Rock chip finds sharpen Kula South West gold discovery target

Kula Gold has struck gold again at its Mustang prospect near Kirup in Western Australia’s South West region, with fresh rock chip samples revealing high-grade hits of 4.8 grams per tonne (g/t) and 4.3g/t gold.

The chips were uncovered just 50 metres and 200m south respectively from its maiden drill result of 2m at 2.3g/t gold from 34m.

The latest haul comes from a batch of 10 rock chip samples. Two chips with high grades have matched up with ultra-fine soil sampling to sharpen the outline of a promising gold anomaly, stretching a potential 300m or even further.

Heightening the anticipation, Kula Gold says its most recent discovery provides compelling evidence that it might have uncovered a previously unknown gold system in an area of land that has no record of prior exploration.

Mustang continues to show potential for a new gold system in the Kirup district from our low-cost work supported by the DEMIRS and its EIS co-funding drilling costs to assist this potential new gold discovery.

Mustang is 110 kilometres southwest of Newmont’s Boddington gold mine – now Australia’s top dog with 786,000 ounces churned out annually from a hefty 11.2-million-ounce resource – and is starting to flex its muscles as a serious contender in Kula’s lineup. The company holds 100 per cent of the key tenements in the area, with one lease at 70 per cent in a joint venture with Sentinel Exploration.

In the late 1800s, a gold deposit 10km up the road was discovered by Canadian prospector Larry Cammilleri, who is best known for his discovery of a unique gold lode that put Boulder in Kalgoorlie-Boulder. That neighbouring deposit ended up pulling 236 ounces of gold from just 51 tonnes of ore at a jaw-dropping 130g/t. Kula owns that ground too - and its similar geological setup to Mustang has the team dreaming of a repeat performance.

The new rock chip stars are backed by a tighter soil sampling grid that’s filled in the blanks on a growing anomaly. Follow-up close-spaced drone magnetics and a fresh round of reverse circulation and air core drilling are now in the works to properly test this system.

The state government’s Exploration Incentive Scheme is riding shotgun again and has chipped in 50 per cent of the drilling and mobilisation costs up to $180,000. With taxpayers’ cash in the kitty and the scent of gold growing stronger, Kula’s low-cost exploration push is picking up steam.

As drill rigs gear up and the anomaly takes shape, Kula and its followers will eagerly await the possibilities a fresh gold discovery would provide.

With a legendary goldfield next door and a high-grade past whispering potential, this uncharted patch could be the spark that lights up the company’s future.

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