Northern Star Walks Away from Ashburton Deal as Kalamazoo Charts New Course

Northern Star’s Withdrawal and Kalamazoo’s Ownership

In a significant development for Kalamazoo Resources Ltd, Northern Star Resources Limited has formally notified the company that it will not proceed with the previously agreed Option Agreement to acquire the Ashburton Gold Project. This follows Northern Star’s acquisition of De Grey Mining Limited, which had held the option. With the option period now concluded, Kalamazoo retains full ownership of the 1.44 million ounce Ashburton Gold Project, a substantial asset in Western Australia’s Pilbara region.

Advancing Development Amid Record Gold Prices

Undeterred by Northern Star’s decision, Kalamazoo has swiftly moved to advance its development plans. The company has commenced a Scoping Study focused on the Mt Olympus deposit, the project’s core asset. This study aims to define the optimal mining and processing strategy, leveraging a record high Australian dollar gold price, which has surged to approximately A$5,100 per ounce, a significant increase from the A$3,100 per ounce level when the option was initially granted.

Supporting this effort, Kalamazoo engaged ERM Pty Ltd to conduct open pit re-optimisations of the Mt Olympus and West Olympus deposits. These analyses, based on conservative cost estimates and gold prices of A$4,000 and A$4,500 per ounce, revealed a substantially larger potential pit shell. The integrated single-pit development could contain up to 772,000 ounces of potentially mineable gold at an average grade of 2.53 grams per tonne, marking a 12–17% increase over previous estimates.

Capital Raising to Fuel Next Steps

To support the accelerated Scoping Study and general working capital needs, Kalamazoo completed a $2 million share placement post-quarter. The placement involved issuing over 22 million shares at $0.09 each, accompanied by free attaching options exercisable at $0.135, reflecting a modest discount to recent trading prices. Notably, company directors have committed to participate in the placement, signaling confidence in the project’s prospects.

Broader Exploration Focus and Regional Potential

Beyond Ashburton, Kalamazoo is renewing its exploration efforts in Victoria, targeting gold and antimony prospects amid rising commodity prices. The Mt Piper project, located near Agnico Eagle’s Fosterville mine, and the South Muckleford project, with its gold-antimony mineralisation analogous to nearby high-grade mines, are key areas of interest. Additionally, the company continues to assess base metals potential at its Snake Well North project in Western Australia, maintaining a diversified portfolio.

Looking Ahead

The Scoping Study for Ashburton is expected to be completed by the fourth quarter of 2025, leveraging extensive technical work conducted by De Grey and Northern Star over the past 18 months. While Northern Star’s withdrawal removes a potential partner, Kalamazoo’s retention of full ownership combined with improved project economics and fresh capital positions the company to independently unlock value from this significant gold asset.