PERTH (miningweekly.com) – Junior Kalamazoo Resources will immediately start exploration at its newly acquired Ashburton gold project, in Western Australia, in the hopes of adding to the existing 1.65-million-ounce oxide and sulphide gold resource.
Gold miner Northern Minerals earlier this week revealed that Kalamazoo had acquired its Mount Olympus project, which comprised most of the Ashburton project, in a deal valued at A$17.5-million.
Northern Star told shareholders that the Ashburton project no longer fitted in with the company’s portfolio, but still had significant potential on both the exploration and production fronts.
Ashburton is estimated to host a total mineral resource estimate of 20.7-million tonnes, grading 2.5 g/t gold for an estimated 1.6-million ounces, of which 541 000 oz is classified as indicated and 1.1-million ounces as inferred.
“We are delighted to have acquired this major exploration project with its 1.65-million-ounce gold resource from Northern Star. This is a tremendous outcome for our shareholders and an outstanding addition to our prospective portfolio of gold projects in the Pilbara,” said Kalamazoo chairperson and CEO Luke Reinehr.
“Kalamazoo is in the unique position of having major assets and tenure in two of the most highly rated gold exploration provinces in the world today; the Victorian goldfields and the Pilbara.”
Reinehr said that the company would progress both its Victorian and Pilbara projects in tandem as it focused on adding value to its portfolio.
“Prior to listing on the ASX, we held a large exploration tenure alongside Northern Star and its Paulsens gold mine. This has assisted us in identifying the inherent value of the nearby Ashburton gold project and we thank Northern Star for the acquisition opportunity and the deal structure that enables us to put our funds directly into exploration.”
In addition to its exploration plans at Ashburton, Kalamazoo will also review and update previous feasibility and development studies for the project, using the current gold price.