Kalamazoo Resources (ASX:KZR) is due to start a 2,600m diamond drilling program at its Ashburton Gold Project this week.
Results from this program will provide important early inputs for ongoing mine development and optimisation studies supporting the Mt Olympus Prefeasibility Study (PFS).
Drilling is expected to be completed in January 2026.
The program comprises six diamond drillholes targeting the down-plunge extensions of mineralisation beneath the 2025 Mt Olympus Scoping Study pit shell design at the 100% owned project.
Specifically, three holes are planned to test the margins of the down-plunge extent of the indicated resource, while the remaining three holes will infill gaps within the inferred resource.
CEO Dr Luke Mortimer says starting the first phase of drilling supports the company’s transition into PFS activities scheduled for 2026 as the Ashburton Gold Project continues to advance toward development.
“This initial program forms a key component of Kalamazoo’s strategy to assess opportunities to extend mine life by pursuing underground and open pit resource growth at Mt Olympus, as well as advancing additional brownfield resources and high priority prospects across the 380km² Ashburton–Xanadu project area,” Mortimer says.
Kalamazoo has been conducting target generation and exploration across several brownfields and greenfields prospects, as part of its overall development strategy of the Ashburton project, as reported.
The company is seeking to identify additional new sulphide and oxide resources through exploration drilling programs.
Last month, a Scoping Study for Mt Olympus was completed, which confirmed a pre-production capital expenditure of about $208 million forecast to be repaid in 23 months.
Under a $4,500 per ounce base case, the Scoping Study shows Ashburton will produce pre-tax cash flow of $747 million, have pre-tax net present value of $423 million, and pre-tax internal rate of return of 47%.
Payback will be 1.9 years following process plant commissioning.
Located on the southern edge of the Pilbara Craton, Kalamazoo acquired the AGP from Northern Star Resources (ASX:NST) in 2020.
In 2023, Kalamazoo updated the mineral resource estimate to 16.2Mt @ 2.8g/t gold for 1.44Moz (JORC Code 2012). This increase represented a 10% increase in grade across the resource base and 68% increase in the indicated category ounces.
The MRE includes mineralised materials across four deposits at Ashburton with the Mt Olympus Deposit accounting for 75% of total resource base ounces.
Write to Adam Orlando at Mining.com.au
Images: Kalamazoo
