Kalamazoo Unveils Expanded Mt Olympus Underground Gold Resource
Kalamazoo Resources has significantly increased the Mt Olympus underground gold resource and identified a substantial exploration target, setting the stage for a potential mine life extension at the Ashburton Gold Project.
- Mt Olympus underground resource re-optimised to 174,500oz at 3.76 g/t Au
- Exploration target beneath open pit shell estimated at 129,000–387,000oz
- Higher grade indicated material (~4 g/t Au) offers upgrade potential
- Drilling program planned for Q1 2026 to convert inferred to indicated resources
- Open pit scoping study due Q4 2025, pre-feasibility study to follow
Significant Resource Growth at Mt Olympus
Kalamazoo Resources Limited (ASX – KZR) has announced a major update to its Mt Olympus underground gold resource within the Ashburton Gold Project in Western Australia. A recent re-optimisation, conducted at a conservative gold price of AUD$4,500 per ounce, has increased the underground resource to 1.44 million tonnes grading 3.76 grams per tonne gold, equating to 174,500 ounces. This update excludes the current open pit scoping study resource, highlighting additional underground potential.
Exploration Target Points to Further Upside
Beyond the optimised open pit shell that combines Mt Olympus and West Olympus deposits, Kalamazoo has identified an underground exploration target ranging from 2.0 to 6.0 million tonnes at approximately 2 grams per tonne gold. This translates to between 129,000 and 387,000 ounces, with a mid-point estimate of 258,000 ounces. While still conceptual and requiring further drilling to confirm continuity, this target underscores the project's significant growth potential beyond the existing resource base.
Focus on Upgrading Resource Confidence and Grade
Within the updated underground resource, higher grade indicated material averaging around 4 grams per tonne gold has been identified. This presents an opportunity to convert lower confidence inferred resources into the more reliable indicated category, potentially at a higher grade. To achieve this, Kalamazoo has designed a drilling program aimed at maximising this conversion, scheduled to commence in the first quarter of 2026.
Advancing Development Studies
The company is fast-tracking its Mt Olympus-West Olympus open pit scoping study, which is expected to be released in the fourth quarter of 2025. This study will incorporate the updated resource optimisations and provide a foundation for further evaluation. Subject to positive outcomes, Kalamazoo plans to immediately progress to a pre-feasibility study, signalling a clear pathway towards project development.
Strategic Positioning in a Strong Gold Price Environment
Kalamazoo’s update comes amid a robust gold price environment, with the company using a conservative AUD$4,500 per ounce gold price for its resource modelling, well below the current spot price of around AUD$6,500. This conservative approach lends credibility to the resource estimates and suggests strong project economics. The Ashburton Gold Project, which includes the recently acquired Xanadu Gold Project, is positioned as one of Australia’s promising gold developments, with a multi-year production vision supported by ongoing exploration and resource growth initiatives.
Bottom Line?
With a bolstered underground resource and promising exploration targets, Kalamazoo is poised to unlock further value at Mt Olympus as it advances towards development.
Questions in the middle?
- How will the upcoming drilling program impact the conversion of inferred to indicated resources and overall grade?
- What are the key economic assumptions underpinning the forthcoming scoping and pre-feasibility studies?
- How might the exploration target evolve with additional drilling, and what timeline is expected for resource definition?
