s Mt Palmer gold project additional substantiate the project’s potential to ship significant shareholder worth by continued identification of high-grade gold mineralisation.

Notably, the company believes that utilizing a photon assay might be the key to uncovering nuggety traditionally under-reported high-grade zones on the project. The game-changing method can analyse 10 occasions more samples than conventional fire assay with out destroying coarse gold within the course of.

Across the project, the outcomes are stacking up. Previous hits embody 18m at 4.4g/t from floor, with a 2m punch of 31.3g/t, and 7m at 7.7g/t gold additionally ranging from floor.

Kula says past the spectacular grades, the geological stars are additionally beginning to align. Drilling has tapped into high-grade mineralisation, dubbed the New Lode beneath historic workings, the place wealthy gold seems to be concentrated in fold closures. These could be basic structural traps for juicy mineralisation.

New zones to the east of the outdated pit, such because the West Lode and Busey Shoot, are additionally rising to offer a pipeline of contemporary targets. The company says these lodes stay poorly examined, however early drilling hints at a strong upside.

Kula’s structural advisor Model Earth has now remapped the mine’s intricate geology, revealing stretched and shear-folded quartz veins damaged into segments, which differ considerably between every hotspot however seem to control the plunge orientations of the gold mineralisation.

Mt Palmer sits in gold-rich real estate, a little north of the beforehand mined 600,000-ounce Nevoria gold deposit and east of the Chinese-owned 2.4-million-ounce Marvel Loch mine.

With its latest outcomes now in hand, Kula is busy placing the ending touches on a diamond drilling marketing campaign geared toward twinning high-grade reverse circulation intercepts to firm up structural fashions and refine future drill concentrating on.

If these outcomes keep coming, helped alongside with a healthy dose of trendy assay technology, Kula may be on to more than a few misplaced ounces. From a dusty relic of WA’s mining previous, Mt Palmer is beginning to look more like a golden alternative within the making.

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