Total
0
Shares
Barra Resources (ASX:BAR) receives high-grade results from Burbanks
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Mining company Kula Gold (KGD) has applied for four new exploration licences around the Edna May gold mine
  • The Edna May mine, located in Westonia, is owned by fellow ASX-listed gold producer, Ramelius Resources (RMS)
  • Kula Gold’s secured tenement applications cover a combined 357 square kilometres, which the company will start exploring in March or April
  • The company has already identified gravity and magnetic targets within the licences, which it will test with deeper auger drilling
  • Kula Gold is up 15 per cent and trading at 4.6 cents per share

Mining company Kula Gold (KGD) has applied for four new exploration licences around the Edna May gold mine.

The Edna May mine is a significant gold-producing asset, owned by the company’s fellow ASX-listed gold producer, Ramelius Resources (RMS). The mine is located in Westonia, roughly 314 kilometres east of Western Australia’s capital city Perth.

Kula Gold’s newly secured tenement applications, located nearby the Edna May mine, cover a combined area of roughly 357 square kilometres. 

The acquisition is a continuation of the company’s ongoing strategy, which is to drill in areas neighbouring already operating gold mines, located in geologically proven areas for discovery.

This strategy means that the development and mining of any discovery could be much quicker and that the development of potential future projects will require far less capital expenditure than a greenfields mine development would.

Kula Gold has reprocessed publicly available data about the area, and already identified gravity and magnetic targets within the licences. These areas will become an additional focus for the company’s Southern Cross exploration programs, which are scheduled to gear up sometime in March or April 2021. 

In particular, the company plans to test a gravity anomaly, located within exploration licence E77/2766. The anomaly is similar in tenor to surrounding anomalies, which host gold mineralisation and include gold deposits within the Edna May mine.

Kula Gold will use deeper auger drilling to test for gold anomalism below the interpreted transported soil cover. 

Kula Gold is up 15 per cent, trading at 4.6 cents per share at 3:48 pm AEDT.

KGD by the numbers
More From The Market Herald
Great Boulder Resources (ASX:GBR) receives last RC results from Side Well

" Great Boulder Resources (ASX:GBR) begins AC drilling at Side Well

Great Boulder Resources (GBR) has begun a 60-hole aircore (AC) drilling program at the Side Well Gold Project in Western Australia.
Ausmon Resources (ASX:AOA) to be granted McAlpine licence

" Ausmon Resources (ASX:AOA) to be granted McAlpine licence

Ausmon Resources’ (AOA) subsidiary, New Base Metals, will soon be granted a six-year exploration licence for its McAlpine application in NSW.
Podium Minerals (ASX:POD) plans upcoming capital raise

" KGL Resources (ASX:KGL) raises additional funds through shortfall

KGL Resources (KGL) has raised an additional $3.64 million, after raising over $9.57 million in an entitlement offer in March.
GWR Group (ASX:GWR) - Non Executive Deputy Chairman, Tan Sri Dato Tien Seng Law - The Market Herald

" GWR Group (ASX:GWR) and Fe Limited (ASX:FEL) re-negotiate agreement

GWR Group (GWR) and Fe Limited (FEL) have re-negotiated and extended their mining rights agreement covering the JWD iron ore deposit.