Sundown Lithium Project Canada(CAZ 25% – earning up to 100%)

On 31 May and 1 June 2023, the Company announced it had entered into a binding agreement to acquire the Sundown Lithium Project, located in the world-class James Bay lithium province. The region is an emerging world class lithium district, host to several advanced lithium projects and new lithium discoveries. 

The Sundown project represents a significant acquisition for the Company, comprising 510 mining claims covering an area approximately 260km² with over 200 documented outcropping pegmatites (refer CAZ announcements dated 31 May 2023 and 1 June 2023). The pegmatites have never been sampled for lithium. 

The Sundown project is located between Allkem Limited’s (ASX: AKE) James Bay deposit with a lithium resource of 110.2Mt at 1.3% Li2O (AKE announcement dated 11 August 2023) and Patriot Battery Metals Inc’s (ASX: PMT) Corvette lithium discovery with a lithium resource of 109.2Mt at 1.42% Li2O within a 214km² land package (PMT announcement dated 30 July 2023).

The Sundown claims have received little modern exploration activity and the significant number of reported pegmatites is the result of exploration conducted by the Québec Ministry of Natural Resources and Forestry (MERN), which included rock chip sampling and lake bottom sediment sampling with a focus on gold.

As announced on 7 August 2023, after the completion of due diligence, the Company moved to a 25% holding in the Sundown Lithium Project after paying C$350,000 and issuing 19,065,535 CAZ shares (issued on 11 August 2023).

Cazaly’s in-country team will conduct the first phase of exploration, that will consist of a reconnaissance field work program and rock chip sampling, in order to conduct on-ground assessments at key targets and compare observations with historically documented reports. This will be the first lithium exploration on the project and all rock chip samples will be analysed for lithium and multi-element litho-chemical suite.

Carb Lake REE Project Canada (CAZ 100%)

On 27 April and 3 May 2023, Cazaly announced it had secured an option agreement to acquire the Carb Lake rare earth elements project and following extensive due diligence, completed this 100% acquisition of the project in June 2023 (CAZ announcement dated 14 June 2023). The Project is located in the Red Lake district in Ontario, Canada and comprises 93 mineral claims covering a very large carbonatite prospective for rare earth elements (REE).

The Project area is in north-western Ontario and hosts a very large mid-Proterozoic aged carbonatite positioned between two major tectonic terrane boundaries along the North Kenyon Fault (NKF). The NKF is a significant crustal scale fault providing an ideal environment for the emplacement of carbonatite intrusions. The carbonatite is not exposed at surface with shallow cover estimated to be from 7 to 12m. 

The Carb Lake Carbonatite Complex has had very limited modern exploration. Following the recognition of a large circular aeromagnetic anomaly in 1967, four diamond holes were completed by Big Nama Creek Mines Ltd for 564m, the only drilling ever completed on the Project. With limited drill core remaining intact and available for non-invasive work the remaining drill core was re-logged and tested using a pXRF, a portable gammaray spectrometer and a magnetic susceptibility metre.

As announced on 31 July 2023, Cazaly’s in-country team completed a portable XRF (pXRF) program on available diamond core. Preliminary pXRF readings conducted on historical core samples have confirmed anomalous levels of lanthanum (La), cerium (Ce), neodymium (Nd), praseodymium (Pr), and niobium (Nb). These results validate the project’s potential for economic REE and Nb mineralisation and reinforce the Company’s confidence in the future prospects of the Carb Lake REE project. 

An initial field reconnaissance trip was planned to include geological field mapping to determine any areas of float, or outcrop, and prospecting to collect any rock chip samples where float and outcrop is observed. As announced on 22 August 2023, Cazaly’s in-country team mobilised a 4-man crew and established a field camp to facilitate the field program.

Halls Creek Copper, Zinc & Silver Project Western Australia (CAZ 100%)

The project is situated 25km southwest of Halls Creek and covers part of the Halls Creek Mobile Zone which is highly prospective for a range of commodities including copper, gold and nickel. The project includes the Mount Angelo North volcanogenic massive sulphide (VMS) copper-zinc-silver deposit and the Bommie porphyry copper deposit.

Mineral Resource Estimates for these deposits are reported in accordance with the JORC Code 2012 as per the tables below by resource classification and weathering state.

In late 2022, Cazaly formalised a Memorandum of Understanding (MoU) with AuKing Mining Ltd (ASX: AKN) to include Cazaly’s Halls Creek mineral resources into their scoping study for a mining operation. Cazaly and AuKing both recognised the significant benefits in combining their resources in the scoping study and potential future development of a central mining hub at Sandiego with multiple feed options from the surrounding deposits (ASX: AKN Announcement dated 20 December 2022).

The Sandiego deposit is part of AuKing’s Koongie Park project at Halls Creek where they have acquired a 100% interest through a joint venture with Astral Resources NL (ASX: AAR), subject to a new smelter royalty for AAR (AKN announcement dated 7 July 2023). 

In June 2023, Cazaly received positive results from AuKing Mining Limited’s Koongie Park copper-zinc scoping study, which included the Company’s 100%-owned mineral resources at Halls Creek. The AuKing scoping study confirms the potential for a financially robust, globally competitive operation with life of-mine of 11 years with an estimated total production of 110kt Cu, 38kt Zn and 355koz Ag. 

The strong project economics and financial returns produced a pre-tax NPV8% of approximately A$176.9M and a 39.7% IRR. The estimated payback period is 2.45 years after incurring pre-production Capex of A$134M. 

For full scoping study results and details please refer to CAZ announcement dated 1 June 2023.

Ashburton Basin REE, Gold, Base Metals Project Western Australia(CAZ 100%)

Cazaly’s Ashburton project spans 2,450km² in the Ashburton Basin, in the Pilbara region of Western Australia. The Ashburton Basin forms the northern part of the Capricorn Orogen, a ~1,000km long, 500km wide region of variably deformed metamorphosed igneous and sedimentary rocks located between the Yilgarn and Pilbara cratons.

The Ashburton project covers major regional structures considered to be highly prospective for gold, base metals and REE mineralisation. The project area presents an excellent opportunity for discovery of large mineralised systems along the major regional scale structures, which to date have seen very little modern exploration.

Work on the project to date has identified four extensive regional scale mineralised trends: 

Lyons REE Project West Australia (CAZ 100%)

On 2 August 2023, the Company announced that it had secured over 1,000km² of tenure within the emerging REE district of the Gascoyne Province in Western Australia. 

The tenure consists of a total of six tenements, that together form the Lyons Project a very prospective package of ground in the Bangemall Basin. Four tenements were targeted and pegged by Cazaly around the Lyons River Fault and Talga Fault, with one of the four tenements now granted. 

The remaining two granted tenements along the Lyons River Fault (E09/2671 and E52/4040), consolidate the Lyons Project via an exclusive binding option agreement to acquire up to 100% with private company Murchison REE Pty Ltd (Murchison).

The Lyons River Fault and Talga Fault represent major crustal sutures in the central part of the Gascoyne Province which provided a suitable plumbing system for the transportation of mineralised fluids. 

The Gascoyne region is highly prospective for rare earth elements (REE) as well as base metals.

Work has commenced on a compilation of all available historic data sets for the project. The data is being reviewed in order to prioritise targets for initial field assessment. A study of available imagery has highlighted areas with potential for ironstone outcrop. Broad GSWA geochemical sampling across the region has also indicated potential for REE enrichment. 

The process of target generation and prioritisation is close to being complete and it is expected that field work will commence in late September 2023 and will consist of ground checks and prospecting where access is available.

Abenab REE & Base Metals Project Namibia (CAZ 95%)

As announced on 7 November 2022, the Company applied for a new exploration licence (EPL 9110 – Abenab North). The project is located in the northern region of Namibia through its 95% owned local subsidiary company Philco One Hundred and Seventy-Three (Proprietary) Limited (“Philco”). The Abenab North project application has no competing applications and covers an area of approximately 790 km². The project is considered to be highly prospective for base metals and Rare Earth Elements (REE) mineralisation as evidenced from the results of previous but limited exploration. 

The project lies in the Otavi Mountain Land region of northern Namibia located approximately 450km by road from the capital of Windhoek in an area comprising the towns of Tsumeb and Grootfontein. The region is a significant well mineralised base metals province with historic production from several mines including Tsumeb, Kombat, Abenab and the Berg Aukas mines. Tsumeb is a world-famous Cu-Pb-Zn-Ag-Ge-Cd mine renowned for its wealth of rare and unusual minerals and was mined from 1897 to 1996.

The Environmental Impact Assessment (EIA) and draft Environmental Management Plan (EMP) were completed by Alliance Environmental Consultancy, covering all proposed activities that will be conducted within the license area such as surface sampling, geophysical surveys, and drilling. As part of the EIA process, an Environmental Scoping Assessment and an independent Heritage Impact study were completed. The EIA and EMP were submitted to both the Ministry of Mines and Energy and the Ministry of Environmental Forestry and Tourism. 

The licence is still pending approval.

Kaoko Lithium Project Namibia (CAZ 95%)

The Kaoko Lithium Project is located in northern Namibia, approximately 800km by road from the capital of Windhoek and approximately 750km from the port of Walvis Bay. The area has excellent infrastructure, with the Project only 50 km away from Opuwo, the regional capital, which has an airport and well-maintained bitumen roads. In addition, the Project has access to the 320 MW Ruacana hydroelectric power station, and transmission lines that run through both the western and eastern parts of the Project. 

Cazaly previously identified a large lithium in soil anomaly at the Ohevanga Prospect measuring 12km x 10km. The anomaly was defined with broadly spaced surface samples collected across a 1km grid and has recently been followed up with infill surface sampling to better define and confirm the target. For further technical details please refer to CAZ announcement dated 24 March 2023. 

An application for a two-year licence extension is still pending approval.

Mt Venn Gold Project (WML 80% CAZ 20%)

The Mt Venn Gold Project is located 125km northeast of Laverton in the North-eastern Goldfields Region of Western Australia and covers approximately 400km² of prospective greenstone sequence. The project area lies within the Mount Venn-Yamarna-Dorothy Hills greenstone belt which is the most easterly major N-S striking greenstone belt of the Yilgarn Craton. 

The belt is considered highly prospective for gold and nickel and is positioned along the western limb of the Yamarna Greenstone Belt that hosts Gold Road’s and Gold Fields’ 6Moz Gruyere Gold Mine. Together the Yilgarn greenstone belts account for 30% of the world’s gold reserves, most of Australia’s nickel production and other base metal and rare earth deposits. 

The project is subject to an unincorporated Joint Venture between the operators Woomera Mining Limited (Woomera, ASX: WML) (80%) and Cazaly (20%). Cazaly is free carried to PFS stage.

McKenzie Springs Joint Venture (FIN 70% CAZ 30%)

Sammy Resources Pty Ltd (a wholly owned subsidiary of Cazaly) is in joint venture with Fin Resources Ltd (ASX: FIN) over exploration licence E80/4808, the McKenzie Springs Project, located in the Kimberley region of Western Australia. The project lies south along strike from the Savannah nickel-copper-cobalt mine owned by Panoramic Resources Ltd (ASX: PAN). 

In the upcoming dry season, FIN (JV Manager) has planned a gridded soils programme to identify new drill targets for nickel, copper, graphite and other base/precious metals over the Springs Creek intrusive complex located northeast of the project area. A field trip to Mackenzie Springs is planned for the upcoming dry season, once access is available.

Royalties

Mineral Resources Limited (ASX: MIN) continued production activities at the Parker Range Iron Ore Mine. Cazaly, as the royalty holder, is entitled to receive A$0.50/tonne of iron ore produced from the mine, once the first 10 million tonnes of production have been reached. 

Following the sale of the Hamersley Iron Ore Project in 2021, to Equinox Resources Limited (ASX: EQN), the Company holds 15,000,000 EQN shares and 2,850,000 performance shares and retains a royalty interest of US$0.30/tonne in the project. The project is located in the heart of the Pilbara iron ore province and currently has a total Mineral Resource estimate of 343.2 Mt at 54.5% Fe (reported in compliance with JORC Code 2012 – refer to Pathfinder’s ASX Announcement dated 24 January 2020). Equinox continues to advance feasibility studies to progress the development of the Project.

Halls Creek (CAZ 100%)

The project is situated 25km southwest of Halls Creek and covers part of the Halls Creek Mobile Zone which is highly prospective for a range of commodities including copper, gold, and nickel. The project includes the Mount Angelo North copper-zinc deposit, an extensive zone of near surface oxidised Cu-Zn mineralisation overlying massive Cu-Zn sulphide mineralisation.

