Snake Well Project
Gold & Base Metals
Giralia Resources NL (Giralia) thereafter acquired the Snake Well Project and undertook extensive exploration with a series of air-core, reverse circulation (RC) and diamond drilling (DD) programs between 2002 and 2011 to further investigate the Mixy Lode and other related quartz-vein hosted lodes. Giralia’s entire tenement holding was acquired in a takeover by Atlas Iron Ltd (Atlas) in 2011, with subsequent work being very limited in scope.
On 5 April 2013, Kalamazoo entered into an agreement with Atlas for the 100% acquisition of the Snake Well Project. Since acquiring Snake Well, Kalamazoo has undertaken compilation of past exploration data, construction of a database of historic drill data, GIS development, field assessment work, statutory reporting and mineral resource estimation, pulp sampling and several 2017 drilling schedules. Native Title agreements are in place with three claim groups. Kalamazoo successfully planned and completed a trial open pit mining, trucking and processing operation of the Mixy Lode (at Rabbit Well) in 2015 and 2016 that produced approximately 4,459 ounces of gold at 6.83g/t Au for a mill recovery of 98.1%.
Gold and Base Metals
Earlier in 2017, Kalamazoo entered into an agreement with Minjar Gold to evaluate the potential development of the A-Zone deposit. As part of this agreement, Minjar completed the drilling of 75 RC holes for 3,146m and five diamond drill holes for 228.5m, which confirmed the general position and tenor of (historical) mineralisation for up to 11 mineralised lenses at A-Zone. The mineralised zones are open at depth.
The new drilling enabled Kalamazoo to complete a Mineral Resource estimate upgrade reported in accordance with JORC 2012. Refer to the KZR ASX Announcement, June 2 2017.
This resulted in a favourable 30% increase in grade and a 15% decrease in tonnages for a total increase in contained metal of 9%.
The Mineral Resource estimate has been upgraded with more than 73% in the Indicated category.
|TABLE 1: MINERAL RESOURCE ESTIMATE FOR A-ZONE, JUNE 2017|
|JORC Category||Cut Off Grade||Total Tonnages||Gold Grade||Metal|
|2012||(g/t Au)||(g/t Au)||Ounces|
|Indicated||0.5 g/t Au||663,000||2.15||46,000|
|Inferred||0.5 g/t Au||269,000||1.98||17,000|
|Total||0.5 g/t Au||932,000||2.10||63,000|
|Notes : Resource reported up to 100 metres below surface (from 170 to 270MRL)|
|Tonnage is reported as dry tonnes|
|Rounding has been applied to appropriately reflect the precision of the estimate|
Snake Well Base Metals
Kalamazoo conducted first-pass Reverse Circulation (RC) drilling at the Royal Standard Project (Refer to KZR ASX release April, 23rd, 2017) completing 1,000 metres of RC drilling to test for the presence of near surface gold mineralised zones between the surface and the bottom mine level, about 75 metres from surface, with assays awaited.
Gold quartz lodes similar to that at the Mixy Lode are known to occur at the Royal Standard West, Calici 1 and Calici 2 prospects.
The Calici 1 and Calici 2 lodes are steeply dipping narrow high grade quartz vein lodes in close proximity to the Mixy Lode, and are associated with mineralised near surface laterite deposits, further described below.
At the Warren prospect, one kilometre south-west of Calici, encouraging historic gold results were made in a setting that is similar geologically to the Mixy Lode structure.
* Cranley, N.J., 1985. Yuin Project Non-statutory Report: Geological Assessment, April 1985, P59/20. Department of Mines and Petroleum WAMEX Open File Report A15979.
Laterite Gold deposits
Mineral Resource Estimates
Giralia had reported Mineral Resource estimates for the Mixy, A-Zone, LOP, Calisi, Royal Standard, Buckshot, Warren and Asp deposits under pre-2012 editions of the JORC Code.
Ravensgate updated the Mineral Resource estimates for the A-Zone deposit and revised the Mineral Resource estimates for the Mixy Lode and LOP deposits in conformance with the JORC Code (2012 Edition). The Calisi, Royal Standard, Buckshot, Warren and Asp deposits have been downgraded to advanced exploration projects. Current Mineral Resources for the Snake Well project area are summarised in the following table.
Snake Well Project Mineral Resource Estimates (JORC 2012)*
|Mixy – Open Pit||0.5||142||3.1||14||198||1.6||10||339||2.2||24|
|Mixy – Underground||2.0||8||5.8||1||66||4.4||9||74||4.5||11|
* Refer to Table 1 in the Independent Geologist’s Report, Kalamazoo Prospectus – October 2016
- Open Pit = Up to 100m below surface (>190m RL);
- Underground = Below 100m from surface (<190mRL);
- Tonnage is reported as dry tonnes;
- Rounding has been applied to appropriately reflect the precision of the estimate.
Development and Production
Earlier this year, Kalamazoo entered into an agreement with Minjar to evaluate the potential development of the A-Zone deposit. As part of this agreement, Minjar completed the drilling of 75 RC drill holes for 3,146m and five diamond drill holes for 228.5m, which has enabled Kalamazoo to complete the Mineral Resource estimate upgrade. Minjar also surveyed the collar locations of the majority of the previous drill hole collar locations.
Following this drilling program Minjar and Kalamazoo have entered into a first right, ore processing agreement for Minjar to treat oxide ore from the A-Zone Project and potentially from Kalamazoo’s nearby Mixy deposit (see ASX announcement dated May 5th, 2017).
Kalamazoo will also commence studies to assess the base metal potential contained within the Snake Well Gold Project area, notably at Conquistador (zinc) and deeper (fresh) portions of the A-Zone (copper and zinc).
Kalamazoo Resources Ltd Prospectus, October 2016 – located elsewhere on this website.
- See historical results as reported to the ASX by Giralia at www.asx.com.au/asxpdf/20041021/pdf/3nb61943p978j.pdf