Parker Range Iron Ore Project

As announced on 21 August 2019, the Company, following the receipt of an unsolicited superior proposal from Mineral Resources Limited (Mineral Resources) to purchase the Parker Range Iron Ore Project (Parker Range), terminated the exclusivity period with Gold Valley. 

Following such termination, Cazaly agreed to commercial terms with Mineral Resources for the sale of the assets comprising Parker Range via a binding Heads of Agreement (HOA). The agreement with Gold Valley remained in place whilst Cazaly evaluated the Mineral Resources proposal and its next steps for the sale of Parker Range. 

HOA consideration compromised: 

(a) a payment of $20,000,000 cash upon completion of the sale; and 

(b) a royalty of $0.50 for every dry metric tonne of iron ore extracted and removed from the area of   the Project after the first 10,000,000 dry metric tonnes. 

On 30 August 2019, both parties finalised the sale of Parker Range and completed or waived their HOA Conditions Precedent responsibilities as noted in their ASX announcements dated 21 August 2019. Cazaly also received the cash consideration component of $20 million.

Mt Venn Gold Project (WML 80% CAZ 20%)

A Share Purchase Agreement (SPA) was executed on 8 August 2019 which was subject to customary share and tenement acquisition conditions as well as Woomera successfully undertaking a fund raising in order to fund the acquisition and to provide capital for exploration. 

On 20 September 2019, both parties announced that they had completed or waived their Conditions Precedent responsibilities as noted in the SPA. Woomera purchased the 80% interest in the project from Cazaly, who retained a 20% interest in the tenements and the project through the establishment of an unincorporated Joint Venture (managed by Woomera).

The Mt Venn Project comprises two exploration tenements covering approx. 400 square kilometres and is located 125km northeast of Laverton in the Eastern Goldfields Region of Western Australia. 

The project area lies within the Mount Venn-Dorothy Hills greenstone belt which is the most easterly major NW/SE striking greenstone belt of the Yilgarn Craton. Together these greenstone belts account for 30% of the world’s gold reserves, most of Australia’s nickel production, plus other base metal and rare earth deposits.

The following is an extract from the WML June 2020 Quarterly Report and WML ASX announcement dated 17 August 2020: 

Despite the limitations imposed by COVID-19 on Woomera’s on ground exploration activities, management have been actively progressing the planning for the drilling and exploration program at its key project, the Mt Venn gold project. This has included continuing with its review of existing and historical exploration data, analysis of the geophysics and geology of the area, in-house geophysical modelling, progressing drilling contracts and preparation of Plan of Works and associated regulatory documentation. 

Woomera has also negotiated a force majeure on the joint venture with Cazaly Resources Limited for the interim period whilst JV activities have been paused to ensure compliance with the terms of the Joint Venture. 

Woomera has heritage clearances in place at the high-grade gold target at Lang’s Find and at the Three Bears prospect. It is also in negotiation to complete heritage clearances for Chapman’s Reward and Jutson Rocks during September 2020, at the earliest, with exploration activities to commence once clearances have been received.

Kaoko Kobalt Project (CAZ 95%)

Cazaly now holds a 95% interest in the Kaoko base metal project located in northern Namibia approximately 800km by road from the capital of Windhoek and approximately 750km from the port of Walvis Bay. The project is situated immediately north of Celsius Resources Limited’s (ASX: CLA) Opuwo Cobalt project resource of 112Mt @ 0.11% Co & 0.41% Cu (CLA ASX: 16 April & 5 November 2018).

McKenzie Springs (FIN 51% CAZ 49%)

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 mine owned by Panoramic Resources Ltd and is prospective for intrusive – hosted nickel copper mineralisation. FIN has the right to farm-in to an additional 19% interest in the Project by spending $500,000 on exploration by 30 November 2020. 

FIN plans to engage with the Traditional Owners to commence Heritage Agreement negotiations, facilitating the commencement of heritage surveys over areas of interest. Subject to successful negotiations with the Native Title Claimants and the heritage survey clearances, the necessary regulatory approvals will be lodged with the DMIRS for a maiden drilling program.

The following is an extract from the Fin Resources Ltd 2020 Annual Report: 

During the year, FIN considered its options for exploration on previously validated and refined drill targets at McKenzie Springs. Consideration was given to completing a new geochemical survey over the Spring Creek intrusion, inquiries were made to consultants to assist with heritage clearance and initial costings for FIN’s maiden drill program were also completed. 

Access to the McKenzie Springs Project was restricted from March to July 2020 due to a COVID-19 Commonwealth Biosecurity Act Direction. 

On 17 August 2020, FIN advised that it had appointed a drill contractor for its maiden drilling program at the McKenzie Springs Project. The drilling contract was awarded to proven Western Australian operator DDH1 Drilling (DDH1). The field program for the McKenzie Springs Project is expected to commence during October. The planned program includes three diamond drill holes targeting modelled strong high priority conductors defined from Fixed Loop Electromagnetic (FLEM) geophysical survey.

Halls Creek Copper Project (DDD 80% CAZ 20%)

The Halls Creek Project is a copper-zinc project in the East Kimberley near the historic township of Halls Creek. The project comprises a mining lease which includes the Mt Angelo North volcanogenic massive sulphide deposit and is jointly held with 3D Resources Limited (ASX: DDD) (80%) under a joint venture agreement (with Cazaly owning 20%). DDD is the manager of the project and the parties contribute to the expenditure and holdings costs of the project proportionate with their ownership interest therein. Minimal work was undertaken during the last financial year.

Brown Well (CAZ 100% EL applications)

The Brown Well Project comprises two licence applications situated 7km to the west of Laverton and 3km southeast of the historic Windarra South Nickel Mine in the Eastern Goldfields of West Australia and are prospective for both gold and nickel however, due to extensive surficial cover, the ground has not previously been effectively tested to date. 

Work by previous explorers identified potential nickel sulphide targets within extensions of ultra-mafic komatiite flows which were flagged as priority targets but never tested. Other work highlighted the potential for gold bearing structures to occur within the ground. 

Data compilation and target prioritisation has been completed readying for field programs once access is granted.

Panton (CAZ 100% EL application)

The Company has an exploration license application adjacent to Panoramic Resources Ltd’s (Panoramic) Panton Sill Platinum Group Metals (PGM) resource located in the east Kimberley region of West Australia. Application E80/5446 is in a ballot with other competing applications lodged with the DoMIR on the 12 December 2019.

The resource consists of high-grade platinum and palladium mineralisation within a number of stratiform reefs. The Panton orebody is one of Australia’s largest, highest grade, undeveloped PGM deposits.