Bungonia Cobalt Project (CAZ 100%)

The project is held under Exploration Licence 8483, covers approximately 242 sq km and is located 130km north east of Canberra and 25km south east of Goulburn in New South Wales. Previous exploration defined several areas of significant cobalt and nickel mineralisation some of which have been historically mined as early as the 1890’s. Cobalt mineralisation occurs as flat lying residual on hills extending for several hundred metres associated with manganiferous deposits. The deposits typically contain relatively rich cobalt values, with minor nickel, copper and lithium, and have been worked historically with high cobalt recoveries.

The areal extent and assay results from historic work point to significant potential to extend known deposits as well as make new discoveries within the project area. The potential is highlighted by the results of rock chip sampling by the company of up to 1.68% cobalt along with historic mining from several locations.

Cazaly’s work has confirmed widespread occurrences of coarse-grained arenaceous sediments (grits) with variable concentrations of manganese oxide-cobalt mineralisation up to 700m long and between 0.5 to 6m in thickness. Possible primary mineralisation of cobalt within basement is also a priority target for further exploration drilling in the area.

Historical metallurgical test work using atmospheric acid leaching produced excellent potential recoveries of 83.2% cobalt, 79.5% copper and 85.9% nickel returned from acid leaching of a 80 kilogram sample containing 1.15% cobalt, 0.39% copper and 0.26% nickel (North Broken Hill Pty Ltd – GS1980/315).

Drilling is planned for 2018 testing more advanced prospects where access is available. In particular, the Avanti deposit has permitting approved for an air core drill program on a 100x50m grid. Rock chip samples have produced grades to 1.07% Co with an average grade of 0.59% Co.