Kalamazoo fires up WA study as gold shines bright

With gold prices ripping ever higher and dominating the commodity conversation, Kalamazoo Resources believes the stars may finally be aligning. The company has moved quickly to seize the moment, launching a prefeasibility study at its Mt Olympus gold deposit, which forms part of its broader Ashburton project in Western Australia’s Pilbara region.

The prefeasibility study officially kicked off this week, with a full suite of technical consultants gathering in Perth, setting the wheels in motion on what could become Kalamazoo’s first gold mine.

With 1.44 million ounces of gold already under its belt, momentum at Ashburton appears to be building fast. The diamond drill bit is now back in action, targeting down-plunge extensions of mineralisation under the existing Mt Olympus open pit shell defined in last year’s scoping study.

The company says three diamond holes have already been completed as part of a planned 2,600-metre, six-hole program, with close to 1,000 metres drilled so far, hinting at Kalamazoo’s intent to significantly grow the resource base and strengthen its pathway ahead of any future development.

The drilling campaign has been designed to do much of the study’s heavy lifting by testing the continuity and depth potential of both indicated and inferred resources below the pit floor. If successful, the results will refine the company’s mine designs by adding fresh ounces close to planned infrastructure and improving the initial production profile to generate valuable early cash flow.

Mt Olympus is already the engine room of the Ashburton project, hosting a total gold resource of more than one million ounces at a solid average grade of 2.7 grams per tonne (g/t). By upgrading the inferred resource, which averages 2.3g/t, into the indicated category and extending that inventory, Kalamazoo says it’s aiming to have all the ammunition it needs to underpin a future development.

Drilling is expected to wrap up in a few weeks and represents just the first phase of what Kalamazoo has flagged as a busy year of drilling across the broader Ashburton project. With multiple deposits already defined and plenty of exploration upside remaining, the company appears to be positioning itself for growth on several fronts.

Alongside the technical milestone of kicking off a prefeasibility study, Kalamazoo also announced a significant management change. Chief executive officer Luke Mortimer will step down at the end of January after more than seven years with the company, having accepted a senior role with a major resource group overseas.

Mortimer joined Kalamazoo as exploration manager and played a central role in building its asset base, culminating in the company’s transition from pure explorer to emerging developer.

Luke has played an integral role in progressing the Company’s portfolio of Australian assets. We wish him and his family all the best in the exciting opportunity that awaits them overseas. Our first program of 2026 at the AGP is now in full swing with the first three holes of the ~2,600m campaign completed. This is the first of many drilling programs we will undertake at the AGP this year.

Despite the leadership changes, Kalamazoo still retains the guiding hand of seasoned executive chairman Luke Reinehr and looks well placed to manage the handover. The board says it has already started the search for a new CEO and the company’s development pathway at Ashburton is now clearly mapped out, with the study underway.

With drilling bits turning, consultants engaged and gold prices providing a strong macro tailwind, Kalamazoo is making some decisive moves. If the prefeasibility study delivers as expected, Mt Olympus could soon live up to its name as an emerging flagship development story in the Pilbara’s resurgent gold scene.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au