Kalamazoo delivers impressive gold drill results with more to come
Western Australian-based mining group, Kalamazoo Resources (ASX:KZR) has released some impressive results from its maiden drilling campaign at the company’s flagship Snake Well gold project.
The project is located 450 kilometres north of Perth in the Midwest region and consists of five granted mining leases, one granted exploration licence and two exploration licence applications. It includes a 45 kilometre prospective strike length of the Tallering Greenstone Belt in the western portion of the Murchison Domain.
This has proven to be a strong yielding base and precious metals region, hosting a number of significant deposits including Golden Grove (copper-zinc) and Deflector (copper-gold), as well as pure gold projects such as Mt Magnet, Big Bell and Cue.
However, Kalamazoo is an early stage play and investors should seek professional financial advice if considering this stock for their portfolio.
Focusing on the drilling results released today, impressive intersections included two widths of 2 metres grading 9.54 grams per tonne and 4.35 grams per tonne gold from 62 metres and 24 metres respectively. There was also a 5 metre intersection grading 3.2 grams per tonne from 25 metres.
Drill results confirm historical data
Not only are these results encouraging when looked at in isolation, but they also have assisted in confirming historical drill results which will assist KZR in planning future drilling.
The company has now completed a maiden 75 hole reverse circulation and diamond drilling program spanning 1.2 kilometres. This drilling is part of an overall program to complete development studies at the A-Zone section of the project in preparation for a feasibility study.
Should this lead to a decision to mine, KZR is well-placed as the ore can be processed through the Minjar Gold processing plant as part of the ore sale and purchase agreement which was negotiated in January. In terms of the agreement Kalamazoo receives 60% of the free cash flow from processing.
Management noted that mineralisation is open at depth in fresh rock, as also indicated in historical drilling. With 70% of the drill results still to come to hand there is the potential for multiple share price catalysts, particularly given the fact that today’s results have been favourably received by the market.
Short-term positions in small, early stage ASX companies,
with high potential and near term price catalysts.
Focusing on resource exploration, early-stage tech, and biotech.
Exceptional opportunities across a broad range of
early-stage growth sectors with strong management.
Seeking 1,000% plus returns across medium to long-term holds.
Longer-term positions in a variety of sectors.
Seeking strong management where traction is established and have entered into a growth phase.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.