As announced on 16 August 2022, RC drilling was completed at the Halls Creek project. A total of 19 holes were drilled for 4,049m to test the Moses Rock EM conductor and the Bommie Porphyry Copper System.

The Bommie prospect is located 2.5km southwest of Mount Angelo North and is interpreted as a large low grade copper system with significant drill intercepts. The prospect has an extensive surface geochemical signature which provides further encouragement for a large mineralised system. All priority drill holes were completed. A decision to complete the second priority drill holes will be made following the receipt of all assay results and the estimation of a maiden inferred mineral resource. Sampling techniques and data collection are detailed in the Cazaly announcement dated 16 August 2022.

In June 2021, the Company completed eight (8) RC holes with one (1) diamond tail drillhole (per 31 August 2021 ASX announcement) at the Mount Angelo North Cu-Zn deposit to confirm the continuity of shallow copper mineralisation and test potential extensions to known sulphide mineralisation along strike and down dip. 

The RC drill results were received during the financial year and confirmed good, consistent high-grade Cu-Zn mineralisation and marginally extended the known limits of the deposit. The drilling, and recent remodeling also highlighted a potential new down plunge position for Zn mineralisation.

A significant amount of work has been completed to advance our understanding of the Mount Angelo North deposit. The mineralised envelope was re-modelled based on geological observations and weathering profiles and confirms the robust nature of the shallow oxide copper mineralisation near surface, with growth potential down dip and down plunge.

The resource was updated using the newly interpreted mineralisation model and re-estimated to comply with JORC Code 2012. The Mount Angelo North mineral resource estimate detailed in the table below, is reported as 1.72Mt @ 1.4% Cu, 12.3ppm Ag, 1.4% Zn (using 0.4% Cu lower cut) for 23kt Cu, 680koz Ag and 25kt Zn.

Ashburton Basin Project (CAZ 100%)

Cazaly holds the rights to a major land position covering more than 2,450km² in the Ashburton Basin, in the Pilbara region of Western Australia. The project covers major regional structures considered to be highly prospective for major gold mineralisation and occurs in the region hosting Black Cat Syndicate’s (ASX: BC8) Paulsen’s gold deposit and Kalamazoo’s (ASX: KZR) Mount Olympus gold deposit. 

The Ashburton Basin forms the northern part of the Capricorn Orogen, a ~1000km long, 500km wide region of variably deformed metamorphosed igneous and sedimentary rocks located between the Yilgarn and Pilbara cratons. 

The Company applied for tenure within the region following the recognition of the presence of major deeply seated, crustal scale structures with the potential to host significant mineralisation eg. the Baring Downs Fault. The Baring Down Fault lies centrally within the Ashburton Basin which has previously had very little modern exploration. 

Heritage agreements for the final tenement application in the Ashburton package were finalised and E08/3262 was granted on the 7 December 2021. The Ashburton tenement package now includes five (5) leases – E08/3260, 3261, 3262, 3265 and 3272.

Vanrock Polymetallic Project (Option to earn in)

The Vanrock project is located in central north Queensland 350km west of Cairns within the northern portion of the Townsville-Mornington Island Igneous Belt (TMIB), which extends over 700km from Townsville to the Gulf of Carpentaria. The project area is located where the TMIB dips undercover, and is relatively poorly explored, especially when compared to the extensive exploration activities to the southeast where the TMIB is exposed at surface, this is evidenced by the abundant mineralisation occurrences within the TMIB to the southeast. The Project is considered to have potential for Andean-type silver-tin-zinc-copper-lead mineralisation.

Cazaly entered into an agreement with Lynd Resources Pty Ltd to acquire a majority stake in the Vanrock project based upon the terms outlined in the ASX announcement dated 20 July 2022. Cazaly will fund the drilling of a single diamond drill hole as an Option before electing to progress any further with the joint venture.

A heritage survey was conducted on the 24 to 26 August 2022 to ensure no heritage places or sites would be disturbed during future earthworks and drilling activities.

As announced on 7 September 2022, preliminary results were received for an airborne Electromagnetic (EM) survey completed in early August 2022 across the Vanrock Project using XciteTM, a high-resolution helicopter borne time domain electromagnetic and magnetic survey system. Eight lines were completed in total for 40km on a 500m line spacing. 4 lines were completed across the Vanrock target, and 4 lines were completed across a lookalike target on EPM27085 located 10km to the southeast of the Vanrock Target.

Diamond drilling commenced early in September and the single diamond drill hole was completed to 521.5m depth (as announced 21 September 2022). Two separate semi-massive sulphidic zones were intersected from 211.95m to 215.96m and 264.3m to 272.54m down hole. Potassic alteration associated with the sulphidic zones also occurred sporadically throughout the drill hole.

Yabby (CAZ 100%)

The Yabby tenements are located 10km to the west of Laverton in the north-eastern goldfields of Western Australia. The project area covers 16km² of the highly prospective Laverton Greenstone Belt and has potential for new gold discoveries. Tenements are positioned directly west of the Chatterbox shear zone host to several gold mines currently owned by Focus Minerals. In addition, the Lady Julie gold deposit, located along strike to the south, shows encouraging signs for a newly emerging mining centre with gold mineralisation extending from surface with recent drill results including 22m @ 4.1 g/t Au from surface, and 16m @ 5.59 g/t Au from 20m (ASX: MAU, Magnetic Resources NL announcement dated 10 January 2022). 

In July 2022, Cazaly received analytical results for 246 samples collected during the June ’22 quarter. Surface samples were collected on a 200m x 50m grid across anomalous gold in lag trends, identified by the initial 400m x 200m sampling programme completed in the December ’21 quarter. 

Several N-S and NNE gold mineralised trends were identified in the first pass reconnaissance surface samples, and this follow up phase of infill surface sampling has refined these anomalies to generate discrete gold anomalies. The orientation of the refined gold mineralised trends is analogous to the adjacent Chatterbox shear zone host to Apollo, Whisper & Eclipse gold deposits mined by Focus in the 2010’s. This provides further encouragement that these surface anomalies reflect gold in the bedrock beneath. 

Refer to ASX Announcements dated 28 March 2022 and 25 July 2022 for anomalous assays, sampling techniques and reporting of results.

Kaoko Kobalt Project (CAZ 95%)

Cazaly holds a 95% interest in the Kaoko base metal project located in northern Namibia approximately 800km by road from the capital of Windhoek and approximately 750km from the port of Walvis Bay. The project is situated immediately north of, and abuts, Celsius Resources Limited’s (ASX: CLA) Opuwo Cobalt project with a current resource of 225Mt @ 0.12% Co & 0.43% Cu (CLA ASX: 16 April & 5 November 2018). 

A lithium in soil anomaly measuring 12km x 10km located in the north-eastern portion of the tenement requires further investigation. High priority Co-Cu targets will be re-assessed in conjunction with a full commodity evaluation using all available datasets with a view to advancing the project.

Mt Venn Joint Venture Project (WML 80% CAZ 20%)

The Mt Venn gold project is located 125km northeast of Laverton in the North-eastern Goldfields region of Western Australia and covers approximately 400km² of prospective greenstone sequence. The project area lies within the Mount Venn-Yamarna-Dorothy Hills greenstone belt which is the most easterly major N-S striking greenstone belt of the Yilgarn Craton. 

The belt is considered highly prospective for gold and nickel and is positioned along the western limb of the Yamarna Greenstone Belt that hosts Gold Road’s and Gold Fields’ 6Moz Gruyere Gold Mine. Together the Yilgarn greenstone belts account for 30% of the world’s gold reserves, most of Australia’s nickel production and other base metal and rare earth deposits. 

The project is subject to an unincorporated Joint Venture between the operators Woomera Mining Limited (Woomera, ASX: WML) (80%) and Cazaly (20%). Cazaly is free carried to PFS stage.

McKenzie Springs Joint Venture (FIN 70% CAZ 30%)

Sammy Resources Pty Ltd (a wholly owned subsidiary of Cazaly) is in joint venture with Fin Resources Ltd (ASX: FIN) over exploration licence E80/4808, the McKenzie Springs project, located in the Kimberley region of Western Australia. The project lies south along strike from the Savannah nickel mine owned by Panoramic Resources Ltd and is prospective for intrusive – hosted nickel copper mineralisation.

Parker Range Iron Ore Project (MIN 100% – CAZ royalty interest)

Mineral Resources Limited (ASX: MIN) continued production at the Parker Range mine and has reduced the hauling distance from the mine by 60km. Cazaly retains a royalty of $0.50/tonne of iron ore produced from Parker Range after the first 10 million tonnes of production.

Hamersley Iron Ore Project

The Hamersley Iron Ore Project was an unincorporated Joint Venture between Lockett Fe Pty Ltd (Lockett) (100% owned subsidiary of the Company) and Pathfinder Resources Ltd (ASX: PF1). During August 2021 the project was sold to Equinox Resources Limited (ASX: EQN) who successfully completed a $9 million initial public offering under its Prospectus dated 31 August 2021 and subsequently listed on ASX on 13 October 2021. Lockett received 15,000,000 EQN shares and 2,850,000 performance shares, plus the Company also retained a royalty interest on the project. 

Equinox Resources Limited continued to advance feasibility studies to progress the development planning at the Hamersley Iron Ore Project where the Company retains a 15.7% equity interest in EQN and a royalty interest of US$0.30/tonne produced from the project. The project is located in the heart of the world-renowned Pilbara iron ore district and currently has a total Mineral Resource estimate of 343.2 Mt at 54.5% Fe (per Pathfinder (formerly Winmar) Resources Ltd ASX announcement dated 24 January 2020).

Jonathan Downes – New Independent Non-Executive Director

As announced on 19 November 2021, the Company appointed Mr Jonathan Downes as a new independent Non-Executive Director, whilst Mr Nathan McMahon vacated his role as Non-Executive Director on 7 March 2022. 

After a long and successful history with Cazaly, the Board welcomed the appointment of Mr Clive Jones into the role of Chairman.

Halls Creek (CAZ 100%)

The Project is situated 25km southwest of Halls Creek and covers part of the Halls Creek Mobile Zone which is highly prospective for a range of commodities including copper, gold and nickel. The project includes the Mount Angelo North Copper-Zinc deposit, an extensive zone of near surface oxidised Cu-Zn mineralisation overlying massive Cu-Zn sulphide mineralisation.

The Project area also hosts a large lower grade copper deposit associated with a high level porphyritic felsic intrusive at the Bommie prospect located 2.5km to the southwest of the Mount Angelo Copper-Zinc deposit. The Bommie prospect has a large geochemical footprint with coincident Cu-Mo-Bi that extends for 1.2km along strike and over 800m across strike.

A drill program was co-funded via the Department of Mines, Industry Regulation and Safety (DMIRS) Exploration Incentive Scheme (EIS), a State Government initiative that aims to encourage exploration in Western Australia. The Company was successful in two applications for co-funding its drilling campaigns at Mount Angelo North (M80/0247) and at the Mount Angelo Porphyry Bommie Prospect (E80/5307) for up to a total of $300,000 subject to programme approvals and clearances.

Ashburton Basin Project (CAZ 100%)

Cazaly holds the rights to a major land position covering more than 2,450km² in the Ashburton Basin, in the Pilbara region of Western Australia. The project covers major regional structures considered to be highly prospective for major gold mineralisation and occurs in the region hosting Northern Star’s (ASX: NST) Paulsen’s gold deposit and Kalamazoo’s (ASX: KZR) recently acquired Mount Olympus gold deposit. 

The Ashburton Basin forms the northern part of the Capricorn Orogen, a ~1000km long, 500km wide region of variably deformed metamorphosed igneous and sedimentary rocks located between the Yilgarn and Pilbara cratons.

The Company applied for tenure within the region following the recognition of the presence of a major deeply seated, crustal scale structure with the potential to host significant mineralisation, the Baring Downs Fault (BDF). The BDF lies centrally within the Ashburton Basin which to date has had very little modern exploration.

In May and June 2021, the Company and its consultants collated and reprocessed all seismic, magnetic, gravity, geological and geochemical datasets across the Ashburton Project and conducted a major litho-structural interpretation of the region. This reprocessing resulted in a far greater detailed interpretation of the region compared to previous processing and importantly, identified at least three previously unknown, large-scale, deep-seated faults.

