Why Kalamazoo is keeping 100% of Ashburton

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Join us as we speak with Luke Reinehr, Chair at Kalamazoo Resources (ASX:KZR), to explore the latest updates on the Ashburton Gold Project and discuss the company’s forward-looking plans and the evolving gold market.

🔑 Key topics discussed:
💰 Retaining 100% ownership of the 1.4 million ounce Ashburton project.
📈 How a $2,000 rise in the gold price is reshaping project economics.
🛠️ Upcoming scoping study and pathway to prefeasibility.

About the guest and company:
Luke Reinehr brings extensive expertise to Kalamazoo Resources, an exploration and development company in the gold sector. The company is focused on unlocking value at its key gold projects across Western Australia, particularly the Ashburton Gold Project in the Pilbara.

🎥 Watch the full interview to gain insights into why Kalamazoo believes now is the time to move Ashburton forward.

Kalamazoo fast-tracks Ashburton gold study

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Kalamazoo Resources has taken full control of its Ashburton gold project in WA, fast-tracking a scoping study amid rising gold prices.

 

With the conclusion of an option agreement previously held by De Grey Mining and assumed by Northern Star Resources, Kalamazoo now retains 100 per cent ownership of the Ashburton.

The move comes as gold prices hit record highs of over $5000 per ounce, an increase of nearly $2000 since the original option was granted in February 2024.

“Retaining 100 per cent of the Ashburton gold project in today’s record gold market is a pivotal and positive milestone for Kalamazoo,” Kalamaoo Resources executive chair Luke Reinehr said.

“Since initially granting the option to De Grey almost 18 months ago, the gold price has risen by over $2000 – fundamentally improving the project’s economics.”

The company has commenced a scoping study focused on re-optimising the Mt Olympus open-pit development, with completion targeted for the fourth quarter of 2025.

“Northern Star has agreed to provide us with the technical data and, building on this work, our scoping study … is expected to confirm compelling economics and establish Kalamazoo as a significantly undervalued gold developer,” Reinehr said.

Former Pilbara Minerals general manager operations Simon Coyle has been appointed as project manager to lead the study, supported by advisory groups BHM Process Consultants and Entech.

The Mt Olympus deposit remains the focus of development, with pit re-optimisations showing a potential increase in mineable material to 772,000 ounces at 2.53 grams per tonne (g/t) gold based on a gold price of $4500 per ounce.

A share placement raising approximately $2 million will fund the study and provide working capital. Kalamazoo is also eyeing a pre-feasibility study and further exploration drilling in the near term.

Kalamazoo fast-tracks Ashburton Gold Project with scoping study under record gold prices

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Kalamazoo Resources (ASX:KZR) has launched a scoping study into its flagship Ashburton Gold Project in WA after retaining 100% ownership of the 1.44Moz asset.

The move follows the expiration of an acquisition option previously held by De Grey Mining and later Northern Star Resources, who chose not to proceed with the $33M deal.

Backed by a surging gold price now above A$5,000/oz, Kalamazoo is accelerating development of the AGP’s Mt Olympus deposit, one of the most advanced undeveloped gold projects in the Pilbara region.

The company will leverage technical studies completed by De Grey and Northern Star to fast-track delivery of a scoping study by Q4 2025.

Figure 1: Location map showing the drill collars and hole traces the metallurgical drilling programme completed by De Grey at the Ashburton Gold Project.

Optimised pit plan underpins study

Re-optimisation work completed in June 2025 by ERM (formerly CSA Global) has significantly enhanced the development outlook.

At a conservative gold price of A$4,500/oz, a larger, integrated pit model combining Mt Olympus and West Olympus supports a mine plan containing up to 772,000oz at 2.53g/t Au, a 17% increase from previous estimates.

Kalamazoo has appointed Simon Coyle, former GM of Operations at Pilbara Minerals, to lead the scoping study. Leading consultants BHM Process Consultants and Entech Pty Ltd are assisting with mining and processing assessments, expected to focus on a low-capex flotation circuit to produce a saleable gold sulphide concentrate.

The Ashburton Gold Project covers 238km² and includes four granted mining leases. It lies 35km southeast of Paraburdoo along the Nanjilgardy Fault Zone and has produced 350,000oz of gold historically.

Figure 2: Geology map showing the historical open pit mines and locations of mines and prospects and resource estimate numbers for each deposit.

Advanced technical base and metallurgy

Extensive technical work already completed includes 10 metallurgical drillholes, delivering standout intercepts such as:

  • 47m @ 5.5 g/t Au from 30m
  • 55.5m @ 4.1 g/t Au from 177.6m
  • 15.3m @ 6.5 g/t Au from 69m
  • 4.9m @ 17.1 g/t Au from 20.7m

Metallurgical test work shows recoveries of up to 94% and concentrate grades averaging 31.8 g/t Au, confirming suitability of a simple flotation circuit. Gravity separation tests further enhanced recovery potential.

Table 1: Mineral Resource Estimate for the Ashburton Gold Project.

Company trading below similar ASX gold developers

The 2023 Mineral Resource Estimate for the Ashburton Gold Project stands at 16.2Mt at 2.8g/t Au for 1.44Moz, with Mt Olympus accounting for 75% of contained ounces.

Resource upside remains a key focus, with pit shell modelling, geophysical surveys, and geochemical analysis highlighting further growth potential across multiple deposits.

The company is trading at an EV/Resource multiple of just $17/oz, well below the ASX gold developer average of $98/oz, suggesting material re-rating potential pending favourable study outcomes.

