KZR - Kalamazoo Resources

[System]

Kalamazoo Resources is a gold and copper exploration, development and production company with two projects in Western Australia. KZR's flagship project is the Snake Well Project, located in the Murchison Region, approximately 450km north of Perth. The Project is north-west of the well-known Golden Grove operation and the Deflector gold and copper project recently commissioned by Doray Minerals Limited (DRM).

It is anticipated that KZR will list on the ASX during November 2016.

http://www.kzr.com.au

 

[greggles]

KZR bounced out of the gate strongly this morning after announcing that it had entered into an option to acquire 3 highly prospective Pilbara gold projects covering 252km².

Currently up 114.29% to 15c on strong volume.

 

[barney]

I remember ragging BNR management for buying Stock in KZR after it bombed after listing.

I hold neither … and now have to settle for humble pie

 

[Dona Ferentes]

Big write-up by Tim Boreham

For the best part of 50 years Victoria’s historically fecund goldfields have been a basket case, given lack of government support and disastrous big-ticket attempts to revive the underground Bendigo and Ballarat mines.

Now, the region is in the midst of a latter-day gold rush, thanks to the efforts of Canadian miner Kirkland Lake Gold ((KLA)) at developing the Fosterville mine into a 600,000 ounce a year, 46 grams a tonne monster.

“There’s never been a better time to be in gold right now in Victoria,” says Kalamazoo Resources’ ((KZR)) executive chairman Luke “Sco-Mo” Reinehr. “Kirkland Lake changed everything.”

Fosterville was considered a low grade and difficult mine until legendary Canadian mining investor Eric Sprott got involved with Kirkland Lake, resulting in an aggressive drilling program that uncovered riches much deeper than expected.

Reinehr notes that at Fosterville the lustrous stuff is also being produced at an “all in” cost of $318 an ounce, which with a circa $2100 an oz Aussie gold price implies the mine is spitting out more than $1 billion of free cash flow annually.

How good is that!

Can Kalamazoo emulate the Kirkland Lake miracle? Well, Sprott himself thinks so, this month taking up $4m of Kalamazoo shares in a placement. The TSX listed Novo Resources, of which Sprott is a director, took up a further $4million.....

Founded by “proud Victorian” Luke and Matt Reinehr, Kalamazoo had its roots in the Pilbara. But they had closely monitored their own turf and cottoned on that Castlemaine Gold – the operator of a Ballarat mine acquired from Lihir Gold in 2008 – was being forced to relinquish its ground because it was not fulfilling it minimum exploration spending commitments.

Castlemaine Gold paid $10m for the Ballarat mine, after Lihir (now Newcrest) sunk $700m into it. Reinehr says Castlemaine Gold’s new owner, Lion Gold had been “sucking every dollar out of Castlemaine and that means ending exploration.”

Not only did Kalamazoo win the ground for no more than an application fee, but the friendly Castlemaine also bestowed a database with 300 million pieces and the results of an 80,000 metre diamond core program.

“If someone were to buy that today I would hate to think what it would cost, the diamond samples have a $20m replacement value,” Luke Reinehr says.

Similarly, the unlisted Centennial Mining gave up its South Muckleford tenements (also known as South Maldon) and Kalamazoo hoovered these up as well.

“We now control the third largest and seventh largest historical gold fields in Victoria,” Reinehr declares.

Kalamazoo’s 445 square kilometres of prospects are in the greater Bendigo zone, which historically has produced 60 million ounces at an average 15 grams a tonne – 100 times higher than the global average

Castlemaine hosts Forest Creek: “site of the world’s richest shallow alluvial goldfield ever.” There’s even a plaque to prove it.

The company isn’t interested in the alluvial stuff, but is dead keen on finding the source of the gold in the ground.

Reinter acknowledges that to find “the next Fosterville”, the company has to spend some serious dollars. The starting point is a 10,000 metre program using diamond drilling, at a cost of $2.5m.

Just before Christmas, the company reported “exceptional” results at its Mustang prospect, including a 1.42 metre intersect grading 261 grams a tonne (with a sniff of visible gold at 1916 g/t).

The Sprott news sent Kalamazoo shares up as much as 45%, with the placement struck a 24% premium (40c a share).

Earlier, Kalamazoo raised $7m by selling a sold a WA prospect called Snake Well to former Asciano chief Mark Rowsthorn and his business partner Nathan Mitchell.

