De Grey Mining has extended the option period to acquire Kalamazoo Resources’ Ashburton gold project (AGP) by six months, as assay results from a recent metallurgical drilling program returned promising results.
De Grey signed a deal in February to secure Ashburton for $33 million, which includes the existing 1.44-million-ounce gold resource.
The company has already paid a non-refundable $3 million option fee and recently extended the exclusivity period by six months to August 4, 2025.
De Grey’s extension allows additional time to process metallurgical samples and integrate the results into resource models and optimisation studies.
During this period, De Grey can exercise the option at any time, with the purchase split into two $15 million tranches paid in cash or shares.
Kalamazoo also acknowledged the potential impact of Northern Star’s recently announced acquisition of De Grey, expected to be finalised by May 2025.
“During the transition period, we will continue to work with De Grey’s exploration and management team as its final AGP due diligence activities are completed,” Kalamazoo chief executive officer Luke Mortimer said.
Results from the recent drilling program, which comprised 10 holes totalling 2252.3m, included:
- 47m at 5.5 grams per tonne (g/t) gold from 30m in ASHDD0007
- 55.5m at 4.1g/t gold from 177.6m in ASHDD0008
- 15.3m at 6.5g/t gold from 69m in ASHDD0003
- 4.9m at 17.1g/t gold from 20.7m in ASHDD0008
“We are pleased to announce numerous high-grade gold intercepts from De Grey’s recent metallurgical drilling program at the AGP,” Mortimer said.
“These exceptional results continue to highlight the significant exploration upside and economic potential of the AGP.”
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