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.
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.
