Kalamazoo (ASX:KZR) share price jumps on Victorian gold drilling

The Kalamazoo share price has climbed 7% today after the company announced it has started gold drilling in Muckleford, Victoria.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Kalamazoo Resources Ltd (ASX: KZR) share price is surging today after the company announced it has started gold drilling in the rural Victorian region of Muckleford.

The Kalamazoo share price has jumped by 7% to 45 cents per share at the time of writing.

Kalamazoo is a gold and copper explorer and developer, which traditionally has focused on exploring and developing gold projects in Western Australia.

However, after success in its Castlemaine gold drilling projects in Victoria, it's expanded into the Muckleford region.

A happy miner tips his hard hat, indicating good ashare price results for ASX mining stocks

Image source: Getty Images

What Kalamazoo's drilling update means

In today's release, Kalamazoo advised that on 1 April, it started general reverse circulation (RC) drilling down to 4,000 metres at 4 prospects in the South Muckleford area. These are located at Fentiman's Reef, Smith's Reef and Charcoal Gully. 

The gold miner considers these prospects high priority drill targets. They were recently identified to contain highly prospective epizonal gold-antimony mineralisation which is closely analogous to that of the nearby Fosterville and Costerfield deposits in Central Victoria.

Epizonal systems can develop extremely high-grade, free gold deposits.

Kalamazoo has also completed detailed airborne surveys over the regions it's now drilling, which it believes will aid the process. It has also been conducting 3D modelling to enhance its planning.

Can regional Victoria provide another gold region?

Kalamazoo believes the South Muckleford project area is vastly under-explored by modern drilling standards. It says it hasn't been subjected to any systematic modern exploration techniques and only very limited shallow drilling. 

This RC drilling program is part of an extensive exploration work program undertaken by Kalamazoo aimed at advancing the significant potential of this broad epizonal gold-antimony mineralised system.

Kalamazoo believes that the drilling targets are favourably located in the hanging-wall position of the major regional-scale, north-south trending Muckleford Fault.

This is considered a key deep-tapping conduit for gold mineralising fluids and could potentially provide the company with strong free gold drilling results.

Kalamazoo share price snapshot

Kalamazoo spent most its early ASX listing hovering around the 10 cents per share mark until a 40 cent price jump in January 2019. It reached a high of 80 cents in July last year but has since fallen to its current price.

The Kalamazoo share price is down 24% in 2021 so far and 44 cents against the basic materials sector.

Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

Woman with gold nuggets on her hand.
Resources Shares

Solstice Minerals extends deep, high-grade copper-gold zones at Nanadie

Solstice Minerals has extended high-grade copper-gold zones at Nanadie beyond current resources, underpinning strong exploration growth prospects.

Read more »

A young man wearing a black and white striped t-shirt looks surprised.
Resources Shares

Should I buy BHP shares before the end of August?

The miner posted its FY26 results mid-month.

Read more »

Two workers on a tablet at a mine site, with mining machinery behind them.
Resources Shares

Aeris Resources: FY26 profit surges on revenue growth and cash boost

Aeris Resources posts a massive profit surge and revenue growth in FY26 as balance sheet and cash flow strengthen.

Read more »

Two miners laughing and having fun while using smart phone during their coffee break.
Resources Shares

Mineral Resources shares jump 5% today: Buy, sell or hold?

The lithium miner posted its strongest-ever financial result this morning.

Read more »

Gold coins.
Resources Shares

Brightstar Resources posts record gold drilling intercepts at Sandstone

Brightstar Resources revealed exceptionally wide, high-grade gold intercepts at its Sandstone Gold Project.

Read more »

Two miners examine things they have taken out the ground.
Resources Shares

Tivan launches drone magnetic survey at Timor-Leste copper-gold projects

Tivan launches a high-tech drone magnetic survey over its Timor-Leste projects, setting the stage for new copper and gold drilling…

Read more »

Gold bars on top of coins.
Resources Shares

Aurelia Metals: FY26 profit surges, dividend announced

Aurelia Metals reported a strong FY26 result with surging profit, increased revenue, and a fully franked final dividend for shareholders.

Read more »

Mining vehicle at a mine site.
Resources Shares

29Metals: HY26 earnings show revenue up, mine progress on track

29Metals posted higher HY26 revenue and cash flow, while restarting key mines remains central to its growth strategy.

Read more »