Kalamazoo Resources Ltd. will kick off high-tech work in April with the Australian government's key research body to gain further clarity on what will be expensive diamond drilling in the second half targeting "nothing less than 10 g/t" gold deposits at depth in one of the world's richest alluvial goldfields.
The company announced March 19 that the research would start imminently with the Commonwealth Scientific and Industrial Research Organization, or CSIRO, having received a grant under the Australian government’s Department of Industry, Innovation and Science Innovation Connections scheme.
The work will focus on the entire Castlemaine gold field, which has produced 5.6 million ounces, and will also take in the historic Wattle Gully gold mine in the Bendigo Zone in Victoria, Australia.
The strategy of applying modern geophysics to look for high-grade mineralization at depth is similar to that adopted by Kirkland Lake Gold Ltd. at Fosterville located 45 kilometers northeast of Kalamazoo's tenements, and Catalyst Metals Ltd. at Tandarra to the north.
CSIRO will undertake a field sampling program and detailed laboratory studies to map geochemical gradients at Wattle Gully and elsewhere within the project area to "vector in to get a bulls eye target."
Kalamazoo acquired the entire Castlemaine goldfield, including the historic Wattle Gully gold mine and surrounding 288 square kilometers, in June 2018, which came with an extensive exploration database and substantial drill core farm.
It is this drill core data which Kalamazoo is seeking to exploit, and will now sample a selection from the 80,000 meters of historical drill core in the project area in April to assess the usefulness of a combined lithogeochemistry and mineralogy-based "vectoring approach."
Laboratory investigations from that work are due for completion by October, and Kalamazoo chairman Luke Reinehr said the company is also likely to undertake a drone magnetic survey and an induced polarization survey.
"In the Castlemaine area it's not so much trying to identify gold, but high-grade gold," Reinehr told S&P Global Market Intelligence. "We have a target of nothing less than 10 g/t, and Castlemaine is one of the richest alluvial goldfields in the world."
He said the fact that the highest grades at Kirkland Lake's famed Fosterville gold project are located below the 800-meter level, and the Canadian miner will likely drill well beyond 1 kilometer, suggests the key at Castlemaine is to go deep to find a high grade underground source.
However, as a 1,000-meter diamond hole will cost up to A$300,000, Reinehr said "we need to do it smart. The key now is to try to get a bulls eye target, so when we are drilling these expensive holes we're going to get maximum bang for our buck."
He told a March 5 Melbourne Mining Club function that Kalamazoo had identified its most likely targets at a prospect called Cappers in the northernmost part of the tenement.
The initial program will be a minimum of 4,000 meters of diamond drilling in the third quarter, then Kalamazoo will turn its attention to other prospects around Wattle Gully and Quartz Hill, while the junior also has a number of other targets in the southern tenement which are still under application.
Kalamazoo is well funded for the drilling, having sold its Snake Well gold project in Western Australia in December 2018 for A$7 million.