Given the fancy headline number, Kalamazoo has been allowed to pay in instalments.

Dual-listed on the Frankfurt exchange, Kalamazoo shares remain tightly controlled by the Reinehrs, who hold 32% post placement (the Sprott and Novo camps each hold 8%).

'Tightly held', as they say.... so it could soar on good news

 

[Dona Ferentes]

'Tightly held', as they say.... so it could soar on good news

and, but, buying the Ashburton Gold Project (217km²), on the southern edge of the Pilbara Craton, WA acquired from Northern Star for deferred/contingent $5m and royalty
▪ Past production of 350,000oz and currently contains a JORC Code (2012) Resource of 20.8Mt @2.5g/t Au for 1.65Moz, with numerous walk-up drilling targets
▪ Significant regional greenfields and brownfields exploration potential, a large drilling, geological, geochemical and geophysical database.

Ashburton Gold Project acquisition
▪ Exploration to be led by Kalamazoo’s Paul Adams previously MD of Spectrum Metals
▪ Project strategy is to substantially increase the 1.65Moz oxide/sulphide gold resource, and advance project development plans
▪ Exploration plans fully funded by early payment of Snake Well proceeds

deferred wish fulfilment?

 

[Balder]

This interview got my attention as a speculative punt



Ignore the Sprott name dropping, the mention of two possible high grade projects with the focus on South Muckleford showing high grade stibnite in this interview, I was convinced to tuck a few away. They have steady news flow planned and are fully funded going into 2021.

 

[greggles]

Big move north today broke the three month downtrend.

News through this morning that a ~4,000m RC drilling program at the Fentiman's Reef, Smith's Reef and Charcoal Gully Prospects at the South Muckleford Gold Project commenced on 1 April 2021.

This latest drill program is an important development as these three high priority prospects were recently identified as containing epizonal gold-antimony mineralisation which is closely analogous to that of the nearby Fosterville and Costerfield mines in Central Victoria. Note that the Fosterville and Costerfield mines were recently reported as the No.1 and No.6 highest milled grade gold mines worldwide in Q1 2020, respectively.

Drilling is a week in, so I expect we'll get some assay results in May.

 

[finicky]

Strong move. Be very tempted if it falls back to fill the gap.
At 40c low, I counted a 2/3rds retracement of the bull run from 10c to $1. Excited by prospectivity of the region and my stake is via CHN but KZR has some thoughtful backers.

2 Year Daily

 

[tech/a]

I've placed this one up in the "Trade This Chart"Thread

 

[frugal.rock]

ASX Announcement
28 February 2022

Geochemistry Soil Program Completed at Marble Bar Lithium Project

Highlights

• Kalamazoo has received portable XRF (“pXRF”) results from its project-wide soil geochemistry soil sampling program at the Marble Bar Lithium Project, Pilbara WA

• Multiple highly prospective soil anomalies have been identified, likely related to lithium-caesium-
tantalum (“LCT”) pegmatite mineralisation, some of which either contain or are in close proximity to mapped outcropping lithium-bearing pegmatites

• Several of the pXRF soil anomalies defined have strike extents in excess of 1km in length

• Priority target areas will be the subject of a major field reconnaissance/mapping and rock chip sampling campaign to commence in March 2022, prior to a planned extensive drill program

• The Marble Bar Lithium Project is a key component of the recently announced exploration Joint Venture (“Joint Venture”) between Kalamazoo and major Chilean lithium producer Sociedad Química y Minera de Chile S.A. (“SQM”)

Kalamazoo’s Chairman and CEO Luke Reinehr said today, “We are very pleased with the results from this recently completed soil geochemistry program at Marble Bar.
Coupled with the excellent soil sampling results we recently received from our nearby DOM’s Hill Lithium Project, we consider that the likelihood for LCT pegmatite mineralisation in the immediate area is very high, which is supported by
Global Lithium’s nearby Archer 10.5Mt @ 1.0% Li20 deposit to the north.
Our exploration activities at both Marble Bar and DOM’s Hill, in conjunction with our
JV exploration partner SQM, will now accelerate as we undertake further work leading towards future drill programs across both projects.”


