The project is located ~125 km northeast of Laverton and just 40 km west of Gold Road Resources Ltd (ASX:GOR) Gruyere gold deposit (148 Mt @ 1.30 g/t Au for 6.16M oz., GOR announcement, 22 April 2016) in the Eastern Goldfields region of Western Australia. GOR recently announced the sale of a 50% stake in Gruyere and other nearby resources, to Gold Fields Limited for $350M cash and a royalty. The Company now controls ~90% of the belt over ~50km. A programme of RC and RAB/AC drilling commenced in mid-January at the project.
Cazaly gained access to the 400 sq km project in January 2017 with the grant of the key licence Exploration Licence 38/3111. This followed the recommendation from the Department of Aboriginal Affairs to grant access permits to the licence which lies within the Cosmo Newberry Aboriginal reserve which is also subject to a Native Title claim by the Yilka people. Cazaly announced the signing of a Native Title agreement with the Yilka People and the Cosmo Newberry Aboriginal Corporation (CNAC) on 28th July 2016. The agreement covers the Mount Venn project which is located in the Yamarna region approximately 125 kilometres northeast of Laverton in Western Australia.
Assessment of the historic data has highlighted several areas of interest with initial work focussing on the ‘Wartu Granite’ area and in particular, the Three Bears prospect. The work was largely based upon anomalous gold and pathfinder geochemistry in association with favourable lithologies and structural positions defined from geophysics and previous mapping in areas with little to no systematic historic drilling having been conducted.
The Wartu Granite area is an approximate 15+km zone in the central part of the belt displaying several features highly analogous to the geological setting of the Gruyere deposit including;
Large internal monzogranitic intrusions
Favourable host greenstone lithologies
Major shear zones with marked inflections
Widespread gold anomalism
The Wartu area has been virtually unexplored however it contains several large gold in soil/auger anomalies coincident with major structural and geological target positions. The Three Bears prospect sits in the postulated ‘Gruyere position’ when compared to the analogous geological setting for Gruyere (see GOR ASX announcement 21 June 2016).
Only very minor, shallow RAB/Aircore (AC) drilling has been undertaken in the past over the area the results of which were never followed up. Mineralisation recorded anomalous gold in this weathered material over ~2km with results including; 12m @ 1.13, 26m @ 0.27 & 16m @ 0.36 g/t Au (ASX:GXN April 17th 2012, 26th June 2012 and 13th May 2013). No drilling below ~50 metres into fresh rock was ever completed.
The Mount Venn belt is 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.
Recent assessment of the area by the Company has defined a +5km long corridor of coincident surface geochemistry and anomalous auger results greatly extending the prospective strike extent of the Three Bears RAB/AC drill results.