Kalamazoo Resources is set to accelerate and expand exploration at its central Victorian gold projects after receiving an $8 million investment.
The investors, Canadian-listed gold explorer Novo Resources, and Novo director and former Kirkland Lake Gold chairman, Eric Sprott have each subscribed for 10 million Kalamazoo shares at $0.40 per share.
This gives them each an 8.2 per cent stake in Kalamazoo.
The ASX-listed explorer will use the funds to expand its exploration and drilling programs at Castlemaine, South Muckleford and Tarnagulla Central Gold projects in Victoria this year.
“The $8 million investment by Novo and Eric Sprott is a terrific endorsement of our strategy to explore the Central Victorian Goldfields using new, smarter technologies and innovations in a low impact manner,” Kalamazoo chairman and chief executive Luke Reinehr said.
“Our recent high-grade intersection supports our strategy to focus on the incredibly rich historical Castlemaine and South Muckleford goldfields in our search for the next major gold deposit in central Victoria, which demonstrate geological similarities to the nearby Fosterville mine.”
The Castlemaine gold project is about 45 kilometres southwest of Kirkland Lake’s Fosterville mine.
Drilling at Castlemaine in December returned a high-grade result of 1.42 metres at 261.3 grams per tonne gold from 100.32 metres, including a visible gold intersection of 0.17m at 1916 grams per tonne of gold.
Novo chairman and president Quinton Hennigh said while the ~C$600 million (~$665 million) company was focussed on Pilbara gold, it also had an interest in explorers in the Fosterville region.
“When we reviewed Kalamazoo’s recent drill results, we came to the conclusion that this high-grade mineralisation displays many of the same characteristics as high-grade at Fosterville,” Hennigh, who will be joining Kalamazoo’s technical advisory committee, said.
“Our stake in Kalamazoo will give our shareholders meaningful exposure to what could be a significant investment.”