One of these newly identified faults shows a seismically reflective halo near-surface that may evidence alteration/fluid flow along this structure. The interconnected relationship between this deeply seated structure and associated smaller scale faults and deformation within the Wyloo Group has led to targeted areas considered prospective for gold mineralisation.

The technical work conducted to date has successfully highlighted specific areas potentially hosting gold mineralisation. The Company is now finalising heritage access agreements and is designing first pass field work over the targeted areas.

Kaoko Kobalt Project (CAZ 95%)

Cazaly holds a 95% interest in the Kaoko base metal project located in northern Namibia approximately 800km by road from the capital of Windhoek and approximately 750km from the port of Walvis Bay. The project is situated immediately north of, and abuts, Celsius Resources Limited’s (ASX: CLA) Opuwo Cobalt project resource of 112Mt @ 0.11% Co & 0.41% Cu (CLA ASX: 16 April & 5 November 2018).

McKenzie Springs (FIN 51% CAZ 49%)

Sammy Resources Pty Ltd (a wholly owned subsidiary of Cazaly) is in joint venture with Fin Resources Ltd (ASX: FIN) over exploration licence E80/4808, the McKenzie Springs Project, located in the Kimberley region of Western Australia. The project lies south along strike from the Savannah nickel mine owned by Panoramic Resources Ltd and is prospective for intrusive – hosted nickel copper mineralisation.

Mt Venn Gold Project (WML 80% CAZ 20%)

The Mt Venn Gold Project is located 125km northeast of Laverton in the Eastern Goldfields Region of Western Australia and covers approximately 400km² of prospective greenstone sequence. The project area lies within the Mount Venn-Yamarna-Dorothy Hills greenstone belt which is the most easterly major N-S striking greenstone belt of the Yilgarn Craton.

The belt is considered highly prospective for gold and nickel and is positioned along the western limb of the Yamarna Greenstone Belt that hosts Gold Road’s and Gold Fields’ plus 6Moz Gruyere Gold Mine. Together the Yilgarn greenstone belts account for 30% of the world’s gold reserves, most of Australia’s nickel production and other base metal and rare earth deposits. 

The project is subject to an unincorporated Joint Venture between the operators Woomera Mining Limited (ASX: WML) and Cazaly.

More recent work by Woomera has focused on the Three Bears Gold Trend, that extends over 7km strike and is highly prospective for gold mineralisation. Drilling results to date confirm the Mama Bear prospect has bedrock gold mineralisation continuity over 600m strike, however further exploration work is required in order to locate the higher grade zones within the mineralised system.

Hamersley Project (PF1 70% CAZ 30%)

The Hamersley Iron Ore Project is an unincorporated Joint Venture between the Company and Pathfinder Resources Ltd. (ASX: PF1). The project is located in the heart of the world-renowned Pilbara iron ore district.

On 9 July 2021, the Company, together with Pathfinder, announced the sale of the project to Equinox Resources Limited who intend to undertake an initial public offer (IPO) and seek a listing on the official list of the Australian Securities Exchange. 

The proposed transaction will create a new listed entity, assisted by a dedicated board and management team, with a sole focus on exploration and development of the Project. 

The proposed spinout will also allow Cazaly to focus its efforts on advancing its other 100% owned projects as well as exploring new opportunities. 

The IPO was lodged with ASIC and ASX on 31 August 2021.

Yabbie Project (CAZ 100%)

Field reconnaissance work will shortly be conducted at the recently granted Yabbie (formerly known as Brown Well) project (CAZ 100%) located in the Laverton district of Western Australia.

Parker Range Iron Ore Project (Royalty interest)

Mineral Resources Limited (ASX: MIN) has stated that they expect to commence production from the Parker Range mine, where the Company has a royalty interest, in September 2021 quarter pending final approvals.

Czech Republic (CAZ 80%)

Cazaly is reviewing its position in relation to its interest in two exploration applications in the Czech Republic as it continues to encounter in-country difficulties in advancing these to grant.

Tara French – New Managing Director 

On 19 April 2021, Cazaly Resources Limited announced the appointment of Ms Tara French as the new Chief Executive Officer/Managing Director of the Company. Tara was previously the General Manager of Exploration at Regis Resources Limited where she was employed for 14 years and played a key role in the company’s transition and growth over that time. In readiness for the commencement of Ms French on 12 July 2021, Clive Jones reverted to the role of Executive Director whilst Nathan McMahon became a Non-Executive Director.

Parker Range Iron Ore Project

As announced on 21 August 2019, the Company, following the receipt of an unsolicited superior proposal from Mineral Resources Limited (Mineral Resources) to purchase the Parker Range Iron Ore Project (Parker Range), terminated the exclusivity period with Gold Valley. 

Following such termination, Cazaly agreed to commercial terms with Mineral Resources for the sale of the assets comprising Parker Range via a binding Heads of Agreement (HOA). The agreement with Gold Valley remained in place whilst Cazaly evaluated the Mineral Resources proposal and its next steps for the sale of Parker Range. 

HOA consideration compromised: 

(a) a payment of $20,000,000 cash upon completion of the sale; and 

(b) a royalty of $0.50 for every dry metric tonne of iron ore extracted and removed from the area of   the Project after the first 10,000,000 dry metric tonnes. 

On 30 August 2019, both parties finalised the sale of Parker Range and completed or waived their HOA Conditions Precedent responsibilities as noted in their ASX announcements dated 21 August 2019. Cazaly also received the cash consideration component of $20 million.

Mt Venn Gold Project (WML 80% CAZ 20%)

A Share Purchase Agreement (SPA) was executed on 8 August 2019 which was subject to customary share and tenement acquisition conditions as well as Woomera successfully undertaking a fund raising in order to fund the acquisition and to provide capital for exploration. 

On 20 September 2019, both parties announced that they had completed or waived their Conditions Precedent responsibilities as noted in the SPA. Woomera purchased the 80% interest in the project from Cazaly, who retained a 20% interest in the tenements and the project through the establishment of an unincorporated Joint Venture (managed by Woomera).

The Mt Venn Project comprises two exploration tenements covering approx. 400 square kilometres and is located 125km northeast of Laverton in the Eastern Goldfields Region of Western Australia. 

The project area lies within the Mount Venn-Dorothy Hills greenstone belt which is the most easterly major NW/SE striking greenstone belt of the Yilgarn Craton. Together these greenstone belts account for 30% of the world’s gold reserves, most of Australia’s nickel production, plus other base metal and rare earth deposits.

The following is an extract from the WML June 2020 Quarterly Report and WML ASX announcement dated 17 August 2020: 

Despite the limitations imposed by COVID-19 on Woomera’s on ground exploration activities, management have been actively progressing the planning for the drilling and exploration program at its key project, the Mt Venn gold project. This has included continuing with its review of existing and historical exploration data, analysis of the geophysics and geology of the area, in-house geophysical modelling, progressing drilling contracts and preparation of Plan of Works and associated regulatory documentation. 

Woomera has also negotiated a force majeure on the joint venture with Cazaly Resources Limited for the interim period whilst JV activities have been paused to ensure compliance with the terms of the Joint Venture. 

Woomera has heritage clearances in place at the high-grade gold target at Lang’s Find and at the Three Bears prospect. It is also in negotiation to complete heritage clearances for Chapman’s Reward and Jutson Rocks during September 2020, at the earliest, with exploration activities to commence once clearances have been received.

Kaoko Kobalt Project (CAZ 95%)

Cazaly now holds a 95% interest in the Kaoko base metal project located in northern Namibia approximately 800km by road from the capital of Windhoek and approximately 750km from the port of Walvis Bay. The project is situated immediately north of Celsius Resources Limited’s (ASX: CLA) Opuwo Cobalt project resource of 112Mt @ 0.11% Co & 0.41% Cu (CLA ASX: 16 April & 5 November 2018).

McKenzie Springs (FIN 51% CAZ 49%)

Sammy Resources Pty Ltd (a wholly owned subsidiary of Cazaly) is in joint venture with Fin Resources Ltd (ASX: FIN) over exploration licence E80/4808, the McKenzie Springs Project, located in the Kimberley region of Western Australia. 

The project lies south along strike from the Savannah nickel mine owned by Panoramic Resources Ltd and is prospective for intrusive – hosted nickel copper mineralisation. FIN has the right to farm-in to an additional 19% interest in the Project by spending $500,000 on exploration by 30 November 2020. 

FIN plans to engage with the Traditional Owners to commence Heritage Agreement negotiations, facilitating the commencement of heritage surveys over areas of interest. Subject to successful negotiations with the Native Title Claimants and the heritage survey clearances, the necessary regulatory approvals will be lodged with the DMIRS for a maiden drilling program.

The following is an extract from the Fin Resources Ltd 2020 Annual Report: 

During the year, FIN considered its options for exploration on previously validated and refined drill targets at McKenzie Springs. Consideration was given to completing a new geochemical survey over the Spring Creek intrusion, inquiries were made to consultants to assist with heritage clearance and initial costings for FIN’s maiden drill program were also completed. 

Access to the McKenzie Springs Project was restricted from March to July 2020 due to a COVID-19 Commonwealth Biosecurity Act Direction. 

On 17 August 2020, FIN advised that it had appointed a drill contractor for its maiden drilling program at the McKenzie Springs Project. The drilling contract was awarded to proven Western Australian operator DDH1 Drilling (DDH1). The field program for the McKenzie Springs Project is expected to commence during October. The planned program includes three diamond drill holes targeting modelled strong high priority conductors defined from Fixed Loop Electromagnetic (FLEM) geophysical survey.

Halls Creek Copper Project (DDD 80% CAZ 20%)

The Halls Creek Project is a copper-zinc project in the East Kimberley near the historic township of Halls Creek. The project comprises a mining lease which includes the Mt Angelo North volcanogenic massive sulphide deposit and is jointly held with 3D Resources Limited (ASX: DDD) (80%) under a joint venture agreement (with Cazaly owning 20%). DDD is the manager of the project and the parties contribute to the expenditure and holdings costs of the project proportionate with their ownership interest therein. Minimal work was undertaken during the last financial year.

Brown Well (CAZ 100% EL applications)

The Brown Well Project comprises two licence applications situated 7km to the west of Laverton and 3km southeast of the historic Windarra South Nickel Mine in the Eastern Goldfields of West Australia and are prospective for both gold and nickel however, due to extensive surficial cover, the ground has not previously been effectively tested to date. 

Work by previous explorers identified potential nickel sulphide targets within extensions of ultra-mafic komatiite flows which were flagged as priority targets but never tested. Other work highlighted the potential for gold bearing structures to occur within the ground. 

Data compilation and target prioritisation has been completed readying for field programs once access is granted.

Panton (CAZ 100% EL application)

The Company has an exploration license application adjacent to Panoramic Resources Ltd’s (Panoramic) Panton Sill Platinum Group Metals (PGM) resource located in the east Kimberley region of West Australia. Application E80/5446 is in a ballot with other competing applications lodged with the DoMIR on the 12 December 2019.

The resource consists of high-grade platinum and palladium mineralisation within a number of stratiform reefs. The Panton orebody is one of Australia’s largest, highest grade, undeveloped PGM deposits.

Park Range Iron Ore Project (100%)

On 11 June 2019, Cazaly had agreed commercial terms for the sale of its 100% owned subsidiary, Cazaly Iron Pty Ltd (Cazaly Iron) to Gold Valley. Cazaly Iron holds the tenements that comprise Parker Range. The agreement with Gold Valley allowed for an initial three-month due diligence exclusivity period, however Cazaly reserved the right to terminate the exclusivity period should it receive another proposal or offer from a third party which is more favourable to Cazaly and its shareholders.

As announced on 21 August 2019, the Company, following the receipt of an unsolicited superior proposal from Mineral Resources Limited (Mineral Resources) to purchase the Parker Range Iron Ore Project (Parker Range), terminated the exclusivity period with Gold Valley Iron Pty Ltd (Gold Valley) under its conditional agreement originally announced on 11 June 2019. 

Following such termination, Cazaly agreed to commercial terms with Mineral Resources for the sale of the assets comprising Parker Range via a binding Heads of Agreement (HOA). The agreement with Gold Valley remained in place whilst Cazaly evaluated the Mineral Resources proposal and its next steps for the sale of Parker Range.

On 30 August 2019, both parties announced that they had completed or waived their Conditions Precedent responsibilities as noted in their ASX announcements dated 21 August 2019. Cazaly also received the cash consideration of $20 million (ex GST).

