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Kalamazoo Resources shot up as much as 53 per cent after the discovery of a second zone of gold nuggets at its DOM’s Hill Gold project in Pilbara.

The stock (ASX:KZR) jumped from 15c to an intraday high of 23c on Friday — but gave up all its gains to close at 15.5c.

The shares are up from 7c since the beginning of October, when Kalamazoo first bought an option on DOM’s Hill Gold and two other Pilbara gold projects — The Sisters and Marble Bar Gold — from WA resources stalwarts Denis O’Meara and Brett Keillor.

At DOM’s Hill, where early field exploration is underway, a metal-detecting program across a 2km by 1km area recovered six nuggets from three sites.

Gold nuggets found at DOM’s Hill Gold project in Pilbara. Pic: Kalamazoo

Kalamazoo says the newly identified area is largely untested by previous exploration.

The DOM’s Hill project now consists of two granted and one exploration licence application located 110 km south east of Port Hedland within the Archaean East Pilbara region.

The project also has potential for nickel, cobalt and base metal deposits.

The company is close to completing a review and due diligence of the tenement package.

“In addition to our metal detecting program at DOM’s Hill which we will continue with, we currently have a metal detecting program in progress at The Sister’s project which is adjacent to projects held by Coziron Resources — recently acquired from the Creasy group — De Grey Mining, Segue Resources and Sayona Mining,” Kalamazoo chairman Luke Reinehr said.

Kalamazoo shares over the past six months. Source: Investing.com
Kalamazoo shares over the past six months. Source: Investing.com

“We keenly await the results of that work.”

The discovery was made just 4.5km south east of the Singer’s prospect where recent prospecting recovered an estimated 300 ounces of gold nuggets.

Kalamazoo is looking for more opportunities to expand its footprint in the Pilbara.