Kalamazoo Resources (ASX:KZR) is conducting target generation and exploration across several brownfields and greenfields prospects, as part of its overall development strategy of the Ashburton Gold Project in Western Australia.
As such, the company is seeking to identify additional new sulphide and oxide resources through exploration drilling programs.
Kalamazoo, which has a market capitalisation of $44.73 million, says its immediate focus includes launching a Prefeasibility Study for the Mt Olympus Project during the current quarter.
Earlier this month, a Scoping Study for the Mt Olympus Project 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.
The company has marked recoverables to be held at an all-in-sustaining costs of US$2,183 ($3,363) per ounce over a 73-month mine life.
In conjunction, Kalamazoo plans to advance resource growth drilling programs and further pit optimisations, as well as continuing proactive stakeholder and regulatory engagements.
The company notes opportunities exist to extend the existing resources outside the Mt Olympus Scoping Study. This includes at the Peake Underground, Zeus, and Waugh prospects which lie within the 7km-long Mt Olympus corridor.
Executive Chairman Luke Reinehr says the company’s growth strategy centres on a proposed multi-year production strategy backed through delineating and potentially developing resource expansion and exploration programs.
“The vision includes the potential near-term development of the Mt Olympus open-pit, opportunities to extend mine life by advancing underground and open-pit resources at Mt Olympus, Peake, Zeus and longer term resource growth through new discoveries,” Reinehr says.
During 1996 and 1997, Sipa Resources (ASX:SRI) discovered five deposits at Ashburton, including Mt Olympus, West Olympus, Zeus, Peake, and Waugh.
Mt Olympus, Zeus, Peake, and Waugh together produced approximately 350,000 ounces of gold from 3.2 million tonnes of oxide ore at an average grade of 3.3 grams per tonne gold between December 1998 and April 2004.
The majority of the gold came from Mt Olympus which produced 242,000 ounces of gold from 2.5 million tonnes at an average grade of 3g/t gold, with a recovery of 92% and a strip ratio of 3:15.
Kalamazoo Resources is an Australian gold and antimony explorer and developer focused on its portfolio of projects in Western Australia and Victoria.
Write to Aaliyah Rogan at Mining.com.au
Images: Kalamazoo Resources
