Aurumin Ltd (ASX:AUN) joint venture partner Kula Gold Ltd (ASX:KGD) is making good progress at the Mt Palmer Gold Mine, near Marvel Loch in Western Australia’s Southern Cross Goldfields, picking out high-grade gold intersections at the El Dorado and Meiers Find prospects.
Diamond drilling was recently completed at Mt Palmer, in which Aurumin holds a 49% interest, with two pre-collared reverse circulation (RC) holes extended using HQ3 diamond core drilling.
Critical structural data
The company drilled a total of 307.4 metres and obtained core samples that will provide critical structural data for analysis.
The El Dorado prospect, north of the historical Mt Palmer Gold Mine, yielded an intersection of 6 metres at 8.3 grams per tonne (g/t) of gold from a depth of 28 metres, including 1 metre at 45.4 g/t from 30 metres.
The Meiers Find prospect also showed potential, with 1 metre at 9.2 g/t gold from a depth of 36 metres. These intersections have had no previous follow-up drilling, and further exploration work is planned.
The Mt Palmer Gold Mine, which produced over 150,000 ounces of gold at an average grade of 15.9 g/t between 1934 and 1944, is some 15 kilometres from the Marvel Loch gold plant and 90 kilometres from the Edna May gold plant.
The joint venture has formulated a strategy that focuses on exploring near existing operations to expedite any discoveries towards production.
Re-assays of recent RC drilling samples have confirmed good recovery characteristics for carbon-in-leach (CIL) processing, and the company plans further bulk testing to confirm these findings.
Exciting high-grade project
“The diamond core had excellent recovery and will provide excellent structural data for analysis on this exciting high-grade project last mined in 1944,” Kula managing director Ric Dawson said.
“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.
“Historic data reviewed by Kula’s technical team shows solid targets for high-grade gold mineralisation extending below 160 metres, the past mining level, shallow by today’s modern operating practices.
Excellent new prospects such as the El Dorado (6 metres @ 8.3g/t gold from 28 metres including 1metre @ 45.4g/t gold from 30 metres with no follow-up) are being advanced to drill ready status for a planned RC program.”