Kalamazoo (ASX: KZR) share price is dipping today despite news of promising gold potential in the quarterly activities report.
The post Why is the Kalamazoo (ASX:KZR) share price slipping today? appeared first on The Motley Fool Australia. –
The Kalamazoo share price is down 1.10% to 45 cents per share at the time of writing.
Kalamazoo is a gold and copper explorer and developer primarily focused on exploring and developing gold projects in Western Australia.
The company has found promising intersections recently at its new Victorian gold mining operations, so let’s see what’s driving its share price today.
Kalamazoo’s Victorian goldfield successes
Kalamazoo revealed the following best intersections at its Ashburston gold fields; 9 metres at 5.52 g/t Au, 9 metres at 3.03 g/t Au, 9 metres at 4.03 g/t Au and 7 metres at 4.25 g/t Au.
Kalamazoo’s report says these intersections show “additional thick shoots of moderate to high-grade mineralisation exist beneath and along strike of the Waugh Pit”. This means Kalamazoo’s Ashburton project has additional gold potential in multiple directions.
The company was quite bullish about the Ashburton Waugh Pit prospects, outlining its hopes through the report:
The results from the drilling at the Waugh Prospect are highly encouraging with thick and moderate to high grade shoots of gold mineralisation found to occur within a plane of bedding sub-parallel faults that show surface gold anomalism extending over 300m west, and in excess of 1,000m to the east, of the Waugh Pit.
Kalamazoo believes that continued exploration both along strike and down dip will extend the existing mineralisation at the Waugh Prospect and discover new shoots within this highly prospective fault system.
Kalamazoo has also completed its gold drilling program in Castlemaine at its Lightning Prospect. It found “anomalous to high-grade gold and associated alteration” in all six of the company’s drilling holes. Intersection highlights included: 0.8 metres at 11.1 g/t Au, 0.4 metres at 12.3 g/t Au and 0.55 metres at 10.6 g/t Au.
Through metal detecting in the region, the company also found coarse gold-in quartz specimens between the Lightning and Mustang prospects, which it says further supports the gold-bearing potential of the area.
Kalamazoo share price snapshot
The Kalamazoo share price is rebounding this month from a 26% decline since 2021 began and has now risen by almost 5% through April.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.