Kula Gold To Acquire Historical Mt Palmer Gold Mine Near Marvel Loch

Kula Gold Ltd (ASX: KGD) is acquiring the historical Mt Palmer Gold Mine near Marvel Loch, Western Australia in the Southern Cross Goldfields.

This acquisition adds to Kula’s nearby Marvel Loch Project which contains multiple gold prospects.

Kula’s Marvel Loch Projects (noting that Marvel Loch Mine, Nevoria Mine, Yellowdine North and Yilgarn Star are not assets of Kula).

Mt Palmer Gold Mine

The Mt Palmer Gold Mine produced over 150,000 ounces of gold at 15.9 grams/tonne from 1934 to 1944.

It is north of the Nevoria Gold Mine (+600,000 ounces) and east of the 2.4-million-ounce Marvel Loch Gold Mine.

The mine closed in part due to the continuation of World War 2 severely restricting access to labour and materials and subsequently the mine flooded and never reopened.

Potential for high-grade shoots

The mine lease and surrounding areas are considered to have good exploration potential for the discovery of additional high-grade shoots.

The shear zones were reported as zones of complex deformation with strongly developed foliation and quartz-carbonate veining.

Near to existing operations

Being just 15km from the Marvel Loch gold processing plant and infrastructure, the Mt Palmer acquisition aligns with Kula’s strategy of exploring near existing operations.

Kula Managing Director Ric Dawson said: “This acquisition is in alignment with the company’s strategy to add assets near to existing operations to fast track any discovery to monetary success.

 “This historical rich ‘half ounce’ gold mine has huge potential of high-grade gold and is a priority drilling target for Kula.”

A$1.21M placement

Kula Gold is raising $1.21 million via a placement to professional and sophisticated investors.

The placement will be at A$0.01 per share, representing the company’s last traded price on Friday 24th May 2024.

Funds raised from the placement will be applied toward the acquisition and drilling of the Mt Palmer Gold Mine.

 

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