Mt Venn Project (100%) 

On 23 May 2019, the Company entered into a Heads of Agreement with Woomera Mining Ltd (Woomera) for the sale of an 80% interest in the Mt Venn Project in the north eastern Goldfields of Western Australia.

The Heads of Agreement provided the framework for a detailed Share Acquisition Agreement and Joint Venture Agreement, which the parties aim to negotiate and execute on or before 20 August 2019. Importantly, the Heads of Agreement specifies key terms which have been agreed and must be incorporated into the final agreements. The Mt Venn project comprises two granted exploration licences E38/3111 and E38/3150 and ground covered by four expired prospecting licences over the historic Chapman’s Reward mine (P38/4149, 4150, 4151 and 4195) which were subsequently amalgamated into E38/3111. The tenements cover approximately 390km² occur over some 50 kms of strike of the Mt Venn Greenstone Belt giving the dominant land position (>90%) over the Belt. The project lies within the Cosmo Newberry Aboriginal reserve and is subject to a Native Title claim by the Yilka people. A Cazaly subsidiary, Yamarna West Pty Ltd, signed a Native Title Agreement with the Yilka People and the Cosmo Newberry Aboriginal Corporation (CNAC) on 28th July 2016. The tenements are highly prospective for gold, nickel and nickel-copper-cobalt deposits. Volcanogenic massive sulphide deposits may also be a possibility based on anomalous zinc, copper, lead, gold and silver in felsic volcanics.

A Share Purchase Agreement (SPA) was executed on 8 August 2019 which was subject to customary conditions for a share acquisition and the good standing of the tenements and will also be subject to Woomera successfully undertaking a fund raising in order to fund the acquisition and to provide capital for exploration. The closing date for completion under the SPA was 20 September 2019. 

On 20 September 2019, both parties announced that they had completed or waived their Conditions Precedent responsibilities as noted in the SPA.

The Company holds the project through its 100% owned subsidiary Yamarna West Pty Ltd. Woomera has agreed to acquire 100% of the shares in Yamarna subject to the key terms and conditions of the Heads of Agreement. 

Prior to the completion date, Yamarna will transfer to Cazaly a 20% undivided interest in the project tenements whilst also entering into an agreement with Yamarna which establishes an unincorporated joint venture (JV)) under which the JV parties will hold the following interests: Yamarna 80% Cazaly 20%

Woomera will be appointed the Manager of the JV and will remain Manager whilst it has a majority interest. 

It should be noted that Sulphide Resources Ltd had previously entered into an agreement for the purchase of Mount Venn but their option to purchase expired in January 2019.

Kaoko Kobalt Project (76%)

The project, in which Cazaly has the right to earn a 95% interest, is primarily prospective for base metal mineralisation over a large area in northern Namibia. The Kaoko project lies in northern Namibia approximately 800km by road from the capital of Windhoek and approximately 750km from port of Walvis Bay. The region has excellent infrastructure and comprises exploration licence EPL6667 (granted in February 2018) and two further applications (EPL 7096 & EPL 7097) which, combined, cover ~1,410km² of tenure.

McKenzie Springs Project (100% – FIN earning 51%)

The project is located immediately south & along strike of the Savannah Nickel Mine (Panoramic Resources Ltd), Kimberley, WA. Prospective ultramafic basal contact extends for ~15km. Work by Cazaly has identified high grade gossan samples returned 12.8% Cu, 1.92% Ni, 0.17% Co. The project is also within 10km of the Hexagon Resources McIntosh Graphite Resource. Reprocessing and imaging of historic VTEM data was completed by Cazaly with several conductor targets potentially representing graphitic units ready for follow up. 

Below is an extract from the Fin Resources Limited ASX release dated 25 July 2019 (ASX: FIN): 

A review of the potential of the McKenzie Springs Project was completed by an external consultant during the June Quarter. The review focused on the work completed by Fin and previous explorers to validate and refine the company’s target so as to drill the best targets at McKenzie Springs. 

The review confirmed that one of the priority targets (MK25) coincides with an isolated gravity anomaly and has the appropriate geological setting to host Ni-Co-Cu occurrences. The target is greatly enhanced by the considerable thickening of magma to other targeted areas within the licence and has reported a similar electromagnetic response to the Savanna Ni-Cu-Co Mine that is located along strike to the NE of the project. 

The external consultant review highlighted the much larger Spring Creek intrusion complex (located in the northern section of the license) which hosts a minor airborne EM anomaly that remains untested, with little modern exploration work done over this area (one drill hole for PGE and a rock chip traverse). It was recommended to extend the geochemistry coverage of the intrusion as well as other areas not previously covered. The Company now considers completing new geochemical survey over the Spring Creek intrusion as essential before prioritising targets for drilling.

Kaoko Kobalt Project (51%)

The Kaoko Project is located in northern Namibia approximately 800km by road from the capital of Windhoek and approximately 750km from port of Walvis Bay, Namibia. It is primarily prospective for base metal mineralisation.

On 26 March 2018, the Company announced it had acquired an option to earn the rights to a 95% interest in the Kaoko Kobalt Project (Kaoko) in Namibia. The Kaoko project initially comprised key exploration licence EPL6667 which was granted to a local Namibian company (KDN Geo Consulting CC)(KDN) for a 3-year period from February 2018. 

The option acquired was for the right to purchase 100% of the capital in Kunene North Pty Ltd (Kunene), an Australian unlisted proprietary company. Kunene’s main asset is the Joint Venture (KDN JV) that Kunene holds with KDN. The KDN JV is administered through a jointly owned Namibian company, Philco One Hundred and Seventy Three (Proprietary) Limited (Philco).

Parker Range Iron Ore Project (100%)

The project hosts a near mine-ready iron ore deposit located in the Yilgarn of Western Australia key features of which include ultra-low Phosphorous haematite ore, completed full DFS, located nearby to major infrastructure and has its key approvals to mine in place. The Company is in continued discussions with infrastructure advisors and is reviewing export solutions. The nature of the ultra-low phosphorous ore makes this orebody in demand as a blending ore.

Mt Venn Project (100%)

The Company has entered into a Share Sale Agreement with Sulphide X Limited (Sulphide), a private company that plans to list on the ASX. An option fee has been paid and Sulphide has an initial three month exclusivity period to conduct its due diligence on the Mt Venn project.  

Mt Tabor and Bungonia Cobalt Projects (100%)

In order to focus on their main projects, the Company elected to explore the divesture of the Mount Tabor and Bungonia projects. An option agreement was signed with a private company, who paid a nominal fee for a six month exclusivity option, but they recently decided not to proceed with the purchase of these tenements.

Kurabuka Creek Project (100%)

The Kurabuka Creek project comprises exploration licence application 09/2267 over 69 sub blocks in the Bangemall Basin of Western Australia. The area is prospective for shale hosted base metal mineralisation as demonstrated by historic work.

Cazaly has collated all open file data sets and is preparing for field reconnaissance work investigating the potential of this area to host significant mineralisation. Grant of the tenement is expected during the current quarter.

McKenzie Springs Project (100% – FIN earning 51%)

During the quarter, FIN Resources Limited (ASX: FIN) listed on the ASX. Previously the Company entered into an agreement with FIN whereby FIN may earn an upfront 51% working interest in McKenzie Springs.

The project is located immediately south & along strike of the Savannah Nickel Mine (Panoramic Resources Ltd), Kimberley, WA. Prospective ultramafic basal contact extends for ~15km. Work by Cazaly has identified high grade gossan samples returned 12.8% Cu, 1.92% Ni, 0.17% Co. The project is also within 10km of the Hexagon Resources McIntosh Graphite Resource. Reprocessing and imaging of historic VTEM data was completed by Cazaly with several conductor targets potentially representing graphitic units ready for follow up.

Czech Republic (CAZ 80%)

Two uranium project applications, Brzkov & Horni Venice, located in the Czech Republic. State enterprise Diamo are closing the country’s only operating uranium mine & has indicated interest in mining at Brzkov.

Goldfields Lithium Alliance

The Company withdrew from the Goldfields Lithium Alliance to focus on its core projects.

Mt Venn Gold Project (CAZ 100%)

Following grant and obtaining access to the project, Cazaly conducted two drilling campaigns at Mount Venn during the year. Targeting was largely based upon anomalous gold and pathfinder geochemistry in association with favourable lithologies and structural positions defined from geophysics and previous mapping. Drilling initially focussed on two prospects, Three Bears and Rutters. The programmes proved to be highly successful in defining a major gold mineralised structure at Three Bears and outlining widespread zinc anomalism at Rutters.

The results confirmed the Three Bears mineralised corridor for over 3km. Mineralisation occurs within a large shear structure close to the contact between felsic volcanics and an ultramafic unit.

The confirmation that a large, mineralised gold bearing structure is present in the area is particularly significant and greatly enhances the prospectivity of the region.  

Rutters Zinc Project 

In February a programme of 30 RAB drillholes targeted a coincident auger geochemistry and Zinc-Gold anomaly situated approximately 6km south of the Three Bears prospect along the western margin of the Wartu granite.  

The host volcanics display pervasive, fine grained sulphides, predominantly pyrite, whilst reprocessing of historic airborne EM (Electromagnetic) data highlighted a +1.5km long coincident anomaly below the geochemical anomaly. The company has just finalised processing of a ground based Dipole-Dipole Induced Polarisation (IP) which has highlighted a moderate but consistent shallow IP anomaly coincident with the geochemistry and regional EM anomaly.

The presence of extensive zinc mineralisation, with coincident elevated levels of gold, arsenic, silver, copper and lead, occurring within a felsic volcanic pile indicates the potential for primary VMS (Volcanic Massive Sulphide) mineralisation at depth. The presence of pervasive pyrite alteration, typically proximal to such mineralisation, and coincident EM & IP anomalies suggests the potential presence of base metal mineralisation.

Goldfields Lithium Alliance (CAZ 50%, LIT 50%)

Cazaly and Lithium Australia Limited (ASX: LIT) have an agreement to combine their respective holdings for the exploration and development of pegmatite minerals including lithium minerals in the Goldfields region of Western Australia (the Goldfields Lithium Alliance (the Alliance). 

The agreement includes offers the Alliance rights to pegmatite minerals over any existing or additional ground secured within a 100km radius of Kalgoorlie for an initial period of 5 years. The Alliance includes LIT’s rights to the Coolgardie Rare Metals Venture (CRMV). The CRMV is a LIT initiative with Focus Minerals Limited (ASX: FML) and includes the historic lithium production centres of the Lepidolite Hill and Tantalite Hill mines. 

Under LIT’s terms of its agreement with FML, LIT has the rights to all metals derived from pegmatites on the property and will free-carry FML a 20% interest until a decision is made to commit to feasibility. Under the Alliance agreement CAZ will not be liable for any costs associated with metallurgical testwork or feasibility studies for the CRMV which are to be borne solely by LIT.

Teutonic Base Metal Project (CAZ 30%, MNE 70%)

The Company is in joint venture with Metallum Limited (ASX: MNE) over the Teutonic project which comprises exploration licence 37/1037 located north of Leonora in the eastern goldfields of Western Australia. Reprocessing of historic data by MNE highlighted a number of discrete anomalies within the same stratigraphy hosting the Jaguar and Bentley VMS base metal deposits located ~20km to the north. Recent EM by MNE delineated a 350m long conductor called Mustang in the area. Follow up work by MNE, announced on 23 May 2017, reported preliminary results from a MLEM geophysical survey which identified several prospective bedrock conductors occurring within the target stratigraphic horizon which contains the Mustang conductor. The results further confirm the prospectivity of the Teutonic Project to host base metal mineralisation similar to the deposits to the north.

Park Range Iron Ore (CAZ 100%)

During the June quarter the Company was granted an extension of its rights to commence mining at the project for a further five years to 2022 by the Minister for Environment. 

The project hosts a near mine-ready iron ore deposit located in the Yilgarn of Western Australia key features of which include ultra-low phosphorous haematite ore, completed full DFS, located nearby to major infrastructure and has its key approvals to mine in place.

McKenzie Springs Nickel/Graphite (DDD 80%, CAZ 20%)

Located immediately south & along strike of the Savannah Nickel Mine (Panoramic Res), Kimberley, WA. Prospective ultramafic basal contact extends for ~15km. Limited historic work, High grade gossan samples returned 12.8% Cu, 1.92% Ni, 0.17% Co.

