Halls Creek Copper Project (CAZ earning 75%)

The Company has an 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 comprises 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 is highly prospective for a range of commodities including base metals, gold, diamonds and nickel. Initial work has concentrated on copper mineralisation previously discovered at the Mt Angelo North Cu‐Ag‐Zn and the Mt Angelo Porphyry prospects.

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. 

The Halls Creek project also hosts the Mt Angelo Porphyry Copper deposit which comprises widespread low grade copper mineralisation occurring with the granophyric phase of the Angelo Microgranite. Historical deep diamond drilling was conducted by several groups in the early 1960s and 70s but was not systematic and only occurred in a relatively small area. 

Parker Range Iron Ore Project (CAZ 100%)

The Parker Range Iron Ore Project is located in the Yilgarn region of Western Australia 15km south of the township of Marvel Loch. The project hosts the Mount Caudan iron ore deposit, a haematite-goethite deposit which outcrops over approximately 4km within a minerlaised formation traced for over 16 km. 

The project has a fully completed Definitive Feasibility Study (DFS, conducted in 201 OJ completed and has all of its key major approvals in place. It is planned to produce up to 4.6 million tonnes per annum (Mtpa) of haematite-goethite ore for an initial 8.5-year mine life, with excellent potential to go beyond this through exploration upside and orebody beneficiation. The economics of the project are very sound with the DFS defining an internal rate of return of 129% and a net present value of approximately $384 million. 

To date development of the project has been delayed due to lack of available port space to export the ore. Recently however, in May 2014 the WA Transport Minister, Dean Nalder, announced that Yilgarn Esperance Solution (YES) Limited, a consortium which includes Asciano and Marubeni, had been chosen to design, build and operate the new Multi-User Iron Ore Facility (MUIOF) planned for the Port of Esperance. 

This is a long awaited development, and, together with the recently completed $120M Esperance Port Access Upgrade, is a step forward for the development of the Group’s Parker Range Iron Ore Project. 

The project is the only “mine ready” iron ore deposit in the region not currently in operation and together with the completed definitive feasibility study has all the key approvals in place to commence development. 

Cazaly intends to update the feasibility study once the YES syndicate and the port have finalised formal documentation. The update will ensure relevant rail and road transportation costs and port charges are incorporated into the financial modelling. Preliminary discussions with potential project finance and commercial partners ahead of a Final Investment Decision (FID) have commenced.

Hamersley Iron Ore Project 

(Cazaly 49% interest and Winmar Resources Ltd 51% interest) 

During the year the Winmar Exploration Joint Venture (WEJV) conducted metallurgical test work, a Mine Gate Study to assess the economic viability of the Hamersley Iron Project (HIP) and determine the size of the mining inventory to facilitate strategic planning of the Project. 

The purpose of the Scoping Study was to assess the project viability, and determine the size of mining inventory and associated costs for input into financial modelling. 

The WEJV also completed an Infrastructure Study which compliments the Mine Gate study and confirmed the potential economic viability of an initial Direct Shipping Ore operation. 

The combined results of the Mine Gate and Transport Infrastructure scoping studies provide key information to assist in discussions with multiple parties when identifying and collaborating on strategic infrastructure solutions in line with the project’s development plan. 

Earaheedy JV

Cazaly and Vector Resources Limited (ASX: VEC) (collectively the Earaheedy Joint Venture, “EJV”) had a farm-in agreement with Anglo American /”Anglo”), covering a large part of the Earaheedy East Iron project in the Wiluna region of Western Australia. Anglo had the opportunity to earn a 75% interest via staged payments of up to $5 l m and the completion of a BFS. On 3 April 2014, it was announced that Anglo had withdrawn from the EJV. Anglo is responsible for all rehabilitation required and the tenements under the EJV were surrendered.