Kula to test “encouraging” Southern Cross gold anomaly

Kula Gold has stretched a gold anomaly to more than 200m in length at its Marvel Loch project near Southern Cross after a follow-up round of geochemical sampling, with drill-testing planned for this week.

The company says the encouraging anomaly at its Boomerang prospect sits in a magnetic low and geochemistry results indicate a mafic/ultramafic unit within the target area.

Drilling approvals are already in place and Kula plans to kick off a reverse-circulation (RC) campaign before the end of the week to test the prospect, while sampling results for gold and other elements are expected in due course.

Boomerang sits north of the 600,000-ounce Nevoria mine, east of the 3-million-ounce Marvel Loch mine and west of the 150,000-ounce Mt Palmer mine.

The company previously drilled a series of RC holes at Boomerang on a 200m-by-200m grid in the search for kaolin, with one returning a 1m gold hit at 2.6 grams per tonne from 54m. It previously defined a kaolin mineral resource at Boomerang of 93.3 million tonnes.

The gold anomaly at the prospect is situated along a north-west orientation, which management says is the optimal configuration as most of the gold deposits in the Southern Cross area strike in the same direction.

The second round of geochemistry has tightened up the gold soil anomaly for this very promising target in a proven mining district. Kula Gold has a RC rig mobilising to site, preliminary drill locations have been marked and we will commence drilling over the next few days.

Earlier this year, a soil sampling program testing for gold coincident with a circular-like feature visible on magnetic data about 2km to 3km in length and 1km wide defined another target at Marvel Loch and it has been dubbed the Stingray prospect. Management says the best gold hits were 56.7 parts per billion, 49.9ppb and 42.3ppb, with 10 of the samples going more than 25ppb.

Kula is also working up three more gold prospects – 311, Nevoria North and G-Star – all within the same tenement as the Stingray and Boomerang prospects and in ground neighboured by some serious gold deposits.

The company has enjoyed positive results from its gold exploration efforts in recent weeks, including rock chips grading as high as 11.2g/t at its 100 per cent-owned Brunswick project in Western Australia’s South West region. The discoveries are located near an area where historic grades of 130g/t and 32.7g/t gold were mined.

Recent field mapping also uncovered other impressive rock chips assaying at 3.4g/t and 3.3g/t.

With a cluster of projects spread around areas with historic gold production, Kula appears to be sticking to the belief that “the best place to discover a gold mine is near the headframe of a gold mine”.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au