Kula to kickstart drilling as Boomerang returns gold anomaly

Kula Gold (ASX:KGD) is awaiting the second round of assay results to refine drill targets after completing soil sampling at its Marvel Lock Project, near Southern Cross in Western Australia.

The company’s share price is today (11 April 2024) trading 5.555% higher on the back of yesterday’s announcement.

Managing Director Ric Dawson tells Mining.com.au that geochemical sampling has defined a gold anomaly at the Boomerang gold prospect, which is north of the Nevoria Gold Mine (+600,000oz), and east of the circa 2.4Moz Marvel Loch Gold Mine, and west of the Mt Palmer Gold Mine (+150,000oz).

Drilling approvals are in place and the rig is on standby.

Dawson says this is a ‘very promising’ target in a proven mining district, and as such, preliminary drill locations have been marked, awaiting detailed geochemistry results to refine the drill locations and commence drill testing over the next few weeks.

Current GSWA 1:250,000 mapping in this region is different to what Kula is now discovering and observing and this now opens up major gold exploration potential in our large unexplored landholding.”

“When you do regional or localised magnetics, you are looking for structure. Now when you have structure and also the magnetic low, you’re generally thinking that’s probably more likely to be hematite rather than magnetite,” he tells this news service.

And hematite generally carries the gold. So that’s positive for hopefully when we do the drilling, we’ll find that there’s hematite and gold together. Effectively what happens is you have a structure and then the fluids come through and generally the fluids contain gold and all the metals and it’s the iron that tracks the gold.”

Based on the recent geochemical soil sampling the western limb of the Boomerang prospect, can be interpreted as a remnant mafic/ultramafic lithological unit due to the high magnesium and iron concentrations and can be confirmed upon RC drilling and microscope thin section analysis.

Kula is continuing to further develop existing gold prospects in the Marvel Loch Project; Stingray Prospect, Crayfish Prospect, 311 Prospect, Nevoria North Prospect and G-Star prospect.

Write to Adam Orlando at Mining.com.au

Images: Kula Gold
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Written By Adam Orlando
Mining.com.au Editor-in-Chief Adam Orlando has more than 20 years’ experience in the media having held senior roles at various publications, including as Asia-Pacific Sector Head (Mining) at global newswire Acuris (formerly Mergermarket). Orlando has worked in newsrooms around the world including Hong Kong, Singapore, London, and Sydney.