This is the first in a two-part feature series.
This article is a sponsored feature from Mining.com.au partner Cazaly Resources Ltd. It is not financial advice. Talk to a registered financial expert before making investment decisions.
Cazaly Resources (ASX:CAZ) is formulating a multi-pronged strategy to capitalise on the transition to global decarbonisation.
Firstly, the $11.5 million market capitalisation company is advancing the Halls Creek Copper Project in the East Kimberley Region of Western Australia, in which the Bommie Porphyry Copper Prospect has been a significant focus.
Additionally, Cazaly has applied for a new exploration licence located in the northern region of Namibia for REE, and base metals in the vicinity of the world renowned Tsumeb Copper-Lead mine.
In the first of a two-part feature series, Managing Director Tara French explains that Cazaly has before it a ‘fantastic opportunity’ to add value to its portfolio with potential base metal mineralisation and REE mineralised carbonatites.
The base metals proposition in particular is quite compelling
The base metals proposition in particular is quite compelling.
Cazaly Resources recently received all analytical results for the reverse circulation (RC) resource drilling program completed at the Bommie Porphyry Copper Prospect in Halls Creek during August.
The MD says analytical results have been received from RC resource drilling at the Halls Creek Copper Project where a total of 3,395m of drilling was completed at the Bommie Porphyry Copper System.
“We are now progressing with a maiden resource estimation for the Bommie porphyry copper deposit. This is due for release before the end of this calendar year. Once the estimation is complete and we have conducted a full review of the geochemical nature of the deposit we will be in a position to determine the requirements for the next phase of work to progress the project.”
The company recently released the final assay results received for RC resource drilling at the Bommie Porphyry Copper Prospect. Wide copper intercepts reported as down hole depths include:
- 126m @ 0.3% Cu from 54m to 180m in HCRC0067.
- 110m @ 0.4% Cu from surface to 110m in HCRC0065.
- 114m @ 0.3% Cu from 2m to 116m in HCRC0077.
Large porphyry copper system
In essence, the Bommie Prospect, located 2.5km southwest of Mount Angelo North, is interpreted as a large low grade porphyry copper system with significant drill intercepts. Copper intercepts to date have shown some variability in thickness with higher grades occurring at the northern end of the deposit. Elevated copper grades generally coincide with >3% sulphides. Preliminary assessment of multielement geochemical data suggests copper has a positive correlation with silver.
Assessment of multielement geochemical data is ongoing in order to better characterise this Proterozoic porphyry copper deposit.
When asked what makes Halls Creek and the prospects within it attractive targets from both a mining and investment perspective, French says the viability of this being an economic project is part of the story. Cazaly is further encouraged by the current mineralisation envelope at the Bommie prospect, which is open in places laterally and at depth, indicating further growth potential of this copper deposit.
“The Koongie Park Volcanics, located in the Halls Creek district, are host to several volcanogenic massive sulphide (VMS) copper deposits with small to moderate tonnages and moderate to high grades. The addition of a large tonnage low grade deposit makes the extraction of the smaller VMS copper deposits a more viable proposition.”
“The addition of a large tonnage low grade deposit makes the extraction of the smaller VMS copper deposits a more viable proposition”
The MD, who is a geologist with 25 years mining and exploration experience, notes that the assay results were in line with expectations with recent intercepts including 110m @ 0.4% copper from surface and 126m @ 0.3% copper from 54m.
“We are undertaking further geochemical studies to better understand this porphyry system while we wait for the results of the resource estimation process.
The copper mineralisation at the Bommie deposit is open laterally and vertically in places. Following the completion of resource modelling and estimation, we intend to interrogate the geochemical nature of the deposit and then review our options to progress the project.”
This bodes well for the world’s transition to net zero emissions and as global demand for copper soars.
Basically, the world needs copper mines to come online and Halls Creek and in particular the Bommie Prospect, looks like a large porphyry copper system.
Copper a major part of ESG
French explains: “In order to move closer to net zero carbon emissions we will require more metals to support the development of infrastructure and technologies needed to facilitate this change. The rise of Electric Vehicles (EV) is expected to account for 55% of the demand for copper. Every new EV requires 3 times the amount of copper of a conventional vehicle.”
The MD adds that from an ESG perspective, Bommie is important as the world heads towards decarbonisation.
“We all know a significant amount of copper is required for each wind turbine, every EV, and also each new house build. I believe it is also critical for Australia to have a supply chain in country. The past few years have shown us that internal sustainability will be a significant advantage in our country’s contribution to decarbonisation.”
According to the EU Energy Roadmap 2050, copper-enabled decarbonising technologies can abate some 75% of EU greenhouse gas emissions. The red metal can be recycled over and over again without loss of quality and has many applications.
From renewable energy infrastructure to electric vehicles (EVs), experts agree that the transition to net zero will not happen without copper.
Generally, decarbonising the built environment requires a combination of energy efficiency measures such as insulation or heat recovery, as well as the deployment of on-site renewable energy generation including PV and energy storage such as thermal or electrical. Due to its superior thermal and electrical conductivity and ability to enhance many building technologies, copper can take on a key role in this process.
“…In addition to the push for decarbonisation of course will see the demand for metals, particularly copper continue to increase”
French adds: “The population has reportedly reached 8 billion, the continued growth in population and the pressure on infrastructure requirements to support this, in addition to the push for decarbonisation of course will see the demand for metals, particularly copper continue to increase.”
In part two of this feature series, Cazaly Resources’ MD speaks about the company’s foray into rare earth elements (REEs) and how complementary having exposure to REEs will be to the company’s portfolio.
French notes that while the Halls Creek Project in the East Kimberley Region of Western Australia remains its central focus, the recent application to explore for REEs in Namibia is exciting for Cazaly.
Write to Adam Orlando at Mining.com.au
Images: Cazaly Resources Limited & iStock