Kalamazoo Expands Ashburton to 380km² with Xanadu Gold Project Buy
Kalamazoo Resources has strategically expanded its Ashburton Gold Project in Western Australia by acquiring the contiguous Xanadu Gold Project and securing a new exploration licence, significantly increasing its exploration footprint amid a strong gold price environment.
- Acquisition of nine tenements forming the Xanadu Gold Project, contiguous with Ashburton
- New exploration licence granted, expanding project area to 380.2km²
- Historical drill results show promising gold mineralisation at Xanadu
- Fast-tracked Scoping Study for Mt Olympus deposit underway
- Acquisition terms include share issuance, milestone payments, and a 1% royalty
Strategic Expansion of Ashburton
Kalamazoo Resources Limited (ASX – KZR) has taken a decisive step to enhance its gold exploration portfolio by acquiring the Xanadu Gold Project from Platina Resources Limited. This acquisition adds nine highly prospective tenements covering 142.4 square kilometres contiguous and along strike to Kalamazoo’s existing Ashburton Gold Project in Western Australia. Alongside this, Kalamazoo secured a new exploration licence on the eastern boundary of Ashburton, increasing the total project area to 380.2 square kilometres.
Unlocking Gold Potential with Historical Data
The Xanadu Gold Project is notable for its historical gold mineralisation, with drill results from previous explorers including intercepts such as 5 metres at 8.71 grams per tonne gold and 20 metres at 2.25 grams per tonne gold. These results, although reported under the older JORC 2004 code, indicate significant potential for resource expansion. The project hosts a variety of mineralisation styles, including Carlin-style gold prospects and disseminated pyrite and silicification mineralisation similar to that found at Ashburton.
Advancing Towards Development
Kalamazoo is currently fast-tracking a Scoping Study for the Mt Olympus deposit, the flagship within the Ashburton Gold Project. This study aims to define the optimal development pathway, processing strategy, and financing options in a market environment characterised by record-high gold prices. The acquisition of Xanadu and the new licence are integral to Kalamazoo’s regional growth strategy, targeting resource growth through both brownfield and greenfield exploration to extend mine life and establish a significant gold camp in the region.
Favourable Terms and Market Positioning
The acquisition deal includes issuing 1.25 million Kalamazoo shares to Platina, milestone payments contingent on resource milestones, and a 1% net smelter royalty on gold extracted. Kalamazoo’s CEO, Dr Luke Mortimer, emphasised the company’s confidence in the project’s economics and growth potential, highlighting the undervaluation of Kalamazoo in the current market. The strategic timing leverages the strong Australian dollar gold price, positioning the company well for exploration success and subsequent development.
Regional Context and Future Outlook
The Ashburton and Xanadu projects sit within the Pilbara Craton, a region gaining renewed attention following major discoveries such as the 11.2 million ounce Hemi Gold Project. Kalamazoo’s expanded tenure places it among key players in this prolific gold province. With a comprehensive exploration history dating back to the 1980s and recent advancements in drilling and geological understanding, Kalamazoo is poised to unlock further value. The upcoming Scoping Study results, expected in the fourth quarter of 2025, will be a critical milestone for investors and the market.
Bottom Line?
Kalamazoo’s strategic acquisition and exploration expansion set the stage for a pivotal phase in Ashburton’s development amid robust gold market conditions.
Questions in the middle?
- Will the upcoming Scoping Study confirm the economic viability of the Mt Olympus deposit’s first stage?
- How will Kalamazoo prioritise exploration drilling between brownfield resource growth and greenfield targets at Xanadu?
- What impact will fluctuating gold prices have on the timing and scale of Ashburton’s development?
