Kalamazoo Resources acquires project from Northern Star that 'no longer fits'
Kalamazoo Resources said Tuesday that it acquired the 217 square kilometer Ashburton Gold Project, located on the southern edge of the Pilbara Craton, Western Australia, from Northern Star Resources.
The Ashburton Gold Project has produced 350,000 ounces of gold and currently contains a mineral resource estimate of 20.8 million tonnes at 2.5g/t Au for 1.65 million ounces.Terms of the deal are $5.0M on mining of the first 250,000 tonnes of ore and a 2% net smelter royalty on the first 250,000oz of gold produced, with a 0.75% NSR on any subsequent gold produced from the tenements.
Northern Star executive chairman Bill Beament said the deal grants his company exposure to any upside from development.
“The Ashburton project no longer fits in Northern Star’s portfolio but still has strong potential on both the exploration and production fronts. The royalty structure also enables Northern Star to retain an exposure to the project.”
Kalamzoo said exploration will commence immediately.