HALLS CREEK COPPER PROJECT

The Halls Creek Copper Project comprises a large package of 8 tenements covering an area of approximately 462 km², near the township of Halls Creek in the East Kimberley region of Western Australia. The project covers part of the Halls Creek Mobile Zone which is highly prospective for a range of commodities including base metals, gold, diamonds and nickel.
The project hosts the Mount Angelo North Cu-Zn-Ag volcanogenic massive sulphide deposit and a large low grade copper deposit associated with a high level felsic intrusive (a granophyric microgranite) at the Mount Angelo Porphyry prospect. Cazaly has access to a large tenement package which is particularly prospective for the discovery of further similar copper and copper-zinc mineralisation.
The Halls Creek Copper project is subject to an agreement with 3D Resources Limited (ASX: DDD, “3D”) whereby Cazaly may earn up to a 75% interest in the project.

Copper grades at Mt Angelo North include relatively extensive high grade zones with drill intercepts of up to; 57m @ 5.04% Cu, 43m @ 2.11% Cu and 13m @ 3.35% Cu. Significant gold and silver credits have also been reported in association with the mineralisation and include 1m @ 6,470 g/t Ag and 0.55 g/t Au.

The Mount Angelo Porphyry prospect located 2.5km to the south west of Mount Angelo North is also a significant large tonnage low grade target in comparison. Drilling has returned intercepts of up to 117m @ 0.32% Cu and 150m @ 0.30% Cu (CAZ: “Halls Creek Copper Project Joint Venture” – 30 October 2012 release to ASX).

Further regional exploration is being planned over the entire tenement package including geochemistry, geophysics and RC drilling. This work will explore for other VMS and porphyry hosted mineralisation in the Halls Creek Copper Project. Cazaly has commenced detailed geophysics at the Halls Creek Copper Project including the acquisition of over 1,000 line kilometers of high resolution airborne EM (Electro-Magnetic). This survey was flown using the high powered Fugro HELITEM® system.
The Mount Angelo North Cu-Zn-Ag deposit occurs within the Koongie Park Formation between two splays of the Angelo Fault. Two prominent limonitic copper gossans 60 m long and up to I8 m wide, occur 150 m apart. Boxworks are common and secondary copper minerals (malachite, azurite, cuprite) are apparent just below the surface. Copper and silver mineralisation is hosted in the lower part of a zone of interbedded volcanogenic metasedimentary rocks, carbonate, chert, and iron formation, and consists of two lenses of massive chalcopyrite, with lesser amounts of pyrrhotite, magnetite, arsenopyrite, and galena, together with associated stringer zones. A pyritic halo surrounds the mineralised zone.
Since taking on the project the Company has conducted five RC /Diamond core drilling programmes. The majority of this drilling has occurred at the Mount Angelo North copper deposit which delineated a significant, shallow body of volcanogenic massive sulphide (VMS) hosted Cu-Zn-Ag mineralisation.
Better intercepts from Cazaly’s drilling over the deposit include; 65m @ 2.69% Cu & 1.13% Zn, 62m @ 2.41% Cu & 2.75% Zn, 39m @ 2.59% Cu & 3.56% Zn.
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. A maiden resource estimate for the deposit was completed in late 2013;

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