Cazaly kicks off diamond drilling, aims to deliver the polymetallic goods at the Vanrock Project
Mining
Mining
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.
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.”
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.