Junior explorer Cazaly Resources (ASX:CAZ) is looking to undertake fieldwork in Q3 2023 after securing more than 1,000km-square of tenure within the Gascoyne province of Western Australia.
The company, which has a $13.90 million market capitalisation, says this tenure comprises a total of 6 tenements that together form the Lyons Project, which is considered a ‘very prospective’ package of ground in the Bangemall Basin. This area lies within an emerging rare earth element (REE) district in the Gascoyne province.
Cazaly reports it targeted and pegged 4 of the tenements around the Lyons River and Talga faults, with 1 of the 4 tenements now granted.
The remaining 2 granted tenements along the Lyons River Fault are noted to consolidate the Lyons projects through an exclusive binding option agreement to acquire the 100% interest with private company Murchison REE.
Cazaly also notes the Lyons River Fault is associated with multiple phases of REE and base metal mineralisation. Moreover, this fault is considered to be the conduit for the mineralised fluids that formed the ferrocarbonatites that host Dreadnought Resources’ (ASX:DRE) Yin prospect, where an updated resource was recently defined.
The terms of the purchase agreement include Cazaly paying $50,000 for a 12-month exclusive option to acquire up to 100% of tenements E09/2671 and E52/4040. Cazaly may execute the option by paying the vendors $30,000 in cash or shares to earn 50% project equity, and by committing $200,000 to exploration expenditure within 2 years to earn the 100% interest.
Other terms include paying an additional $200,000 in cash upon the delineation of a minimum JORC-compliant resource of 300,000oz gold (Au) and paying $1 million in cash or shares upon a decision to mine. As part of the agreement, Murchison REE will maintain a 1% NSR on the project.
With Cazaly well on its way to securing the sole interest in the Lyons project, it announces it has moved forward with work to compile all available historical data sets for the project.
This data is being reviewed to prioritise targets for an initial field assessment. Fieldwork is expected to follow in Q3 2023 and will consist of ground checks as well as prospecting where access is available.
Speaking on the acquisition, Cazaly Resources Managing Director Tara French says: “The Gascoyne is emerging as a hot spot for rare earths, and we are excited to have secured such a significant landholding in the region. Importantly, the new tenements sit along the Lyons River Fault, which is considered to be the conduit for mineralised fluids that formed the ferrocarbonatites which are host to the world-class Yangibana and Yin REE deposits.
“The Gascoyne is emerging as a hot spot for rare earths, and we are excited to have secured such a significant landholding in the region”
The structural complexity around the Lyons River Fault highlights the potential for further discoveries along this structure. This package represents an excellent opportunity, with only limited historical exploration for lead, zinc, and manganese. A reconnaissance field trip has been planned to determine the best exploration methods to apply to this area to advance the project and delineate REE targets early.“
Cazaly Resources is an ASX-listed multielement explorer with a diverse portfolio of mineral projects in Australia, Namibia, and Canada.
The company’s portfolio includes the Carb Lake REE and Sundown Lithium projects in Canada, as well as the Kaoko and Abenab North projects in Namibia. Cazaly’s Western Australian assets include the Halls Creek Copper and Ashburton projects.
Cazaly had $6.7 million cash and investments at hand as of 30 June 2023, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Cazaly Resources Ltd
