Cazaly Secures 80% Stake in Goongarrie Gold Project with $3M Exploration Plan
Cazaly Resources has inked a binding joint venture with Brightstar Resources to earn up to 80% of the Goongarrie Gold Project in Western Australia, targeting multiple high-potential gold zones with a $3 million exploration commitment.
- Binding term sheet signed with Brightstar Resources for Goongarrie Gold Project JV
- Cazaly to earn up to 80% equity through staged $3 million exploration expenditure
- Project covers 12km strike of the Bardoc Tectonic Zone-Boulder Lefroy Shear Zone
- Significant gold mineralisation at Hastings prospect with 38m @ 3.1g/t gold intercept
- Exploration to focus on multiple high-priority drill targets in a world-class gold district
Cazaly Enters Strategic Joint Venture in Kalgoorlie-Menzies Gold District
Cazaly Resources Limited (ASX: CAZ) has taken a decisive step to expand its footprint in Western Australia's prolific gold mining region by securing a binding joint venture agreement with Brightstar Resources Ltd (ASX: BTR). The agreement grants Cazaly the opportunity to earn up to an 80% interest in the Goongarrie Gold Project, located approximately 90 kilometres north of Kalgoorlie within the Eastern Goldfields.
The Goongarrie Project spans a substantial 70 square kilometres of greenstone terrain, strategically positioned along a 12-kilometre strike of the Bardoc Tectonic Zone (BTZ), which is the northern extension of the Boulder Lefroy Shear Zone (BLSZ). This shear zone is renowned for hosting multiple world-class gold deposits, including the nearby Aphrodite discovery and the historic Goongarrie Lady and Jenny's Reward mines.
Exploration Potential and Historical Context
Historical exploration within the project area has been limited, with previous work focusing on surface oxide gold mineralisation and shallow drilling. Notably, Kingwest Resources, which acquired the project in 2019 before merging with Brightstar in 2023, conducted aeromagnetic and passive seismic surveys alongside aircore, reverse circulation, and diamond drilling. These efforts revealed several promising gold prospects, including the Hastings prospect, where gold mineralisation extends over a 1-kilometre strike and remains open at depth. A standout intercept at Hastings recorded 38 metres at 3.1 grams per tonne gold, highlighting the project's significant upside.
Other key prospects within the project include Duke of York, Sir Laurence, and Great Eastern, each demonstrating anomalous gold intercepts and structural settings conducive to further discoveries. The presence of multiple subparallel north-south structures alongside the BTZ adds to the exploration allure, suggesting untapped potential beneath largely untested cover.
Terms of the Joint Venture and Strategic Outlook
Under the terms of the joint venture, Cazaly will earn its interest through staged exploration expenditure: an initial $1 million to secure 25%, a further $1 million to reach 51%, and a final $1 million to achieve an 80% stake. Importantly, the agreement requires no upfront cash or scrip consideration, with all funds directed into ground exploration activities.
Managing Director Tara French emphasised the timing and strategic fit of the deal, noting the recent surge in gold prices above A$4,600 per ounce and the positive outlook for the metal. "The Goongarrie gold project presents Cazaly with an outstanding opportunity to explore for new gold resources in a multi-million-ounce gold district," she said. "We look forward to advancing this project and working closely with Brightstar to maximise shareholder value."
Next Steps and Market Implications
Cazaly is currently completing due diligence and compiling all historical data to prioritise drill targets. The company plans to commence drilling once all regulatory and stakeholder approvals, including heritage and environmental clearances, are secured. This methodical approach aims to unlock the project's full potential while managing exploration risk.
Given the project's location in a world-class gold province and the quality of historical intercepts, the joint venture could position Cazaly as a significant player in the Eastern Goldfields. The commitment to invest $3 million in exploration underscores the company's confidence in the project's upside amid a supportive gold price environment.
Bottom Line?
Cazaly’s strategic JV and $3M exploration push at Goongarrie could catalyse a new chapter in its gold growth story.
Questions in the middle?
- How will Cazaly prioritise and sequence drilling across multiple high-potential targets?
- What impact will sustained high gold prices have on the project's economics and development timeline?
- Could further discoveries along the BTZ-BLSZ corridor elevate Goongarrie to a major gold resource?