Halls Creek project

Cazaly ‘up there’ on hitting the mark at Halls Creek Copper-Zinc Project

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.

For almost 20 years Australian diversified mineral exploration and resource development company Cazaly Resources (ASX:CAZ) has built a track record for successfully acquiring, developing, and value-adding to various projects.

While the catchphrase “Up there, Cazaly!” became a popular song in 1979 and secured former Aussie Rules ruckman Roy Cazaly a place in Australian folklore, it is also apt in describing the Perth-based resource company of the same name.

With drilling underway at its Halls Creek Copper-Zinc Project and a focus on prospects with a porphyry system that are host to ‘significant’ copper mineralisation, Cazaly Resources certainly looks to be ‘up there’ as the next emerging copper play in Australia.

The company is kicking goals at the Halls Creek Project – located 25km southwest of its namesake shire and covers part of the Halls Creek Mobile Zone, which is ‘highly prospective’ for a range of commodities including copper, gold, and nickel.

As Managing Director Tara French notes, there is a lot to be excited about at this project if you are in the copper game.

Halls Creek is our flagship project, where we are adding to our existing copper resource base.

It’s our most advanced project with an existing VMS (volcanogenic massive sulphide) copper resource at Mount Angelo North, which we recently upgraded to comply with JORC code 2012, of 1.7Mt @ 1.4% Cu, 1.4% Zn, and 12g/t Ag.

The most exciting target here is the Bommie prospect, a large tonnage, low-grade porphyry copper system with an exploration target in excess of 80Mt.”

Bommie drilling

Bommie is a different beast

Cazaly is exploring the Koongie Park Volcanic package as this is the most prospective geological formation in the district to host volcanogenic massive sulphide deposits, rich in copper, zinc, and silver.

The Bommie prospect, is a different beast, here we are looking at a later stage intrusive porphyry copper complex with previous drill intercepts including 170m @ 0.3% Cu and 178m @ 0.4% Cu.

The exciting thing is that these intercepts extend from surface, and after my recent field trip, it is clear why.

“I was excited to see copper oxide alteration in the sumps that had been dug in preparation for drilling”

I was excited to see copper oxide alteration in the sumps that had been dug in preparation for drilling.

You can see the surface expression of the Bommie prospect, based on what I’ve seen in the field there is potential for extension of the mineralised system outside our existing drill pattern.”

The Bommie prospect is associated with a ‘high level’ porphyritic felsic intrusive, located 2.5km to the southwest of the Mount Angelo North Copper-Zinc deposit. As French explains, Bommie has a large geochemical footprint with coincident Cu-Mo-Bi that extends for 1.2km along strike and over 800m across strike.

In addition to the previously mentioned intercepts, ‘higher-grade’ results within the mineralised intervals include 23m @ 1.0% Cu and 7m @ 1.3% Cu.

French adds: “RC (reverse circulation) drilling is underway at the Bommie prospect, and while the exploration target is interpreted as a large low-grade copper system with significant drill intercepts, the depth extent remains to be found. In addition, the prospect has an extensive surface geochemical signature which provides further encouragement for a large mineralised system.”

RC drilling was designed to test the continuity of broad copper intercepts across the prospect, and ultimately provide sufficient information to estimate an inferred mineral resource.

French notes that with the drilling, sulphides have been visually logged in all holes. Visually estimated sulphide percentages vary downhole from trace levels to 10% and to date 14 RC holes have been drilled (HCRC065-078) for 2,784m with two holes remaining for ≈700m.

The analytical results are pending and are due in 2H 2022.

This phase of drilling will be sufficient for the estimation of an inferred resource.”

Large tonnage means economic potential

As the MD explains, there are plenty of benefits of having a large tonnage copper deposit within the company’s portfolio.

Currently we have the Mount Angelo North copper resource, which has exceptionally long, high-grade intercepts including 64m @ 2.7% Cu, 62m @ 2.4% Cu.

We have recently drill tested the Moses Rock EM conductor to the southwest, which is a VMS target, and are currently drilling the Bommie Prospect, which is a large porphyry copper target with a surface expression of 1.2km x 800m.

It has the potential to provide the tonnage required to make our Halls Creek project a better economic proposition.”

“It has the potential to provide the tonnage required to make our Halls Creek project a better economic proposition”

According to Geology for Investors, the features that often make VMS deposits desirable and economical exploration targets are their size and geometry.

Typically, these deposits form over a long period of time and are generally considered to form in clusters, therefore once a discovery is made, there is a good chance there are more deposits to be found in the district.

The massive accumulations of sulphides also show up well in geophysical surveys as they are both denser and more conductive than the surrounding rock, making VMS deposits good geophysical exploration targets.

Also, Geology for Investors notes, the shape of the deposit makes VMS ideal for cost-effective open pit mining because large amounts of ore can be extracted without having to remove a lot of waste rock. Conversely, when ore is hosted in narrow veins, this results in a much higher strip ratio.

Demand rising on decarbonisation

The importance of having such an economic copper mine come online cannot be overstated. As the world heads towards decarbonisation, there is an increasing need for copper.

According to a July 2022 S&P Global report, copper demand is forecasted to nearly double to 50 million metric tons by 2035. By 2050, demand will reach more than 53 million metric tons. To put this figure in perspective, S&P Global noted that that’s “more than all the copper consumed in the world between 1900 and 2021”.

French adds: “We all know a significant amount of copper is required for each wind turbine, every EV, and each new house build. The demand will remain high while we see significant growth in the renewable energy sector.

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.”

As Cazaly Resources continues to kick goals at its Halls Creek Project, it appears that it is ‘up there’ in being in line to be part of that copper supply chain in Australia.

Images: Cazaly Resources Ltd
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Written By Adam Orlando
Mining.com.au Editor-in-Chief Adam Orlando has more than 20 years’ experience in the media having held senior roles at various publications, including as Asia-Pacific Sector Head (Mining) at global newswire Acuris (formerly Mergermarket). Orlando has worked in newsrooms around the world including Hong Kong, Singapore, London, and Sydney.