Kalamazoo Expands Ashburton with Xanadu Acquisition and New Licence

About Kalamazoo Resources Ltd

Kalamazoo Resources Limited (ASX: KZR) is an ASX-listed exploration company with a portfolio of gold and base metals projects in the Pilbara, Murchison, and Central Victorian Goldfields. Its flagship Ashburton Gold Project in Western Australia holds a 1.44Moz resource and is currently undergoing a Scoping Study to determine the optimal pathway for development. The company has now expanded this project through the acquisition of the Xanadu Gold Project and the granting of a new exploration licence, strengthening its regional growth strategy.

Strategic Developments

Kalamazoo Resources has taken a major step forward in its regional growth strategy with the acquisition of nine highly prospective tenements collectively known as the Xanadu Gold Project. Covering 142.4 square kilometres, the package sits directly adjacent to the company’s 100% owned Ashburton Gold Project in Western Australia. When combined with a newly granted exploration licence (E52/4379) that spans a further 28.3 square kilometres on the eastern margin of Ashburton, Kalamazoo has increased the total project area by 170.7 square kilometres. This expansion brings the Ashburton landholding to an impressive 380.2 square kilometres.

The Xanadu Project holds strong geological promise. Mineralisation is hosted by the Duck Creek Dolomite and Mt McGrath Formation, both of which share characteristics with the Ashburton deposit. Historical drilling has already confirmed encouraging intercepts, including 5 metres at 8.71 grams per tonne of gold and 20 metres at 2.25 grams per tonne. These results provide early indications of the project’s potential to add meaningful ounces to Kalamazoo’s inventory.

Commenting on the significance of the acquisition, Chief Executive Officer Dr Luke Mortimer described it as a pivotal milestone in the company’s long-term strategy. “By acquiring the Xanadu Gold Project and expanding surrounding exploration tenure, Kalamazoo is advancing its strategy to substantially expand Ashburton’s resource base and potential life-of-mine,” he said. “The Scoping Study, expected in Q4 2025, will showcase compelling economics for Stage One development and reinforce Kalamazoo’s status as an undervalued gold company.”

Growth Pipeline and Opportunities

The Ashburton expansion is designed to position Kalamazoo as a leading gold developer in the Pilbara. With an existing resource base of 1.44 million ounces, the enlarged landholding offers opportunities not only to extend known deposits but also to discover entirely new ones. The company’s long-term objective is to transform Ashburton into a major regional gold camp.

To achieve this, Kalamazoo has outlined a dual exploration strategy. First, it will prioritise brownfield drilling to grow resources around the Mt Olympus deposit, Ashburton’s most advanced prospect. Optimisation work in this area is expected to strengthen the project’s development economics. Second, the company will launch greenfield programs targeting new prospects along structural corridors, with particular focus on the Nanjilgardy Fault, a regionally significant feature known for hosting gold mineralisation.

In parallel, work on the Ashburton Scoping Study is progressing at pace, with completion scheduled for the final quarter of 2025. The study will provide critical details on processing routes, financing structures, and development pathways for Mt Olympus, shaping the project’s transition from exploration to production. Importantly, these efforts are unfolding in a record-high Australian dollar gold price environment, allowing Kalamazoo to capitalise on both exploration success and favourable commodity markets.

Financial and Transaction Terms

The acquisition agreement with Platina Resources was structured to balance upfront costs with performance-based commitments. Kalamazoo will issue 1.25 million shares at $0.12 each, valuing the initial consideration at $150,000. These shares will be subject to escrow, with half restricted for six months and the remainder for 12 months, ensuring alignment between both parties.

In addition, a contingent payment of $500,000 will be triggered if Kalamazoo defines an Indicated JORC resource of at least 250,000 ounces at a grade above 0.5 grams per tonne within five years. Finally, Platina will retain a 1% Net Smelter Royalty on future gold production from the Xanadu tenements.

This transaction structure ensures Kalamazoo acquires a valuable landholding at modest initial cost, while tying further payments to the success of ongoing exploration.

Industry Context

Kalamazoo’s expansion comes at a time of renewed momentum in the Pilbara gold sector. Strong commodity prices and recent major discoveries have underpinned a wave of consolidation and project advancement. Against this backdrop, the Ashburton-Xanadu expansion reflects a broader trend of securing contiguous, highly prospective ground to support long-term development ambitions.

By enlarging its footprint and advancing a Scoping Study, Kalamazoo is positioning itself to shift from pure exploration into the development phase. Its disciplined approach, anchored in low upfront costs, targeted drilling, and favourable market conditions, provides a solid foundation for creating long-term value.

Outlook

Looking ahead, Kalamazoo’s immediate priority is to finalise the Ashburton Scoping Study in the December quarter of 2025. Once complete, this will guide the company’s next stage of activity, including financing strategies and early development planning.

At the same time, exploration will continue on two fronts: brownfield drilling to add ounces to existing deposits, and greenfield programs to unlock new targets within the enlarged tenure. This dual-track approach maximises the chances of both short-term resource growth and longer-term discoveries.

The company’s long-term vision is to establish Ashburton as a significant regional gold camp with an extended mine life. With the addition of Xanadu, the granting of a new licence, and the backdrop of record gold prices, Kalamazoo is well-positioned to deliver on this goal.