ASX Announcement
4 July 2022
only | Victorian Portfolio Expanded with Acquisition of |
Mt Piper Gold Project | |
Highlights
• Kalamazoo has acquired the 1,609km2 Mt Piper Gold Project from Coda Minerals Limited (ASX: COD),
which is strategically located adjacent to Agnico Eagle Mine Limited's (NYSE: AEM) large exploration | |
land tenure and 30km from its world-class Fosterville gold mine in Central Victoria | |
use | |
• | The Project is also situated between Mandalay Resources' (TSX: MND) high-grade Costerfield gold- |
antimony mine (1km) and the Sunday Creek Project (Southern Cross Gold, ASX: SXG) which recently | |
announced significant drilling intersections including 119.2m @ 3.2 g/t Au and 0.4% Sb (3.9 g/t Au Eq)1 | |
• The Mt Piper Gold Project (EL6775, EL7331, EL7337, EL7366, EL7380 and application ELA7481) is | |
considered highly prospective for epizonal, high-grade gold and antimony deposits (i.e. Fosterville- | |
style) with all tenements considered under-explored, limited to very shallow drilling, and not subjected | |
to modern exploration techniques | |
personal | |
• | Recent systematic rock chip sampling at the south-western Goldie Prospect (EL6775) has defined high- |
grade gold mineralisation with best rock chip assay results including 31.1 g/t and 30.4 g/t Au2
• Kalamazoo's gold exploration tenure is increased to 2,094km2 and is the largest exploration holding in the southern section of the Central Victorian Goldfields including the 100% owned Castlemaine (historical production of 5.6Moz Au), South Muckleford, Myrtle and Tarnagulla Gold Projects
• The acquisition is consistent with Kalamazoo's strategy of acquiring and developing major resource projects with significant exploration and development potential in Victoria and the Pilbara - two of the world's leading mineral provinces
• Kalamazoo will immediately start the important Community Engagement process before commencing with an initial "low impact" exploration program
Kalamazoo's Chairman and CEO Luke Reinehr said today, "We are delighted to have acquired this major exploration project from Coda Minerals. This is a very positive development for our shareholders and is an outstanding addition to our prospective portfolio of gold projects in Victoria. Our continued consolidation Forof highly prospective exploration ground in the Central Victorian Goldfields is enhanced by the on-goingsuccess at the high-gradeFosterville and Costerfield gold mines. These projects contain high-gradegold- antimony mineralisation near the main fault margin separating the Bendigo and Melbourne Zones and are
reported to be the No. 1 and No. 7 highest milled grade gold mines worldwide in 2021, respectively. 3
As a major player in the Central Victorian Goldfields, we will systematically continue our exploration activities in the search for the next world class gold discovery in Victoria. Coupled with our Pilbara gold activities at the 1.65Moz Ashburton Gold project and our lithium exploration in JV with the major Chilean lithium producer SQM, the next 12 months is sure to be an exciting time."
- ASX: SXG 30 May 2022
- ASX: TRN 13 December 2021 and Table 1
- Kitco and Mining Intelligence Data
Kalamazoo Resources Limited (ASX: KZR) ("Kalamazoo" or "the Company") is pleased to announce that it has purchased from Coda Minerals Limited ("Coda") the highly prospective Mt Piper Gold Project in Victoria. Coda inherited the project as part of its recently completed take-over of its Elizabeth Creek Copper Project joint venture partner, Torrens Mining Limited (ASX: TRN), the previous owners of the Mt Piper Gold Project4.
Situated approximately 75km north of Melbourne, the project area is traversed by the Hume Freeway and boasts excellent access to local infrastructure. Located along the western margin of the Melbourne Zone onlyand adjacent to the Bendigo Zone in the Central Victorian Goldfields, the project area is considered to have
outstanding potential for the discovery of high-grade gold and antimony deposits.
This acquisition is an important addition to Kalamazoo's Victorian gold assets. In a similar investment strategy to the acquisition of its flagship Castlemaine Gold Project in Victoria in 2018, the deal structure enables Kalamazoo to invest funds directly "into the ground".
Under the terms of the agreement, Kalamazoo has acquired the Mt Piper Gold Project by paying Coda:
- cash of $300,000
- 1,525,000 fully paid ordinary shares ("Shares") in Kalamazoo, escrowed for 12 months from issue
- a 1% Net Smelter Royalty ("NSR") payable on any minerals extracted from the tenements
useThe Shares will be issued to Torrens Gold Exploration Pty Ltd ("Torrens") (a wholly owned subsidiary of Coda) under the Company's available placement capacity pursuant to Listing Rule 7.1. Torrens is not a related party of the Company.
