Kalamazoo Resources completes acquisition of Mt Piper gold project
Freehold ownership locks-in surface access for Southern Cross Gold at Sunday Creek.
Diversified explorer Kalamazoo Resources (ASX: KZR) has announced its completed acquisition of the Mt Piper gold project in Victoria from copper-focused Coda Minerals (ASX: COD).
As part of its plan to expand its footprint in the Central Victorian Goldfields, Kalamazoo agreed to acquire 100% interests in the five tenements making up the 1,609-square kilometre project in July.
The project lies adjacent to Agnico Eagle Mine’s (NYSE: AEM) large exploration ground and 30km from its world-class Fosterville gold mine.
It is also located between Mandalay Resources’ (TSX: MND) high-grade Costerfield gold-antimony mine and Southern Cross Gold’s (ASX: SXG) prospective Sunday Creek project.
The gold and base metals explorer said it will immediately start the important community engagement process before beginning with an initial “low impact” exploration program and advancing prospects towards drilling.
As a result of the completed acquisition, Kalamazoo now holds the largest exploration portfolio in the southern section of the Central Victorian Goldfields, increasing its footprint to 2,006 sq km.
This portfolio includes the 100% owned Castlemaine (with historical production of 5.6 million ounces of gold), South Muckleford, Myrtle and Tarnagulla gold projects, which are all subject to ongoing exploration projects.
Mt Piper prospectivity
The Mt Piper project is located about 75km north of Melbourne via the Hume Freeway and has access to local infrastructure.
Lying along the western margin of the Melbourne zone and adjacent to the Bendigo zone in the goldfields region, the project is considered highly prospective for Fosterville-style epizonal, high-grade gold and antimony deposits.
All five tenements are considered underexplored, limited to very shallow drilling, and not subjected to modern exploration techniques.
The prospectivity of the area is supported by recent systematic rock chip sampling undertaken by Coda at the south-western Goldie prospect, which defined high-grade gold mineralisation with best rock chip assay results including 31.1 grams per tonne and 30.4 g/t gold.
To the southern border of the project, recent field activity by Southern Cross at its Sunday Creek project recovered significant drilling intersections including 119.2m at 3.2 g/t gold and 0.4% antimony (3.9 g/t gold equivalent).
Next steps
Kalamazoo said its priority at the Mt Piper gold project is to continue with the important community engagement process, before expanding its target generation analysis.
It then intends to design an initial “low impact” exploration program for high priority target areas, and advance prospects towards a drill-ready status.