Czech Republic (CAZ 80%) 

Two uranium project applications, Brzkov & Horni Venice, located in the Czech Republic. State enterprise Diamo are closing the country’s only operating uranium mine & has indicated interest in mining at Brzkov.

Mt Venn Gold Project (CAZ 100%)

On 20 May 2016, the Company acquired all the shares in private exploration company Yamarna West Pty Ltd. Yamarna Wests’ key asset is exploration licence application E38/3111 which covers the majority of the Mount Venn greenstone belt located in the north-eastern goldfields of Western Australia. The Company then added to this position by the application of a further contiguous exploration licence (E38/3150) which increased this land holding to control ~90% of the belt over ~50km. 

The Mount Venn project is located 125 km northeast of Laverton and just 40 km west of Gold Road Resources’ (GOR) Gruyere gold deposit (148 Mt @ 1.30 g/t Au for 6.16M oz per GOR announcement dated 22 April 2016).

The belt lies adjacent to the boundary between the Burtville and Yamarna Terranes and has many similarities with the Dorothy Hills greenstone belt which hosts Gruyere. Gruyere is located on an inflection of the NW striking Dorothy Hills Shear, a first order structure transecting much of the belt and into which an internal granite, the Gruyere Porphyry (host to the gold mineralisation), has intruded. The Mount Venn belt also contains major shears and internal granites which are being targeted by the Company.

The Mount Venn belt is probably one of the most under explored greenstone belts for gold in Western Australia. Whilst regional scale geophysical and surface geochemical programmes have been undertaken in the past the focus has been on nickel and base metal exploration and there has been almost no systematic drilling undertaken for gold.

The Company recently signed a Native Title Agreement with the Yilka People and the Cosmo Newberry Aboriginal Corporation which covers the project area.

Goldfields Lithium Alliance (CAZ 50%, LIT 50%)

In May 2016, Cazaly and Lithium Australia Limited (ASX: LIT) signed an agreement to combine their respective holdings for the exploration and development of pegmatite minerals including lithium minerals in the Goldfields region of Western Australia.  

The agreement includes the obligation for both parties to offer to the Alliance rights to pegmatite minerals over any existing or additional ground secured within a 100km radius of Kalgoorlie for an initial period of 5 years.

The Alliance immediately granted Cazaly 50% of LIT’s rights to the Coolgardie Rare Metals Venture (CRMV) which is contiguous with the Company’s recently announced Kangaroo Hills Lithium Project (CAZ ASX release 13 April 2016). The CRMV is a LIT initiative with Focus Minerals Limited (ASX: FML) and includes the historic lithium production centres of the Lepidolite Hill and Tantalite Hill mines. Under LIT’s terms of its agreement with FML, LIT has the rights to all metals derived from pegmatites on the property and will free-carry FML a 20% interest until a decision is made to commit to feasibility.

Further ground was added to the GLiA via the acquisition of the rights to ‘Pegmatite Minerals’ in the Widgiemooltha pegmatite field located ~45km south east of Coolgardie and 25km south of the globally significant Mount Marion Lithium Project

Cobalt Projects (CAZ 100%)

The Company has also applied for exploration permits in both Queensland and New South Wales covering historic workings and prospects with recorded significant cobalt and manganese mineralisation. Cobalt is seeing a resurgence given its role as a key battery metal alongside of graphite and lithium. Cobalt is present in lithium-ion batteries in the lithium cobaltite cathodes used in smartphones, and also with lithium-nickel-manganese-cobalt and lithium-nickel-cobalt-aluminium oxide cathodes which are both used in laptops and electric vehicles. 

Cobalt supply is currently constrained as it is typically a by-product from nickel and copper mining both of which are in current decline. This, combined with the predicted escalation in demand from the lithium battery market, sees cobalt as being a particularly vulnerable component of the supply chain for battery manufacturers. Battery cell manufacturers who have secure cobalt supply chains will have a critical advantage over their competitors. 

In Queensland, the Mount Tabor project licence lies to the north west of Injune and approximately 130km directly north of Mitchell in south-central Queensland. The application covers Jurassic sediments of the intra-cratonic Surat Basin and includes a series of Tertiary mafic intrusives. Manganese rich pods occur sporadically throughout the area and are found to contain appreciable amounts of potentially economic cobalt.

Parker Range Iron Ore Project (CAZ 100%)

Despite the relatively low iron ore price, the Company continues to seek avenues to commence the development of the Parker Range iron ore project. The Parker Range project is the only “mine ready” iron ore deposit in the region not currently in operation. Parker Range has a fully completed definitive feasibility study and all key approvals are in place to commence development.

McKenzie Springs Nickel/Graphite Project (CAZ 100%)

Located immediately south & along strike of the Savannah Nickel Mine (Panoramic Resources Ltd), Kimberley, WA. Prospective ultramafic basal contact extends for ~15km. Limited historic work, High grade gossan samples returned 12.8% Cu, 1.92% Ni, 0.17% Co. 

The project also lies adjacent to Hexagon Resources Limited’s MacIntosh Graphite Project which has an Indicated and Inferred resource of 17.2Mt @ 4.63% Total Graphitic Carbon for 797,200t of contained graphite. Reconnaissance work at McKenzie Springs by the Company discovered an outcropping graphitic schist unit and identified further evidence of graphite bearing units associated with high grade metamorphic rocks of the Tickalara Metamorphic suite which trend throughout the tenement for ~15 kilometres. This is the same unit hosting Hexagon’s Resources Limited’s neighbouring Macintosh Graphite Project.

Czech Republic Uranium Project (CAZ 80%)

Cazaly has two uranium project applications, Brzkov & Horni Venice, which are located in the Czech Republic. The State mining enterprise, Diamo, is closing the country’s only operating uranium mine & has publicly indicated an interest in mining at Brzkov.

Halls Creek Copper Project (CAZ 20%, DDD 80%)

The Company has an agreement with 3D Resources Limited (DDD) to earn up to a 75% interest in the Halls Creek copper project, located in the Kimberley region of Western Australia. The Halls Creek project comprises a large package of six tenements covering an area of approximately 298 km², near the township of Halls Creek covering part of the Halls Creek Mobile Zone which is highly prospective for a range of commodities including base metals, gold, diamonds and nickel.

Parker Range (CAZ 100%)

The Parker Range project is the only “mine ready” iron ore deposit in the region not currently in operation. Parker Range has a fully completed definitive feasibility study and all key approvals are in place to commence development. 

In May 2014, the WA Transport Minister, Mr Dean Nalder, announced that Yilgarn Esperance Solution (YES) Limited, a consortium headed up by Asciano had been chosen to design, build and operate the new Multi-User Iron Ore Facility (MUIOF) planned for the Port of Esperance. Given the state of the iron ore market during the financial year no progress has been made on the development by Asciano. 

Cazaly intends to update the DFS once the YES consortium and the port have completed formal documentation.

McKenzie Springs (CAZ 100%)

The Company conducted reconnaissance work at McKenzie Springs, following up on an outcrop of graphitic schist. Research of historic data also identified further evidence of graphite bearing units associated with high grade metamorphic rocks of the Tickalara Metamorphic suite which trend throughout the tenement for ~15 kilometres. This is the same unit hosting Lamboo Resources Limited’s neighbouring Macintosh Graphite Project. Of particular note is that the graphite has been identified as high grade flake graphite with the potential to be chemically converted into graphene.  

Burbridge Gold Deposits (CAZ 100%)

Cazaly has taken the opportunity to assess the gold potential of its holdings in the Southern Cross region. This has led to the recognition of a group of small but potentially viable gold prospects situated immediately north of the Mount Caudan iron ore deposit called the Burbidge Group. The prospects are located on granted mining leases M77/765 and M77/766 nearby to existing haul roads and associated infrastructure all within 15 kilometres of the 2.5Mtpa Marvel Loch gold mill which was recently recommissioned by Hanking. 

Gold mineralisation at the Zeus prospect was identified in the late 1980’s, south of the Bronco and Great Victoria open cut gold mines. Drilling along the geological contact intersected gold mineralisation in a vertical structure, above an oxidised massive sulphide unit on a contact between metasediments and mafic volcanics. Previous tenement holders Gondwana Resources Limited followed up high grade gold intersects and conducted three rounds of RC in-fill drilling at Zeus, Burbidge and Burbidge East prospects.

Hamersley Iron Project (CAZ 30%, WFE 70%)

In accordance with the terms of the Winmar Exploration Farm-in and Joint Venture Agreement, Joint Venture partner Lockett FE Pty Ltd (Lockett; a wholly owned subsidiary of Cazaly Resources (ASX: CAZ)) agreed its participating interest in the Hamersley Iron Project is diluted from a 49% interest to a 30% interest. Winmar will now register this amendment with the Department of Mines & Petroleum, WA. 

In addition, Lockett has agreed to transfer to Winmar its full participating interest in the northern portion of the Exploration Licence 47/1617. Winmar is delighted to increase its participating interest in the Hamersley Iron Project and will continue to work closely with Lockett to maximise the development potential of the asset. The Hamersley Project is an advanced exploration target with major exploration upside and development potential.

Halls Creek Copper Project (HCCP) & Kalgoorlie Gold Project (KGP)

The Company sold a package of royalties for a potential total of $2.35M comprising royalties held over the Kalgoorlie Gold project (KGP) and the Halls Creek Copper project (HCCP). The sale has been to a private mining investment group and comprises various payments subject to a range of conditions including third party waivers of pre-emptive rights and production hurdles.

Huckitta JV (CAZ 20%, MTH 80%)

Located immediately south of the Leaky Bore tenement, the project comprised two tenements (EL25643 and 25653) which were subject to the Sammy Joint Venture with Mithril Resources Limited (MTH). Following the relinquishment of both tenements in July and August 2015, the joint venture has been dissolved and associated exploration expenditure has been written off in the financial year ended 30 June 2015.

Halls Creek Copper Project (CAZ earning 75%)

The Company has an agreement with 3D Resources Limited to earn up to a 75% interest in the Halls Creek Copper Project, located in the Kimberley region of Western Australia. 

The Halls Creek Project comprises a large package of six tenements covering an area of approximately 298 km², near the township of Halls Creek covering part of the Halls Creek Mobile Zone which is highly prospective for a range of commodities including base metals, gold, diamonds and nickel. Initial work has concentrated on copper mineralisation previously discovered at the Mt Angelo North Cu‐Ag‐Zn and the Mt Angelo Porphyry prospects.

The deposit has all the hallmarks of a classic volcanogenic massive sulphide deposit. It is located close to surface and comprises a shallow zone of oxidized mineralisation overlying a zoned zinc-copper/zinc-copper sulphide blanket. 

The Halls Creek project also hosts the Mt Angelo Porphyry Copper deposit which comprises widespread low grade copper mineralisation occurring with the granophyric phase of the Angelo Microgranite. Historical deep diamond drilling was conducted by several groups in the early 1960s and 70s but was not systematic and only occurred in a relatively small area. 

Parker Range Iron Ore Project (CAZ 100%)

The Parker Range Iron Ore Project is located in the Yilgarn region of Western Australia 15km south of the township of Marvel Loch. The project hosts the Mount Caudan iron ore deposit, a haematite-goethite deposit which outcrops over approximately 4km within a minerlaised formation traced for over 16 km. 

The project has a fully completed Definitive Feasibility Study (DFS, conducted in 201 OJ completed and has all of its key major approvals in place. It is planned to produce up to 4.6 million tonnes per annum (Mtpa) of haematite-goethite ore for an initial 8.5-year mine life, with excellent potential to go beyond this through exploration upside and orebody beneficiation. The economics of the project are very sound with the DFS defining an internal rate of return of 129% and a net present value of approximately $384 million. 

To date development of the project has been delayed due to lack of available port space to export the ore. Recently however, in May 2014 the WA Transport Minister, Dean Nalder, announced that Yilgarn Esperance Solution (YES) Limited, a consortium which includes Asciano and Marubeni, had been chosen to design, build and operate the new Multi-User Iron Ore Facility (MUIOF) planned for the Port of Esperance. 

This is a long awaited development, and, together with the recently completed $120M Esperance Port Access Upgrade, is a step forward for the development of the Group’s Parker Range Iron Ore Project. 

The project is the only “mine ready” iron ore deposit in the region not currently in operation and together with the completed definitive feasibility study has all the key approvals in place to commence development. 

Cazaly intends to update the feasibility study once the YES syndicate and the port have finalised formal documentation. The update will ensure relevant rail and road transportation costs and port charges are incorporated into the financial modelling. Preliminary discussions with potential project finance and commercial partners ahead of a Final Investment Decision (FID) have commenced.

