Join our daily newsletter At The Bell to receive exclusive market insights
Explorer Kalamazoo Resources (ASX:KZR) has today received encouraging drill intersections from five of the eight holes drilled to date in its “growth” program at the Ashburton Gold Project (AGP) in Western Australia.
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.
The company has completed the first phase of a growth diamond drilling program at the Mt Olympus deposit, designed to test extensions to known mineralisation at the 1.1 million-ounce Mt Olympus resource and to improve understanding of the geological and structural controls to high-grade gold mineralisation.
Eight diamond drill holes for 2,776.2 metres were completed as part of this initial growth drilling, with assay results now received for five completed holes.
The phase one growth drill program run by Kalamazoo targeted potential resource extensions below and down plunge of the Mt Olympus pit shell defined in the company’s Mt Olympus scoping study.
Highly encouraging drill intersections drilled to date included two intervals of greater than 45 grams per metre, with highlight assay returns of 8.8m at 11 grams per tonne (g/t) from 20.5m, including 2.9m at 21 g/t from 22.3m.
Executive director, Ben Ackerman, said the initial results from the growth drilling program have confirmed that the Mt Olympus mineralised system extends significantly down plunge beneath the current pit shell, with strong grades encountered outside the existing resource and remaining open at depth.
“The program has validated our geological model and reinforces the strong association between gold mineralisation, conglomerate host units and the Zoe Fault feeder structures,” he told Kalamazoo shareholders today.
“Following the upcoming resource definition drilling program, we plan to resume growth drilling as we continue to expand the Ashburton Gold Project mineral resource base and build a robust foundation for future studies, with a clear objective of delivering a production profile exceeding one million ounces.”
Mr Ackerman said the drilling at Olympus West has further improved the understanding of the geological controls to mineralisation, with significant mineralisation observed at depth along the north-sound trending basalt contact.
“Drilling has substantiated the key geological controls to mineralisation, with results supporting the company’s interpretation that gold mineralisation is best developed within conglomerate host units and where these intersect the Zoe Fault and associated steep feeder structures,” Mr Ackerman said.
Further “growth” drilling is currently being designed to commence shortly.
KZR is down 7.41% to 12.5¢. Mkt cap $42.40M.
Join the discussion: See what HotCopper users are saying about Kalamazoo Resources Ltd and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
