KULA Gold has struck a 21m intersection grading 5.4 grams per tonne gold from just 27m down the hole at the Kulumadau East deposit of its Woodlark Island project in Papua New Guinea.
Image courtesy of Kula Gold.
The result included a 6m interval grading 16.4gpt gold from a depth of 41m.
The second-best result from recent infill drilling was a large 37m intersection grading 1.7gpt gold starting just 36m from the surface.
It included an interval of 11m at 3.9gpt gold.
The Kulmadau East deposit was discovered in mid-2011 when infill drilling to test a possible tailings dump location returned high grades.
The deposit hosts 200,000 ounces of gold resources so far compared to 685,000oz of resources at Kulumadau West.
The definitive feasibility study for the open cut project is expected to be completed in the September quarter.
First production could start up in the June quarter of 2014.
While plans may change depending on exploration results and feasibility study outcomes, Kula aims to hit output of 100,000 ounces per annum gold and has previously flagged a possible ramp-up to 140,000ozpa.
