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