Kula Gold Limited (ASX: KGD), a Western Australian mineral exploration company focused on discovering new mineral deposits, has announced its maiden JORC 2012 compliant Mineral Resource Estimate (MRE) for the Mt Palmer Gold Mine tailings project. The project, located near Marvel Loch/Southern Cross in Western Australia, is a joint venture with Aurumin Ltd. Kula Gold’s strategy involves securing large land positions and structural geological settings capable of hosting significant gold deposits.
The resource estimate reports an inferred resource of 98,534 tonnes at 0.63g/t gold, using a nominal 0.4g/t gold cut-off. This resource is based on 60 aircore drillholes completed to define 1,996 ounces of gold. The current gold price is approximately $A5,200 per ounce. The resource is situated on a granted mining lease owned by the joint venture. Preliminary metallurgical testwork has indicated average gold recoveries of 86%.
Ric Dawson, Managing Director of Kula Gold, stated that the company is pleased to provide its maiden JORC resource statement for the Mt Palmer Gold Mine since acquiring the project in June 2024. He added that processing options for the on-surface tailings resource are now being evaluated. Dawson also noted that there is significant additional tailings tonnage undergoing further testwork, which, once completed, should add to this resource in the short term.
Kula Gold is currently evaluating processing options for the on-surface tailings resource, with the Marvel Loch gold plant, located 28km from the site, identified as a potential early monetisation option. Aurumin is diluting from its 20% JV interest at this stage in accordance with the JV terms. The company is also looking towards diamond drilling and resource definition to assess high grades intersected at shallow depths at Mt Palmer.