Hamersley Iron Ore Project 

(Cazaly 49% interest and Winmar Resources Ltd 51% interest) 

During the year the Winmar Exploration Joint Venture (WEJV) conducted metallurgical test work, a Mine Gate Study to assess the economic viability of the Hamersley Iron Project (HIP) and determine the size of the mining inventory to facilitate strategic planning of the Project. 

The purpose of the Scoping Study was to assess the project viability, and determine the size of mining inventory and associated costs for input into financial modelling. 

The WEJV also completed an Infrastructure Study which compliments the Mine Gate study and confirmed the potential economic viability of an initial Direct Shipping Ore operation. 

The combined results of the Mine Gate and Transport Infrastructure scoping studies provide key information to assist in discussions with multiple parties when identifying and collaborating on strategic infrastructure solutions in line with the project’s development plan. 

Earaheedy JV

Cazaly and Vector Resources Limited (ASX: VEC) (collectively the Earaheedy Joint Venture, “EJV”) had a farm-in agreement with Anglo American /”Anglo”), covering a large part of the Earaheedy East Iron project in the Wiluna region of Western Australia. Anglo had the opportunity to earn a 75% interest via staged payments of up to $5 l m and the completion of a BFS. On 3 April 2014, it was announced that Anglo had withdrawn from the EJV. Anglo is responsible for all rehabilitation required and the tenements under the EJV were surrendered.

New Company Secretary

Mike Robbins was appointed Company Secretary on 26 July 2013. Mr Robbins has over 20 years resource industry experience gathered at both operational and corporate levels, both within Australia and overseas. During that time, he held numerous project level management positions as well as CFO and Company Secretarial roles with Hodges Resources Ltd, Bannerman Resources Ltd, Moto Gold Mines Ltd and Asian Mineral Resources Limited.

Halls Creek Copper Project (CAZ earning 75%)

The Company was in agreement with 3D Resources Limited to earn up to a 75% interest in the Halls Creek Copper Project, located in the Kimberley region of Western Australia. 

The Halls Creek Project comprised a large package of six tenements covering an area of approximately 298 km², near the township of Halls Creek covering part of the Halls Creek Mobile Zone which was highly prospective for a range of commodities including base metals, gold, diamonds and nickel. Initial work would concentrate on mineralisation previously discovered at the Mt Angelo North Cu-Ag-Zn and the Mt Angelo Porphyry prospects. 

The two prospects occur in association with the Angelo Microdiorite, a 5km by 1km long elongate intrusive occurring along the boundary, and the Koongie Park and Olympio Formations. The Koongie Park Formation was widely considered to have potential regionally for the development of stratabound base metals.

Webb Project – (CAZ 100%) 

Site works were completed over the main Iron Oxide Copper Gold (‘IOCG’) target at the Webb Project located within the West Arunta region of WA and was ready for drilling.

Parker Range Iron Ore Project (CAZ 100%)

The Parker Range Iron Ore Project (“PRIOP”) was effectively a ‘mine ready’ development project. The project had a Definitive Feasibility Study fully completed and had all key regulatory approvals in place. Access to a reliable export port facility however had stalled development of the project. Significant progress however had been made in the development of a new iron ore export facility at the Port of Esperance as the State Government continued to advance the interests of the planned producers in the Yilgarn iron ore province. It was expected that the expansion would commence in 2014 with a view towards the export facilities being ready for operation in 2015. 

The Company had a signed Capacity Reservation Deed in place with the port for 5Mtpa. 

The Company continued to engage with potential partners, including potential third-party port constructors and operators for the project.

Hamersley Iron Ore Project (Cazaly 49% interest and Winmar Resources Ltd 51% interest)

In November 2012, the Company’s joint venture partner, Winmar Resources Limited (ASX: WFE) completed its earn-in requirements (expenditure of $6 million) under the Farm-in and Joint Venture Agreement and earned its 51% participating interest.

During May 2013 Winmar announced a maiden Indicated Mineral Resource at the Hamersley Iron Joint Venture Project which was located 50km north-northeast of Tom Price in the Pilbara region of Western Australia.

Musgrave JV (Cazaly diluting to 10% – Traka Resources Ltd (ASX: TKLK) acquiring 90%)

A systematic MLEM survey in the priority area could lead to follow up drilling fairly quickly on any of the targets that may be highlighted.

Huckitta JV (Cazaly 20% – Mithril Resources Ltd (ASX: MTH) 80%)

The East Arunta Project Area was highly prospective for the discovery of economic copper mineralisation within both the Iron Oxide Copper Gold (IOCG). The Illogwa IOCG JV Area lies within the Huckitta Project and was located on two tenements (ELs 25643 and 25653) subject to a joint venture between MTH (80%) and a wholly owned subsidiary of the Company, Sammy Resources Pty Ltd (20%). The parties were funding the project pro-rata and MTH was the operator of the joint venture. 

Targets have been advanced to “drill-ready” stage (in the Mini Me West and El Gordo areas) with drilling anticipated to commence in September 2013. Prospectivity of the targets had been further reinforced by the identification of further surface copper mineralisation at Mini Me West and EM geophysical anomalies at El Gordo.

Mini Me West (Cazaly 20% – MTH 80%) 

Mini Me West is located within the eastern half of Illogwa and comprised an 800 – metre long coincident EM and IP geophysical anomaly. Portions of this anomaly lie beneath outcropping disseminated copper mineralisation (2012 rock chip results up to 1.9% copper) and modelling suggests that the geophysical anomalies are two parallel steeply north east – dipping bodies which may be attributable to sulphide mineralisation. 

The target’s prospectivity was further reinforced with the identification of more outcropping quartz – haematite alteration and copper mineralisation directly above the IP anomaly. All statutory approvals have now been received for Mini Me West and the target is being drilled in the September 2013 quarter.

El Gordo (Cazaly 20% – MTH 80%) 

El Gordo is located immediately south of Mini Me West and comprises a zone of sporadically outcropping copper (malachite – azurite) mineralisation and associated quartz – haematite alteration which had been mapped over 800 metres strike length with widths ranging from 2 to 10 metres. 2012 rock chip sampling of the mineralisation returned values ranging from 0.7% to 12.6% copper, 0.1g/t to 1.0g/t gold and 1.6g/t to 12.5g/t silver. 

Three shallow reconnaissance drill holes completed by Mithril in late 2012 at the eastern end of El Gordo, successfully intersected copper mineralisation, with one hole (MIRC-008) returning 14m @ 0.34% copper, 0.04g/t gold from 18 metres including 2m @ 1.15% copper, 0.23g/t gold. The intersection remains open in all directions and will be tested by further tested by drilling in the upcoming program. 

A review of MTH’s 2012 VTEM survey data over the area also identified three weak EM geophysical anomalies at El Gordo. The features had not been drill tested and their significance was being assessed given that they coincide with, and lie directly along strike from, known copper mineralisation. All statutory approvals have now been received for the target.

Earaheedy JV (Anglo American earning 75%, CAZ/VEC 25%) 

Cazaly and Vector Resources Limited (ASX: VEC) have a farm-in agreement with Anglo American (“Anglo”), the global diversified mining house, covering a large part of the Earaheedy East Iron project in the Wiluna region of Western Australia 

Anglo could earn a 75% interest via staged payments of up to $51m and the completion of a BFS. Initial work undertaken by Anglo appeared to confirm extensive outcropping iron formations. A 5,000m RC drilling campaign was to commence in the last quarter of 2013.

The Cazaly-Vector JV covers the Earaheedy West iron Project where manganese potential had been confirmed at the Blue Cliffs and Blue Nugget prospects.

Parker Range (CAZ 100%)

Cazaly further enhanced its logistics solutions for its Parker Range Iron Ore Project in the Yilgarn region of Western Australia, through the signing of Capacity Reservation Deed with the Esperance Port Authority and by appointing Engenium Limited to conduct a detailed review of interim shipping options prior to the expansion at Esperance being completed.

The Parker Range project was the most advanced DSO resource in the Yilgarn with a published Definitive Feasibility Study, (refer ASX announcement dated 12th May 2011). The project greatly benefited from its close location to existing and accessible infrastructure including road, rail, port, power and township.

This approval, granted under section 45(1) of the Environmental Protection Act 1986, was a significant milestone for the project and the Company and represented the culmination of well over 12 months work by Cazaly. With the granting of this key approval, Cazaly was now in a position to take a step closer to the development of the PRIOP. 

The Company now had an extremely good understanding of the regional environmental, social and heritage values of the project area, and would ensure that all conservation and environmental management measures were fully integrated into the construction and operational planning phases of the project.

Earaheedy Joint Venture 

Cazaly and Vector Resources Limited (ASX: VEC) announced a farm-in agreement with Anglo American, the global diversified mining house, covering a large part of the Earaheedy Iron project in the Wiluna region of Western Australia. The Earaheedy project covered an area in excess of 1,700km² and included a substantial strike extent of the iron ore prospective Frere Formation. The Farm-In Agreement related to an area of approximately 890 km².

Anglo American was to commence a drilling programme on the Potential Major New Iron Ore Province 

Hamersley Iron Ore Project

Winmar’s priorities for its 2012 works program at the Hamersley project were: 

• Defining the extent of the current Resource base 
• Extending the Resource base 
• Improving Metallurgical understanding at the project 
• Progressing infrastructure access negotiations 
• Native Title agreements, including Heritage agreements 
• Base line environmental studies 
• Defining new regional targets, and 
• Mining Plans

Huckitta JV – Cazaly diluting to 20% – Mithril Resources Ltd (ASX: MTH) earning 80% 

The focus of Mithril’s work during the quarter was on EL25643 which formed the major part of the newly defined Illogwa IOCG Target Area (IITA) where multiple outcropping copper occurrences had recently been discovered by Mithril.

Parker Range Iron Ore Project

On 4 August 2011, the Company announced a conditional sale and an alliance arrangement over the Parker Range Iron Ore Project. 

Cazaly agreed on commercial terms and signed a Heads of Agreement for the sale of its Parker Range Iron Ore Project to a major South East Asian diversified investment group (“Investment Group”)

The Agreement allowed for the payment of an initial $40M within 6 months of the execution of a formal Sale and Purchase Agreement (“SPA”) (which could be extended by mutual agreement) and a further payment of $55M upon the earlier of first iron ore being exported or 24 months from signing of the SPA. In addition, a royalty of $2.50 per tonne was payable on all ore produced. The per tonne royalty rate is capped at a maximum of 10% of the gross profit margin should that calculation be lower than $2.50 per tonne.

It was also intended that the parties enter into a 50/50 jointly funded regional exploration agreement, whereby Cazaly would manage all ongoing exploration, including over the Parker Range tenements, within the greater Parker Range region.

Hamersley Iron Ore Project JV

Cazaly reducing to 49% – Winmar Resources Ltd earning an initial 51% interest.

Winmar Resources Limited (ASX:WFE) in conjunction with Cazaly Resources announced a new Inferred Resource Estimate for the Winmar Deposit at the Hamersley Iron Ore Project following completion of a 93 hole / 12,805m drill programme. The estimate was based on results received from the RC drilling extension and infill program completed in May 2011. 

The project lies approximately 50km NE of the Tom Price township in the Pilbara Region of Western Australia, was well placed amongst existing infrastructure and lies immediately south of FMG’s Solomon project.

An Order of Magnitude Study utilizing the expertise of Engenium Consultants, commenced to investigate the development options of the Winmar Deposit. This new resource estimate and exploration target would be used in the study. 

A programme of PQ Diamond Core drilling commenced at Winmar to obtain samples to commence metallurgical testwork. 

The Company granted Winmar an option to purchase 100% interest in the Hamersley iron ore project for an exercise price of $35 million and the grant of a royalty. Winmar paid an option fee of $100,000 for the one-month option but it subsequently lapsed.

Earaheedy Iron Ore Project (Cazaly Resources 50% / Vector Resources 50%) 

Significant drill results were returned from a maiden drilling programme at the Earaheedy Project, northeast of Wiluna, WA. 

The Earaheedy Project is a 50:50 Joint Venture with Vector Resources Limited (ASX: VEC). 

The drilling programme comprised 21 holes for 1,916m, testing a number of targets at the Project with highly encouraging results coming from the Cecil Rhodes Prospect. Significant results from the prospect include 34m @ 54.4% Fe (including 22m @ 58.1% Fe), 22m @ 57.8% Fe and 26m @ 55.1% Fe, all with low levels of contaminants. 

