Cazaly Resources (ASX:CAZ) has begun a 2,000m reverse circulation drilling program at the Duke of York Gold prospect, within the Goongarrie Gold Project in Western Australia.
The initial phase of drilling will test beneath historical gold workings and aims to confirm historical drill intercepts, including 13m @ 3.5 grams per tonne gold and 8m @ 10.7g/t gold.
Cazaly, which has a market capitalisation of $9.22 million, says the program will also inform the next phase of drilling to further test for gold mineralisation along strike and down plunge.
Managing Director Tara French says this is the first of many gold targets to be tested in the highly prospective district.
“Our team has worked extremely hard to obtain approvals which places us on the ground less than three months after exercising the option to earn up to 80% of the Goongarrie Gold Project with Brightstar Resources (ASX:BTR),” French says.
“We can’t wait to see the results of this first drilling campaign.”
In February, Cazaly signed a binding term sheet with Brightstar to acquire 80% of the Goongarrie Project. By March, the company exercised the option to proceed with the earn-in joint venture deal.
As part of the deal, Cazaly is required to spend an initial $1 million on exploration expenditure within 12 months to earn a 25% interest. Cazaly will spend a further $1 million within 18 months to earn a 51% interest, as well as spend an additional $1 million within 18 months to earn an 80% interest.
The project covers 12km of the Bardoc Tectonic Zone which is the northern extension of the Boulder-Lefroy Shear Zone to the south. The Boulder-Lefroy Shear Zone is considered among the richest gold mineralised structures in the Yilgarn Craton.
Cazaly Resources is a diversified mineral explorer focused on its portfolio of projects in Australia, Canada, and Namibia.
Write to Aaliyah Rogan at Mining.com.au
Images: Cazaly Resources
