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Kalamazoo Resources poised to deliver updated mineral gold resource
2 minute read
Emerging copper-gold exploration company, Kalamazoo Resources Limited (ASX:KZR) (“Kalamazoo”), today reported further significant intersections of gold mineralisation in new results from the Company’s maiden drilling program at its flagship Snake Well gold project in Western Australia.
The Snake Well project is located 450 kilometres north of Perth in the Mid-West region, covering a 45 kilometre prospective strike length of the Tallering Greenstone belt in the western portion of the Murchison Domain, home to prominent mineral deposits such as Golden Grove, Big Bell, Deflector and Mt Magnet.
The results announced today follow the completion by Kalamazoo of the maiden 75 hole RC and diamond drilling program for 3,375 metres at the A-Zone Gold Project (“A-Zone”) which forms part of Kalamazoo’s wholly-owned Snake Well Gold Project. The drilling was aimed at testing the spatial and general grade ranges indicated by historical exploration work.
Shallow gold mineralisation at A-Zone was discovered in the late 1980s with further drilling completed by Giralia Resources in the early 2000s.
The following gold intersections were returned from the remaining two-thirds of the drilling program.
The second and final round of results are from the south-western end of the A-Zone Gold Project. As can be seen, the results of 56 Reverse Circulation (RC) holes and 4 diamond drill holes indicate many significant intersections of gold mineralisation have been intercepted, supporting the spatial position and tenor of gold grades indicated by historical drilling.
These drill results will provide the foundation for a feasibility study for consideration of a decision to mine. Any resultant production would be processed through the Minjar Gold processing plant as part of the Ore Sale and Purchase Agreement from which Kalamazoo will receive 60% of the free cash flow.
The results reported today represent approximately the remaining 70% of Kalamazoo’s maiden drill program. Metallurgical test work on core from the five diamond holes is in progress with the overall results due over the next few weeks to feed into development studies.
It should be noted that this is an early stage play and investors should seek professional financial advice if considering this stock for their portfolio.
There would appear to be the prospect of exploration upside given mineralisation is open at depth in fresh rock, as indicated in historical drilling. Most of the current drilling targeted the oxide and transitional zones together with some shallow, primary mineralisation.
Management is confident there is now sufficient data to complete a full statistical comparison between the new results and the historical results. This is expected to be completed over the coming weeks, providing the foundation for an updated mineral resource estimate to be established, a potential share price catalyst for the group.