CZR Resources Advances with Zuleika Takeover and Croydon Drilling Success

Zuleika Gold Takeover Recommended with Premium

CZR Resources Ltd (ASX:CZR) has put forward a recommended all-scrip takeover offer for Zuleika Gold Limited (ASX:ZAG), valuing the company at approximately $44.8 million. The offer provides Zuleika shareholders with 0.1742 CZR shares per Zuleika share, implying a 42.3% premium to Zuleika’s last closing price and a 32.9% premium to its 30-day volume-weighted average price. This deal aims to combine complementary Western Australian assets and strengthen the combined group's financial position, reducing the need for near-term capital raises.

The offer is subject to several conditions, including a minimum acceptance threshold of 90% of Zuleika shares and shareholder approvals related to key stakeholders. CZR and Zuleika have agreed to deal protection measures to prevent competing bids, while independent expert reports will assess the fairness of the transaction for both sets of shareholders.

Croydon Gold Project Drilling Extends Mineralisation

At the heart of CZR’s exploration activity this quarter is the Croydon Gold Project in the Pilbara, where a 6,000-metre reverse circulation (RC) drilling campaign at the Top Camp prospect has delivered encouraging results. The program, designed to infill and extend the 2025 campaign, returned standout intercepts such as 3 metres at 3.19 grams per tonne (g/t) gold from 109 metres, including 2 metres at 4.61 g/t, and a 9-metre intercept at 2.67 g/t from 166 metres, confirming the north-east trending mineralisation model.

Notably, a near-surface intercept of 1 metre at 19.9 g/t gold from 21 metres represents the highest single-metre grade recorded in the 2026 campaign, highlighting the prospect’s potential for structurally controlled high-grade veins. These results extend the known mineralised strike to over 700 metres and depth to at least 220 metres, with the system remaining open for further expansion down plunge and along strike. Pending results from diamond drilling will provide critical structural and metallurgical insights to support resource development.

Surface sampling at the Martin Gossan prospect has revealed significant base and precious metal mineralisation, including rock chip assays of 16.7% copper, 1.18 g/t gold, 2.54% zinc, and 11.4 g/t silver. This volcanogenic massive sulphide (VMS) target, historically untested by drilling, is poised for RC drilling in the next quarter following heritage clearances and ongoing review.

Expanding Exploration Across Multiple Projects

Beyond Croydon, CZR is advancing exploration and evaluation across its other Western Australia projects. At Buddadoo, the company submitted a draft Reserve Activity Management Plan to the Department of Biodiversity, Conservation and Attractions to enable drilling at the Edamurta copper-zinc deposit. Concurrently, a review of the Buddadoo vanadium-titanium-magnetite project is underway to determine optimal development pathways.

The Yarrie Project saw completion of a 1,700-metre aircore drilling program targeting a gravity and magnetic anomaly. Although assay results did not reveal significant gold or base metal anomalies, geological interpretations continue to refine targeting. CZR is also reviewing the iron ore potential here, given proximity to BHP’s operations.

At Yarraloola, rock chip sampling returned high-grade iron ore results with up to 60.05% Fe at Peter’s Creek and 56.67% Fe at Darnells, areas previously inaccessible until recent infrastructure improvements. A LiDAR survey is scheduled to enhance targeting and reconnaissance, while CZR explores collaborative opportunities with regional operators to advance the project.

Leadership Changes and Strong Financial Position

The quarter saw a management reshuffle with the resignation of Managing Director Stefan Murphy, who remains during the transition period. Milan Jerkovic, with extensive mining industry experience, was appointed Acting CEO, while Alex Neuling joined as an independent non-executive director, bringing over two decades of corporate and financial expertise.

Financially, CZR remains robust with $65.1 million in cash and term deposits and no debt. The company spent $1.4 million on exploration during the quarter, primarily at Croydon. Payments to related parties totaled $162,000, covering executive salaries and director fees. CZR’s strong balance sheet underpins its capacity to fund ongoing exploration and the proposed Zuleika acquisition without immediate capital raising.