Kalamazoo Seizes Ashburton Control, Accelerates Development Amid Gold Surge
Kalamazoo Resources retains full ownership of its Ashburton Gold Project after Northern Star declines its acquisition option, accelerating a Scoping Study supported by record gold prices. The company also expands its footprint with the strategic Xanadu acquisition and secures $2 million in fresh capital.
- Northern Star Resources opts out of Ashburton acquisition
- Kalamazoo fast-tracks Scoping Study on Mt Olympus Deposit
- Strategic acquisition of Xanadu Gold Project expands Ashburton tenure
- Successful $2 million share placement funds development and working capital
- Exploration continues on Victorian gold and antimony projects amid strong commodity prices
Northern Star Steps Back, Kalamazoo Takes Helm
In a notable shift, Northern Star Resources has formally declined to exercise its option to acquire Kalamazoo Resources’ 1.44 million ounce Ashburton Gold Project in Western Australia. This decision, announced during the September quarter, leaves Kalamazoo with 100% ownership of the project, enabling the company to chart its own development course.
Originally, Northern Star had inherited the option through its acquisition of De Grey Mining, which had secured a $30 million option agreement with Kalamazoo in early 2024. However, Northern Star’s strategic focus on its Hemi Project led to the withdrawal from Ashburton, a move that recalibrates the regional gold development landscape.
Scoping Study Accelerated by Record Gold Prices
Recent open pit re-optimisations have consolidated the Mt Olympus and West Olympus deposits into a single potential open pit, with an estimated 772,000 ounces of mineable gold at a grade of 2.53 grams per tonne, based on a gold price of A$4,500 per ounce. This represents a significant increase in potentially mineable material compared to previous estimates at lower gold prices.
Expanding the Ashburton Footprint with Xanadu Acquisition
Further bolstering its regional presence, Kalamazoo acquired the Xanadu Gold Project from Platina Resources during the quarter. This strategic acquisition adds nine highly prospective tenements covering 142.4 square kilometres contiguous and along strike to the southeast of Ashburton, increasing the total project area to over 380 square kilometres.
The Xanadu Project hosts widespread gold mineralisation with geological similarities to Ashburton, including Carlin-style prospects and disseminated pyrite mineralisation. This acquisition aligns with Kalamazoo’s regional growth strategy to expand resources and extend mine life around the Mt Olympus development.
Victorian Projects and Capital Raising Support Growth
In Victoria, Kalamazoo continues exploration on its gold and antimony projects, including Mt Piper and South Muckleford, amid rising commodity prices. These projects hold potential for high-grade epizonal gold-antimony mineralisation analogous to nearby world-class deposits.
To support its accelerated development plans, Kalamazoo completed a $2 million share placement at $0.09 per share, with free attaching options exercisable at $0.135. The capital will primarily fund the Scoping Study and provide working capital. Notably, company directors participated in the placement, signalling confidence in the company’s prospects.
Outlook and Market Position
With cash reserves of $1.375 million at quarter-end and a strengthened landholding, Kalamazoo is positioned to advance its flagship Ashburton project independently. The upcoming Scoping Study will be a critical milestone, potentially unlocking value in a rising gold price environment and setting the stage for further exploration and development.
Bottom Line?
Kalamazoo’s next moves hinge on the Scoping Study’s findings, which could redefine Ashburton’s role in Australia’s gold sector.
Questions in the middle?
- What economic assumptions and cost parameters will the Scoping Study reveal for Mt Olympus?
- How will Kalamazoo finance further development beyond the Scoping Study phase?
- What exploration results might emerge from the newly acquired Xanadu tenements?
