Cazaly Resources has signed an agreement with 3D Resources to earn up to 75% interest in the Halls Creek Copper Project in the Kimberley region of Western Australia.
The company has also fielded a price and volume query from the ASX over a sudden 30% share price jump last Friday to an intra day high of AUD 0.24 prior to Cazaly entering a trading halt.
Cazaly responded to the ASX that it has been in negotiations to acquire rights in the Halls Creek Copper Project with the agreement for the acquisition executed late yesterday afternoon. The Halls Creek Project comprises six tenements over 298 square kilometers and covers part of the Halls Creek Mobile Zone which is highly prospective for a range of commodities including base metals, gold, diamonds and nickel.
The project is highly prospective for high grade copper sulphides and large lower grade porphyry copper and other base and precious metal mineralization. It is also well positioned in terms of infrastructure for project development. Initial work will concentrate on mineralization previously discovered at the Mt Angelo North copper, silver, zinc and the Mt Angelo Porphyry prospects.
Mt Angelo North;
At Mt Angelo North, volcanic massive sulphide mineralization containing massive and stringer copper sulphides has previously been discovered. Copper mineralization extends over a strike length of 170 meters with true widths of around 15 to 35 meters.
Mineralization occurs as a chalcocite rich supergene blanket sitting above a shallowly plunging primary sulphide zone, which remains open at relatively shallow depths and is capped by zinc and lead mineralization.
3D has previously reported copper grades of around 1.5%, however quite extensive higher grade copper zones were also intersected in previous drilling including 57 meters at 5.04% copper, 43 meters at 2.11% copper and 13 meters at 3.35% copper.
Significant gold and silver credits have also been reported in association with the mineralization and include 1 meter at 6,470 grams per tonne silver and 0.55 gram per tonne gold.
Ground geophysical surveys have defined a strong chargeable and conductive response indicative of sulphide mineralization, over a strike length of 400 meters confirming the potential upside at the prospect.
Of particular note is that to date, no drilling has been undertaken into the target zone below about 80 meters vertical depth tracing the geophysical anomaly and the predicted down plunge trend of the mineralization. Drilling is due to begin at the Mount Angelo North prospect immediately initially targeting the high grade copper sulphide mineralization.
Source - Proactive Investors
(www.steelguru.com)
