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Kula Gold (ASX:KGD) has been successful in its application for funding assistance for gold exploration from the Western Australian state government.
Drilling in question will take place at the company’s Kirup Project, located near WA town Donnybrook, which Kula noted on Thursday lies 100km southwest of the Boddington Gold Mine, headed by mulitnat Newmont (ASX:NEM).
With RC drilling to kick off in early December, the WA government – under its Exploration Incentive Scheme (EIS) – will provide 50% funding of direct drilling and mobilisation costs up to $180K.
Emboldened by rock chips grading at 3.5g/t gold, the company is sniffing around an 0.8km long target identified by an analysis of geochem data. Early stage analysis has left Kula’s geotechs hopeful the company could boast mineralisation in a similar geological context to that found at the successful Boddington Mine.
Given that project is 110km away, further data will need to be collected to prove that thesis – but clearly, WA government geotechs see that as plausible.
“A first pass reconnaissance drilling programme will provide the answers,” Kula wrote on Thursday. The 3.5g/t rockchip Kula’s geotechs found was coincident with quartz – a promising enough sign.
“The model is for either an epithermal model or similar to the Donnybrook Gold Mine or a hydrothermal model similar to the Boddington Gold Mine,” company chief Ric Dawson said.
“This is Kula’s first successful EIS application and was fully developed by the in-house technical team.
“The Cammilleri Gold Mine to the north on a similar structure produced 236 ounces from 51 tons at a grade of 130gm/t, which supports drilling this prospect.”
KGD last traded at 0.7cps.
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