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.