Kalamazoo Resources (ASX:KZR) is renewing its exploration focus and activities across its Central Victorian project portfolio, amid record high prices for gold and antimony.
Over the next six to 12 months, the company is planning to focus its Central Victorian exploration efforts discovering gold and antimony across the Mt Piper, South Muckleford, Tarnagulla, and Castlemaine projects.
In particular, Kalamazoo will focus on targets at Mt Piper and South Muckleford, as well as conduct a reconnaissance diamond drilling program at Tarnagulla.
A follow-up reconnaissance exploration program is being initiated at the Humboldt prospect, within Castlemain, which is adjacent and along strike of Novo Resources’ (ASX:NVO) Belltopper Hill Gold Project.
CEO Luke Mortimer says it is no surprise that with record high gold and antimony prices, the market is seeing M&A and mine development advancing in Central Victoria.
“This is clearly demonstrated by the recent news of the $1 billion Alkane Resources (ASX:ALK) and Mandalay Resources (TSX:MND) merger and the substantial progress being made at the Sunday Creek discovery by Southern Cross Gold (ASX:SXG),” Mortimer says.
“With one of the largest, highly prospective exploration ground holdings in Central Victoria, Kalamazoo is well-placed to refocus exploration activities across its projects as the Central Victorian Goldfields re-emerges as a significant high-grade gold-antimony geological province.”
ABC Bullion reports that gold’s spot price is sitting at $5,223.40 per ounce at the time of writing on 7 May.
According to Trading Economics, gold slipped below US$3,380 per ounce yesterday (7 May), ending a two-day rally, following reports that US and Chinese officials are set to meet this week. As a result, the safe-haven assets demand has dampened.
The meeting marks a key step toward deals between the US and China to ease the ongoing trade war. This news comes after US President Donald Trump raised tariffs on Chinese imports to 145%, while reducing them for most other US trading partners.
Antimony’s demand and rising price has continued to rise following the ongoing trade war between the US and China. Earlier this year, China imposed export restrictions on antimony, along with other critical minerals such as gallium and germanium to the US.
Write to Aaliyah Rogan at Mining.com.au
Images: Kalamazoo
