Kalamazoo spikes nearly 10% following re-assay program
Following a re-assaying program, copper-gold exploration group Kalamazoo Resources (ASX:KZR) has released promising results from its A-Zone gold project in Western Australia.
These include significant levels of copper, lead, zinc and silver reported from re-assays in oxide, transition and fresh rock zones. Management took the decision to conduct re-assaying as previous drilling only focused on oxide gold.
Having undertaken this program, KZR has been able to validate historic levels of elevated silver, copper, lead and zinc at A-Zone. These levels of base metals require further review to determine the potential for VHMS association, direct future exploration programs and metallurgical studies regarding the investigation of potential processing paths.
The better results received for the re-assayed pulps included 15 metres grading 2.85 grams per tonne gold, 0.25% copper 1.23% zinc, 17.7 grams per tonne silver and 0.33% lead.
The Conquistador zinc project is located along strike and approximately 15 kilometres to the north-east of the A-Zone deposit.
Highlighting the potential relevance of this association, KZR’s Managing Director, Peter Benjamin said, “Given the significance of the base metals in the A-Zone transition and fresh zones and the interpreted association with VHMS deposits, Kalamazoo has commenced a review of the Conquistador deposit to determine its potential, and prospectively design a program of work”.
In order to gain an understanding of the regional geology and determine the best path forward, KZR will continue with its assessment of the base metal potential of the A-Zone deposit, especially in the transition and fresh sulphide zones.
The company will also conduct an initial review in order to identify the potential processed path for recovery of these deeper base metal enriched zones. This will involve metallurgical test work on the oxide, transition and fresh sulphide material.
Management has already commenced a review of the VHMS base metal Conquistador deposit, and further investigation will run in tandem with initiatives relating to the A-Zone deposit.
KZR’s share price responded positively to today’s news, rallying nearly 10% in morning trading.
It should be noted that historical data in terms of earnings performance and/or share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering stocks in these markets should seek independent financial advice.