The Central Victorian Goldfields continues to deliver high-grade gold and antimony production and
exploration success. This is led by Agnico Eagle's world-class Fosterville gold mine and Mandalay personalResources' Costerfield gold-antimony mine (Figure 1).
For
Figure 1: Location of Kalamazoo's Central Victorian Goldfields tenements, including the Mt Piper Gold Project
4 ASX: COD 22 April 2022
ASX: KZR | Page 2 of 14 |
In recent months, field activity in the immediate area to the south of the Mt Piper Gold Project, has also seen major gold exploration success by Southern Cross Gold at its Sunday Creek Gold Project with major drilling intersections that have included 119.2m @ 3.2 g/t Au and 0.4% Sb (3.9 g/t Au Eq) (Figure1).
Coda's Chief Executive Officer Chris Stevens said, "Following on from Coda's takeover of Torrens Mining
earlier this year, our focus is on developing our 100% owned Elizabeth Creek Copper-Cobalt Project in South Australia. It made sense for Coda to sell Torrens' Victorian Mt Piper Gold Project to Kalamazoo, which onlyis an experienced explorer in the Central Victorian Goldfields with a major land package. We were keen however to retain an ongoing exposure to the very prospective Mt Piper Gold Project and the Kalamazoo scrip consideration and royalty structure achieves this. Coda is excited to see Mt Piper's next phase of development under Kalamazoo ownership and is pleased the agreed transaction structure helps enable
Kalamazoo to put its funds directly into exploration."
Project Geology
The Mt Piper Gold Project is located within the Melbourne Zone, a major tectonic block bounded by the Mount William Fault to the west and the Governor Fault to the east. Specifically, the Project is situated uselargely along the westernmost margin of the Melbourne Zone either within, or in proximity, to the major bounding Mount William Fault Zone. The Melbourne Zone consists largely of folded and faulted Middle Ordovician to Middle Devonian deep water marine clastic sedimentary units that overlie the
Paleoproterozoic to Cambrian Selwyn Basement Block and intruded by Late Devonian Granites.
Significant known gold mineralisation in the Melbourne Zone includes the high-grade Costerfield gold- antimony mine and the historical Heathcote, Nagambie, Rushworth, and Bailieston goldfields. These
goldfields are part of a broad epizonal gold-antimony province largely confined to the Melbourne Zone and personalthe adjacent overlapping easternmost margin of the Bendigo Zone which hosts the world-class Fosterville
gold mine and historic Malmsbury Goldfield.
The position of the Mt Piper Gold Project along the major fault-bounded margin between the Melbourne and Bendigo Zones is considered highly prospective for significant economic high-gradegold-antimony deposits. This is further supported by the Mt Piper Gold Project being located between the high-grade Au- Sb Costerfield mine and the recently announced major drilling intersections at the Sunday Creek Project.
Project Exploration History
Records indicate that there has been limited exploration work on the tenements that comprise the Mt Piper Gold Project. Historical work has largely consisted of localised programs of geological mapping with soil, stream sediment and rock chip sampling, Induced Polarisation geophysical surveys and limited reverse circulation (<100m deep) and diamond drilling5.
More recently in 2021, the previous owners Torrens Mining had identified 31 gold targets that were to be
the subject of follow-up exploration programs (Figure 2). Torrens Mining had completed the following:
For | • Systematic rock chip sampling at the south-western Goldie Prospect (EL6775) that defined high- |
grade gold mineralisation over a minimum strike length of 120m and included several parallel reefs | |
identified within a potentially 150m wide corridor (Figure 3). Best rock chip assay results included | |
31.1 g/t and 30.4 g/t Au6 (Table 1) | |
• The Goldie Prospect encompasses a series of historical shallow mine workings over a strike length | |
of 1.2km and was prioritised due to a pronounced ~200m wide gold-in-soil anomaly with a best soil | |
assay result of 1,800ppb Au6 |
- Torrens Mining Limited IPO Prospectus 2020, ASX: TRN 6 January 2021
- ASX: TRN 13 December 2021
ASX: KZR | Page 3 of 14 |
For personal use only
Figure 2: Torrens Mining - Mt Piper Gold Project regional targets and structural trends on background regional aeromagnetic
image (ASX: TRN 29 October 2021)
ASX: KZR | Page 4 of 14 |
personal use only | ||
For | igure 3: Torrens Mining - Mt Piper Project: Plan view map of the Goldie Prospect showing the location of rock chip samples (g/t) | |
and soil (ppb) assay results (ASX: TRN 29 Oct 2021 and Table 1) |
ASX: KZR | Page 5 of 14 |
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Kalamazoo Resources Ltd. published this content on 03 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 July 2022 23:12:01 UTC.