The licence has proven gold endowment and contains numerous historical gold mine workings but has not been subjected to any systematic modern exploration techniques and only very limited shallow drilling.
Chairman and CEO Luke Reinehr said: “The addition of valuable exploration tenure to our South Muckleford Project is another great result for Kalamazoo and our shareholders.
“We consider the region to be highly prospective particularly as the historical gold production in the area averaged about 27 g/t gold.”
In February Kalamazoo reported the commencement of a major regional-scale soil geochemistry sampling program in collaboration with the CSIRO.
Soil samples were subjected to UltraFine+TM multi-element analysis for major and trace elements in a CSIRO-led collaborative leading-edge research project.
These combined surface geochemistry sampling programs use the latest advanced technologies and research capabilities to assist the company identify and prioritise follow-up drill targets to be tested at both the Castlemaine and South Muckleford gold projects later in 2020.
The South Muckleford Project area
“Early results encouraging”
Kalamazoo has received results for the first batch of samples (978 samples) covering a large proportion of the southern section of EL006959 at the South Muckleford Project.
Reinehr said: “The grant of EL007021 is very timely as we have just received the first batch of multi-element soil geochemistry results taken from the southern part of the adjoining EL006959.
“The results are preliminary with further CSIRO analysis and multi-element ‘machine learning’ to be completed.
“However, the early results are very encouraging with 43 highly anomalous assay results reporting greater than 25 parts per billion gold.
“As such, we are immediately expanding the soil sampling program to the new tenement as we develop the first targets for our upcoming drill program.”
Kalamazoo is confident the results will assist in ongoing exploration and drill targeting efforts.
Exploration is focused on the completion of low impact reconnaissance field mapping, soil sampling and ground geophysical surveys.
The regional-scale soil geochemistry sampling programs are both low-cost and low-impact with the current proposed program consisting of at least 3,500 - 4,000 samples (dependent upon land access and approvals) with around 2,800 samples already submitted for analysis.
The next drilling program of around 6,000 metres is proposed for later in 2020 at both the Castlemaine and South Muckleford projects.
All ground activities are being conducted in accordance with the company’s COVID-19 policies and procedures with the re-commencement of drilling activities dependent upon State and Federal COVID-19 health guidelines and ERR permitting.