Diversified explorer Kalamazoo Resources (ASX: KZR) has added to its footprint in the historical Victorian goldfields after buying the 1,609 sq km Mt Piper project from copper-focused Coda Minerals (ASX: COD).
Kalamazoo says the move is part of its consolidation of ground in the Central Victorian Goldfields in the region that hosts the large Fosterville and Costerfield mines.
Coda inherited Mt Piper as part of its recent takeover of Torrens Mining, its joint venture partner in the Elizabeth Creek copper project in South Australia.
Coda decided that, in spite of its prospectivity, Victorian gold exploration was “off-strategy”.
For Kalamazoo, the acquisition makes its landholding in the southern section of the Central Victorian Goldfields now 2,904 sq km — the largest in that area.
New ground lies close to major mines
Mt Piper is in gold heartland. It is adjacent to the large ground holding of New York-listed Agnico Eagle Mines, and just 30km from that company’s Fosterville gold mine.
It is also situated between the Costerfield gold-antimony mine owned by Toronto-listed Mandalay Resources and the Sunday Creek gold project now being explored by Southern Cross Gold (ASX: SXG).
Southern Cross has reported drilling intersections including 119.2m at 3.2 grams per tonne gold and 0.4% antimony.
Kalamazoo says Mt Piper is prospective for both gold and antimony, with all six tenements considered underexplored and most historical exploration having been limited to very shallow drilling.
Coda is to receive $300,000 cash, 1.525 million Kalamazoo shares and a 1% net smelter royalty.
Sampling already indicates good gold grades
Recent sampling at the Goldie prospect, one of the six tenements acquired, returned assays of 31.1g/t and 30.4g/t gold.
Kalamazoo’s other holdings in Victoria include the Castlemaine project (historic production of 5.6 million ounces), South Muckleford (historic output of 2.1Moz), Myrtle and Tarnagulla gold projects.
Kalamazoo chairman and chief executive officer Luke Reinehr described Mt Piper as an “outstanding” addition to the company’s portfolio.
“As a major player in the Central Victorian Goldfields, we will systematically continue our exploration activities in the search for the next world class gold discovery in Victoria,” he added.
Kalamazoo is also advancing its Pilbara gold project, including the 1.65-million-ounce Ashburton target, and its lithium joint venture with Chilean major SQM.