Kalamazoo Resources reports robust high-grade drilling results from its Mt Olympus Resource Definition Program, reinforcing resource continuity and growth potential at the Ashburton Gold Project.
- Nine high-grade intersections exceed 50 gram-metres
- Resource infill drilling reduces spacing to 20m x 20m
- Growth drilling confirms mineralisation 300m below open pit
- Updated Mineral Resource Estimate targeted for Q4 2026
- Pre-Feasibility Study on track for H1 2027 completion
High-Grade Intercepts Validate Resource Model
Kalamazoo Resources Limited (ASX:KZR) has unveiled compelling initial assay results from the first 16 holes of its 14,000-metre Mt Olympus Resource Definition Drilling Program at the Ashburton Gold Project in Western Australia. Nine intersections exceeded 50 gram-metres, including standout hits such as 21 metres at 6.5 grams per tonne (g/t) gold from 12 metres depth and 50 metres at 2.6 g/t from 129 metres. These results confirm both the continuity and grade of mineralisation within the main conglomerate host sequence, providing strong support for the existing resource model and underpinning the potential upgrade of Inferred Mineral Resources to the Indicated category.
The infill drilling has successfully tightened drill spacing to approximately 20 metres by 20 metres across key areas of the deposit, a critical step to increase geological confidence and facilitate future Ore Reserve estimation. The program also tested lower extents of the resource within the AUD$4,000 per ounce pit shell outlined in the company’s 2025 Mt Olympus Scoping Study.
Growth Drilling Extends Mineralisation Beyond Pit Shell
Beyond infill efforts, Kalamazoo’s Growth Drilling Program delivered encouraging results confirming mineralisation continuation for up to 300 metres beneath the conceptual open pit shell. Drill holes intersected mineralised zones associated with the Zoe Fault, a major structural feature interpreted as a key feeder for gold mineralisation. While some holes intercepted halo mineralisation rather than the primary target, the geological model has been validated, highlighting a structurally controlled corridor ripe for further exploration.
Notable intercepts from growth drilling include 6 metres at 3.5 g/t gold and 3.2 metres at 5.7 g/t from hole KADD0007, and 3.1 metres at 5.0 g/t from KADD0008. These findings bolster confidence in the underground growth potential beneath Mt Olympus and support the delineation of an Underground Exploration Target of 2.0 to 6.0 million tonnes at 2 g/t gold, equivalent to 129,000 to 387,000 ounces.
Advancing Towards Development with PFS on Schedule
Kalamazoo is targeting an updated Mineral Resource Estimate for Q4 2026, which will incorporate the latest drilling data and support the ongoing Pre-Feasibility Study (PFS) scheduled for completion in the first half of 2027. The PFS aims to rigorously assess the technical and financial viability of Mt Olympus, building on the positive economics outlined in the 2025 Scoping Study. That study projected recoverable gold of approximately 524,000 ounces over a 73-month mine life at an all-in sustaining cost of around AUD 2,183 per ounce, with robust cash flow generation even under conservative gold price assumptions.
The company’s executive leadership emphasises the scale and quality of Ashburton, with Executive Director Dr Ben Ackerman noting the drilling results validate the resource model and highlight potential to add ounces within the planned mining envelope. CEO Andrew McDougall described the results as reinforcing Ashburton’s potential for a long-life major gold operation, with a focus on unlocking further resource growth as the project transitions from explorer to developer.
Strategic Positioning and Next Steps
The Ashburton Gold Project, located 35 kilometres southeast of Paraburdoo in the Pilbara, hosts a current resource base of 1.44 million ounces of gold. Kalamazoo’s recent acquisition of the adjoining Xanadu Gold Project further expands its footprint along a highly prospective structural corridor. While the current scoping and PFS studies focus on open pit resources, significant underground Mineral Resources and Exploration Targets at Mt Olympus and satellite deposits like Peake and Zeus remain outside these assessments, offering substantial upside potential.
With assay results pending for the majority of the remaining drill holes, including deeper diamond tails and growth drilling, Kalamazoo is poised to refine its resource model and advance its development strategy. The company plans to continue growth drilling following completion of the resource infill program, targeting extensions down plunge and below the pit shell.
Bottom Line?
Kalamazoo’s latest drilling results strengthen the case for resource upgrades and underground growth at Ashburton, setting the stage for a critical Mineral Resource update and PFS milestones later this year.
Questions in the middle?
- How will pending assay results impact the scale and classification of the Ashburton resource?
- Can further drilling along the Zoe Fault unlock significant underground resources beyond current targets?
- What are the key risks and assumptions underpinning the upcoming Pre-Feasibility Study outcomes?