De Grey Mining’s option to acquire Kalamazoo Resources’ Ashburton gold project is advancing, with De Grey personnel having arrived on site to progress multi-pronged due diligence studies and activities.
Historical drill core and sample pulps have been retrieved from storage for incorporation into the due diligence and data review at the Mt Olympus deposit. The historical pulps have also been dispatched for laboratory broad spectrum multi-element analysis.
Detailed drone-based aerial photography and mine surveys were completed to assist with geological and geotechnical models. Once concluded, De Grey’s exploration team mobilised to site at Mt Olympus to prepare for metallurgical drilling in May.
The diamond drilling campaign designed to obtain metallurgical samples across Mt Olympus has been progressing since June. Holes are being logged and sampled on site, with the samples being despatched for laboratory multi-element analysis.
“We are delighted to report that as part of the Ashburton gold project sale process De Grey is on site and making significant progress towards completing its due diligence studies,” Kalamazoo chief executive officer Luke Mortimers said.
“Should De Grey exercise its option and acquire the Ashburton gold project, Kalamazoo will receive a total of $33 million in cash and/or De Grey shares which would be an excellent result not just for our shareholders, but also for De Grey and its proposed Hemi gold project in the Pilbara.”
De Grey first signed the exclusive option agreement with Kalamazoo in February 2024. The agreement provides De Grey with a 12-month option to purchase Ashburton and its contained 1.44 million ounces of gold resources, as well as all associated mining and exploration licences and applications.
“The outcome for Kalamazoo would be consistent with our strategy of identifying, acquiring, and discovering projects which we can enhance, and thereby create tangible shareholder value,” Mortimers said.
The Ashburton gold project is located on the southern edge of the Pilbara Craton in Western Australia.
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