Kalamazoo Resources (ASX: KZR) has vaulted into the modern Pilbara gold rush with this morning’s announcement it had agreed to acquire three gold projects encompassing 252 square kilometres in the region.
The agreement with Denis O’Meara Prospecting (DOM) and KS Gold Pty Ltd gives Kalamazoo Resources the option to acquire between 80% and 100% equity in three Pilbara gold projects where recent prospecting has uncovered gold nuggets similar to those found by other Pilbara explorers De Grey Mining (ASX: DEG), Novo Resources (TSX: NVO) and Artemis Resources (ASX: ARV).
Under the agreement, Kalamazoo Resources will pay $125,000 from existing cash reserves and issue the vendors $200,000 in shares, giving the company a 90-day option over each project.
Kalamazoo Resources’ new Pilbara landholding includes DOM’s Hill Gold, Sisters and Marble Bar gold projects.
Preliminary scouting at DOM’s Hill has identified gold in soil anomalies and uncovered 300 ounces of gold nuggets. Meanwhile the Sisters gold project is in the centre of the current gold rush with De Grey Mining and Novo resources reporting multiple nugget discoveries in the area.
“This deal propels Kalamazoo Resources’ into the Pilbara as a genuine explorer with a highly experienced management team and a long history of exploration success,” Kalamazoo executive chairman Luke Reinehr said.
The company plans to kick-off exploration immediately with a on ground reconnaissance program, a detailed review of any historical exploration, rock chip sampling and assay assessments.
Kalamazoo will make the final decision on acquiring the tenements once the program is completed and it has reviewed the results.
On news of the announcement, Kalamazoo Resources’ stock sky-rocketed 157% to an 18c high in morning trade, after closing at 7c during in previous trade.
Gold frenzy heats up in Pilbara
As well as enjoying proximity to De Grey Mining, Novo Resources and Artemis Resources’ projects in the area, Kalamazoo Resources’ new tenements are close to projects owned by Venturex Resources (ASX: VXR), Impact Minerals (ASX: IPT), DGO Gold (ASX: DGO) and Calidus Resources (ASX: CAI).
Investors have been flocking to the stocks with most of the explorers experiencing huge spikes in their stock prices.