Strategically Placed in Two Highly-Prospective Regions

THE CONFERENCE CALLER: Despite recently spending a fair portion of its energies promoting its recent gold acquisition and exploration developments in Western Australia’s Pilbara, Kalamazoo Resources’ (ASX: KZR) non-executive director Paul Adams spent the bulk of his time at the RIU Resurgence Conference podium talking about the company’s yellow metal assets in Victoria – a state which has been hard hit by the COVID curse. By Mark Fraser.

There was, however, a good reason for this – and it wasn’t because Adams ran out of time.

Rather, Kalamazoo sees plenty of exploration upside at its Central Victorian holdings, where historical production at its Castlemaine and South Muckleford projects has yielded 5.6 million ounces and 2.1 million ounces respectively.

In particular, the company is cognisant that average historical drilling (at least in the Castlemaine project area) has only been to 137 metres depth.

Moreover, there have been two recent developments which have further piqued the junior’s interest.

The first has been Kirkland Lake’s (ASX: KLA) ongoing success at the Fosterville gold mine just to the north east.

Second, Kalamazoo’s maiden 4,500m drill program back in March returned an intersection of 1.42m at 261 grams/tonne gold – a stunning result, which caught the eye of the investment community.

The WA-based explorer is now planning to start a 3,000-4,500m diamond drilling campaign at Castlemaine’s Lightning prospect – which is located at the northern end of the project area – within the next few weeks testing known high-grade historically mined areas.

Another 5,000m of diamond drilling has also been earmarked for Castlemaine’s Wattle Gully and Wattle Gully South targets, which will focus on gold in-soil anomalies as well as test previously identified mining locations.

In addition, Kalamazoo has a 7,000m RC program planned for its South Muckleford project – again focusing on in-soil anomalies.

Speaking after his RIU presentation, Adams told The Resources Roadhouse that the initial work at Lighting would probably go to 400-500m depth.

“This area has really not been drilled too much before, so there will be initially some shallower drilling, and then an expansion of that as we see the results come through,” he said.

“Most of the deeper drilling in the Castlemaine project has been around Wattle Gully, where they produced 4,000 ounces at 11 grams per tonne gold.

“It just hasn’t had any attention for many decades, so we are using advanced geochemistry techniques looking at things like alteration patterns and mica compositions to help us determine where the fluid flow is, and where the heat sources are, and therefore where the fluids will probably come from.”

During August Kalamazoo expanded its gold exploration footprint in WA with the acquisition of the 1.65 million oz Ashburton project from Northern Star Resources (ASX: NST) for $5 million (based on the mining of 250,000 tonnes of ore) and a net smelter royalty.

Covering 217 square kilometres of prospective real estate, Ashburton sits on the edge of the Pilbara Craton around 30 kilometres south east of the iron ore mining town of Paraburdoo. It currently has a JORC-compliant mineral resource of 2.08 million tonnes at 2.5 grams/t gold for the 1.65 million oz.

Ashburton covers four mining leases and three exploration licences – including Mt Olympus (15Mt at 2,2 g/t for 1.080 million oz) and Peake (3.7Mt at 3.4g/t for 399 gold oz), both of which were mined by WA resources house Sipa Resources (ASX: SRI) as part of its Pilbara operation between 1998 and 2004.

Then there’s Zeus (1Mt at 2.2g/t for 72,000 oz), Waugh (600,000t at 3.6 g/t for 68,000 oz) and Romulus (300,000t at 2.6 g/t for 27,000 oz).

During its stay in the region, Sipa produced 350,000 oz from ore grading 3.5g/t, with the majority of the yellow metal coming from Mt Olympus, where 25Mt of ore grading 3g/t yielded 242,000 gold oz.

Under the terms of the agreement with NST, Kalamazoo will pay a 2% NSR on the first 250,000t mined, after which the rate will drop to 0.75%.

Although Adams indicated Kalamazoo is now looking to embark on an extensive exploration and drilling campaign to substantially increase the project’s combined oxide-sulphide gold resources, another of its targets in the region has also starting to gain some serious exploration traction.

Located about 120 km south east of Karratha, the 136 square km (The) Sisters sits on the region’s Wohler Shear some 50 km south west of De Grey Mining’s (ASX: DEG) Malina gold project and the company’s recent world class yellow metal discovery at Hemi.

It is one of three assets the Kalamazoo picked up in 2018, with the others being the Marble Bar and DOM’S Hill gold projects to the east and north east respectively.

Last month the exploration house said numerous geochemical and geophysical gold targets had been identified in the area after a geochemical soil sampling program – incorporating the CSIRO’s Ultrafine+ soil analysis and interpretation technology – identified a broad 2.1km by 1km in soil anomaly, with up to 70 parts per billion gold, near a north-south offset in the Wohler Shear.

This geochemical survey at The Sisters was the first large scale gold-focused exploration program undertaken in this area, and had targeted the Wohler Shear Zone over a 14km long structural corridor.

Importantly, these gold anomaly zones were consistent with magnetic features recently identified by airborne magnetic and radiometric surveys.