Whilst very early days, the Company was encouraged by the results which highlighted the potential of the Joint Venture’s portfolio to host large-scale iron ore deposits. Numerous targets elsewhere in the Project remain to be drill tested. 

The Joint Venture partners were currently planning programmes for 2011 including further mapping of the mineralised horizon at Cecil Rhodes and developing follow-up drill programmes.

Parker Range Iron Ore Project

Cazaly continued work on the Parker Range Pre-Feasibility Study (PFS) and results were released shortly after the end of December. Development work had been ongoing. The Parker Range Project lies approximately 15 kilometres south-east of Marvel Loch and approximately 63 kilometres by road south of the Perth–Kalgoorlie railway. 

The PFS indicated very robust economics for the project which greatly benefited from its close location to existing and accessible infrastructure including road, rail, port, power and township. This access allowed for the relatively rapid development and ramp up to planned full production of 4 Mtpa within 1.5 years. A Definitive Feasibility Study (DFS) into the project commenced following these results, the initial phase of which incorporated a bridging programme of further metallurgical testwork. 

The PFS study showed that the Company was on track to become the second major iron ore producer in the Yilgarn region of Western Australia, behind Koolyanobbing Operations who had successfully operated in the region for many years. 

The study also highlighted Kwinana as the preferred export port over Esperance due to its closer proximity and lower capital costs requirements.

Hamersley Project

A total of 9 drill holes were completed for 1,332m at the Winmar Deposit , located approximately 70km north of the township of Tom Price. The Winmar Deposit is a Channel Iron Deposit (CID) target buried by modern alluvial drainage. Drilling tested extensions to mineralisation discovered in late 2008 as well as infilling previous drilling to determine mineralisation continuity. 

Numerous significant results were returned with a best result of 60m @ 55.6% Fe. Mineralisation has been intersected over a strike of 1km and is open in all directions. A small number of holes have also intersected bedrock mineralisation (BID) beneath the CID providing additional scope for resources. 

The conclusion of drill programmes enabled the Company to estimate the maiden Inferred Resource for the Winmar Deposit.

Earaheedy Iron Ore Project 

The Company combined its tenement holdings in the Earaheedy Basin located in the central region of Western Australia to form a 50/50 joint venture with Vector Resources Limited (ASX: VEC) to principally explore for iron ore and manganese mineralisation. The project covered a very large area in excess of 2,300 km² including a substantial strike extent of the iron ore prospective Frere Formation. Numerous targets had been identified and the company was negotiating access to the tenements with the traditional owners. 

The Earaheedy Basin was first explored for iron ore during the 1970’s, principally by BHP and AMAX Exploration, who defined extensive areas of haematite enrichment with surface grades of up to 66% Fe. Subsequent work was very limited and only minimal drilling was conducted before work was discontinued. Recent work however, by the Geological Survey of Western Australia and by other companies, reinvigorated exploration and highlighted the potential of the region to host major iron ore deposits. The discovery of high-grade manganese mineralisation by Zinc Co Australia within the Earaheedy has also recently highlighted the potential of the region. 

Whilst the project was at an early stage of development, the extent of known iron formations within the host Frere Formation, the results from regional surface sampling and the results from other work in the region highlighted the great potential of the project to host several large-scale deposits of haematite, haematite-goethite and magnetite.

West Kalgoorlie Project 

Cazaly sold its interest in the West Kalgoorlie project and its wholly owned subsidiary, Hayes Mining Pty Ltd to Phoenix Gold Ltd who listed on the ASX on 22nd December 2010. As consideration for the sale, Cazaly received $1.7m in cash, and shares to the value of $1.8m in Phoenix. In addition, Cazaly would receive $2.5m in cash upon completion of drilling and gold production milestones. 

Peripheral Projects 

During the period, the Company divested a number of projects for cash and share consideration, including: 

• Carosue Project 
• Sunrise Dam Project 
• Quart z Hill Project 
• McPhersons Reward Project 
• Huckitta Project 
• Cardinia Bore Project 

The Company retained several free-carried interests in joint ventures managed by third parties. The Company retained expenditure free exposure to exploration success.

Parker Range Iron Ore Project

The Company completed a resource update for Mount Caudan. The resource contains two primary ore-types: a haematite – goethite Banded Iron Formation (BIF) and smaller component of secondary Canga and Detrital ore. All ore types have low levels of deleterious elements and are suitable for Direct Shipping Ore (DSO).

• Increased ownership from 80 to 100%
• Drilling recommenced with regional targets identified
• Upgrade and Infill Mount Caudan Resource
• Pre-Feasibility Study to commence.

West Kalgoorlie Project

The Company controlled a substantial gold exploration and development portfolio in the Kunanalling, Ora Banda, Grants Patch, Carbine and Split Rocks regions, collectively known as the West Kalgoorlie project. These tenements covered approximately 533 square kilometres and contained mineral resources of 612,000 ounces of gold. 

Activities focussed on completing the approvals stage for commencement of mining of the Catherwood deposit and advancing exploration over known prospects. 

Drill programmes were completed on the Backflip prospect at Grants Patch, the Boundary and Carnage prospects in the Ora Banda Project Area and the Sabrina prospect and Picante deposit in the Kunanalling Project Area. The Backflip prospect represented a priority target for a significant high-grade resources amenable to mechanised underground mining.

Overview

The Company had been very active with exploration advancing the Company’s assets at the West and East Kalgoorlie gold and nickel projects and over the Pilbara and Yilgarn iron ore projects. Additionally work was continuing over several other projects which the Company had in joint venture including at Quartz Circle, which was in Joint venture with Graynic Metals, Lake Way (Newera Uranium), Jillewarra (Red Emperor) and others.

Pilbara Iron Ore Projects

The Company had five distinct project areas, within the Pilbara region, that were all prospective for iron ore mineralisation. The Hamersley Project covers approximately 85km² and was situated approximately 50km northeast of the Tom Price township in the Pilbara Region of Western Australia. Preliminary work by Cazaly Iron and a review of historical work conducted highlighted the potential for both channel iron deposits (CIDs) and bedded iron deposits (BIDs). Previous drilling within the tenement confirmed the presence of pisolitic material and the results of recent close spaced gravity survey had been particularly encouraging.

The project was very close to road and railway infrastructure providing potential future development advantages. A competitor’s proposed rail corridor crossed the northern portion of the tenement. Drilling commenced in October 2008.

West Kalgoorlie Joint Venture

Carbine Resources Limited (“Carbine”) was earning up to 70% by farming into Cazaly’s entire gold exploration and development portfolio in the Kunanalling, Ora Banda, Grants Patch, Carbine and Split Rocks regions. These tenements cover approximately 533 square kilometres and contained mineral resources of 597,700 ounces of gold. 

Activities were focussed on completing the approvals stage for commencement of mining of the Catherwood deposit, finalising detailed mine designs, developing a mine schedule, and negotiating commercial terms with owners and operators of mining fleets and gold processing plants. 

Exploration for the period was limited by the lack of availability of suitable drill rigs. Drill programmes had been designed for the Backflip prospect in the Grants Patch Project area, the Boundary prospect (Ora Banda), and the Sabrina prospect (Kunanalling).

Mount Carrington 

CAZ granted an option to Rex Minerals Limited (REX) to purchase all of its remaining interest in the Mt Carrington gold-silver project in northern NSW.

Menzies

Proto Resources & Investments Ltd completed its acquisition of particular interests in the Menzies Project. Proto agreed to form JV with Poseidon Nickel.  CAZ retained their interests which included 10% of the nickel laterite rights, 50% of the nickel sulphide rights and 30% of the gold rights.  

Mount Vetters

Proto completed the acquisition of the Company’s remaining 25% interest in the Mount Vetter project.  Cazaly still retained an ongoing interest in 25% of the gold and uranium rights.

Cosmo Newberry JV

3D Resources entered into a farm-in and joint venture agreement where it could earn 75% in the Cosmo Newberry Exploration Licences by spending up to $300,000 on tenements within 3 years of granting.

Big Ben – Alice Hill

3D Resources entered into a farm-in and joint venture agreement with Cazaly Resources Ltd where it could earn 75% interest in the Big Ben (E80/4014) and Alice Hill (E80/4015) Exploration Licences by spending up to $150,000 on the tenements within three years of granting.

Parker Range Iron Ore Project

Yilgarn Iron Province

The Company entered into an iron ore farm-in agreement with Gondwana Resources Ltd (ASX: GDA), covering the Parker Range Project. Cazaly has the right to earn 80% of the iron ore rights through the expenditure of $1million over three years. The Parker Range Project lies approximately 15 kilometres south-east of Marvel Loch and approximately 60 kilometres by road south of the Perth–Kalgoorlie railway. Potential exists for the delineation of a substantial resource of iron ore.

The Yilgarn Iron Province has a history of large-scale iron production, with the first iron ore exported from Western Australia coming from the Koolanooka deposit in the Yilgarn during the mid-1960s. More recently, iron ore mining in the Yilgarn has been characterised by modest production from several small and dispersed hematite deposits, such as Koolyanobbing.

Rhode Ridge Iron Ore Project

Cazaly had exploration licence applications in respect of the Rhodes Ridge project which contained one of the largest undeveloped iron ore resources in Western Australia. Cazaly agreed to transfer the tenements to FMG upon grant in return for a royalty from future production. Upon transfer of the tenements, Cazaly would receive an advance on future royalties calculated at $0.05 per tonne of the inferred JORC compliant resource contained in the Rhodes Ridge Project with an agreed minimum payment of $20 million and an agreed maximum of $100 million. 

The Rhodes Ridge Joint Venture which comprised a subsidiary of Rio Tinto Limited, Hancock Prospecting Pty Ltd and Wright Prospecting Pty Ltd, had objected to the grant of the tenements on the basis that the Rhodes Ridge Joint Venture claimed to hold rights of occupancy over the land pursuant to the Iron Ore (Rhodes Ridge) Agreement Authorisation Act 1972 (WA). Cazaly contended that the rights of occupancy have not been validly renewed and that the land is open for mining under the Mining Act 1978 (WA). 

The Mining Warden determined that there should be a preliminary hearing in relation to whether or not the Rhodes Ridge Joint Venture has valid and subsisting rights of occupancy. This preliminary hearing was listed for 4 and 5 December 2008. 

If the Warden determined that the Rhodes Ridge Joint Venture did not hold valid and subsisting rights of occupancy, there was no reason why the Rhodes Ridge Joint Venture should be heard in opposition to the grant of the tenements and Cazaly believed there is no reason why the tenement applications should not be granted.

Shovelanna Legal Action continues.

On the 28th of August 2007 the Western Australian Court of Appeal delivered its judgment in relation to Cazaly Iron Pty Ltd’s application to quash the decision of the former Minister for Resources to terminate Cazaly’s application. The Court of Appeal has refused Cazaly’s application to quash the decision.

Cazaly believes this judgment has jeopardised the future development of the Western Australian resources industry and in particular the iron ore industry. It is clear from this judgment that iron ore had, and is, being treated differently to any other commodity under the WA Mining Act -it had its own set of rules. It had been extremely difficult to reconcile this decision with what was in the best interests of the State and appears as an impediment to anybody wanting to get on with the business of finding and developing the State’s resources.

West Kalgoorlie Gold Project 

Cazaly reached an Agreement with Carbine Resources Ltd whereby Carbine would earn a 50 percent stake, with an option to increase to 70 percent, in Cazaly’s entire gold exploration and development portfolio in the Kunanalling, Ora Banda, Grants Patch, Carbine and Split Rocks regions. These tenements covered approximately 533 square kilometres and contained mineral resources of 612,400 ounces of gold.

The joint venture intended to commence exploration drilling in June 2007 and had secured drilling equipment for this programme. Drilling would focus on prospects along the Kunanalling shear, principally the Mick Adam,Wadi, Burgundy and Picante deposits. Additionally, mine development options would be re-assessed as a priority.

The joint venture allowed Cazaly to focus on its iron ore strategy whilst maintaining exposure to a strategic package of tenements that it had spent a considerable amount of time and effort assembling. The Agreement was consistent with the Company’s focus on the iron ore sector whilst retaining exposure to the quality gold assets. Drilling at the Backflip prospect had been highly encouraging with the best results being 9 metres @ 16g/t Au. 

