Cazaly has commenced diamond drilling at its Vanrock project in Queensland – which it says has the potential for Andean-type silver-tin-zinc-copper-lead mineralisation.

The diamond hole is planned to an approximate depth of 500m to test a coincident magnetic and airborne EM anomaly, the Vanrock Target, which is on the edge of a palaeo-caldera located on the edge of the Townsville-Mornington Island Igneous Belt (TMIB).

It’s worth noting that polymetallic discoveries have previously been made undercover in the region by Crater Gold Mining (ASX:CGN) back in its Gold Aura days.

CGN intersected massive sulphides containing potentially economic concentrations of zinc (1.35 to 10.13%), silver (32.7 to 642g/t), tin (0.12 to 0.63%), lead (0.25 to 2.1%) and/or copper (0.13 to 0.57%) at the A1 and A2 prospects to the southwest of Cazaly’s (ASX:CAZ) project.

Similar geological setting to world’s largest silver-tin deposit

And if that wasn’t encouraging enough, MD Tara French says the targeted style of deposit at Vanrock is akin to the Cerro Rico silver-tin deposit in Bolivia, a late stage intrusion along the ring fractures of a large caldera.

“The Cerro Rico deposit contains 5 billion ounces of silver and 1.5 million tonnes of tin, making it one of the world’s largest silver-tin deposits,” she said.

“We expect drilling the single diamond hole will take a week to complete, weather dependent.

“If the hole is successful and the targeted analogy is on point, the mineralisation and alteration in drill core should be visually spectacular.”

Earn-in option at Vanrock

Cazaly has an agreement with Lynd Resources to acquire a majority stake in the Vanrock project – and will sole fund the drilling.

The company can earn 60% in the project by spending $1.5m (inclusive of the initial drillhole costs) over three years, 75% by commencing a pre-feasibility study and 90% by completing a bankable feasibility study.

Plus, as part of the JV agreement, Lynd will revert to 2% net smelter royalty if their interest in the project falls below 10%.

Either way, it’s a great deal for Cazaly, because Lynd’s team were involved in the discovery of Olympic Dam, Cannington and Ernest Henry.




This article was developed in collaboration with Cazaly Resources, a Stockhead advertiser at the time of publishing.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.