KalGold secures 75 per cent stake in fruitful WA gold project

West Australian

29-05-2025

Kalgoorlie Gold Mining has locked in a 75 per cent stake in its highly prospective Pinjin gold project near Kalgoorlie, completing the first milestone of its farm-in agreement over the project.
The company has sealed the deal with a $1.65 million all-cash settlement for the project, which incorporates its Kirgella Gift and Providence mineral resources, alongside its promising breakout Lighthorse discovery and Wessex gold prospect.
KalGold says potential remains for it to earn full ownership over the project upon a decision to mine the resources.
The development means the company is now firmly positioned as a potential toll treating operation in Western Australia's gold-rich Laverton Tectonic Zone.
The farm-in agreement covers four exploration tenements and several prospecting licences, marking a pivotal step for KalGold.
The company surpassed all its required metrics to reach its three-quarter stake in under two years. It swiftly defined a 76,400-ounce shallow gold resource at Kirgella Gift and Providence, grading a mineable 1 grams per tonne (g/t) gold, while unearthing significant gold anomalism at both Lighthorse and Wessex.
The Lighthorse corridor, in particular, shows massive resource potential. Stretching north to within 1 kilometre of Hawthorn Resources' Anglo Saxon open pit mine, which is under care and maintenance, Lighthorse provides serious exploration upside as KalGold looks to develop its defined resources.
'In less than two years, the company has defined over 75,000 ounces of gold in a near-surface JORC resource at Kirgella Gift and Providence. Beyond this, we have defined gold mineralisation and anomalism across multiple prospects throughout the tenement package, including the hugely prospective Lighthorse and Wessex prospects.'
Kalgoorlie Gold Mining managing director Matt Painter
The company says its all-cash settlement minimises dilution to its shareholders, while maximising the upside for gold-hungry investors.
Under the agreement, the vendors are free carried until a bankable feasibility study or decision to mine, at which point they must contribute costs or convert their 25 per cent interest into a 2 per cent net smelter royalty.
Should KalGold reach a decision to mine, the company could secure full ownership of the project, cementing its control over a project sitting just 25km north of Ramelius Resources' 1-million-ounce Rebecca gold project. Rebecca is set for first production in 2027.
KalGold's Pinjin project lies within the prolific Laverton Tectonic Zone, a crustal-scale suture hosting giants such as the Sunrise Dam, Granny Smith and Wallaby gold mines, which have a combined output of 30M ounces gold.
The company's tenure spans a multi-kilometre corridor ripe for exploration, which is already turning up economic gold. Alongside it, historic Newmont prospects, such as T12 and T15, are yet to be fully tested.
February's Lighthorse discovery has already lit up the market with more than a 400 per cent share price run on reports of high-grade hits, including 17m at 4.81g/t gold from 48m and 9m at 3.52 g/t gold from 58m.
A recent reverse circulation drilling program confirmed primary orogenic gold mineralisation beneath a supergene blanket, pointing to a potentially large hydrothermal system.
KalGold is wasting no time, with plans to accelerate air core, reverse circulation and and diamond drilling across the 2.4km Lighthorse corridor and beyond. Targeted geophysical programs are also on the horizon, designed to sniff out alteration zones, structures and new mineralisation.
The company's track record speaks for itself: It defined 214,000 ounces of gold across its WA portfolio, including the 138,000-ounce La Mascotte deposit at its Bulong Taurus project at a discovery cost of $4.60 per ounce.
The company says the farm-in deal strengthens KalGold's position to engage strategic partners. Its commanding tenure and low-cost discovery model is drawing attention in a gold market buoyed by prices above $5000 per ounce, more than 1000 times KalGold's current rate of discovery.
With a clear path to potential production of its near-surface supergene gold deposits and a pipeline of exploration catalysts, KalGold is shaping up as a serious contender as a cash-flushed WA gold producer.
Is your ASX-listed company doing something interesting? Contact:
[e-mail]