Parker Range Joint Venture (Iron Ore)

Cazaly Resources Ltd (ASX: CAZ) entered into an iron ore farm-in agreement with Gondwana Resources Ltd (ASX: GDA), covering the Parker Range Project. Details of the farm-in agreement were announced by GDA 3rd July 2007.

The Parker Range Project lay approximately 15 kilometres south-east of the Marvel Loch town site and approximately 50 kilometres by road south of the Perth–Kalgoorlie rail. Potential existed for the delineation of an iron mineral resource.

The Yilgarn Iron Province had a history of large-scale iron production, with the first iron ore exported from Western Australia coming from the Koolanooka deposit in the Yilgarn during the mid-1960s. Iron ore mining in the Yilgarn had been characterised by modest production from several small and dispersed hematite deposits, such as Koolyanobbing. The Parker Range Project was subject to iron ore exploration during the 1960s and reconnaissance exploration identified goethite, hematite and magnetite mineralisation.

Other Projects 

The Company retained significant free-carried interests in other exploration projects including Mt. Clifford, Goongarrie, Bardoc and Jutson Rocks, among others. The Company had several active exploration projects including additional Pilbara Iron ore tenements and the Jillewarra base metals project.

Overview

The Company had a dual focus on the corporate activity and legal action involving the Shovelanna iron ore project and the advancement of its gold assets in the world class Kalgoorlie region. 

Considerable success from drilling and corporate activities, particularly in respect to the Kunanalling project, resulted in a substantial increase in the value of the assets of the Company. Resources at Kunanalling increased to over 600,000 ounces gold. 

The Company had a large portfolio of ground largely prospective for gold and base metals situated within Western Australia. Through astute project acquisition and creative joint venture arrangements the Company was exposed to exploration success in gold, iron ore, uranium, nickel and copper as well as several other commodities

Shovelanna Iron Ore Project

The Company made an application for Exploration Licence 46/678, the Shovelanna project, on August 29, 2005. The project lies approximately 25 kilometres east of Mt. Newman adjacent to BHP Billiton’s Orebody 18 North deposit where mining had recently commenced and over 100 kilometres from any operation by Rio Tinto.

The WA Department of Industry and Resources (DoIR) advised the Company that Rio Tinto Limited (“Rio”) had requested the Minister for State Development exercise his discretion under section 111A of the Mining Act of 1978 to refuse the application for the E46/678 on the grounds of public interest. 

The Company subsequently lodged several submissions to the DoIR in support of its application for the license in response to submissions made by Rio. The Minister for State Development was given all copies of all submissions, together with all other relevant information including advice from the State Solicitor’s Office, for his consideration and determination (or direction).

The Company was given notice of this determination made by Honourable John Bowler, Minister for Resources and Assisting the Minister for State Development, on the 21st April, 2006.

The determination essentially ruled in favour of Rio’s application stating in part:

“I have determined that the application by Cazaly Iron Pty Ltd for Exploration Licence 46/678 should, in the public interest, be terminated pursuant to section 111A(1) (c) (ii) of the Mining Act 1978.”

The Company’s belief was that it was extremely difficult to reconcile this decision with what was in the best interests of the State. This could be interpreted as a direct win for big business over anybody else wanting to get on with the business of finding and developing the State’s resources.

The Company was inundated with support from both shareholders and others in the community who have expressed anger and confusion with the decision. The Directors of the Company share these feelings.

West Pilbara Iron Ore Projects 

The Company applied for 8 exploration licences prospective for iron ore mineralisation in the Pilbara region. A helicopter assisted rock chip program was completed during June. Access via helicopter was obtained on E47/1559 (Cane River) and E47/1560 (Mt Brockman). Ground truthing was completed and samples were taken of any mineralisation noted.

Kununalling West Kalgoorlie Project

The Kunanalling project encompasses a large contiguous group of tenements situated approximately 30 kilometres west of Kalgoorlie and 30 kilometres north of Coolgardie centred along the Kunanalling Shear, a major regional structure associated with gold mineralisation exhibiting features similar to the nearby Zuleika Shear host to the +7 Moz. Kundana minefield.

• Test work program on Mick Adam & Wadi Heap Ore deposits
• Resource Upgrade Mich Adam, Wadi and Burgundy Deposits
• Broad Dam addition

After the re-estimation of the Mick Adam, Wadi and Burgundy Resources and the addition of the Broads Dam resource, the Company now controls total resources of 612,000oz Au.

Overview

The company expanded its tenure and resource base in the Kalgoorlie region and grown its global resources. This was followed up with detailed exploration and good exploration success from drilling particularly at Kunanalling where the majority of work in the year was conducted. The Company entered a mining agreement with Placer Dome and began exploration in the Grants Patch/Ora Banda region. The company also expanded its project base through applications over the Shovelanna iron ore project and several uranium projects. 

Kunanalling Project Kalgoorlie

The Company had a large portfolio of ground largely prospective for gold and base metals situated within Western Australia. Through astute project acquisition and creative joint venture arrangements the Company was well exposed to potential exploration success in gold, iron ore, uranium, nickel and copper as well as several other commodities. The company successfully joint ventured a significant number of these projects and continued to actively develop new projects with a view towards divestment whilst aggressively expanding and developing its key asset at Kunanalling.

Catherwood Wadi & Outridge Gold Deposits

The Company announced that it had entered into a Heads of Agreement with Placer Dome to develop the Catherwood,Wadi and Outridge gold deposits. Once commenced, the Project was scheduled to continue for 10-12 months with cashflow starting within 2 months of commencement owing to the shallow nature of the Catherwood ore. Ore would be treated at PDAP’s Kalgoorlie West Operations at Paddington. Development of the operation would be funded by PDAP, from project cashflow, with net profits being shared by the parties on a pre-determined basis on commercial terms.

Ora Banda/Grants Patch Project. 

An initial drilling programme was completed over specific targets at the the Ora Banda project based upon the results of historical work and geological assessment. Previous mining in the region has been extensive with most mineralisation restricted to particular stratigraphic units and controlled by a range of structures. Subsequent targeting was based upon this work.

Shovelanna Project – Iron Ore 

The Project was located within the Hamersley Iron Province, Australia’s, and one of the world’s, premiere iron ore mining regions since mining first began in 1966. The ores are generally of three types; Bedded, Channel and Detrital deposits. The bedded ores comprised the bulk of the regions’ resources and it was this style of ore that existed at Shovelanna.

The area subject to the application was previously held by Hamersley Resources Limited (a subsidiary of Rio Tinto),Wright Prospecting Pty Ltd and Hancock Prospecting Pty Ltd under E46/209 which expired on 26 August 2005. 

Cazaly Resources Limited (CAZ) made an application for exploration licence 46/678 on 29 August 2005. The licence covers an area of approximately 40 km² and covers Brockman Iron Formation lithologies along Shovelanna Hill. The area was located some 12 km north northwest of BHPB’s Jimblebar operations at Wheelarra Hill and was immediately contiguous with BHPB’s Orebody 18 mining operation.

Cazaly Resources Ltd (ASX: CAZ) was notified that the following objections have been lodged in respect to application for Exploration Licence 46/678:

• Objection MB54/056 by BHP Billiton Minerals Pty. Ltd, Itochu Minerals and Energy Australia Pty. Ltd and Mitsui-Itochu Iron Pty. Ltd. 
• Objection MB57/056 by Hancock Prospecting Pty. Ltd.

CAZ was formally advised by the WA Department of Industry and Resources (DoIR) that Rio Tinto Limited (Rio) had requested the Minister for State Development, Mr Alan Carpenter MLA, exercise his discretion under section 111A of the Mining Act of 1978 to refuse the application for the Shovelanna Iron Ore Project (ELA 46/678) on the grounds of public interest. 

CAZ vigorously defended both the objections and the Section 111A submission as they believe they had both the financial and technical ability to advance the project at a significant larger quantum that what had occurred in the previous 15 years. An initial substantial Reverse Circulation drilling programme had been designed and approved to commence upon grant of the tenement. This drilling would be part of a more comprehensive exploration and development programme which was envisaged to quickly advance the project towards being mined.

Uranium Projects 

The Company made priority applications for several Licenses over four separate project areas situated in the Gascoyne and goldfields regions of Western Australia and in the Northern Territory. Two project areas in the Gascoyne region lie some 150 kilometres apart and were called the Pells Range (ELA09/1193) and the Jailor Bore (ELA09/1194) projects whilst applications for three exploration licences, the Lake Way project, Nova Energy Limited’s Lake Way uranium deposit and The Quartz Hill project which lies within the Harts Ranges to the northeast of Alice Springs in the Northern Territory.

Quartz Circle, Jutson Rocks and Northampton Projects 

Graynic Metals Ltd – Earning 80% 

The Company divested an 80% interest in the Quartz Circle, Jutson Rocks and Northampton Projects to Graynic Metals Ltd (ASX Code: GYN) for a total of 10,000,000 shares being approximately 39% (post IPO) of the issued capital in Graynic. Graynic successfully listed on the ASX on June 30th raising $2.5M. Cazaly distributed the 10 million Graynic shares to its shareholders by way of an in speci distribution on the basis of one Graynic share for approximately every four Cazaly shares.

East Kalgoorlie Joint Venture  (Northern Mining Ltd – Earning 75%)

Northern Mining Ltd (planning to list on the ASX) are paying the Company $200,000 cash and issuing 3,250,000 vendor shares and completing 15,000m of reverse circulation drilling to earn an initial 75% of the East Kalgoorlie project. 

Mt Carrington (Drake Resources Ltd. – Earning 90%) 

The Company concluded an Option and Sale Agreement with Drake Resources Limited for 90% of Cazaly’s interest in the Mount Carrington Project.

The Mount Carrington project is a polymetallic (primarily gold and silver) project situated within the north-central part of the New England Fold belt in the northern goldfields of New South Wales. The project has a long history of mining. During the 1980s large scale open cut gold mining operations were undertaken with mining ceasing in 1990 following increasing metallurgical and grade control difficulties encountered once the mining reached the primary ore zones. These difficulties were believed to be largely due to the polymetallic nature of the orebody, with respect to the CIL plant being used, and a poor understanding, at the time, of the geological controls. 

The project was Drake’s major focus and a large drilling programme planned.

MENZIES (Great Australian Resources Ltd. – Earning 80%)

The company reached an agreement with Great Australian Resources Ltd (“GAR”) whereby GAR could earn an 80% interest in the Menzies project. As part of the agreement GAR is obliged to conduct a minimum of 1,000 metres of drilling.

Kunanalling Project 

The Kunanalling Project is located approximately 30 kilometres west of Kalgoorlie and 30 kilometres north of Coolgardie in the East Coolgardie Mineral Field of Western Australia. The project has substantially increased in size since listing, largely as a result of dealings with other parties in the region, and the Company now commands a dominant land position in the area.  Significant results from drilling programmes

Quartz Circle (Joint Venture)

The Quartz Circle project is situated in the Eastern Pilbara region of Western Australia and is prospective for base metals and gold. Currently Straits Resources is earning 70% equity through the expenditure of $1M whilst Cazaly retains management of the project. Quartz Circle Project Heritage surveys completed and drilling commenced.

Cazaly Resources listed on Friday, 31 October 2003, after closing its $4 million prospectus three weeks early after being several times oversubscribed. The company had 33 million shares on issue, 11.2 million seed investor and promoter shares, 1.8 million vendor shares and 20 million shares were taken up by the public.

Investors were not only backing the company’s suite of high quality assets with attractive exploration targets, but more importantly the proven track record and experience of the board to deliver value to shareholders.

Kununalling Gold Project

Cazaly’s major asset was the Kununalling gold project, strategically located approximately 30 km north of the historical gold mining town of Coolgardie in Western Australia. It contained a 38,000 ounce gold resource with numerous targets ready for immediate drill testing. Previous drill results include 14m @ 7.31 g/t gold, 16m @ 5.06 g/t gold, and 5m @ 21.89 g/t gold. Exploration would commence immediately after listing.

Mt Vetters Nickel Sulphide Project

The Mt Vetters nickel sulphide project is located 35 km north-northeast of Kalgoorlie and abuts the high grade Silver Swan nickel mine to the north. Exploration would commence immediately after listing.

Quartz Circle JV Copper-Gold Project

Exploration would be undertaken on the Quartz Circle JV copper-gold project located in the eastern Pilbara region of Western Australia. Previous exploration returned highly promising results including 38m @ 4.04% copper, 34m @ 5.51% copper, and 4m @ 9.3% copper, 13.3 g/t gold.