Kula soil sampling highlights Southern Cross gold prospects

Kula Gold is poised to get the drill rods turning at its Marvel Loch project near Southern Cross chasing up a recently identified gold anomaly identified from geochemical sampling at its Boomerang prospect.

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

Kula previously drilled a series of reverse-circulation (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. Kula has previously defined a kaolin mineral resource at Boomerang of 93.3 million tonnes.

In February 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 which has been dubbed the Stingray prospect. Management says the best hits were 56.7 parts per billion, 49.9ppb and 42.3ppb, with 10 of the samples going more than 25ppb gold.

The Marvel Loch project sits deep in gold country – 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.

This is a very promising target in a proven mining district, so Kula has a rig on standby, preliminary drill locations have been marked, awaiting detailed geochemistry results to refine the drill locations and commence drill testing over the next few weeks.

Management is also following up on 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.

Kula has enjoyed positive results from gold exploration in recent months with rock chips grading as high as 11.2g/t at its 100 per cent-owned Brunswick project in WA’s South West region near an area where historic grades of 130g/t and 32.7g/t gold were mined.

Recent field mapping also uncovered positive rock chips which assayed at 3.4g/t and 3.3g/t and there remain another eight samples to come back from the lab.

The Brunswick project area boasts the historical Camilleri and Blackwood Venture gold mines from which the precious yellow metal was mined by hand many years ago.

The market appears to be suitably impressed with Kula’s latest announcement with its share price surging more than 44 per cent to touch 1.3c during intraday trading from a previous close of 0.9c. Around 18.5 million shares changed hands representing the company’s largest trading day by volume since the start of February.

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