ASX Announcement and Media Release

13 July 2017

WA'S DOOLGUNNA REGION FOCUS OF KALAMAZOO'S NEW COPPER EXPLORATION PROGRAM
  • Kalamazoo has commenced exploration at its Cork Tree Project in WA's highly prospective Doolgunna region.
  • The exploration area covers a contiguous block of six tenements covering 40 kms of strike mainly within the Earaheedy Basin and partly along the contact with the Yerrida Basin.
  • The area is strategically located in the Doolgunna region, which hosts the DeGrussa Copper Mine, Thaduna Copper deposit, Enigma Copper prospect and Horseshoe Lights Copper-Gold mine.
  • Historical exploration1 has indicated encouraging copper potential:
    • Regional soil sampling defined an anomaly some 1,950m x 600m in extent with results ranging from 2ppm to 25ppm Cu.
    • Eight rock samples of 'gossans' returned copper assay above 0.1% with a maximum of 1.42% copper.
  • Kalamazoo continues exploration at its flagship Snake Well project in WA.
Next Steps: Kalamazoo has commenced a program at its Cork Tree Project of infill lag geochemistry, reprocessing and remodeling of historical geophysical data, including gravity, magnetics and electromagnetics (EM), geological mapping and rock chip sampling. Review of this data is expected to lead to a better understanding of the regional geology and most importantly directing exploration to specific target areas for follow up exploration.

1 Refer to Independent Geologists Report in Section 5 of the Company's Prospectus dated 3 October 2016

Copper-gold exploration company, Kalamazoo Resources Limited (ASX: KZR) ("Kalamazoo"), today announced it has commenced exploration programs at its Cork Tree Project, located in Western Australia's highly prospective Doolgunna region.

The Cork Tree Project consists of three granted exploration licences (E52/2056, E52/2057, E52/3042), and more recently three exploration licence applications, comprising 117 blocks and covering approximately 370km2 along the contact of the Yerrida Basin and the Earaheedy Basin (Figure 2). The Company now controls an area approximately 40 km x 20 km along the basin margins.

Kalamazoo entered into a farm-in and joint venture (JV) agreement with ASX-listed Atlas Iron over two Cork Tree tenements in March 2013, and has currently completed the Stage 1 earn-in for 51%1.

Figure 1: Location of the Cork Tree Project

The tenements lie 30 kms to the south-east of DeGrussa and Monty deposits owned by ASX-listed Sandfire Resources (Figure 3). Kalamazoo believes the region to be prospective for copper and potentially lead-zinc mineralisation.

Figure 2: Location of Cork Tree tenement package, geology and significant deposits

Figure 3: Location of Other Parties Tenements at Cork Tree Project

Given the large acreage held, Kalamazoo has taken a holistic approach to its exploration strategy. It has initiated an air magnetics and gravity interpretation of a significantly larger area than the tenements themselves, to identify the major lithological and structural elements of the Archaean basement that will impact the overlying Proterozoic sedimentary basins.

Open file electromagnetic data was interpreted, and areas of anomalous responses within the Kalamazoo tenements were identified. Field mapping of the sparse outcrops within the tenements suggest the lithologies within this restricted sub-basin are the Yerrida sediments/ Bubble Well carbonates (1840Ma) and Yelma equivalents.

A conceptual exploration model to suggest how mineralisation may have formed within the Kalamazoo tenements has been compiled (Fig 4).

Figure 4: Idealised model for copper mineralisation - Cork Tree Copper Prospect

Atlas Iron Limited published this content on 13 July 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 27 July 2017 00:29:02 UTC.

Original documenthttp://www.atlasiron.com.au/site/PDF/8115_0/KZRDolgunnaRegionFocusofNewCopperExplorationProgram

Public permalinkhttp://www.publicnow.com/view/4793D3B25F125F944BB8161C408F310A00DEE509