Kalamazoo Resources (ASX: KZR) has defined new base metals targets at its Snake Well North project in Western Australia’s Murchison region where it believes there are similarities to the renowned Golden Grove operation, just 130km away.
29 Metals’ Golden Grove project hosts a whopping multi-metal resource of 59.2 million tonnes at 1.7 per cent copper, 3.9 per cent zinc, 28 grams per tonne silver and 0.7g/t gold. Following a review of historic geophysical surveys, Kalamazoo believes it now has the potential for Golden Grove-type volcanic-hosted massive sulphide (VHMS) mineralisation at its targets.
The company has a wealth of historic magnetic, induced-polarisation (IP) and electromagnetic (EM) geophysical datasets for Snake Well and engaged Southern Geoscience consultants to review the data for assessment.
The initial reviews of historic gradient array IP (GAIP) surveys identified several high-priority targets that remain untested by drilling. The untested anomalies all occur within a felsic unit of the Tallering greenstone belt that management says is highly-comparable to the host rock of the world-class Golden Grove base metals mine.
The potential for Golden Grove-type VHMS mineralisation in the Tallering greenstone belt is no new theory, as it was first considered prospective in the early 1970s. Kalamazoo acquired Snake Well back in 2013 and the original project sits directly to the south of the current Snake Well North deposit.
Several companies have produced a wealth of historic magnetic, IP and EM geophysical datasets that are proving invaluable for Kalamazoo’s own VHMS targeting work. Many of these surveys were conducted in the last two decades and have only received limited shallow or ineffective follow up drilling. As such, Kalamazoo believes this represents a great opportunity as the potential for Cu-Zn-Pb-Ag-Au VHMS type mineralisation within Kalamazoo’s tenement is high but remains poorly tested. Kalamazoo Resources chief executive officer Dr Luke Mortimer
Before Kalamazoo sold the Snake Well project for $7 million in late 2018 for its gold, the company maintained an interest in the base metal potential of the area, particularly in the northern portion and what is now Snake Well North.
There are encouraging base metal drillhole intercepts from Kalamazoo’s previous drill programs, but Southern Geoscience believed they were too shallow or ineffective in testing the newly-defined targets at what is now known as the Conquistador prospect. Interestingly, previous lead isotope dating of sulphide mineralisation at Conquistador by the CSIRO in 2007 places the modelled age of the rocks similar to those within the Golden Grove, Scuddles and Mt Gibson VHMS deposits.
The 11 target anomalies within the highly-prospective “A Zone” of Conquistador are being merged with existing aeromagnetic surveys and being prepared for final targeting exercises.
Kalamazoo recently received an initial $3 million option fee from major WA gold player De Grey Mining over its Ashburton gold project in Pilbara. The option has the potential to unlock a further $30 million for the company should De Grey decide to acquire the project at the end of the one-year option period.
The initial $3 million is expected to be used on drilling at the Kalamazoo’s prospective Malina West gold project that is also in the Pilbara. However, should the company unveil first-order priority targets akin to those within the Golden Grove VHMS system, it will no doubt deploy some of its funds further south in the Murchison region.
Golden Grove consists of two operations that are 3km apart – the Gossan Hill underground mine that was discovered in 1971 and the Scuddles underground mine, unveiled in 1979. Both are Archaean VHMS copper-lead-zinc-gold-silver deposits.
Kalamazoo boasts a rich history of creating value from on-selling its projects and may now have uncovered yet another such opportunity. Should it receive the $30 million dollars from the cashed-up De Grey, it would have more than enough coin to give Snake Well a good shake at uncovering a potential Golden Grove deposit.
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