Kalamazoo looks beyond conglomerate gold at three new Pilbara projects
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Kalamazoo Resources is moving ahead with three gold acqusitions in the Pilbara region of Western Australia — but it’s not there for the much-hyped conglomerate-hosted stuff.
The tenements are near land held by Artemis Resources (ASX:ARV) and its Canadian partner Novo Resources, and nuggets have been found on Kalamazoo’s new land.
Artemis and Novo kicked off the gold nugget rush in the Pilbara mid last year, which eventually determined the type of gold being found was conglomerate-hosted.
Conglomerate-hosted gold has proved difficult to drill and explorers have had to resort to bulk sampling to potentially determine a resource.
Kalamazoo (ASX:KZR) boss Peter Benjamin told Stockhead that while there was potential for conglomerate-hosted gold in the new projects, he was focused on other types of mineralisation that could be much easier to prove up.
“While everybody focuses on principally the conglomerate-hosted mineralisation, we have a number of other styles,” he said.
“We’ve got epigenetic, we’ve got shear-hosted particularly on the Mt Wohler shear and the Mallina shear, and we found nuggets on at least two of the areas, which has been very encouraging for us.
“We’re keeping our eyes open and our blinkers off, so we’re not just looking for one particular style of gold mineralisation, but we’re looking for anything that will give a return to our shareholders.”
Fault or shear-hosted deposits could be very profitable, easy to develop and easy to assess in terms of the amount of gold in the ground, Mr Benjamin said.
“The hardest thing is always to work out how much metal is in the ground, particularly with gold because you measure it in parts per million,” he said.
“By comparison to gold-in-conglomerate style, what we’re looking for is a lot easier to actually delineate.”
Kalamazoo will acquire 80 to 100 per cent of the DOM’s Hill, Sisters and Marble Bar gold projects, which span 252 sq km.
An estimated 300 ounces of gold nuggets have been recovered from the DOM’s Hill project in recent times.
During due diligence, Kalamazoo recovered an additional six nuggets from three sites by metal-detecting over newly-identified prospects largely untested by previous exploration.
The company also found gold nuggets and a 3km gold-in-soil anomaly at the Sisters project.
Kalamazoo made its debut on the ASX in mid-January last year. The company has traded between 7c and 23c since listing and shares were trading at 7.5c at midday on Tuesday.