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Highlights
- Cazaly Resources (CAZ) initiates a joint venture with Brightstar Resources for the Goongarrie gold project, aiming to secure an 80% stake.
- Exploration investments totaling $3 million have commenced under Cazaly Resources, focusing on key prospects within the Kalgoorlie Terrain.
- The strategic partnership allows Brightstar Resources (BTR) to retain project interest while concentrating on core assets elsewhere.
The imperative growth step initiated by Cazaly Resources (ASX:CAZ) involves executing its option to earn up to an 80% interest in the Goongarrie gold project. Positioned approximately 30 kilometers south of Menzies, this pivotal non-core asset covers 70 square kilometers of potential greenstone sequence within the renowned Kalgoorlie Terrain, including a 12-kilometer stretch along the Bardoc Tectonic Zone (BTZ).
Within this framework, Cazaly is set to finance a staged exploration expenditure up to $3 million, structured as follows:
- $1 million in expenditure within 12 months to secure a 25% stake.
- An additional $1 million over the next 18 months to achieve a cumulative 51% stake.
- A subsequent $1 million over another 18 months to gain a total 80% stake.
Upon acquiring these interests, Cazaly Resources, alongside Brightstar Resources (ASX:BTR), will establish a joint venture to enhance exploration endeavors and evaluate potential developmental avenues. This collaboration offers strategic benefits by enabling Brightstar to maintain exploration exposure at Goongarrie while honing in on its primary operational assets in Laverton, Menzies, and Sandstone.
Progress and Prospects
Cazaly's exploration momentum is evident with the commencement of geophysical data reprocessing across the project area. Furthermore, drilling plans are being prioritized at the promising Duke of York and Hastings gold prospects.
Brightstar Resources' managing director, Alex Rovira, noted the significance of this venture saying, "The collaborative exploration effort at Goongarrie aligns with Brightstar's broader strategy of optimizing our asset portfolio to focus on core development and operational targets, particularly at Laverton and Sandstone." The strategic alliance not only retains a meaningful exposure to Goongarrie's potential exploration success but also allows resource allocation towards existing operations and upcoming projects like the Fish underground mine and Laverton-Menzies definitive feasibility study.
Moving Forward
The collaborative venture between Cazaly and Brightstar showcases a strategic approach in leveraging project potential while concentrating on core operations. As Cazaly Resources ramps up exploration activities, the promising prospects at Goongarrie hold substantial potential for expansion in the near future. The progression of this joint initiative marks a crucial step in both companies' ongoing commitment to unlocking and capitalizing on the mineral wealth within the Kalgoorlie Terrain.
