Kalamazoo Reports $8M Placement and High-Grade Drilling at Mt Olympus

Strong Drilling Results Reinforce Mt Olympus Potential

Kalamazoo Resources (ASX:KZR) is closing in on a resource upgrade at its Ashburton Gold Project in Western Australia after delivering high-grade assay results from a major ~14,000m drilling campaign at the Mt Olympus deposit. Nine intersections exceeded 50 gram-metres, including standout hits such as 21m at 6.5g/t Au from 12m, 50m at 2.6g/t Au from 129m, and 63m at 1.9g/t Au from 105m, confirming both grade and continuity of mineralisation within the main conglomerate host sequence. The drilling has also successfully reduced drill spacing to approximately 20m by 20m across key areas, supporting the potential conversion of Inferred Resources to the Indicated category.

Importantly, mineralisation has been identified outside the current Mineral Resource envelope but remains within the conceptual open pit limits defined in the 2025 Scoping Study, highlighting upside potential. Deeper diamond drill tails targeting extensions below the conglomerate-hosted resource are pending, aiming to test the underground growth potential beneath the open pit shell.

Underground Targets at Mt Olympus and Peake Signal Growth

The company has outlined an underground Exploration Target at Mt Olympus of 2.0 to 6.0 million tonnes at 2.0g/t Au for 129,000 to 387,000 ounces, complementing the existing 1.44 million ounce Mineral Resource. Drilling to date has validated the geological model, with mineralisation open down plunge and at depth, particularly along the structurally significant Zoe Fault, which appears to act as a major feeder for gold mineralisation.

Nearby, the Peake Deposit, historically mined for ~18,000 ounces from shallow workings, hosts a 210,000 ounce resource at 3.4g/t Au and an underground Exploration Target of 240,000 to 380,000 ounces at 3.4 to 5.0g/t Au. Kalamazoo plans a 3,000m drilling program next quarter to test this high-grade satellite deposit, which remains open at depth and along strike, potentially adding significant mine life beyond Mt Olympus.

District-Scale Opportunity Emerging with Multiple Trends

Beyond Mt Olympus and Peake, Kalamazoo has identified five mineralised trends spanning more than 12 kilometres of prospective strike within the Ashburton Gold Project corridor. The "Shinkansen Trend" near Peake is particularly promising, with geochemical anomalies and known mineralisation extending over 4 kilometres. Additional trends named MagLev, ICE, TGV, and Eurostar further enhance the district-scale potential, offering a substantial pipeline of exploration targets for both shallow oxide and deeper sulphide gold mineralisation.

Funding Boost and Strategic Leadership Strengthen Development Pathway

Post quarter end, Kalamazoo completed an oversubscribed $8 million placement at $0.12 per share, well above its initial $5 million target, reflecting strong investor appetite. The proceeds will accelerate resource extension drilling, support the updated Mineral Resource Estimate targeted for Q4 2026, advance the Mt Olympus Pre-Feasibility Study (PFS), and fund selected exploration across its WA and Victorian projects.

The PFS remains on track for completion in the first half of 2027, building on a 2025 Scoping Study that projected a technically robust, high-margin operation with a 73-month life of mine producing approximately 524,000 ounces at an all-in sustaining cost of around $2,183 per ounce. Higher gold prices could substantially improve project economics, with pre-tax free cash flow potentially rising from $747 million at $4,500/oz gold to $1.4 billion at $6,000/oz.

Adding to the company’s operational momentum, Andrew McDougall took the helm as CEO in May 2026. With over 25 years of experience at major miners including Anglo American and Rio Tinto, McDougall brings expertise in asset strategy, resource development, and feasibility study leadership, skills that will be critical as Kalamazoo transitions from explorer to developer.

Cash Position Tight but Strengthened by Placement

Kalamazoo reported cash of $2.1 million at quarter end, with exploration expenditure of $5.8 million driving a net cash outflow from operating and investing activities of nearly $6.7 million. The company had approximately 0.31 quarters of funding available based on current cash and outgoings but expects exploration spend to ease following completion of the Mt Olympus drilling program. The recent $8 million placement materially strengthens Kalamazoo’s balance sheet, providing a runway to complete the updated resource estimate and advance feasibility and development planning.