Kula Gold Unveils Maiden 98,534t JORC Resource at Mt Palmer Tailings
Kula Gold has reported its first JORC-compliant inferred resource estimate for the Mt Palmer Gold Mine tailings, revealing nearly 2,000 ounces of gold with promising recovery rates. The resource’s proximity to existing processing infrastructure could accelerate monetisation options.
- Maiden JORC 2012 inferred resource – 98,534 tonnes at 0.63 g/t gold
- Estimated 1,996 ounces of contained gold at 0.4 g/t cut-off
- Preliminary metallurgical testwork shows average 86% gold recovery
- Located 28km from Marvel Loch gold plant, enabling potential early processing
- Aurumin Ltd diluting its 20% joint venture interest
Maiden Resource Marks a New Chapter for Mt Palmer
Kula Gold Limited has announced a significant milestone with the completion of its maiden JORC 2012 compliant mineral resource estimate for the Mt Palmer Gold Mine tailings, located near Marvel Loch in Western Australia. The inferred resource totals 98,534 tonnes grading 0.63 grams per tonne gold, equating to approximately 1,996 ounces of gold at a 0.4 g/t cut-off grade.
This resource estimate follows a comprehensive drilling campaign involving 60 vertical aircore holes, which tested the tailings dumps on a granted mining lease held in joint venture with Aurumin Ltd. The drilling density and geological continuity underpin the inferred classification, with further infill drilling planned to upgrade the resource confidence.
Encouraging Metallurgical Results and Strategic Location
Preliminary metallurgical testwork conducted by Intertek using the Leachwell cyanide extraction method has delivered promising results, with gold recoveries averaging 86%. These findings suggest that the tailings material is amenable to processing, reinforcing the potential for economic extraction.
Importantly, the Mt Palmer tailings are situated just 28 kilometres from the Marvel Loch gold processing plant, a facility that could provide a near-term processing solution and accelerate value realisation. The tailings’ surface location further simplifies mining logistics, allowing for straightforward excavation and transport.
Joint Venture Dynamics and Future Exploration
Within the joint venture framework, Aurumin Ltd is currently diluting its 20% interest, which may alter ownership proportions as Kula Gold advances the project. Managing Director Ric Dawson highlighted the company’s optimism, noting that additional tailings tonnage is undergoing testwork and could augment the resource in the near term.
Beyond the tailings, Kula Gold is also focusing on the broader Mt Palmer area, where high-grade gold intersections at shallow depths have been identified. The company plans to progress to diamond drilling and resource definition, aiming to build on this initial success.
Technical Rigor and Compliance
The resource estimate was prepared under the supervision of Competent Person Adam Anderson, a qualified geologist with extensive experience and adherence to JORC Code (2012) standards. Sampling, drilling, and assay protocols were robust, including quality control measures such as duplicates and certified standards, ensuring data integrity.
The detailed technical disclosures, including drill collar locations, sampling techniques, and metallurgical test results, provide transparency and confidence in the reported resource. This foundation supports Kula Gold’s strategy to unlock value from both tailings and potential primary mineralisation at Mt Palmer.
Bottom Line?
Kula Gold’s maiden resource at Mt Palmer tailings sets the stage for accelerated development, but upcoming drilling and processing studies will be critical to unlocking full value.
Questions in the middle?
- How will Aurumin’s dilution impact project ownership and funding?
- What are the timelines and expected outcomes for the planned infill drilling?
- How economically viable will processing at Marvel Loch be given current recovery rates?
