Kalamazoo Resources has released a scoping study for its Mt Olympus gold project in Western Australia’s Pilbara, revealing potential for over 500,000 ounces of gold production over six years and up to $1.4 billion in free cashflow. The study outlines an 8.5-million-tonne open-pit operation processing through a 1.5-million-tonne-per-annum flotation circuit, producing a high-grade concentrate at 86% recovery.
At a conservative gold price of $4,500 per ounce, the base-case economics show a pre-tax net present value of $423 million, an internal rate of return of 47%, and free cashflow of $747 million. Pre-production capital is estimated at $208 million, with payback within 23 months. At current gold prices around $6,000 per ounce, free cashflow swells to $1.396 billion and NPV reaches $842 million, with an IRR of 74%.
The proposed development integrates the Mt Olympus and West Olympus open pits, averaging 2.2 g/t gold with a nine-to-one strip ratio. About 83% of the production target is supported by indicated resources, with the remainder in inferred category expected to be upgraded. Average annual production is forecast at 73,000 ounces, peaking at 110,000 ounces in year five.
Kalamazoo also highlighted underground potential, with a recent resource of 174,500 ounces at 3.76 g/t and an exploration target of 129,000–387,000 ounces beneath the pit. The company’s Ashburton Gold Project, which includes Mt Olympus, also holds 363,000 ounces at Peake, Zeus, and Waugh. Recent acquisition of the Xanadu gold project from Platina Resources adds 142 square kilometres of contiguous ground, expanding total holdings to 380 square kilometres.
The Pilbara region offers established mining infrastructure, with nearby projects such as Capricorn Metals’ Karlawinda and Northern Star’s Hemi deposit. Kalamazoo’s market cap is $45 million with a cash balance of $1.4 million, underscoring its small-cap status. The company acknowledges that the $208 million funding requirement will need external partners, though the project’s short payback and strong cash generation provide leverage.
