Kula Gold (ASX:KGD) has announced its maiden inferred resource estimate for the Mt Palmer Mine in Western Australia. The estimate totals 98,534 tonnes at 0.63 grams per tonne of gold. Kula Gold is a mineral explorer focused on its key precious metals projects in the Southern Cross Region and in Western Australia. The company acquired the historical Mt Palmer Mine in June 2024.
The resource estimate follows a reassessment of the Mt Palmer Gold Mine tailings, which included 60 vertical aircore drillholes testing the tailings dump. According to the company, the gold mineralisation zone was defined using a 3D wireframe based on drillhole logging and gold analytical assay, further defining the characteristics of the gold mineralisation zones.
Ric Dawson, Managing Director of Kula Gold, stated that additional tailings tonnage is undergoing further testwork, which, upon completion, is expected to add to the resource in the short term. He also noted the potential for high-grade intersections at shallow depths, leading to diamond drilling and further resource definition. Dawson said that processing options for the on-surface tailings resource are currently being evaluated.
The Mt Palmer resource is located 28km from the Marvel Lock gold plant, representing a potential option for early monetisation. The Mt Palmer Mine was last commercially mined in 1944 down to the sixth level at 15.9g/t gold.
