Kalamazoo Resources (ASX: KZR)
Results are flowing in from Kalamazoo Resources’ (ASX: KZR) gold drilling programme at its flagship Snake Well Project as the company looks to go into early gold production.
These positive results indicate KZR’s ground is highly conducive for gold mineralisation, with the company producing dozens of early-stage gold hits in excess of 5g/t.
Those kind of results have put this $7.75 million company on track to potentially be in production by the end of 2017 and perhaps repeat the feat of a well-known neighbour.
KZR would be hoping to repeat the success of Golden Grove, who produced 8100 tonnes of copper and 24,000 tonnes of zinc in concentrate to September 2016 and was subsequently acquired by EMR Group for $210 million.
Golden Grove’s VMS deposit lies to the south west of Snake Well and given the close proximity of this world class base metal system to KZR, it shows what can be developed with the right geology within this region.
KZR would be buoyed by the fact that its prime targets remain open at strike in all directions.
The grade of KZR’s Mineral Resource has also seen a favourable 30% increase in grade for a 73% boost to its total Mineral Resource estimate in the indicated category for its current development opportunity at its A-Zone prospect within the Snake Well Project.
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KZR’s Mixy prospect, which is also part of Snake Well, continues to deliver good results as well.
And there is now significant news flow on the horizon for KZR at its other prospects including assays pending from the first round of Royal Standard drilling, a resampling program completed and planning underway for an exploration program at its Cork Tree Copper Project.
With so much news flow to come, KZR looks to be on the right track to raise its valuation over the coming year.