Snake Well Project (Gold & Base Metals)

Kalamazoo’s flagship gold asset is the Snake Well Project that is located 450km north of Perth in the Mid-West region and consists of five granted mining leases, one granted exploration licence and one exploration licence application. The Snake Well Project covers Archaean rocks over an area of approximately 263km2 and a 45km prospective strike length of the Tallering greenstone belt, in the western portion of the Murchison Domain that hosts a number of significant mineral deposits including Golden Grove (Cu-Zn), Big Bell (Au), Cue (Au), Deflector (Cu-Au) and Mt Magnet (Au).  The project’s location and regional mineral deposits are shown in Figure 1 and Figure 2.

The only recorded gold production from within the Tallering greenstone belt is from the Royal Standard Gold Mine, where 68,000t at 13.1g/t Au was mined between 1897 and 1937 (Figure 3) (Cranley, N.J., 1985).

Giralia, an entity acquired by Atlas in 2011, undertook extensive exploration in the project areas between 2002 and 2011, although significant exploration had been completed in the area prior to 2002 by previous explorers. A number of gold and base metal prospects were identified mainly through geochemical exploration, with subsequent drilling delineating a number of gold deposits.

On 5 April 2013, the Company entered into an agreement to purchase 100% of the Snake Well Project from Atlas where previous explorers had defined several advanced gold projects and anomalous base metal mineralisation.  Since acquiring the Snake Well Project, exploration by Kalamazoo has comprised compilation of past exploration data, construction of a database of historic drill data, GIS development, field assessment work, statutory reporting and mineral resource estimation.  Native Title agreements are in place with three claim groups. Finally, Kalamazoo successfully planned and completed a trial open pit mining, trucking and processing operation of the Mixy Lode (at Rabbit Well) that produced approximately 4,459 ounces of gold at 6.83g/t Au during 2015 and 2016.

Mineral Resources have been reported in accordance with JORC (2012 edition) at three prospects (discussed below) and it is believed that by undertaking appropriate technical work, that further Mineral Resources might be defined at another four prospects (refer to the IGR in Section 5 of the Kalamazoo Prospectus). In addition to these defined deposits, Kalamazoo have also identified four exploration prospects within its Snake Well tenements where further exploration work is justified (refer to the IGR in Section 5 of the Kalamazoo Prospectus). There is additional potential for discovery of further targets through regional exploration over areas where prospective Archaean lithologies are concealed under Cainozoic cover (refer to the IGR in Section 5 of the Kalamazoo Prospectus).

Figure 1 Location Map of Kalamazoo Projects

Figure 2.  Location of the Snake Well Project

Gold was first detected at the Rabbit Well prospect within the Snake Well Project area in the late 1980’s by Polaris Pacific NL (Polaris) who defined a surface gold-in-pisolite anomaly. Conzinc Riotinto Australia Ltd (CRA) followed up with additional broad spaced surface sampling and drilling between 1992 and 1994, discovering both bedrock lode and laterite mineralisation.  The Rabbit Well surficial gold anomaly extends over almost three kilometres.

Roebuck Resources NL (Roebuck) conducted numerous phases of drilling between 1997 and 2002 and outlined a number of gold deposits, chiefly Mixy and the A-Zone (the latter with elevated copper, lead, zinc and silver levels).  Giralia subsequently acquired the Snake Well Project and further investigated the Mixy Lode along with other quartz vein hosted lodes with a series of air-core, reverse circulation (RC) and diamond drilling programs between 2002 and 2011.

Prospect locations are shown in Figures 3 and 4.