Cazaly Resources (ASX:CAZ) has exercised the option to proceed with an earn-in joint venture agreement with Brightstar Resources (ASX:BTR) for the Goongarrie Gold Project in Western Australia.
As this news service previously reported, Cazaly signed a binding term sheet with Brightstar in February 2025 to acquire 80% of Goongarrie.
The Goongarrie 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.
Under the earn-in deal, Cazaly is required to spend an initial $1 million on exploration expenditure within 12 months to earn a 25% interest in the project.
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.
Managing Director Tara French says the company has been diligently working through the legal requirements to establish the joint venture and have advanced its knowledge and ongoing target generation at Goongarrie.
“We are eager to provide updates on our progress as we work towards securing approvals for access and are keen to get drilling as soon as possible,” French says.
“The recent success by Gorilla Gold (ASX:GG8) at the nearby Lakeview prospect is a clear indication of the untapped potential in this district and we look forward to commencing our work.”
Cazaly is planning various drilling programs to test known targets and to explore under-explored key structural settings near known gold mineralisation.
A priority reverse circulation drilling program is planned to confirm and follow-up historical gold drill intercepts, as well as to test along strike and up and down dip of anomalous gold mineralisation.
The company will also conduct a regional aircore drilling program in the southern area aloft the Bardoc Tectonic Zone.
Ahead of drilling, Cazaly will gather heritage and environmental clearances, as well as drilling approvals. Negotiations are currently underway to establish heritage protection agreements with the native title parties.
Brightstar Managing Director Alex Rovira says this joint venture enables the company to retain exposure to exploration success at Goongarrie while directing its resources towards its other assets.
Brightstar is focused on its mining operations at the Second Fortune Gold Mine in Western Australia, as well as development work at the Fish underground mine. The company is also focused on advancing a Definitive Feasibility Study at the Laverton-Menzies gold hub.
Cazaly Resources is a diversified mineral explorer with projects in Australia, Canada, and Namibia. The company’s projects are considered prospective for gold, copper, lithium, rare earths, zinc, silver, graphite, and nickel.
Write to Aaliyah Rogan at Mining.com.au
Images: Cazaly Resources
