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Highlights
- Kula Gold continues to discover high-grade gold zones at Mt Palmer
- Newly identified exploration targets span a 10-km mineralised belt
- Resource definition work nears completion at historical mining site
Kula Gold (ASX:KGD) has advanced its gold exploration efforts at the historic Mt Palmer project in Western Australia with promising high-grade intersections as part of its expanded drilling program. The initiative, part of an 80%-owned joint venture with Aurumin (ASX:AUN), marks a significant step in reviving a project that once thrived during the World War II era before shutting down in 1944.
Ongoing Drilling Unlocks Potential
Recent drilling by Kula Gold has intersected multiple mineralised structures running north to south, offering further insights into Mt Palmer’s rich geological framework. These intersections have been found within a granted mining lease area, which the company intends to prioritise for resource definition drilling. The strategy underscores the company’s focus on adding near-term value through accelerated exploration and validation.
New Targets on a 10-Kilometre Stretch
Expanding beyond known zones, Kula has identified a 10-kilometre corridor of new exploration targets within the broader Mt Palmer area. This corridor falls under the Mt Palmer joint venture agreement, with Kula holding the majority stake. Management has described the latest findings as "shallow plus half-ounce per tonne" intersections — a strong indicator of potential economic mineralisation.
These shallow, high-grade hits signal upside for the company’s team in delineating a quality resource swiftly, a relevant advantage given the current momentum within the broader S&P/ASX200 resources sector.
Revisiting Historical Riches
Mt Palmer was historically mined from 1939 to 1944, ceasing operations due to wartime labour and material shortages. The site remains rich in tailings, and Kula is nearing completion of its resource definition over these historical deposits.
Drilling has also been conducted at the newly interpreted “new lode,” where the company targeted shallow-plunging fold closures beneath historic workings. Early results indicate the presence of higher-grade mineralisation in structurally similar locations to the project’s previously mined zones.
Strategic Exploration Areas
Another point of focus is an alluvial gold lead located at surface, which is being pattern-drilled as a priority. In addition, the initial drill hole into the so-called “A spot” has returned a 6m mineralised zone at 0.35g/t gold. This target is believed to lie within a parallel structural system to the main Mt Palmer lode — the historically most productive section of the mine.
Located just 28km from the Marvel Loch gold operations, the Mt Palmer project’s progress may interest investors exploring emerging opportunities in the ASX dividend stocks landscape. Continued success at Mt Palmer could potentially align with broader themes of value generation in the mining-focused ASX200 environment.
As exploration advances and resource definition nears, Mt Palmer stands out as a compelling example of reviving historical sites with modern drilling and interpretation techniques — a strategy that continues to drive renewed momentum for (ASX:KGD).
