Independent review of Ashburton gold project identifies new targets for Kalamazoo Resources

Kalamazoo Resources ASX KZR Ashburton gold project scoping study Mt Olympus Pit
Kalamazoo plans to begin an extensive phase three drilling program at Ashburton in the second half of this year.

A detailed interpretation and analysis of the structural geology at Kalamazoo Resources’ (ASX: KZR) Ashburton gold project in Western Australia has identified 12 new brownfields and greenfields exploration targets.

The independent review aimed to identify key controls on gold mineralisation within the project area and assist with additional target generation for follow-up investigation.

The new high-priority targets are located between known mineralisation at the end of the historic Mt Olympus pit (which produced 242,000 ounces gold from 1998 to 2004) and the nearby high-grade West Olympus pit.

The first target is inferred to be a structural (fault) linkage or “stepover” connecting the two mineralised areas with high exploration potential adjacent to the 1.08 million ounce Mt Olympus resource.

It forms the largest component of the overall 1.65Moz gold resource at Ashburton and is now the subject of an induced polarisation (IP) geophysical survey targeting new lodes to the south and north of the prospective Zoe Fault.

Sulphide mineralisation

Kalamazoo director Paul Adams said the IP survey was well-suited to detecting structurally-controlled sulphide mineralisation typical of Ashburton.

“The identification of numerous significant near-mine and regional sulphide and oxide exploration targets is very positive for our strategy to increase the Ashburton resource towards 2Moz of gold,” he said.

“Recent metallurgical work on composites from the Mt Olympus sulphide deposit has demonstrated that a simple, easily-operable, well understood flowsheet is the preferred option for the future development of the sulphide resources at this project.”

Depending on the outcomes of the IP survey, Mr Adams said additional surveys would be conducted at other high-priority targets with the aim of identifying more prospects for drilling later this year.

Scoping study

Kalamazoo has appointed consulting firm CSA Global to complete a scoping study for the development of the open pit and underground deposits at Mt Olympus and Peake.

The study will also assist strategic decision making for Ashburton’s development.

It is expected to be completed before year end.

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