Kalamazoo Resources Initiates Extensive Drilling Campaign in Western Australia
Kalamazoo Resources has commenced a significant 14,000-metre infill drilling program at its Ashburton gold project, located in the expansive Pilbara region of Western Australia. This ambitious campaign is designed to upgrade the company's million-ounce Mt Olympus resource into a higher-confidence indicated category, enhancing its value and feasibility for future mining operations.
Drilling Strategy and Resource Details
The program will initially involve reverse-circulation (RC) drilling, followed by diamond drilling, to increase geological confidence in the resource. This effort aims to shift as many tonnes as possible into the indicated category, which currently holds 821,000 ounces at a grade of 2.9 grams per tonne (g/t) gold. The remaining 252,000 ounces are classified as inferred, and the company seeks to upgrade these through the 20m-by-20m spaced drill program.
Mt Olympus' total resource stands at an impressive 1.073 million ounces at a grade of 2.7 g/t gold, spanning both open-pit and underground deposits. This deposit is a key component of the broader Ashburton project, which boasts a global inventory of 16.2 million tonnes at 2.8 g/t for 1.436 million ounces across four deposits on mining leases.
Executive Insights and Project Development
According to Kalamazoo Resources executive director Ben Ackerman, the infill program supports the Mt Olympus pre-feasibility study and future ore reserve estimates. With the phase-one growth drilling complete, an RC rig is already operational, and two diamond drill rigs are scheduled to start in early April, providing critical data for the project's next development stage.
The Ashburton project includes additional deposits such as Peake (210,000 ounces at 3.4 g/t), Zeus (121,000 ounces at 2.5 g/t), and Waugh (32,000 ounces at 1.9 g/t), contributing to its robust resource base.
Economic Viability and Expansion Potential
A November 2025 scoping study for Mt Olympus-West Olympus open-pit highlighted a mineable 772,000 ounces at 2.53 g/t gold, with a 73-month life-of-mine yielding 524,000 ounces. The study projected an all-in-sustaining cost of $2183 per ounce, making it highly profitable even at current gold prices around $4366 per ounce.
Financial projections are compelling:
- At a base case of US$4500 per ounce, pre-tax cash flow is estimated at $747 million.
- This rises to $1.396 billion at US$6000 per ounce.
- Net present value (NPV) using an 8% discount rate jumps from $423 million to $842 million with the higher gold price assumption.
Recent Discoveries and Future Prospects
Kalamazoo has identified additional underground resources, including an exploration target of 350,000 to 500,000 ounces grading 2g/t to 3.8g/t. Recent assay results from expansion drilling at Mt Olympus have shown promising intervals, such as:
- A 43.8m section grading 3.4 g/t gold from 93m, including 21m at 4.6 g/t.
- An 8.8m block at 11 g/t from 20.5m depth.
- A 30.9m intersection at 1.5 g/t gold from 214.5m, with higher-grade zones within.
With expanding resources from both growth and infill drilling, Kalamazoo is poised to enhance its gold inventory and classification, potentially paving a golden path forward for the Ashburton project. This strategic move could significantly boost the company's standing in the mining sector and attract further investment interest.
