Aurumin Ltd (ASX:AUN) is celebrating the discovery of a new shallow gold lode at the Mt Palmer Gold Mine, near Marvel Loch in Western Australia, which it shares under a 49%-51% joint venture agreement with Kula Gold Ltd (ASX:KGD).
Strong gold results
A reverse circulation (RC) drill campaign by Kula at Mt Palmer has yielded promising results, with one hole intersecting 4 metres at 3.02 g/t gold, including 1 metre at 6.66 g/t from just 18 metres below the surface.
These findings align with historical drill results, which reported up to 7 metres at 3 g/t gold, including 1 metre at 10.6 g/t.
At the newly identified Bryant Lode, 500 metres south of the main workings, a contiguous zone of shallow gold mineralisation has been revealed that remains open to the north, south and at depth, warranting further exploration.
The partnership plans to advance its exploration efforts with a diamond drilling program to extend these findings and evaluate deeper targets.
The Mt Palmer Gold Mine, historically rich with more than 150,000 ounces of gold produced at an average grade of 15.9 g/t, was last commercially mined in 1944.
The aim of the current drilling program is to explore below the last mined levels and to extend known high-grade gold mineralisation.
Shallow in today’s operating environment
“This is a great start in our maiden drilling program at Mt Palmer,” Kula managing director Ric Dawson said.
“This historically rich ‘half ounce’ gold mine is now ready for the next stage of the drilling program with diamond drilling planned in the coming weeks to test below the rich production stopped by the WWII exodus of miners in 1944 and never re-opened.
“Rigorous analysis of all historical data by Kula’s technical team shows solid targets for high-grade gold mineralisation extending below past mining levels at 160 metres, shallow in today’s operating environment.”
The Mt Palmer Gold Mine is well positioned just 15 kilometres from the Marvel Loch gold plant and 90 kilometres from the Edna May gold plant, which augurs well for future development.
The companies will continue to assess other prospects within the 10-kilometre greenstone belt that hosts the Mt Palmer Gold Mine, with further results expected in the coming weeks.
Kula holds 51% of the Mt Palmer Project as part of an earn-in agreement with Aurumin and can earn up to 80%.