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:

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.