Shallow Gold Hits at Mt Palmer Raise Questions on Mining Viability and Scale

Strong Drill Results Highlight Mt Palmer’s Potential

Kula Gold Limited has announced a series of high-grade gold intercepts from its Stage 2 reverse circulation (RC) drilling campaign at the Mt Palmer Gold Project in Western Australia. The results include standout intercepts such as 9 metres at 13.6 grams per tonne (g/t) gold and 20 metres at 7.5 g/t gold, with some intervals exceeding 30 g/t. These shallow intercepts, starting as close as 0 metres from surface, underscore the project's potential for economically viable, low-cost open pit mining.

Located within the Southern Cross Goldfields and situated just 28 kilometres from the operating Marvel Loch gold mine, Mt Palmer benefits from existing regional infrastructure. The project is held under a joint venture agreement, with Kula Gold owning 80% and Aurumin Limited holding 20%, reflecting a strategic partnership aimed at advancing exploration and development.

Multiple Mineralised Structures and Emerging Targets

The drilling has intersected numerous north-south trending mineralised structures, many situated on granted mining leases, which are now being prioritised for resource definition. Notably, new mineralised zones such as the Busey Shoot and the A Spot prospect have been identified, expanding the known mineralisation footprint along a 10-kilometre belt owned by the joint venture. These discoveries suggest a complex and rich geological setting that could host multiple high-grade deposits.

Kula’s Managing Director, Ric Dawson, emphasised the quality of the results, noting that the consistent presence of shallow, high-grade gold bodes well for rapid project advancement. The company is also nearing completion of resource definition work on historic tailings, with preliminary metallurgical test work underway, expected to provide further clarity on the project's economic potential.

Historical Context and Future Exploration

Mt Palmer has a storied history, with significant gold production dating back to 1939 until operations ceased in 1944 due to wartime constraints. Since then, exploration has been intermittent, with recent efforts by Kula and Aurumin revitalising interest in the area. The current drilling program builds on previous campaigns and integrates historical data, although true widths of mineralisation remain to be confirmed through ongoing drilling.

Looking ahead, Kula plans to continue drilling to better define the resource and test additional targets along the belt. The company’s broader strategy includes leveraging its expertise in large land positions and structural geological settings to discover deposits of over one million ounces of gold or equivalent. Mt Palmer’s promising results fit well within this vision.

While no formal resource or reserve estimates have yet been released, the combination of high-grade shallow intercepts and multiple emerging targets positions Mt Palmer as a compelling project to watch in the Western Australian gold exploration landscape.