Kalamazoo Resources will fast-track work on its Mt Olympus deposit following a scoping study that shows the project’s potential to generate almost $750 million in pre-tax free cash flow.
The deposit is part of Kalamazoo’s wider Ashburton Gold Project in the Pilbara region, Western Australia.
The study projects a 73-month mine life, with the potential to recover approximately 524,000 ounces (oz) of gold. At a base-case gold price of $4500 per ounce, the project is forecast to generate $747 million in pre-tax free cash flow.
The project outlines an initial capital cost of $208 million, with a rapid 23-month payback. The optimal strategy involves a 1.5 million-tonnes-per-year flotation circuit, which would produce a high-grade 25 grams per tonne (g/t) gold concentrate at an 86 per cent recovery rate. All-in sustaining costs are estimated at $2183 per ounce.
“This scoping study highlights the potential for the 100-per-cent-owned Ashburton Gold Project to become an outstanding high-margin, cashflow-generating gold operation,” Kalamazoo executive chairman Luke Reinehr said.
“The base case outlines initial recoverable production of approximately 524,000oz at a conservative gold price of $4500/oz. The financial model demonstrates compelling margins, strong cash flow, and rapid payback.”
Reinehr said the immediate focus is to advance the underground opportunity and convert existing inferred resources into proven and probable reserves.
“These workstreams will support our transition to pre-feasibility activities during 2026 as we continue to fast-track the Ashburton Gold Project,” Reinehr said.
