KULA Gold has struck more decent grades at its

This intersection also included 2m at 70gpt gold from a depth of 58m.

Another hole returned 32m at 2.5gpt gold from a depth of 79m, which included 1m at 57gpt from 80m down.

There was also a 64m intersection at 2.5gpt gold from a 29m depth, including a 17m interval at 4.3gpt from this depth, while another hole yielded 35m at 1.5gpt from 88m down, including 12m at 3.2gpt starting from 90m.

The results came from step out drilling directly east of the project's Kulumadau resource which already hosts 685,000 contained ounces.

"These recent assay results are important in the process of delineating the Kulumadau resource due to the extremely high-grades and wide intervals intersected during our drilling campaign," Kula Gold managing director Lee Spencer said.

"Along with our definitive feasibility study, which is continuing as planned, Kula Gold is now focused on establishing a resource at this new discovery and exceeding our target of 2 million ounces in resources in the calendar year."

Reverse circulation drilling at the emerging Kulamadau East deposit followed after this zone was accidentally discovered under a 20m section of limestone when previous drilling was investigating the area for a potential waste dump.

Kula shares are up half a cent to $1.40 this morning.