ASX-listed Kalamazoo Resources (ASX: KZR) is a gold exploration company with major assets in two of the most sought after gold provinces in the world, the Victorian Goldfields and the Pilbara in Western Australia.
Kalamazoo has a multi-pronged strategy focused on exploring for the next world class gold deposit in the Victorian Goldfields, whilst increasing the 1.65Moz gold resource at the newly acquired Ashburton Gold Project in the Pilbara as, in addition to building on its other highly prospective and well located Pilbara gold assets.
The acquisition of the Ashburton Gold Project from Northern Star Resources Limited (ASX: NST) is an important addition to Kalamazoo’s growing Pilbara gold portfolio. Covering 217km2, the Project is located on the southern edge of the Pilbara Craton in Western Australia, with historical gold production of 350,000oz Au (1998-2004). The Ashburton Gold Project currently contains a Mineral Resource estimate (JORC Code 2012) of 20.8Mt @2.5g/t Au for 1.65Moz. Kalamazoo’s strategy is to substantially increase the resource base through a systematic, effective, and innovative exploration process.
This acquisition complements Kalamazoo’s existing Western Australian gold asset portfolio which includes The Sisters Gold Project (136km2) in the Pilbara. The Sisters Gold Project is considered prospective for both epigenetic gold mineralisation associated with the Wohler Shear Zone, and potential mineralised intrusions similar to those recently identified at De Grey’s Hemi discovery located 50km to the north east. Rounding out the Pilbara gold portfolio are the DOM’s Hill and Marble Bar projects.
In Victoria, Kalamazoo owns 100% of the Castlemaine Goldfield (5.6Moz historical production), the southern extensions to the Maldon/South Muckleford Goldfield (2.1Moz historical production) and a central tenement position in the Tarnagulla Goldfield (0.7Moz historical production). Kalamazoo is utilising ground geophysics, 3D structural modelling and multi-element surface geochemistry to assist in identifying and vectoring towards gold mineralisation targets in upcoming drilling campaigns across its 445km2 project area.
The Bendigo Zone in Victoria has historically produced more than 60M oz of gold, a goldfield geology that is 100 times richer than the global average. The recent outstanding exploration and mining success of Kirkland Lake Gold Limited (ASX: KLA, NYSE/TSX: KL) at the nearby Fosterville Mine has seen significant renewed attention on the wider Victorian Goldfields.
In 2018, Kalamazoo sold its Snake Well Gold Project to Adaman Resources Pty Ltd (ASX: KZR 14 November 2018 and 27 December 2018) for $7.0 million, of which the proceeds (payable over 24 months) assist in funding Kalamazoo’s exploration and drilling program at the Castlemaine Gold Project and the Pilbara Gold Projects.Another key component of the Snake Well sale was the retention of a 2.5% Net Smelter Royalty on any base metals mined within the Snake Well project area.
- Willman et al 2002, Geology Survey Victoria, Report 121)
- Source: Ross Cayley, “Gold in Victoria – The Current State of Play”