Kula Gold (ASX:KGD) has provided an exploration update on its Mt Palmer Gold Mine, located near Marvel Loch in the Southern Cross Goldfields.
The company's recent diamond drilling program completed 307.4m of HQ3 diamond core drilling from two pre-collared reverse circulation holes, targeting the down plunge extensions of previously known orebodies.
The company has confirmed positive results from re-assaying anomalous reverse circulation drilling samples using Leachwell digestion, indicating favourable recovery characteristics for carbon-in-leach processing.
This follows exciting historical data showing intersections like 6m at 8.3g/t gold from 28m at the El Dorado prospect and 1m at 9.2g/t gold from 36m at Meiers Find.
Kula Gold's Managing Director, Ric Dawson, remarked, "The diamond core had excellent recovery and will provide excellent structural data for analysis on this exciting high-grade project last mined in 1944."
"Following structural analysis, the core will be cut and assayed and results reported thereafter, which will lead to further drilling as knowledge of the high-grade zones improves and becomes more predictable," Dawson added.
The Mt Palmer Gold Mine is strategically located approximately 15km from the Marvel Loch gold plant and around 90km from the Edna May gold plant, aligning with Kula's strategy to explore near existing operations for swift monetisation of discoveries.
The historical mine produced over 150,000 ounces of gold at 15.9 g/t from 1934 to 1944.
New advancements in the El Dorado and Meiers Find prospects, along with the newly identified Bryant’s Lode, showcase considerable exploration potential.
Kula Gold plans to commence a reverse circulation drilling program targeting these promising sites in the upcoming months.
At the time of reporting, Kula Gold's share price was $0.008.