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Cazaly Resources Limited (ASX: CAZ, Cazaly, or the Company) is pleased to announce that it has entered into an exclusive binding agreement with Brightstar Resources Ltd (ASX: BTR), to earn up to 80% equity in the Goongarrie Gold Project (Goongarrie, or the Project).
Highlights
- Cazaly signs binding term sheet with Brightstar Resources to earn up to 80% of the Goongarrie Gold Project located in the Kalgoorlie-Menzies district in the Eastern Goldfields of Western Australia
- The Project covers 12km strike of the Bardoc Tectonic Zone-Boulder Lefroy Shear Zone (BTZ), host to multiple world class gold deposits
- Several high priority gold drill targets with growth potential
- Gold mineralisation at the Hastings prospect extends for over 1km, and is open along strike and at depth. Anomalous intercepts include 38m @ 3.1g/t gold1
- Cazaly to spend up to $3M on exploration to earn staged equity up to 80% of the Goongarrie Project
Cazaly’s Managing Director, Tara French comments:
“The Goongarrie gold project presents Cazaly with an outstanding opportunity to explore for new gold resources in a multi-million-ounce gold district. The sizeable land package has multiple gold targets
and is largely untested at depth. We are very much looking forward to generating new gold targets and drill testing the existing prospects. With the gold price breaking A$4,600 oz for the first time, and with a positive pricing outlook, it’s the perfect time for Cazaly to get back into gold. We are pleased to have entered into the agreement for nil cash or scrip consideration with all funding going ‘into the ground’. We look forward to advancing this project and to working closely with our new partners at Brightstar to maximise value for shareholders.”
Goongarrie Gold Project
Goongarrie is located in the northeastern goldfields, 90km north of Kalgoorlie, and is easily accessible via the Goldfields Highway that runs along the western boundary of the project area. The Project consists of 70km2 of greenstone sequence within the Kalgoorlie Terrain.
Figure 1. Regional location - Goongarrie Gold Project.
Importantly the Project covers twelve kilometers of the Bardoc Tectonic Zone (BTZ), which is the northern extension of the Boulder-Lefroy Shear Zone (BLSZ) to the south, one of the richest gold mineralised structures in the Yilgarn Craton. Subsequent exploration activities have identified two additional subparallel N-S structures that also have the potential to host significant gold deposits.
Material Terms of Joint Venture Agreement
The terms of the earn-in joint venture agreement for the Goongarrie Project, subject to Cazaly completing due diligence, are:
- Cazaly to expend an initial $1m on exploration to earn a 25% interest;
- Expend further funds of $1m to earn a 51% interest;
- Expend further funds of $1m to earn to an 80% interest.
Tenements included in the Goongarrie Project are listed in Table 1.
Project History
The Goongarrie Project was acquired by Kingwest Resources Ltd (KWR) in 2019. In May 2023 KWR merged with Brightstar Resources Limited whose focus has now shifted away from the Goongarrie project following their recent merger with Alto Metals Ltd (ASX: AME)i.
Prior to KWR acquiring the Project, very little exploration activity had been completed across the project as work was focused at Menzies and Kalgoorlie. Historic work included soil sampling, trenching, auger drilling, shallow aircore drilling, and limited RC drilling. This work targeted oxide gold mineralisation at surface associated with the Bardoc Tectonic Zone-Boulder Lefroy Shear Zone (BTZ). Two gold deposits along the BTZ were initially mined in the late 1980s at Jennys Reward, and Goongarrie Lady which was recently re-commissioned by a private group. There is potential for the discovery of new gold deposits undercover along the 12km strike length of the BTZ and along largely untested parallel mineralised structures that run N-S through the length of the project.
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