Kalamazoo Resources Ltd (ASX:KZR) has expanded its Victorian project portfolio with a new exploration licence.
This licence, formally known as EL007323, covers the Myrtle Gold Project, an exploration asset spanning 44 square kilometres of highly prospective goldfields geology.
The Myrtle project is considered an under-explored gold exploration asset: no known historical drilling has occurred at the project, meaning no modern drilling techniques have been used to explore Myrtle’s gold potential.
To rectify this, the company intends to kickstart community engagement before it commences an initial “low impact” exploration program.
“A great addition”
Kalamazoo Resources chairman and CEO Luke Reinehr said: “The Myrtle Gold Project is a great addition to our Victorian portfolio, given its proximity to our nearby Castlemaine and South Muckleford gold projects.
“With the Myrtle Gold Project located just 30 kilometres from the world-class Fosterville gold mine, it will play an important role in our strategy to consolidate exploration tenure in the immediate vicinity of Fosterville and the highly prospective Central Victorian Goldfields.”
The new licence
Kalamazoo’s newest exploration licence expands its Victorian tenure in the prolific Bendigo Zone to approximately 515 square kilometres.
The ASX-listed explorer has access to the licence for the next five years and intends to begin exploration with a soil sampling survey.
Promisingly, Myrtle gold play is just 15 kilometres northeast of Kalamazoo’s Castlemaine Gold Project.
It is also strategically located on the southern border of a goldfields tender block that neighbours Kirkland Lake Gold’s (ASX:KLA) (TSE:KL) (NASDAQ:KIRK) (NYSE:KL) (FRA:NGDA) Fosterville Gold Mine.
Map of the Central Victorian Goldfields showing the location of Kalamazoo’s new Myrtle Gold Project (EL007323) with respect to its nearby Castlemaine, South Muckleford and Queens JV Gold Projects.
North Central Victorian Goldfields tender
The Myrtle project addition comes just months after Kalamazoo submitted a bid for two exploration blocks within the North Central Victorian Goldfields.
Both blocks are just 20 kilometres from the Castlemaine Gold Project. They’re considered highly prospective exploration tenements given their proximity and similar geology to Fosterville and other regional discoveries.
According to Mines & Metals, the Fosterville and Costerfield gold mines were the number one and number six highest milled grade gold mines globally, respectively, in 2020’s first quarter.
Kalamazoo acknowledged the prospectivity of both blocks has attracted fierce competition for an exploration tender, which the Victorian Government is slated to award in 2021’s second half.
Ultimately, however, the company firmly believes the new Myrtle gold asset would complement the two exploration blocks if its tender is successful.