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Smallcap miner Kula Gold (ASX:KGD) has burst out the gates on Friday, up over +60% after reporting the intersection of “visible gold” in its first diamond drill hole at the Mt Palmer Gold Project, with assay results pending.
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The hole in question, completed to a depth of 54 metres, intersected several quartz reefs from 30.1 metres downhole. It contained trace sulphides and visible gold on fractured surfaces, the Aussie explorer declared.
Notably, visible native gold was observed in quartz veins at distances including 31.4 metres, 35.4 metres, 35.85 metres, 36.1 metres, and 36.45 metres.
“While we cautiously await the assays from Diamond Hole 25MPDD001, we’re pleased to report the strong visual indications of mineralisation at the Mt Palmer Gold Project,” Kula’s managing director, Ric Dawnson, said today.
Mt Palmer has historically produced more than 150,000 ounces of gold at an average grade of around 14.9 grams per tonne between 1934 and 1944, though the outbreak of World War II put a stop to progress there.
That abrupt end to mining – and no calculated return before the 2020s – leaves Kula with the chance to find “undiscovered orebodies in the area.”
The current HQ3 diamond core drilling program the company is now running targets shallow gold prospects, including areas near previous significant intercepts. These include 18 metres at 4.4 grams per tonne gold from surface, with a higher-grade section of two metres at 31.3g/t from 15 metres at Epis Lode.
HotCopper understands this diamond drilling will take around 10 days. “We look forward to updating the market on assay results and what the broader results are from the drilling programmes,” Mr Dawnson concluded.
Beyond today’s hefty +60% price blow-up, Kula Gold has been trucking along nicely in 2025 and has recorded a value hike of up to +323% YTD.
Half an hour into Friday morning trade, KGD is selling at 2.4cps.
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