Perth-based mineral exploration company Cazaly Resources (ASX:CAZ) has entered into an exclusive agreement to acquire 100% of the Carb Lake Rare Earth Project in Ontario, Canada.
As part of the agreement, the company will pay a non-refundable option fee of CAD$15,000 to the vendors for a 2-month exclusivity period for Cazaly to complete due diligence. Subject to satisfactory due diligence, Cazaly will then pay CAD$85,000 in cash to the vendors. Under this agreement, the vendors will also receive a 2% net smelter royalty (NSR).
Cazaly reports historical data is currently being sourced and compiled into a format that can be readily utilised. Upon completing due diligence, assessing the available data, and deciding to complete the acquisition, Cazaly will conduct a field assessment and follow-up exploration activities at the project.
Commenting on the agreement, Cazaly Resources Managing Director Tara French says: “We are extremely pleased to have acquired the Carb Lake Carbonatite Project.
The carbonatite complex is of significant scale, situated below shallow cover and to date has flown under the radar and remains largely untested. This is despite excellent historical results which are certainly eye catching in today’s market.
“The project provides Cazaly with a unique opportunity to conduct exploration across a large-scale carbonatite complex”
The project provides Cazaly with a unique opportunity to conduct exploration across a large-scale carbonatite complex. This will mark the first modern exploration on this excellent REE target in over a decade. We will be working closely with our in-country technical team and look forward to exploring for REEs which are some of the world’s most critical minerals required for decarbonisation.”
Cazaly reports the Carb Lake Carbonatite Complex represents a ‘largely’ unexplored, large-scale target for rare earth element (REE) mineralisation. The company says the presence of ‘highly’ elevated grades of REE, cerium, lanthanum, and niobium in historic but limited drill samples from the carbonatite is ‘very promising’, particularly for the presence of associated REEs.
Zonation of the carbonatite is also evident in magnetic images, a feature the company says is characteristic of other mineralised carbonatite complexes.
Cazaly reports carbonatites are ‘excellent’ targets for REE exploration, noting much of the world’s mined light REEs and niobium occur from carbonatite mineralisation. An example noted by the company includes the Mountain Pass operations in California, which Cazaly says hosts one of the richest REE deposits in the world and features the only combined REE mining and processing facility in North America.
Given the ‘very little’ modern exploration, and no active exploration since 2011, Cazaly says the Carb Lake Carbonatite represents a ‘unique’ opportunity for the exploration of REEs and associated mineralisation.
Historical results collected at the project include up to 5,620 parts per million (ppm) Ce and 7.1% Nb from a geological survey completed in 1978 on core from holes DD003 and DD004 which were drilled in 1967. An earlier analysis conducted on core from these holes in 1969 also reported over 5% Ce and over 1% La.
The Carb Lake REE Project comprises 93 mineral claims in the Red Lake District of northwestern Ontario, located 10km from the Manitoba border.
Cazaly Resources is a Perth-based diversified exploration company with a portfolio of mineral projects in Australia and internationally. Locally, the company holds the Ashburton, Yabby, Halls Creek McKenzie Springs, and Mount Venn projects in Western Australia. Cazaly also holds the Abenab North, and Kaoko Critical Minerals projects in Namibia.
Images: Cazaly Resources Limited
