CEO Exit and Capital Raise: What’s Next for Kalamazoo’s Gold Ambitions?

Resource Upgrade and Project Potential

Kalamazoo Resources Ltd (ASX, KZR) has delivered a compelling update on its Ashburton Gold Project in Western Australia, highlighted by a re-optimisation of the Mt Olympus underground resource. The revised estimate now stands at 1.44 million tonnes grading 3.76 grams per tonne gold, equating to 174,500 ounces, which lies outside the current open pit scoping study. This upgrade signals a substantial increase in the project's underground inventory and underscores its growth potential amid a favourable gold price environment.

Further exploration targets beneath the Mt Olympus open pit shell suggest an additional 129,000 to 387,000 ounces of gold could be delineated, reinforcing the project's upside. Importantly, higher-grade indicated material averaging around 4 grams per tonne has been identified, offering the prospect of upgrading inferred resources and enhancing project economics.

Robust Scoping Study and Development Pathway

The recently completed Mt Olympus scoping study paints a promising picture, projecting approximately 524,000 ounces of recoverable gold over a 73-month mine life at an all-in sustaining cost of about $2,183 per ounce. Financial metrics are strong, with pre-tax free cash flow estimated at $747 million based on a conservative gold price of AUD$4,500 per ounce, and rising substantially at higher gold price scenarios. The study outlines a straightforward processing approach, utilising a 1.5 million tonnes per annum flotation circuit to produce a high-grade concentrate, with a relatively modest pre-production capital expenditure of $208 million expected to be recouped within two years.

Notably, the scoping study does not yet incorporate the significant underground resources and exploration targets recently identified, suggesting further value could be unlocked as the project advances.

Advancing Pre-Feasibility and Drilling Programs

Building on these encouraging results, Kalamazoo has commenced a pre-feasibility study (PFS) for Mt Olympus, marking a transformative phase for the company. The PFS team includes seasoned industry professionals, such as Adam Garczynski, appointed as PFS Manager, bringing over 25 years of experience in major mining projects. Concurrently, a 2,600-metre diamond drilling program is underway to test and infill resource extents beneath the current pit design, with results anticipated in early February 2026. These efforts aim to refine resource confidence and optimise mine planning ahead of development decisions.

Corporate Developments and Leadership Transition

On the corporate front, Kalamazoo successfully completed an $8 million placement at $0.17 per share post-quarter, with a $2 million share purchase plan (SPP) also launched to allow existing shareholders to participate. Funds raised will support ongoing resource delineation, exploration drilling, and the Mt Olympus PFS. The company also appointed Benjamin Ackerman as Exploration Director, leveraging his extensive experience from Newcrest and Newmont to drive project advancement and portfolio growth.

In a notable leadership change, CEO Dr Luke Mortimer stepped down after more than seven years at the helm to pursue a senior role overseas. The board has initiated a search for a successor to guide Kalamazoo through its next growth phase amid a buoyant gold market.

Broader Portfolio and Regional Exploration

Beyond Ashburton, Kalamazoo maintains a diverse portfolio including the recently acquired Xanadu Gold Project contiguous with Ashburton, the Mallina West Gold Project in the Pilbara, and several Victorian projects such as Mt Piper and South Muckleford. Exploration activities continue across these assets, with particular interest in high-grade gold-antimony systems analogous to nearby world-class deposits.