KULA GOLD announced the results of an infill trenching program at the Watou Prospect confirming continuity of significant surface gold mineralisation.

The company said a total of 1,378 metres of infill trenches were completed on about 30 metres spacing over a 400 metre strike length within the Watou target area.

Results confirmed the presence of at least two zones of surface mineralisation which demonstrate strike continuity with associated ore grade gold assays and the third new zone open along strike, Kula Gold said in a statement.

Kula Gold confirmed trench assay results of eight metres at 4.46 grams per tonne of gold and 23 metres at 2.03 grams per tonne of gold.

Mineralisation located is in close proximity to the Woodlark King Deposit.

Kula Gold said Watou mineralisation demonstrates the potential for Woodlark to deliver additional resource ounces.

Follow up trenching at the Watou Prospect is planned in the March quarter.

The Woodlark Island gold project is 100 per cent owned by Kula Gold, located 600 kilometres east of Port Moresby in the Milne Bay Province, Papua New Guinea.

Completed in September 2012, the feasibility study defined a 2004 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.

Kula Gold said the nine year project is based around three open pit mining areas and a 1.8 million tonnes per annum gravity and carbon-in-leach plant.

The project is now fully permitted after the issue of the environmental permit and mining lease.