Kula Gold's Mustang Prospect Earns Government Support for Drilling
KGD (KGD) Share Update October 2024 Wednesday 23rd
Kula Gold Secures WA Government Support for Mustang Gold Prospect Drilling
Kula Gold Limited (ASX: KGD) has announced that its Mustang Gold Prospect has been awarded funding support by the Western Australia Government's Exploration Incentive Scheme (EIS). This marks a significant step forward for Kula Gold as it prepares to commence drilling at the promising site.
Instant Summary:
- Successful application for WA Government's EIS funding.
- 50% funding of drilling costs up to $180,000.
- Drilling program to begin on December 1, 2024.
- Mustang Prospect is a new target near Mt Palmer Gold Project.
Exploration Update
Kula Gold Limited has made a significant advancement in its exploration efforts at the Mustang Gold Prospect, located near Donnybrook, Western Australia. The company has successfully secured funding from the Western Australia Government's Exploration Incentive Scheme (EIS), which will cover 50% of the direct drilling and mobilization costs, up to $180,000. This support follows a rigorous review by the Geological Survey of Western Australia (GSWA).
The Mustang Prospect, which spans 0.8 kilometers, has shown promising results with rock chips containing up to 3.5 grams per tonne of gold. The upcoming reconnaissance reverse circulation (RC) drilling program, set to commence on December 1, 2024, aims to further explore the potential of this site. The drilling will test models similar to the epithermal and hydrothermal systems found at the Donnybrook and Boddington Gold Mines, respectively.
Geological Significance
The Mustang Prospect is characterized by a magnetic signature and proximity to a volcanic vent, indicating a geologically active period in the Yilgarn Craton. The presence of these features, alongside historical data from the nearby Cammilleri Gold Mine, supports the decision to pursue further exploration at this site. The Cammilleri Mine, located on a similar structure, historically produced 236 ounces of gold from 51 tons of ore at a grade of 130 grams per tonne.
Kula Gold's Managing Director, Ric Dawson, expressed optimism about the prospect, noting that the company's in-house technical team developed the successful EIS application. The Mustang Prospect is considered a value-accretive target that complements Kula's advancing Mt Palmer Gold Project.
The announcement of EIS funding is a positive development for Kula Gold, potentially enhancing investor confidence and interest in the company's exploration activities. The financial support reduces the financial risk associated with the drilling program and could lead to significant discoveries that boost the company's stock value. The successful exploration of the Mustang Prospect could position Kula Gold as a key player in the Western Australian gold mining sector.
Investor Reaction:
Analysts are likely to view the EIS funding as a vote of confidence in Kula Gold's exploration strategy. The financial backing from the government may reassure investors about the viability of the Mustang Prospect, potentially leading to increased interest in Kula Gold's stock.
Conclusion:
Investors should keep an eye on the progress of the Mustang Prospect drilling program, set to begin in December 2024. The results of this exploration could have significant implications for Kula Gold's future prospects and stock performance. Staying informed on the developments at Kula Gold will be crucial for investors looking to capitalize on potential opportunities in the gold mining sector.