Cazaly Eyes 80% Stake in Goongarrie Gold Project, Holds $3.3M Cash at Quarter End
Cazaly Resources has exercised its option to earn up to 80% of the Goongarrie Gold Project, initiating planned drilling at key prospects while maintaining a solid cash position of $3.3 million at quarter-end.
- Executed earn-in agreement with Brightstar Resources for up to 80% of Goongarrie Gold Project
- Planned initial drilling at Duke of York prospect targeting high-grade gold mineralisation
- Exploration activities included data mining, aeromagnetic reprocessing, and drill planning
- Maintained $3.3 million cash and invested $286k in exploration during the quarter
- Ongoing JV and exploration efforts across Australian, Namibian, and Canadian projects
Strategic Earn-In at Goongarrie Gold Project
Cazaly Resources Limited (ASX: CAZ) marked a significant milestone in its March 2025 quarterly activities by exercising its option to earn up to an 80% interest in the Goongarrie Gold Project, located in Western Australia's prolific Kalgoorlie-Menzies district. The earn-in agreement with Brightstar Resources sets a staged expenditure framework, requiring Cazaly to invest $3 million over 18 months to progressively increase its stake from 25% to 80%.
The Goongarrie project covers a substantial 70-kilometre greenstone sequence along the Bardoc Tectonic Zone (BTZ), a northern extension of the Boulder-Lefroy Shear Zone, renowned for its rich gold mineralisation. This strategic acquisition positions Cazaly to tap into a region with multiple significant prospects, including Duke of York, Hastings, Sir Laurence, and Great Eastern, each demonstrating promising gold intercepts from historical drilling.
Focused Exploration and Upcoming Drilling Campaigns
During the quarter, Cazaly undertook comprehensive preparatory work including data mining, digitising historical exploration data, and reprocessing aeromagnetic surveys to refine structural targets. The company has prioritized the Duke of York prospect for initial reverse circulation (RC) drilling, aiming to extend known gold mineralisation up-dip, at depth, and along strike between historical drill holes and mine workings.
Drill programs have been submitted for approval, with commencement pending final permits. Following Duke of York, Cazaly plans further drilling campaigns across the 12-kilometre strike of the BTZ within the project area, reflecting the company's confidence in the region's exploration upside.
Broader Portfolio and Joint Ventures
Beyond Goongarrie, Cazaly continues to advance its Halls Creek Copper-Zinc-Silver Project in Western Australia, leveraging positive scoping study results from partner AuKing Mining Limited. The company also maintains interests in the Ashburton Basin's Cheela Copper Prospect, critical minerals projects in Namibia such as Kaoko Cu-Co and Abenab North REE & Base Metals, and the Carb Nb-REE Carbonatite project in Canada.
Joint ventures remain a key part of Cazaly's strategy, including the Mt Venn Gold Project JV with OB1 and the McKenzie Springs JV with Fin Resources Ltd, both targeting gold and base metals in highly prospective greenstone belts. The company also holds royalty interests in iron ore projects, notably the Parker Range and Hamersley projects, providing potential cash flow streams as these assets develop.
Financial Position and Outlook
Financially, Cazaly reported net cash outgoings of $224,000 for the quarter, with $286,000 allocated to exploration activities. The company ended the quarter with $3.3 million in cash, supported by disciplined expenditure and ongoing royalty income. Payments to related parties, including directors’ fees, were disclosed transparently, reflecting sound corporate governance.
Looking ahead, the market will watch closely for drilling results from Goongarrie and progress on environmental approvals, particularly for the Abenab North project in Namibia, where an Environmental Clearance Certificate is pending. The company’s diversified portfolio across multiple jurisdictions and commodities positions it well to capitalize on evolving market opportunities in gold, base metals, and critical minerals.
Bottom Line?
Cazaly’s strategic earn-in and planned drilling at Goongarrie set the stage for a pivotal exploration phase that could redefine its growth trajectory.
Questions in the middle?
- When will drilling commence at Duke of York and what initial results can be expected?
- How will Mineral Resources Limited’s ramp-down at Yilgarn Hub impact Cazaly’s royalty income?
- What are the timelines and potential hurdles for environmental approvals at the Abenab North REE project?
