New Company Secretary

Mike Robbins was appointed Company Secretary on 26 July 2013. Mr Robbins has over 20 years resource industry experience gathered at both operational and corporate levels, both within Australia and overseas. During that time, he held numerous project level management positions as well as CFO and Company Secretarial roles with Hodges Resources Ltd, Bannerman Resources Ltd, Moto Gold Mines Ltd and Asian Mineral Resources Limited.

Halls Creek Copper Project (CAZ earning 75%)

The Company was in agreement with 3D Resources Limited to earn up to a 75% interest in the Halls Creek Copper Project, located in the Kimberley region of Western Australia. 

The Halls Creek Project comprised a large package of six tenements covering an area of approximately 298 km², near the township of Halls Creek covering part of the Halls Creek Mobile Zone which was highly prospective for a range of commodities including base metals, gold, diamonds and nickel. Initial work would concentrate on mineralisation previously discovered at the Mt Angelo North Cu-Ag-Zn and the Mt Angelo Porphyry prospects. 

The two prospects occur in association with the Angelo Microdiorite, a 5km by 1km long elongate intrusive occurring along the boundary, and the Koongie Park and Olympio Formations. The Koongie Park Formation was widely considered to have potential regionally for the development of stratabound base metals.

Webb Project – (CAZ 100%) 

Site works were completed over the main Iron Oxide Copper Gold (‘IOCG’) target at the Webb Project located within the West Arunta region of WA and was ready for drilling.

Parker Range Iron Ore Project (CAZ 100%)

The Parker Range Iron Ore Project (“PRIOP”) was effectively a ‘mine ready’ development project. The project had a Definitive Feasibility Study fully completed and had all key regulatory approvals in place. Access to a reliable export port facility however had stalled development of the project. Significant progress however had been made in the development of a new iron ore export facility at the Port of Esperance as the State Government continued to advance the interests of the planned producers in the Yilgarn iron ore province. It was expected that the expansion would commence in 2014 with a view towards the export facilities being ready for operation in 2015. 

The Company had a signed Capacity Reservation Deed in place with the port for 5Mtpa. 

The Company continued to engage with potential partners, including potential third-party port constructors and operators for the project.

Hamersley Iron Ore Project (Cazaly 49% interest and Winmar Resources Ltd 51% interest)

In November 2012, the Company’s joint venture partner, Winmar Resources Limited (ASX: WFE) completed its earn-in requirements (expenditure of $6 million) under the Farm-in and Joint Venture Agreement and earned its 51% participating interest.

During May 2013 Winmar announced a maiden Indicated Mineral Resource at the Hamersley Iron Joint Venture Project which was located 50km north-northeast of Tom Price in the Pilbara region of Western Australia.

Musgrave JV (Cazaly diluting to 10% – Traka Resources Ltd (ASX: TKLK) acquiring 90%)

A systematic MLEM survey in the priority area could lead to follow up drilling fairly quickly on any of the targets that may be highlighted.

Huckitta JV (Cazaly 20% – Mithril Resources Ltd (ASX: MTH) 80%)

The East Arunta Project Area was highly prospective for the discovery of economic copper mineralisation within both the Iron Oxide Copper Gold (IOCG). The Illogwa IOCG JV Area lies within the Huckitta Project and was located on two tenements (ELs 25643 and 25653) subject to a joint venture between MTH (80%) and a wholly owned subsidiary of the Company, Sammy Resources Pty Ltd (20%). The parties were funding the project pro-rata and MTH was the operator of the joint venture. 

Targets have been advanced to “drill-ready” stage (in the Mini Me West and El Gordo areas) with drilling anticipated to commence in September 2013. Prospectivity of the targets had been further reinforced by the identification of further surface copper mineralisation at Mini Me West and EM geophysical anomalies at El Gordo.

Mini Me West (Cazaly 20% – MTH 80%) 

Mini Me West is located within the eastern half of Illogwa and comprised an 800 – metre long coincident EM and IP geophysical anomaly. Portions of this anomaly lie beneath outcropping disseminated copper mineralisation (2012 rock chip results up to 1.9% copper) and modelling suggests that the geophysical anomalies are two parallel steeply north east – dipping bodies which may be attributable to sulphide mineralisation. 

The target’s prospectivity was further reinforced with the identification of more outcropping quartz – haematite alteration and copper mineralisation directly above the IP anomaly. All statutory approvals have now been received for Mini Me West and the target is being drilled in the September 2013 quarter.

El Gordo (Cazaly 20% – MTH 80%) 

El Gordo is located immediately south of Mini Me West and comprises a zone of sporadically outcropping copper (malachite – azurite) mineralisation and associated quartz – haematite alteration which had been mapped over 800 metres strike length with widths ranging from 2 to 10 metres. 2012 rock chip sampling of the mineralisation returned values ranging from 0.7% to 12.6% copper, 0.1g/t to 1.0g/t gold and 1.6g/t to 12.5g/t silver. 

Three shallow reconnaissance drill holes completed by Mithril in late 2012 at the eastern end of El Gordo, successfully intersected copper mineralisation, with one hole (MIRC-008) returning 14m @ 0.34% copper, 0.04g/t gold from 18 metres including 2m @ 1.15% copper, 0.23g/t gold. The intersection remains open in all directions and will be tested by further tested by drilling in the upcoming program. 

A review of MTH’s 2012 VTEM survey data over the area also identified three weak EM geophysical anomalies at El Gordo. The features had not been drill tested and their significance was being assessed given that they coincide with, and lie directly along strike from, known copper mineralisation. All statutory approvals have now been received for the target.

Earaheedy JV (Anglo American earning 75%, CAZ/VEC 25%) 

Cazaly and Vector Resources Limited (ASX: VEC) have a farm-in agreement with Anglo American (“Anglo”), the global diversified mining house, covering a large part of the Earaheedy East Iron project in the Wiluna region of Western Australia 

Anglo could earn a 75% interest via staged payments of up to $51m and the completion of a BFS. Initial work undertaken by Anglo appeared to confirm extensive outcropping iron formations. A 5,000m RC drilling campaign was to commence in the last quarter of 2013.

The Cazaly-Vector JV covers the Earaheedy West iron Project where manganese potential had been confirmed at the Blue Cliffs and Blue Nugget prospects.