Kalamazoo hails Mt Olympus as ‘high-margin project’

Kalamazoo Resources has identified the Mt Olympus deposit as a high-margin, cashflow-generating operation within its Ashburton gold project in Western Australia’s Pilbara.

A recent scoping study forecasts total recoverable gold of around 524,000 ounces over a 73-month mine life at an all-in-sustaining cost (AISC) of about $2183 per ounce.

At a base gold price of $4500 per ounce, Mt Olympus could generate approximately $747 million in pre-tax free cashflow, rising to $1.3 billion if prices reach $6000 per ounce.

Pre-production capital expenditure is estimated at $208 million, with payback expected in just 23 months. The study proposes a 1.5 million tonne-per-annum flotation processing circuit, producing a high-grade 25 grams per tonne gold concentrate at an 86 per cent recovery rate.

Kalamazoo executive chairman Luke Reinehr said the study confirmed Mt Olympus’s potential to become an outstanding high-margin, cashflow-generating gold operation in the world-class Western Australia mining jurisdiction.

“This study has successfully established a low-cost pathway to production through the sale of a high-grade gold concentrate,” Reinehr said.

“The base case outlines initial recoverable production of approximately 524,000 ounces at a conservative gold price of $4500 per ounce from the Mt Olympus open pit, with approximately 83 per cent of the production target sourced from indicated resources.

“Pre-production capital is estimated at around $208 million, and the financial model demonstrates compelling margins, strong cash flow, and rapid payback.”

Reinehr said that gold-in-concentrate production is a proven, capital-efficient route to market and preliminary discussions indicate the potential for keen demand for Ashburton’s high grade gold concentrate.

The study does not include recently identified underground resources and exploration targets of 350,000–500,000 ounces beneath the Mt Olympus pit, which could extend the mine’s life.

“Our immediate focus is to maximise conversion of the inferred mineral resources and advance the underground opportunity into a JORC-compliant resource,” Reinehr said.

“These workstreams will support our transition to pre-feasibility activities during 2026 as we continue to fast-track the Ashburton gold project.”