The Company had a dual focus on the corporate activity and legal action involving the Shovelanna iron ore project and the advancement of its gold assets in the world class Kalgoorlie region. 

Considerable success from drilling and corporate activities, particularly in respect to the Kunanalling project, resulted in a substantial increase in the value of the assets of the Company. Resources at Kunanalling increased to over 600,000 ounces gold. 

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 exposed to exploration success in gold, iron ore, uranium, nickel and copper as well as several other commodities

Shovelanna Iron Ore Project

The Company made an application for Exploration Licence 46/678, the Shovelanna project, on August 29, 2005. The project lies approximately 25 kilometres east of Mt. Newman adjacent to BHP Billiton’s Orebody 18 North deposit where mining had recently commenced and over 100 kilometres from any operation by Rio Tinto.

The WA Department of Industry and Resources (DoIR) advised the Company that Rio Tinto Limited (“Rio”) had requested the Minister for State Development exercise his discretion under section 111A of the Mining Act of 1978 to refuse the application for the E46/678 on the grounds of public interest. 

The Company subsequently lodged several submissions to the DoIR in support of its application for the license in response to submissions made by Rio. The Minister for State Development was given all copies of all submissions, together with all other relevant information including advice from the State Solicitor’s Office, for his consideration and determination (or direction).

The Company was given notice of this determination made by Honourable John Bowler, Minister for Resources and Assisting the Minister for State Development, on the 21st April, 2006.

The determination essentially ruled in favour of Rio’s application stating in part:

“I have determined that the application by Cazaly Iron Pty Ltd for Exploration Licence 46/678 should, in the public interest, be terminated pursuant to section 111A(1) (c) (ii) of the Mining Act 1978.”

The Company’s belief was that it was extremely difficult to reconcile this decision with what was in the best interests of the State. This could be interpreted as a direct win for big business over anybody else wanting to get on with the business of finding and developing the State’s resources.

The Company was inundated with support from both shareholders and others in the community who have expressed anger and confusion with the decision. The Directors of the Company share these feelings.

West Pilbara Iron Ore Projects 

The Company applied for 8 exploration licences prospective for iron ore mineralisation in the Pilbara region. A helicopter assisted rock chip program was completed during June. Access via helicopter was obtained on E47/1559 (Cane River) and E47/1560 (Mt Brockman). Ground truthing was completed and samples were taken of any mineralisation noted.

Kununalling West Kalgoorlie Project

The Kunanalling project encompasses a large contiguous group of tenements situated approximately 30 kilometres west of Kalgoorlie and 30 kilometres north of Coolgardie centred along the Kunanalling Shear, a major regional structure associated with gold mineralisation exhibiting features similar to the nearby Zuleika Shear host to the +7 Moz. Kundana minefield.

After the re-estimation of the Mick Adam, Wadi and Burgundy Resources and the addition of the Broads Dam resource, the Company now controls total resources of 612,000oz Au.