Kalamazoo fast-tracks Ashburton gold study
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.
