Kula Gold's (ASX:KGD) first exploration trench completed at the Little Mackenzie Prospect at Woodlark Island, Papua New Guinea, has returned ore grade assay results.
The 106 metre long trench was located on a ridge characterised by thick soil cover and delineated as being a prime target for epithermal gold mineralisation.
Assays from trenching measured 4 metres at 4.8 g/t gold, 13 metres at 2g/t gold, and 4 metres at 1.9 g/t gold.
The three zones were contained within a 40 metre section of the trench with Zones 2 and 3 separated by 4 metres and Zone 1 by 15 metres.
Three other zones of strong alteration were also intersected of similar dimensions with assays of less than 1 g/t gold, but with associated base metals indicating potential at depth or along strike.
Grab samples of the breccia returned assays up to 28.9 g/t gold, and a chip sample from a 0.3 metre wide silicified structure in Zone 2 returned 11.6 g/t gold within a 1 metre zone assaying 4.5 g/t.
Further trenching is in progress to determine the potential strike length and continuity of the new zone, with the goal of identifying a resource definition drilling target.
Trenching will also be conducted at another Target Area located 600 metres to the south-east along the same structure.
The new exploration model, developed from the analysis of the recently acquired Helimag data, in addition to previous data, continues to demonstrate its effectiveness.
The trench was located within a target area formed by the north-west trending Woodlark King-Illawarra Fault Zone and a north-east trending fault adjacent to an intense magnetic low.
This setting is similar to the 980,000 ounce Busai Resource 5 kilometres to the north.
The target area is also 1,000 metres along strike from the Woodlark King deposit and within the 2.5 kilometre long prospective Woodlark King-Illawarra Fault Zone.
The Feasibility Study for Woodlark, completed in September 2012, defined a JORC Resource of 2.1 million ounces and an Ore Reserve of 766,000 ounces based on an optimised gold price of US$1,200 per ounce.
The 9 year Project is based around three open pit mining areas and a 1.8Mtpa gravity and carbon-in-leach plant.
The Project is now fully permitted after the issue of the Environment Permit and Mining Lease.