 

Apollo Consolidated Drills Duchess Upgrade Potential

THE DRILL SERGEANT: Apollo Consolidated (ASX: AOP) continues to progress drilling underway at the company’s 100 per cent-owned Lake Rebecca gold project east of Kalgoorlie in the West Australian goldfields.

Apollo Consolidated drilled 26 holes, 23 of which encountered reportable gold intercepts building on the company’s confidence around the existing 180,000-ounce gold Inferred Mineral Resource it reported in February this year for the Duchess deposit.

Of these 23 holes, seven intersected mineralisation beyond the optimised pit shell Apollo used to constrain the Mineral Resource leading it to consider the likelihood of expanding the deposit.

Exploration, infill, and extensional drilling carried out at the Duchess deposit delivered mineralised zones, including:

RCLR0606
5 metres at 6.98 grams per tonne gold, including 1m at 31.48g/t gold;

RCLR0621
7m at 3.9g/t gold;

RCLR0611
9m at 3.15g/t gold, including 1m at 16.51g/t gold;

RCLR0603
12m at 2.44g/t gold and 7m at 2.01g/t gold; and

RCLR0605
7m at 2.1g/t gold.

“This part of the drilling activity was specifically related to the ongoing exploration and Mineral Resource definition program at the Duchess and Duke gold deposits, both of which have potential to add considerable valuable to a future commercial development of the Lake Rebecca project,” Apolllo Consolidated said in its ASX announcement.

 

 

Email: info@apolloconsolidated.com.au

 

Web: www.apolloconsolidated.com.au

 

THE DAILY ROADHOUSE

 

Westgold Resources Recommences Sub-Level Mining at Big Bell

THE DRILL SERGEANT: Westgold Resources (ASX: WGX) has recommenced underground sub-level cave stoping at the Big Bell underground mine at the company’s Cue Gold Operations (CGO) in Western Australia.

Gateway Mining Identifies New Gold Corridors

THE DRILL SERGEANT: Gateway Mining (ASX: GML) has identified extensive new regional gold corridors outside of the main gold trend at the company’s 100 per cent-owned Gidgee gold project in Western Australia.

Encounter Resources Welcomes IGO in $15M Yeneena Earn-In Agreement

THE BOURSE WHISPERER: Encounter Resources (ASX: ENR) informed the market that Independence Group (ASX: IGO) has elected to enter an earn-in and Joint Venture agreement.

Azure Minerals Enhances Loma Bonita Gold Credentials

THE DRILL SERGEANT: Azure Minerals (ASX: AZS) reported new intersects of wide intervals of gold and silver mineralisation on the company’s 100 per cent-owned Alacrán project in Sonora, Mexico.

Alicanto Minerals Intersects Chalcopyrite Mineralisation at Wolf Mountain

THE DRILL SERGEANT: Alicanto Minerals (ASX: AQI) has completed the first two drill holes (DH 20-01 & DH 20-02) at the company’s Wolf Mountain copper-gold target area in the Bergslagen district of southern Sweden.

 

THE DAILY ROADHOUSE

 

De Grey Mining Extends Mineralisation at Hemi Gold Discovery

THE DRILL SERGEANT: De Grey Mining (ASX: DEG) reported encouraging signs from drilling underway at the recent Hemi discovery at the company’s Mallina gold project in Western Australia.

Ausgold in Heightened Drilling Mode at KGP

THE DRILL SERGEANT: Ausgold (ASX: AUC) reported on recent drilling activity at the company’s 100 per cent-owned Katanning gold project (KGP) in Western Australia.

Pantoro Eyes Mineralised Extensions to Norseman Deposits

THE DRILL SERGEANT: Pantoro (ASX: PNR) reported latest drilling results from the Scotia, Daisy South and Gladstone-Everlasting deposits at the company’s Norseman gold project in Western Australia.

Ardea Resources Defines Shallow, High-Grade Gold at Big Four Gold

THE DRILL SERGEANT: Ardea Resources (ASX: ARL) has completed an 11-hole RC drilling program at the historic Big Four gold mine, south of Goongarrie in Western Australia.

Black Cat Syndicate Relies More on Strategy Than Luck

THE CONFERENCE CALLER: All of the planets seem to be lining up for Black Cat Syndicate (ASX: BC8) as it prepares to make the transition from explorer to miner in one of Western Australia’s most overlooked gold districts. By Mark Fraser 

 

THE DAILY ROADHOUSE

 

Bellevue Gold Increases Eponymous Gold Resource

THE DRILL SERGEANT: Bellevue Gold (ASX: BGL) has increased the total Resources at the company’s Bellevue gold project in Western Australia.

 

S2 Resources Identifies New Gold Trend in Finland

THE DRILL SERGEANT: S2 Resources (ASX: S2R) has identified a new gold mineralised trend to the east of the company’s 100 per cent-owned Aarnivalkea gold prospect in northern Finland.

Impact Minerals Enters Broken Hill Alliance MoU

THE BOURSE WHISPERER: Impact Minerals (ASX: IPT) has signed a non-binding Memorandum of Understanding (MoU) with Castillo Copper (ASX:CCZ) and Squadron Resources.

