Cazaly Resources to Acquire Canadian Lithium Project
THE BOURSE WHISPERER: Cazaly Resources (ASX: CAZ) emerged from a Trading Halt to announce the acquisition of up to 100 per cent of the Sundown lithium project in Canada.
The Sundown project is in the James Bay lithium province, host to several advanced lithium projects and new lithium discoveries in Canada and comprises 510 mining claims covering pegmatite outcrops spanning over 260 square kilometres.
The project is located between Allkem’s (ASX: AKE) James Bay deposit with a lithium reserve of 37.2 million tonnes at 1.3 per cent lithium oxide (Li2O), and Patriot Battery Metals (ASX: PMT) Corvette lithium discovery, which is host to 70 lithium bearing pegmatites over a 214sqkm land package.
“We are extremely pleased to have an exclusive binding agreement to acquire the Sundown lithium project,” Cazaly Resources managing director Tara French said in the company’s ASX announcement.
“The project is an excellent addition to our recent Canadian rare earth elements project acquisition, and provides Cazaly with another excellent discovery opportunity, this time for lithium, another critical mineral.
“The project is a massive landholding in the heart of the James Bay lithium district, a district known for its very large scale and high-grade lithium resources.
“Data acquisition and compilation has commenced, and desktop studies are underway as part of our due diligence process, which will in turn advance the project and inform our exploration work plan moving forward.”
Cazaly explained that upon completion of due diligence, including a full assessment of all available data and the decision to complete the acquisition, an initial field reconnaissance mapping and rock chip sampling program will be completed to assess the large number of documented outcropping pegmatites for spodumene and lithium mineralisation.
This will in turn inform the company’s exploration strategy to drill test the best targets in the next phase of exploration.
TO READ THE FULL ANNOUNCEMENT: CLICK HERE