Table 2: Peer Comparisons for the Ashburton Gold Project.

Management comments

Executive Chairman Luke Reinehr commented on the latest update.

“Retaining 100% of the Ashburton Gold Project in today’s record gold market is a pivotal and positive milestone for Kalamazoo. Northern Star has agreed to provide us with the technical data and, building on this work, our Scoping Study – to be delivered in Q4 this year – is expected to confirm compelling economics and establish Kalamazoo as a significantly undervalued gold developer.”

Next steps

With gold prices at historic highs and technical groundwork already complete, Kalamazoo is well-positioned to move the AGP toward development. The scoping study will assess mining, processing, and financing scenarios, with a potential Pre-Feasibility Study to follow.

The company also plans to advance drilling for resource expansion and maintain strong regulatory engagement. With momentum building and study outcomes pending, Kalamazoo is shaping up as a key gold development story to watch.

Kalamazoo claws back gold project with prices soaring

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Kalamazoo Resources has taken back the reins of its 1.44-million-ounce resource Ashburton gold project in Western Australia, after an option held over it by mega-miner Northern Star Resources expired.

Whilst Ashburton hosts potentially more than 770,000 ounces of mineable gold with a solid grade of 2.53 grams per tonne gold, Northern Star has a full book having just paid $5 billion for DeGrey Mining and has bigger fish to fry.

Kalamazoo, however, is now looking to immediately turbo charge the project with the gold price continuing to test record highs. The company has kick started a new scoping study using fresh technical data and has undertaken a new $2 million placement to unlock what could potentially become a serious producer in the near term.

Kalamazoo says the timing couldn’t be sweeter, with Aussie gold now soaring to A$5100 an ounce—up more than A$2,000 since it struck the original $33 million option deal with De Grey just 18 months ago.

That option, later handed to Northern Star in its takeover of De Grey, has now lapsed, but not before leaving Kalamazoo holding the keys to a far more valuable prize delivered from the exploration sweat of others.

Notably, an earlier 10-hole drill blitz at Ashburton by De Grey’s lit up the boards with intercepts such as 47m at 5.5g/t gold from 30m, 55.5m at 4.1g/t from 177.6m and 31.8m at 3.3g/t from 132.2m.

Despite the dazzling numbers, Northern Star says it’s taking a more measured approach to new developments outside its newly acquired 11-million-ounce Hemi juggernaut, DeGrey’s principal asset.

In addition to the colossal $5 billion price tag Northern Star is projected to throw another $1.3 billion capex at Hemi to bring it into production and has a pretty full dance card.

Retaining 100% of the Ashburton Gold project in today’s record gold market is a pivotal and positive milestone for Kalamazoo. Since initially granting the Option to De Grey almost 18 months ago, the gold price has risen by over A$2,000 – fundamentally improving the project’s economics. Northern Star has agreed to provide us with the technical data and, building on this work, our Scoping Study – to be delivered in Q4 this year – is expected to confirm compelling economics and establish Kalamazoo as a significantly undervalued gold developer.

Kalamazoo Resources executive chairman Luke Reinehr

Ashburton sits 35 kilometres southeast of Paraburdoo in Western Australia’s Pilbara region and within the richly endowed Nanjilgardy fault zone, which includes such mines as Black Cat Syndicate’s 350,000 ounce Paulson gold mine.

Historical mining between 1998 and 2004 in the region produced 350,000 ounces with many, including, Kalamazoo believing that the best is yet to be discovered.

The primary gold mineralisation centres around the company’s Mt Olympus deposit and has been subject to extensive drilling, metallurgical test work and geological modelling by De Grey during the 18-month option period.

As part of that work, recent pit optimisation studies, by combining the Mt Olympus and the West Olympus deposits into a single open pit and using updated gold price assumptions of A$4,500 per ounce, have marked out the 772,000 ounces of mineable gold going 2.53g/t gold.

Kalamazoo says the updated resource number represents an impressive 17 per cent jump on the earlier 2023 estimate, which used a A$2600 gold price.

Adding fuel to the fire, preliminary metallurgy has confirmed that a straightforward crush – grind – float circuit can produce saleable concentrates with gold recoveries of up to 94 per cent and concentrate grades averaging more than 30g/t gold.

With a lot of heavy lifting already done by previous suitors, Kalamazoo has been handed the new data, allowing the company to fast-track its scoping study for completion within the next few months – all at minimal cost.

Management has brought in BHM Process Consultants and Entech to help fast-track the study. Seasoned operator Simon Coyle, the former GM of Operations at the uber-successful Pilbara Minerals, has also been tapped to take the reins as project manager.

By combining its 2023 resource estimate of 16.2Mt at 2.8g/t gold from Mt Olympus with the fresh high-grade data, Kalamazoo is confident it can carve out a low-cost, high-margin development pathway. The upcoming scoping study could also become the launchpad for a full-scale pre-feasibility study and set the stage for a serious gold play in the Pilbara.

Backing its ambitions, the company has locked in the $2 million placement at 9 cents per share, with one free option for every two shares. Notably, directors are chipping in $450,000 of their own cash, reflecting a strong internal conviction.

With gold prices at record highs, a simplified processing route, and a major scoping study underway, Kalamazoo looks well placed in the current environment that has seen listed companies in a fever pitch to pick up gold projects with scale and grade.

The stars appear to have aligned for Kalamzoo. With Northern Star looking to fry bigger fish and its nose no doubt bleeding from the $5b price tag attached to DeGrey, Ashburton has dropped back on its lap at a time when an army of smaller listed players are out there jostling for projects just like this one.

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