Lithium Australia Lithium Extraction Technology Patent Accepted

THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) has received a Notice of Acceptance from IP Australia for its LieNA® technology patent application.

 

THE DAILY ROADHOUSE

 

Barra Resources Finalises Mt Thirsty PFS

THE BOURSE WHISPERER: Barra Resources (ASX: BAR) released the long-awaited results for the Pre-Feasibility Study completed at the company’s Mt Thirsty cobalt-nickel project in Western Australia.

Venture Minerals Claims New VMS Discovery at Golden Grove North

THE DRILL SERGEANT: Venture Minerals (ASX: VMS) announced the discovery of Vulcan, a VMS target located along strike from the world class Golden Grove VMS mine.

Impact Minerals Cashed Up for Exploration Advance

THE BOURSE WHISPERER: Impact Minerals (ASX: IPT) has received firm commitments to raise just over $2.1 million.

Magnetic Resources Raises $3M to Feather Hawks Nest

THE DRILL SERGEANT: Magnetic Resources (ASX: MAU) has received binding applications for approximately $3 million via a placement of approximately 4.84 million new shares at 62 cents per share.

 

THE DAILY ROADHOUSE

 

Saturn Metals Confirms High-Grade Mineralisation at Apollo Hill

THE DRILL SERGEANT: Saturn Metals (ASX: STN) announced the first results from the 2020 reverse circulation (RC) drilling campaign underway at the company’s 100 per cent-owned Apollo Hill gold project in Western Australia.

Matsa Resources Extends Fortitude North Mineralisation

THE DRILL SERGEANT: Matsa Resources (ASX: MAT) has received early results from diamond drilling at Fortitude North, located within the company’s Lake Carey gold project in Western Australia.

Ardiden Identifies High-Grade Gold Hits in Pickle Lake Review

THE DRILL SERGEANT: Ardiden Limited (ASX: ADV) scored well from a recently completed review of historical drillhole data at the company’s Pickle Lake gold project in Ontario, Canada.

Alloy Resources Acquires New Exploration Pipeline Via Dingo Resources

THE BOURSE WHISPERER: Alloy Resources (ASX: AYR) has entered into a binding Heads of Agreement to acquire unlisted public company Dingo Resources Limited.

 

THE DAILY ROADHOUSE 18/2/20

 

Middle Island Resources Grabs More Barkly IOCG Ground

THE BOURSE WHISPERER: Middle Island Resources (ASX: MDI) has been allocated between 19 per cent and 95 per cent of each of four competing exploration licence applications, located within the newly available IOCG-prospective former Barkly moratorium area of the Northern Territory.

Bellevue Gold Drilling Results to Contribute to Resources Update

THE DRILL SERGEANT: Bellevue Gold (ASX; BGL) released the latest high-grade infill drill results that are expected to further underpin a maiden Indicated Resource at the company’s Bellevue gold project in Western Australia.

Antipa Minerals and Rio Tinto JV Identifies New Targets at Citadel

THE DRILL SERGEANT: Antipa Minerals (ASX: AZY) is advancing its exploration activities at the company’s Citadel project in the Paterson Province of Western Australia.

Alicanto Minerals Intersects Wide Zones of Swedish Mineralisation

THE DRILL SERGEANT: Alicanto Minerals (ASX: AQI) has hit more than 60 metres of strong alteration and disseminated sulphides including chalcopyrite and pyrite with the first diamond core drill hole of a maiden multi-hole drill program at the company’s 100 per cent-owned Wolf Mountain project in Sweden.

 

THE DAILY ROADHOUSE

 

Musgrave Minerals More Than Doubles Lena Deposit Gold Resource

THE DRILL SERGEANT: Musgrave Minerals (ASX: MGV) reported a substantial resource update at the company’s 100 per cent-owned Lena gold deposit on the company’s Cue gold project in the Murchison district of Western Australia.

Matador Mining Raises $5.2M to Support Cape Ray Scoping Study

THE BOURSE WHISPERER: Matador Mining (ASX: MZZ) announced the raising of $5.2 million to support activities at the company’s Cape Ray gold project in Newfoundland, Canada.

 

THE DAILY ROADHOUSE

 

Cassini Resources and OZ Minerals Deliver PFS for Low-Carbon, Long-Life, Low-Cost Mine

THE BOURSE WHISPERER: OZ Minerals (ASX: OZL) and Cassini Resources (ASX: CZI) finally delivered the long-awaited results of the West Musgrave, Nebo-Babel Pre-Feasibility Study (PFS).

Gold Road Releases 2020 Gruyere Guidance and Resource Upgrade

THE DRILL SERGEANT: Gold Road Resources (ASX: GOR) reported 2020 production guidance and a Resource upgrade for the Gruyere Joint Venture.

Lithium Australia Subsidiary Awarded Federal Battery Development Grant

THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) 100 per cent-owned subsidiary VSPC is to participate in a federal government Co-operative Research Centres Projects (‘CRC-P’) program.