THE CONFERENCE CALLER: It’s easy for an exploration play to get lost amongst the crowd at Diggers & Dealers, so it’s usually worth the effort to walk obligatory laps of the marquee to chat to some old acquaintances.
The Roadhouse sat down with Cazaly Resources joint managing director Clive Jones to find out what the company was up to.
Cazaly greeted Day One of the conference with an announcement that it had acquired the remaining 80 per cent of the Halls Creek project from its Joint Venture partner 3D Resources (ASX: DDD) taking its ownership of the project to 100 per cent.
The Halls Creek project comprises granted Mining Lease 80/247 situated near the township of Halls Creek covering part of the Halls Creek Mobile Zone which is considered highly prospective for a range of commodities including base metals, gold, diamonds and nickel.
The project hosts the Mount Angelo copper-zinc deposit, an extensive zone of near surface oxidised copper-zinc mineralisation overlying massive copper-zinc sulphide mineralisation.
“There are some undrilled conductors at depth below at the Mt Angelo copper-zinc deposit and also one kilometre along strike we have mapped the host mineralised sequence – so, there is a lot to find out about the project, which we are very keen to do,” Jones said.
Jones indicated that Cazaly would be out on the ground and going over all previously assembled data asap to review of all previous exploration on the project.
“There is plenty of upside potential with mapping defining the untested northern extensions of the Mt Angelo deposit, including mapping out of the important Banded Iron Formation capping unit.
“On top of that, there a numerous, previously identified downhole EM conductors that we are keen to test with the drill bit.”
Drillhole plan outlining the Mount Angelo copper-zinc deposit
Cazaly has been busy of late adding to the company’s project portfolio, which included the recant addition of The Ashburton project in the Ashburton Basin in the Pilbara region of Western Australia.
“We just pegged a very large tract of land – about 2600 square kilometres in the Ashburton region of Western Australia,” Jones said.
“Geoscience Australia had previously completed a large seismic profile that showed there is a major structure that goes down to a mantle and that’s what you want for major ore bodies.
“We pegged 80 kilometres of that structure and it has never been explored before.
“It’s quite staggering to find a major-scale structure that Geoscience Australia is saying is a potential ore body mineralising system that hasn’t been explored.”
A survey carried out in 2011 via a collaborative effort between the Geological Survey of Western Australia, AuScope and Geoscience Australia determined a deep seismic survey transecting over some 450 kilometres covering the Capricorn Orogen.
The seismic survey identified three major terrane bounding sutures (deep seated, mantle tapping structures) across the 450km transect and included the Baring Downs Fault which lies centrally within the Ashburton Basin.
Known gold mineralisation in the Ashburton shows a close spatial relationship with the Nanjilgardy fault, which hosts the Paulsen’s, Belvedere and Mount Olympus orebodies and marks the northern basin margin.
The Roadhouse asked Jones why this greenfield area has not been as heavily explored as would be expected.
“Good question,” he responded.
“The Ashburton, unfortunately, has this reputation of being full of just alluvial, spotty gold.
“It’s just one of those things that people have formulated these ideas and really haven’t gone deep and taken a good look at the region and the science behind what’s going on there.
“There is a lot of gold in the system, there has also been some diamond occurrences, which confirms it is a mantle tapping structure.
“Back in the 1890s, way back in the day, there was a big gold rush – there were 8000 men working the field.
“There is a lot of gold out there, but for some reason, people just haven’t explored it with any great amount of sufficiency.”
The Ashburton project present Cazaly with a real, boots on the ground, classic grassroots exploration opportunity.
“It’s not dissimilar to the Telfer region,” Jones declared.
“Telfer had been sitting there for decades and people explored around it without any real conviction.
“It’s only just recently that Rio and Newcrest have found massive ore bodies there.
“They’ve always been there; people just haven’t looked for them.
“I see the Ashburton as being a similar sort of analogue.”
The company’s first steps on the new project will be to collate all the geophysics and it intends to fly its own major survey program over the project.
“We would like to get out on the ground fairly quickly to carry out some geochemistry, but the problem is the time of year and it is hard to get crews to venture out there when the temperature is hitting the mid to high 40 degree mark,” Jones said.
“So, in reality, we may have to postpone that until next year.”
The Ashburton is a new major play for the company, but Jones intimated it is not necessarily going to be its main game, rather it will become part of a substantive portfolio.
“Cazaly has always taken a portfolio approach to the business, so we have a range of projects at various levels of development and exploration,” Jones said.
Apart from Mt Angelo JV, Cazaly also owns 20 per cent of the Mt Venn gold project, located 30km from Gold Road Resources’ Gruyere gold deposit, in the Eastern Goldfields of WA.
JV partner Woomera Mining (ASX: WML) recently kicked off a Phase 2 drilling program at Mt Venn targeting underexplored, high-grade gold shows at Chapman’s Reward, Lang’s Find, and lower saprolite gold anomalies at the Three Bears prospect.
Acquiring projects is all well and good, but being able to make good money from the sale of projects is also an important skill in the junior exploration space.
Having sold its interests in the Parker Range project to Mineral Resources last year, Cazaly is well cashed up to the tune of $11 million in the bank to finance all its upcoming works.