Kula Gold exploration uncovers pleasant gold surprise at the Cobra and Mustang prospects
Special Report: With sentiment around the world’s premier precious metal remaining bullish, Kula Gold’s discovery of substantial gold prospectivity within two prospects at its Kirup project in WA couldn’t have been timed better.
Gold prices have been staying well the US$2,000/oz mark over the past year, reflecting its continued status as a safe haven.
Demand for the precious metal also hit a new high in 2023 with data from the World Gold Council showing that large institutional investors had sent “opaque” over the counter (OTC) demand up a massive 753% to 450.4t – sending overall demand up 3% to 4898.8t.
This sign of strong demand is good news for Kula Gold (ASX:KGD) which had carried out drilling at its Kirup project near the giant Greenbushes lithium mine to find lithium but wound up discovering substantial epithermal gold prospectivity at the Cobra and Mustang prospects instead.
At the Cobra prospect, sampling of a rock outcrop containing both vuggy and sugary quartz in the vicinity of the RC drill program resulted in the KGD exploration team identifying a significant epithermal style gold target.
This was determined to be atypical of the upper level of a potential epithermal system and will be the subject of further fieldwork.
Over at the Mustang prospect, sampling of a rock outcrop near its initial RC drill program returned a fire assay result of 3.5g/t gold.
Additionally, a one line gravity program has identified 2-3 potentially large intrusive bodies to the east of the Cobra RC drilling program which are prospective for lithium or gold and, as such, warrants future RC drilling.
KGD managing director Ric Dawson expressed disappointment about not intersecting economic lithium mineralisation at the Cobra prospect and flagged the company would focus instead on the Mustang prospect and potentially the Thunderbird prospect in the near future.
“On a positive note, substantial epithermal gold prospectivity was identified by the Kula team whilst drilling at both Cobra and the wider Mustang Prospect, rock chip results to 3.5g/t gold,” he added.
KGD’s next scheduled RC drill program at Mustang will now focus on both on its lithium and gold potential.
This article was developed in collaboration with Kula Gold, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.