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Kula Gold (ASX:KGD) has fired up the drill rig on-site its digs at the historic Mt Palmer gold mine, formerly called Yellowdine.
Last commercially mined 80 years ago, the 160m depth 20th century mine project has been the subject of recent desktop work to define areas of interest around the immediate area.
Encouraged by underlying greenstone geology, the company kicked off a drill run on Wednesday aimed at finding, all things in order, high-grade gold.
The mine formerly known as Yellowdine sits 15km from the Marvel Loch downstream gold plant and 90km from Edna May. This, Kula said on Wednesday, “aligns with Kula’s strategy of exploring near to existing operations to fast track any discovery.”
How that differs from the strategy every other mining company employs isn’t exactly clear.
“This historically rich ‘half ounce’ gold mine has had ~200 workhours of analysis by Kula’s technical team and shows solid targets for high- grade gold mineralisation extending down plunge,” Kula MD Ric Dawson said.
Mt Palmer produced over 150Koz of gold at 15.9g/t from 1934 – 1944. Kula said on Wednesday that it was ultimately shut down by WW2.
KGD last traded at 1cps.
