Cazaly Resources finalises Carb Lake REE Project purchase, Canada

Diversified explorer Cazaly Resources (ASX:CAZ) has completed the acquisition of the Carb Lake Rare Earth Project in the Red Lake District of Ontario, Canada.

In April 2023, Cazaly announced it had entered into an exclusive binding agreement to acquire the Carb Lake Rare Earth Project, which comprises a ‘large’ 2.5km-3km diameter circular magnetic anomaly known as the Carb Lake Carbonatite Complex, considered prospective for rare earth elements (REE) and niobium.

The company reports it has now completed due diligence to its satisfaction and, as a result, has finalised the acquisition of Carb Lake. As part of this due diligence process, Cazaly gained access to the diamond drill core stored at the Ministry of Mines Geological Survey in Kenora.

Cazaly says the diamond core is ‘very narrow’ at 22mm in diameter and stored in wooden core trays in a ‘largely poor’ state. While some diamond core was available for drillholes DD001 and DD002, the majority of drill core from holes DD003 and DD004, which were drilled closest to the centre of the carbonatite, was unavailable, as it had been consumed for historical analytical work.

Nevertheless, geological observations were consistent with historical reported work. Cazaly says the carbonatite predominantly consists of calcite with variable amounts of biotite, hornblende, apatite, actinolite, minor pyrite, and chalcopyrite.

Based on the core condition and the uncertainty relating to the downhole measurements, Cazaly reports a program of non-invasive geochemical testing will be conducted this week using portable X-ray fluorescence (pXRF), portable gamma-ray spectrometer, and magnetic susceptibility readings.

These measurements will provide information on the geochemical nature of the carbonatite at the drillhole location. However, it will not be possible to attribute any values to exact downhole depths.

Additionally, the company has agreed to purchase the raw data from the original contractors that collected high-resolution magnetic, radiometric, and XDS VLF-EM data completed in 2011. Re-processing this data will be prioritised to facilitate drill planning.

Once Cazaly completes initial drill core testing and re-processing geophysics, a field reconnaissance program will be refined. This program has been planned to initially assess the project with surface mapping, float, and rock sampling, where possible, to determine the accessibility of future drill site locations.

The company expects this field-based program to begin in late August following the receipt of appropriate land access approvals.

Commenting on the acquisition and due diligence, Cazaly Resources Managing Director Tara French says: “It was great to be able to locate and have the opportunity to complete further test work on core from drilling which was conducted on the project more than 50 years ago.

While visually it’s apparent that there is significant variation and zonation of the mineralogy in the drill core, the XRF data will provide more detailed information on geochemical variability”

In order to preserve what drill core is left, a non-invasive geochemical program will be conducted. While visually it’s apparent that there is significant variation and zonation of the mineralogy in the drill core, the XRF data will provide more detailed information on geochemical variability.

Once the airborne magnetic and radiometric data has been re-processed, we will be in a position to plan drillhole locations that can be assessed on the ground during the upcoming field reconnaissance exploration program.

We are very excited to be progressing the project with our in-country technical team and planning the early exploration work with a view to drill-testing the Carb Lake Carbonatite Complex in the coming winter months.”

Cazaly Resources is a Perth-based mineral explorer with a portfolio of projects in Australia, Namibia, and Canada. The company’s assets include the Halls Creek Copper, Ashburton, McKenzie Springs Nickel-Graphite, and Mt Venn Gold projects in Western Australia, along with the Abenab North and Kaoko Critical Minerals projects in Namibia.

In Canada, the company holds the Carb Lake Rare Earth Project in Ontario and has recently entered an exclusive binding agreement to acquire the Sundown Lithium Project in Quebec.

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Images: Cazaly Resources Ltd
Written By Harry Mulholland
Hailing from the Central Coast region of NSW, Harry is a passionate journalist with a background in print, radio and ESG news. When not bashing away on his keyboard, he can be found brewing a coffee or playing with his dog.