Page 7 - gmj140-Jul-Sept-mag-web_Neat

NEWS
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Kalamazoo soon after the drill hit, with each party subscribing
for to 10 million Kalamazoo shares at 40c/share in an $8 million
raising for exploration and drilling on the Castlemaine, South
Muckleford and Tarnagulla Central gold projects in Victoria.
“Victoria is still our key focus, but we will be running them as two
standalone independent project portfolios. Victoria is still the
key both at Castlemaine and South Muckleton, which is pretty
much next door to Castlemaine,” Reinehr said.
“We have been doing a lot of groundwork there in the last
couple of months in conjunction with the CSIRO; a lot of ultra
fine soil sampling programme across both projects has been
completed. We have about 4,500 samples for multi-element
testing that is helping us identify some very interesting gold-in-
soil anomalies which will then help us in targeting in our next
round of drilling.”
Reinehr said he was “blown away” by the amount of interest
shown by Canadians in the Victorian gold sector.
Just recently, TSX-V listed Fosterville South Exploration Ltd
announced near-surface percussion drilling results at Golden
Mountain which included 2m @ 10.78 g/t gold within a total
Victoria is running hot with Canadian interest and Kalamazoo intercept of 20m @ 2.12 g/t from 32m and 18m @ 5.34 g/t within
welcomed Eric Sprott and Novo Resources as strategic
investors earlier this year a total intercept of 26m @ 3.82 g/t from 40m, 3m @ 5.36 g/t and
7m @ 3.57 g/t.
Fosterville South also spun out its Avoca and Timor gold assets
“We also have our The Sisters project along strike from Hemi in
in Victoria into Leviathan Gold Ltd, which Fosterville South
the Pilbara and we have been doing a lot of work there over the
shareholders will retain exposure to as well as the Lauriston,
last couple of months. We’re pretty keen to start drilling there.
Golden Mountain, Providence and the Walhalla belt projects.
De Grey [Mining Ltd] is a fantastic story; it’s good for everyone
At the time of print, Fosterville South was trading at $C3.93/
up in the Pilbara, great for WA and Australia.”
share and had a market cap of $C180 million.
In addition to Adams, Kalamazoo’s technical advisory
“There is a lot of interest in Victoria which has come from
committee includes exploration manager Dr Luke Mortimer and
Kirkland Lake [Gold Inc]. Fosterville is considered the world’s
Novo Resources Corp chairman Dr Quinton Hennigh.
richest and most profitable underground gold mines and that
Hennigh’s Novo is well-known and well spread in the Pilbara
whole Bendigo zone has everyone’s interest trying to find out
(see page 32) with its potential conglomerate plays.
if there is another world-class discovery there,” Reinehr said.
While Novo and Kalamazoo share a thirst for gold exploration in
“The [Victorian] Government put a land release tender out on a
the Pilbara, it was actually the latter’s success with drilling at the
number of blocks around the Fosterville mine at the end of last
Castlemaine project in Victoria – 1.42m @ 261.3 g/t gold from
year. We bid for a couple of those blocks, it hasn’t been awarded
100.32m – which triggered a stronger relationship between the
and is still a number of months away I suspect, but there is
two companies.
enormous interest in that from majors and Australian explorers
Novo, along with Eric Sprott, made strategic investments in and mining companies putting their hand up for a piece.”

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