Perth-based resources exploration company Cazaly Resources (ASX:CAZ) reports it has signed a Memorandum of Understanding (MoU) with ASX-listed Australian exploration and development company AuKing Mining (ASX:AKN).
The MoU has been signed with the intention of including Cazaly’s Halls Creek Copper deposits in a mine scoping study that is expected to be conducted by AuKing Mining.
It is reported the scoping study will be headed by Wave International and will seek to validate the potential viability of open pit and underground operations centred around AuKing Mining’s Sandiego copper-zinc-silver (Cu-Zn-Ag) deposit.
Both parties have recognised that there could be ‘significant’ benefit in combining their resources in the scoping study and could develop potential future development of a central mining hub at Sandiego with multiple feed options from the surrounding deposits.
Under the terms of the MoU, both Cazaly and AuKing have agreed to cooperatively collaborate through a mutual exchange of information to support the scoping study under the terms of a standard non-disclosure agreement.
Speaking on the MoU Cazaly Resources Managing Director, Tara French says: “We are extremely pleased to be working with AuKing.
“The signing of this MoU is a ‘significant’ step towards establishing a potential pathway forward to progress the copper deposits at Halls Creek towards development”
The signing of this MoU is a ‘significant’ step towards establishing a potential pathway forward to progress the copper deposits at Halls Creek towards development.”
The company also notes that upon completion of the scoping study both parties may choose to progress further studies and/or enter into further discussions.
In addition, it is reported that the study will be fully funded by AuKing, with findings and any results generated expected to be reported in late FYQ3 or early FYQ4.
Cazaly Resources is an Australian-based resources exploration company that boasts a diverse portfolio of mineral projects within Western Australia, the Northern Territory and the African nation of Namibia. The company’s Halls Creek Copper Project is situated about 25km southwest of Halls Creek and covers a section of the Halls Creek Mobile Zone, a ‘highly’ prospective area for a range of commodities including copper, gold and nickel.
Meanwhile, AuKing’s Sandiego deposit is part of its Koongie Park Project located within proximity of Cazaly’s Halls Creek project and represents a joint venture (JV) operation between AuKing and gold exploration company Astral Resources (ASX:AAR), with the former owning the majority 80% interest in all associated tenements.
The Koongie project currently boasts a Mineral Resource Estimate (MRE) of 21.1 million tonnes, comprising 121,800 tonnes of copper, 372,600 tonnes of zinc, 46,000 ounces of gold, 11 million ounces of silver and 79,300 tonnes of lead.
Other projects included in Cazaly’s exploration arsenal are the Yabby Gold, Ashburton and Mount Venn projects in Western Australia, as well as the Kaoko Critical Minerals and Abenab North projects in Namibia.
Images: Cazaly Resources Limited
