Cazaly Advances Multi-Commodity Exploration with Strong Q4 Progress and $3.8M Cash

Exploration Momentum at Halls Creek

Cazaly Resources Limited (ASX: CAZ) has delivered a comprehensive quarterly update for the period ending 31 December 2024, highlighting ongoing exploration and evaluation activities across its diversified portfolio. Central to the report is the Halls Creek Copper-Zinc-Silver Project in Western Australia, where a positive scoping study conducted by AuKing Mining Limited has reinforced the project's potential as a financially robust operation. The study, incorporating Cazaly's 100% owned Mt Angelo North and Bommie deposits, outlines an 11-year mine life with estimated production of 110,000 tonnes of copper, 38,000 tonnes of zinc, and 355,000 ounces of silver.

Lithium Prospects in Namibia

In Namibia, the Kaoko Lithium Project saw extensive reverse circulation drilling across a large 12km by 10km surface lithium anomaly at the Ohevanga Prospect. While lithium values were elevated, with 32% of samples exceeding 100ppm Li and a peak of 218ppm, the concentrations are considered economically low. This has prompted Cazaly to reassess its strategy, with plans to revisit copper targets within the project area. Meanwhile, the Abenab North REE and Base Metals Project remains in the licensing phase, awaiting environmental clearance, but is positioned in a historically rich mineral province known for base metals and rare earth elements.

Canadian Rare Earth and Niobium Potential

Further afield, Cazaly's Carb Nb-REE Carbonatite Project in Ontario, Canada, continues to show promise. Historical drill core analysis and recent handheld pXRF readings indicate significant niobium and rare earth element mineralisation, with niobium assays up to 7.1% and notable concentrations of neodymium, praseodymium, lanthanum, and cerium. The company is preparing for a drilling program to better delineate these resources, maintaining active engagement with local First Nation communities to ensure responsible project advancement.

Joint Ventures and Royalties

Cazaly also holds interests in joint ventures such as the Mt Venn Gold Project in Western Australia, where a transaction involving Sarama Resources is expected to accelerate exploration efforts. The company benefits from royalty income streams, including a $0.50 per tonne royalty on iron ore production at the Parker Range Mine and a US$0.30 per tonne royalty at the Hamersley iron ore project, underpinning its financial stability.

Financial Position and Outlook

Financially, Cazaly reported net cash outflows of $173,000 for the quarter, with $597,000 invested in exploration activities. The company ended December 2024 with $3.8 million in cash and investments, providing a runway of approximately five quarters at current expenditure levels. Payments to related parties, including directors’ fees, were disclosed at $156,000. The board remains focused on advancing exploration programs while managing costs prudently.

Overall, Cazaly Resources is progressing a multi-commodity exploration strategy across strategically located projects with encouraging early results. The company’s ability to maintain a solid cash position while advancing key assets bodes well for its medium-term development prospects.