Woodlark miner strikes gold

Business, Normal

The National, Wednesday, May 4, 2011

AUSTRALIAN listed miner Kula Gold Ltd yesterday announced a significant intersections of gold mineralisation adjacent to the Kulumadau resource at its 100%-owned Woodlark Island gold project in Milne Bay.
These assay results indicated that a new, previously undiscovered, zone of mineralisation may be present under a relatively thin 20m limestone cover.
Managing director Lee Spencer said: “The discovery of new mineralisation beneath the shallow cover on Woodlark Island reinforces our confidence in the project.
Further drilling will determine the overall significance of the discovery but the proximity to the established Kulumadau resource could have a very positive impact on the project.”
A sterilisation line of 20 reverse circulation (RC) drill holes at approximate 75m collar spacing was designed to sterilise an area for a waste dump, immediately to the east of the proposed Kulumadau pit.
The hydrothermal system at Kulumadau is known to be much larger than previously thought as a result of the intensive phyllic alteration and intrusive breccias that were intersected in a number of the RC holes.
The company said the area was overlain by limestone cover which masked the underlying prospective volcanic rocks.
Three out of the first four holes drilled had returned significant gold assays indicating a potential new zone of mineralisation some 400m east of the Kulumadau prefeasibility pit collar.
It said drilling was progressing west towards the proposed pit collar with assays for the remaining holes pending announcement.
Further drilling has been planned to determine orientation and widths of the new zone.