Castlemaine Gold Project
Castlemaine Gold Project
Limited Recent Exploration
Wattle Gully Mine
Prospective Areas of Interest
An initial review by Kalamazoo of the Castlemaine Goldfields confirmed that the Wattle Gully, North Quartz Hill, Eureka Vineyard and Cappers/Shellback projects were important sources for gold production (Figure 10). Kalamazoo intends to initially focus on these areas for their potential to develop exploration targets, most likely at depth, via a dedicated techncial review process which is well under way.
The success of Kirkland Lake’s Fosterville Gold Mine with known gold mineralisation to 1,350m depth (refer to Scotiabank Mining Conference, December 6, 2016, Kirkland Lake Gold), the modern virgin discoveries of Tandarra and Four Eagles along the Whitelaw Fault corridor (Figure 2) and the nearby development of Mandalay’s Costerfield gold-antimony mine, indicate that successful exploration and development of profitable gold mines is possible in Victoria.
Kalamazoo believes the combination of new exploration techniques and the knowledge that will be derived from the analysis of the extensive database and core farm will permit the company to outline an effective exploration strategy to identify areas with high grade gold potential.
Community Engagement and Environment
Kalamazoo considers community engagement important to all its activities and intends to develop relationships with all community stakeholders, including government agencies, local communities, interest groups and employees.
Kalamazoo is vitally aware of its environmental responsibilities regarding the local communities and the preservation of the natural biodiversity in all areas and states within which it operates. Consultation with local councils and stakeholders will be an early and ongoing priority.
Kalamazoo believes in minimising or mitigating any detrimental effects that works may have on the environment. This will be achieved through responsible planning and management of company activities and as a minimum standard, working within the Victorian Code of Practice for Mineral Exploration.*
Local Community/Media FAQs
What impact will KZR’s exploration activities have on the town?
- KZR’s strategy is to ensure minimal disturbance to the local Community and avoidance of sensitive heritage sites.
- Given that the majority of KZRs exploration area is located on either Crown Land, Castlemaine Diggings National Park or pine plantations we anticipate little to no direct impact on individual landowners.
- If KZR’s exploration activities show promise the town could expect some positive economic benefits such as a potential boost in local employment, business opportunities etc.
Will you disturb heritage areas/sites?
- No – KZR’s strategy is to ensure minimal disturbance to the local Community and avoidance of sensitive heritage sites.
- KZR accepts and respects the fact that the local Community places a high value on the local heritage sites and are sensitive to any proposed exploration that may disturb them.
Will KZR rehabilitate its explorations sites?
- All exploration programs including those that involve any ground disturbance such as exploration drilling cannot commence until first approved by the Victorian Government.
- It is a Government statutory requirement that KZR complete appropriate rehabilitation of any disturbed sites such as drilling pads and access tracks.
- It is important to note that Rehabilitation Bonds are first lodged with the Government before any ground disturbing exploration works can commence.
- Failure to comply with the Victoria Government’s Mineral Resources Act may result in forfeiture of exploration licences and financial penalties.
What job/business opportunities will there be for locals?
- KZR is committed to supporting the local Community and will endeavour to source local labour, contractors and supplies whenever possible.
- It is important to note that early stage exploration projects usually only require limited local labour and supplies in the initial stages, due to the small scale and short duration of focussed exploration activities.
Will you be paying compensation to local landowners?
- In the unlikely event that a local landowner is directly impacted by our exploration activities KZR will pay fair and reasonable costs to compensate the landowner accordingly.
What happens should KZR have a gold discovery?
- In the event of a commercial discovery it typically takes at least 3-5 years before mine production could begin. During this time numerous tasks need to be successfully completed before mining can even commence such as mine planning and design, economic modelling, environmental assessments and approvals, Government regulatory approvals, funding etc.
In the event of a discovery will KZR develop a large open cut mine?
- No – KZR’s current strategy is to explore for commercial deposits of gold that can be mined at depth through underground mining methods.
- It is important to note that no mining is allowed in the top 100m depth for a large proportion of the exploration area which is covered by the Castlemaine Diggings National Park.
Will KZR be re-starting the Wattle Gully mine?
- We currently do not have any plans to restart the Wattle Gully Mine, rather we see greater exploration potential in the surrounding region.
Planned Work Program
Consolidation and reconciliation of the substantial Castlemaine Goldfield database is in progress.
This program once finalised will permit Kalamazoo to:
- Complete a technical review assisted by local consultants with a view to establishing exploration target(s).
- Refine the geology and structural controls to gold mineralisation; and
- Review modern exploration practices and techniques suitable for this style of mineralisation which may include; soil sampling, mapping, ground and airborne magnetic surveying, seismic and gravity surveying.
The overall aim is to identify and prioritise areas which will then be the focus of an exploration program to indicate gold potential and to establish a substantial gold mineral resource inventory by extensive drilling.
Competent Persons Statement
The information in this release that relates to the exploration results of the Company is based on information compiled by Mr Lance Govey, a competent person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Govey is an employee of BinEx Consulting who is engaged as the Exploration Manager for the Company. Mr Govey has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration results, Mineral Resources and Ore Reserves’. Mr Govey consents to the inclusion in this document of the matters based on his information in the form and context in which it appears.
Mr John Collier is the Principal Consultant to Conarco Consulting who is engaged as a Consultant to the Company. Mr Collier has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration results, Mineral Resources and Ore Reserves’. Mr Collier consents to the inclusion in this document of the matters based on his information in the form and context in which it appears.