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SISTERS GOLD PROJECT

The Sisters Gold Project (80% interest in non-lithium rights E47/2983 and ELA47/4342)

The Sisters Gold Project comprises of one granted Exploration Licence (E47/2983) which covers 136km2 and one Exploration Licence application (E47/4342), located 100km south west of Port Hedland. It is prospective for epigenetic gold mineralisation associated with the Mt Wohler Shear, a prospective splay of the gold mineralised Mallina Shear Zone.

Kalamazoo recently announced (ASX: KZR 23 November 2017) further gold nugget discoveries and a gold-in-soil anomaly defined over 3km along the Wohler Shear Zone corridor at the Sisters Gold Project as part of its due diligence process.

Figure 6. The Sisters Project, Pilbara

The Sisters Gold Project lies within a larger area currently undergoing significant gold exploration by TSX-listed Novo Resources (TSX: NVO) and ASX-listed De Grey Mining (ASX: DEG), DGO Gold (ASX: DGO), Coziron Resources (ASX: CZR), Arrow Minerals (ASX: AMD), Venturex Resources (ASX: VXR) and others. The Project contains the north-east trending Mt Wohler Shear, a major splay from the gold mineralised Mallina Shear to the north.

As there has been no reported systematic historical gold exploration along this prospective shear, this provides a significant opportunity for Kalamazoo. The Project is underlain by folded and faulted siliciclastics, volcanoclastics and mafic sills of the Mallina Basin, which is part of the De Grey Supergroup (3020 to 2930Ma).

Planned exploration will target significant new gold mineralisation within the largely unexplored tenement.

Strategically, The Sisters Gold Project is located adjacent to De Grey’s Pilbara Gold Project and within 30kms of De Grey’s proposed new purpose-built processing plant (refer to De Grey’s ASX release “Pilbara Gold Project 20% increase in Resources to over 1.2M0z” dated 28 September 2017).

Known mineralisation within the Mallina Basin includes:

Gold nuggets were discovered by Kalamazoo (ASX: KZR 23 November 2017) during the early metal detecting program at The Sisters Project (E47/2983).

Nugget discoveries were located south west along strike from the gold soil anomaly and outside the area of soil sampling. Nugget locations are in proximity to mafic intrusions and north-east structures indicating similarities to recent discoveries reported by ASX-listed De Grey Mining at Blue Moon (ASX: DEG 18 October 2017) (Figure 8 & 9).

Following the re-sampling of soil samples initially collected by Sayona Mining for lithium exploration, Kalamazoo announced (ASX: KZR 23 November 2017) a gold-in-soil anomaly defined over 3km along the Wohler Shear Zone corridor and open to the north-east and south-west (Figure 9). This highly encouraging development resulted in Kalamazoo immediately undertaking a follow up dedicated program to determine the optimum soil fraction for detecting an expanded gold anomalism.

The Sisters Gold Project is partly underlain by Mallina Formation sediments, host to recent nugget discoveries by Arrow Minerals (ASX: AMD) (ASX: AMD 7 November 2017) (formerly Segue Resources) in the immediately adjacent E47/3476 (Figure 7).

Figure 7. The Sisters Project and surrounding tenements

Figure 8. The Sisters Project Regional geology and mineral occurrences (Minedex)

Figure 9. The Sisters Project geology, soil sampling coverage and location of nuggets

Figure 10. The Sisters Project Tenement Location