Kula Gold Strikes High-Grade Gold and Raises $1.39M to Fuel Growth

Exploration Momentum at Mt Palmer

Kula Gold Limited has accelerated its exploration activities during the March quarter of 2025, with significant progress reported at its flagship Mt Palmer Gold Mine in Western Australia. The company completed an aircore drilling programme totaling 658 metres, delivering encouraging results such as 12 metres at 3.4 grams per tonne (g/t) gold from 24 metres depth at Bryant’s Lode. Complementing this, a reverse circulation (RC) drilling campaign targeting shallow gold prospects along a 10-kilometre belt yielded multiple high-grade intercepts, including 18 metres at 4.7 g/t gold from surface, featuring a 3-metre section at 23.4 g/t.

These results underscore the potential for economically viable gold mineralisation within the Mt Palmer tenure, bolstered by channel sampling of historic mine dumps that returned grades up to 17.9 g/t gold. The nuggety nature of the gold suggests opportunities for low-cost extraction methods, prompting plans for metallurgical testwork to assess processing economics at the nearby Marvel Loch plant.

New Frontiers at Mustang Gold Prospect

In a strategic expansion, Kula initiated its maiden RC drilling programme at the Mustang Gold Prospect near Kirup, approximately 110 kilometres southwest of the Boddington Gold Mine. Supported by the Western Australian Government’s Exploration Incentive Scheme, the drilling identified a significant intercept of 2 metres at 2.3 g/t gold from 34 metres, hinting at a previously unrecognised gold system within an 800-metre soil anomaly. This discovery opens a new avenue for exploration in a region with established gold endowment.

Corporate Developments and Capital Raising

Following the quarter, Kula completed the expenditure requirements to earn an 80% interest in the Mt Palmer Gold Mine joint venture with Aurumin Limited, consolidating its control over this promising asset. Concurrently, the company raised approximately $1.39 million before costs through a non-renounceable pro-rata entitlement offer priced at 5 cents per share, issuing over 278 million new shares. This capital injection is critical as Kula manages its cash position, which stood at $595,000 at quarter-end, alongside a $500,000 unsecured loan facility.

However, the company faces operational challenges, including the reported theft of gold-bearing material from Mt Palmer’s historic dumps, with authorities currently investigating. Additionally, Kula surrendered its non-core Rankin Dome Project after its joint venture partner, Australian Critical Minerals Limited, withdrew from the agreement.

International Expansion and Future Outlook

On the international front, Kula advanced its Wozi Niobium Project in Malawi, holding a 75% interest. The project awaits environmental study completion before final licence grant, marking a significant step into critical minerals exploration. Meanwhile, the company continues to focus on its core gold exploration strategy in Western Australia, aiming to leverage its large land positions and geological expertise to discover multi-million-ounce gold deposits.

With metallurgical test results pending and ongoing drilling programmes, Kula Gold is positioning itself for a pivotal phase of resource definition and potential development. The company’s ability to secure funding and navigate operational risks will be key to sustaining momentum in the coming quarters.