De Grey’s $30M Ashburton Option Nears as Kalamazoo Reports High-Grade Gold Hits

Ashburton Gold Project Option Progresses

Kalamazoo Resources Ltd continues to advance its 1.44 million ounce Ashburton Gold Project (AGP) in Western Australia, currently under an exclusive option agreement with De Grey Mining Limited. De Grey retains the right to acquire the project for $30 million in cash and/or shares, payable in two $15 million tranches, with the option exercisable by 4 August 2025.

During the March quarter, De Grey completed a comprehensive metallurgical drilling program comprising 10 holes totaling over 2,250 metres. The assay results revealed several significant gold intercepts, including standout hits such as 47 metres at 5.5 g/t gold from 30 metres and 55.5 metres at 4.1 g/t gold from 177.6 metres. These results underscore the project’s robust mineralisation and potential for economic extraction, particularly at the Mt Olympus resource.

De Grey’s due diligence also encompasses metallurgical test work, multi-element geochemical analysis, geological remodelling, and open pit optimisations. The company is required to spend a minimum of $1 million on exploration and assessment during the option period, with all findings shared with Kalamazoo. Notably, De Grey is responsible for maintaining tenement compliance and costs throughout this phase.

Mallina West and Victorian Projects Advance

In parallel, Kalamazoo completed a follow-up drilling campaign at the Mallina West Gold Project in late 2024. This program targeted shallower zones identified by 3D magnetic modelling and aimed to build on a promising 2022 intercept of 1 metre at 10.35 g/t gold. Samples from this recent drilling are currently pending assay results, expected in the coming quarter.

Meanwhile, exploration in Victoria remains active, with ongoing reconnaissance and sampling at the Mt Piper Gold Project, located near Agnico Eagle’s Fosterville mine. The South Muckleford Project is also under review, focusing on a gold-antimony mineralised system analogous to high-grade deposits in the region. This reflects growing market interest in antimony as a critical mineral.

Corporate Developments and Funding

On the corporate front, Kalamazoo concluded its three-year funding arrangement with Lind Global Fund II, LP during the quarter. The partnership was instrumental in supporting the company’s strategic initiatives, including the spin-out of lithium assets and advancing the Ashburton project.

Subsequent to quarter-end, Kalamazoo completed a $0.8 million share placement at $0.08 per share, representing a modest discount to recent trading prices. The proceeds are earmarked to support De Grey’s final due diligence activities at Ashburton, further exploration at South Muckleford and Victorian projects, and general working capital needs.

As at 31 March 2025, Kalamazoo held $0.253 million in cash, with total exploration expenditure of $479,000 during the quarter. The company maintains a tight capital structure with approximately 209.3 million shares on issue.

Looking Ahead

With De Grey’s option exercise deadline approaching in August 2025, the market will be watching closely for the final decision on the Ashburton acquisition. The recent acquisition of De Grey by Northern Star Resources adds an additional layer of strategic complexity and potential opportunity for Kalamazoo’s flagship project.