I note, no news yet from expected March sampling programs from above late Feb announcement.
Recent chart movement (HVBB) and the flag pattern on the daily chart have my interest.
Speculative on the nearology between nearby PLS & GL1 tenements.

 

[frugal.rock]

ASX Announcement
12 April 2022

Multiple Lithium Mineralised Pegmatites Discovered and Exploration Tenure Increased at Marble Bar Lithium Project

Highlights

• Initial field reconnaissance of the significant portable XRF (“pXRF”) soil anomalies recently reported at E45/4700 (“Marble Bar Lithium Project”) has discovered numerous outcrops of pegmatite dykes

• Multiple pegmatite dykes coincident with these anomalies contain visible lithium mineralisation in the form of lepidolite (lithium mica)

• Kalamazoo’s Pilbara lithium exploration ground holding has been further expanded to 354.4km2 with the grant of two new exploration licences considered highly prospective for pegmatite-hosted lithium-caesium-tantalum mineralisation

• Kalamazoo has been granted E45/5970 adding to its Marble Bar Lithium Project and E45/5943 at
the DOM’s Hill Lithium Project, both of which form part of the recently announced exploration Joint Venture (“Joint Venture”) with Chilean lithium producer Sociedad Química y Minera de Chile S.A. (“SQM”) (NYSE: SQM)

• Both new tenements will be the subject of an initial detailed 200m x 100m grid soil sampling
program scheduled to be completed by early May 2022

• At both the Marble Bar and DOM’s Hill Lithium Projects, requisite Government permitting and cultural heritage surveys are well advanced with drilling programs scheduled to commence late in the June quarter 2022

 

[frugal.rock]

'Tightly held', as they say.... so it could soar on good news

ASX Announcement
20 April 2022

Positive Metallurgy Results from Stage 2 Test Work at Mt Olympus

Highlights

• Positive results received from Stage 2 metallurgical test work on composites from the large Mt
Olympus sulphide deposit contained within the 1.65Moz Ashburton Gold Project, WA

• A variety of gravity and re-grind test work has been performed on Composites 3 and 4 from previous test work

• Test work resulted in improved silica rejection and increased concentrate grade from Composite 4 from 39g/t Au to 45 g/t Au, with lower sulphide recovery

• Test work indicates that a simple crush – grind – rougher flotation – multi-stage re-clean flotation
circuit to produce a saleable concentrate provides the simplest, least capital intensive and most easily operable process route for the Mt Olympus sulphide mineralisation.

• Additional positive outcomes include:
• Average gravity gold recovery to concentrate of 26%

• Whole concentrate assay sampling indicates arsenic values of between 1.2% and 1.6%, falling within acceptable specification for high grade gold concentrates

• No other deleterious elements outside acceptable specification identified

• Project Development Scoping Study commences in Q2, 2022

 

[frugal.rock]

Fond memories of this one last Easter. ? Was a cracker of trade, if I do say so myself. ?
Forgot about this recently...

 

[Dona Ferentes]

........... rumour ======> fact

.
overhyped spinoff Kali Metals KM1 listed today. KZR holds 22% of the new listing.

 

[Miner]

KZR - a low market capitalisations and low price explorer with a cash cow payment with Kali Metals spinned off at 40 cents not long ago.
The ED of KZR (Paul Adam) has now joined to Kali Metals.https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02809728-6A1208692&v=70bc033a22188bdfefb8a0b8ad3c24897ef2837d
Could there be an opportunity to merge again or KZR to be bought out by MinRes or Degrey as a long shot in 2025? MinRes has delved into aviation which even BHP and Rio could not enter so far. So risk and reward philosophy of MinRes is similar to Roy Hill but definitely much superior than the big miners and they do not make wishful decisions to enter into areas where their business models do not fit. Classic example of green energy by FMG.
I see KZR business model is not to be a developer. So they would be keen for drilling bonanza and to be bought out by nearby miners eg De Grey, Min Res and Roy Hill. To get it attractive, KZR is to make some good drill announcment ramping its share price

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02829859-6A1216570&v=70bc033a22188bdfefb8a0b8ad3c24897ef2837d

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02829859-6A1216570&v=70bc033a22188bdfefb8a0b8ad3c24897ef2837d

For the record my wishful thoughts are fully contradicted by the following :

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02825602-6A1214843&v=70bc033a22188bdfefb8a0b8ad3c24897ef2837d