New Westonia Gold Project Adjacent To Edna May Gold Mine
Kula Gold Limited (ASX:KGD) has applied for four new exploration licenses around the Edna may Gold Mine in Western Australia.
The combined licences cover an area of ~357sq. km and will be an additional focus for Kula’s Southern Cross exploration programmes which are gearing up in March/April.
The acquisition continues Kula’s focus of drilling near to operating gold mines as geologically proven areas for discovery, and importantly the development and mining of any discovery is potentially much quicker and any development of future projects would require far less capex than a green fields new mine development.
The Edna May gold mine is a substantial producer in the Southern Cross region, owned by Ramelius Resources Ltd. It has a notable production history as detailed later in this release, including historical production 1911-1991 of 700,000 Oz, Since re-starting in 2010 has produced approximately 80-100,000 Oz p.a. and hosts resources of 28mt @1.0 g/t gold for 930,000 Oz as at 31 December 2020. In total, the Edna May gold mine has an endowment of over 2 million Oz gold.
No historical gold drilling has been undertaken on the southern section (E77/2766), as per the WAMEX database.
Kula plans to test a gravity anomaly with deeper auger drilling to adequately test for gold anomalism below the interpreted transported soil cover. The gravity anomaly of interest is similar in tenor to surrounding anomalies which host gold mineralisation and include the Edna May gold deposits.
The licences, to the northeast of Edna May, were acquired based on magnetic targets which suggest a potential northern extension of the greenstone belt.
Previous exploration in Kula’s Northern Westonia license has consisted of surface sampling which did not reveal any significant gold anomalies. Kula’s concept is that the previous surface soil sampling work was ineffective in testing the areas for gold mineralisation, therefore Kula will employ deeper auger type geochemical sampling to better test the gold potential of the licences at low cost.
