Cazaly Resources Limited (ASX: CAZ) has signed a Memorandum of Understanding (MoU) with AuKing Mining Limited to include the company’s Halls Creek Copper deposits in a mine scoping study to be conducted by AuKing.
The study will determine the potential viability of open pit and underground operations centred around AuKing’s Sandiego Cu-Zn-Ag deposit.
Cazaly’s Managing Director Tara French said Cazaly and AuKing recognise that there could be significant benefit in combining their resources in the scoping study and potential future development of a central mining hub at Sandiego with multiple feed options from the surrounding deposits.
Under the terms of the MoU both parties agree to cooperatively collaborate via a mutual exchange of information to support the scoping study under the terms of a standard non-disclosure agreement. There are no other provisions in the MoU binding either party to undertake further dealings, however upon completion of the scoping study both parties may choose to progress further studies and/or enter into further discussions.
Wave International has been engaged by AuKing to conduct the scoping study with a focus on developing an initial mine plan, processing, and product specification to identify project economics and options to progress to a pre-feasibility study. The study will be fully funded by AKN with findings expected to be reported in late FYQ3 or early FYQ4.
The Sandiego deposit is part of AuKing’s Koongie Park project at Halls Creek where they currently hold an 80% interest through a joint venture with Astral Resources NL and have the right to acquire the final 20% interest under the terms of the Koongie Park Joint Venture Agreement.
AuKing’s total Mineral Resource Estimates at Koongie Park stand at 21.1 million tonnes (Mt) after a further 12.2Mt at the Emull deposit were added to the company’s existing 8.9Mt resources at the Sandiego and Onedin deposits to the east. Total metal content now comprises 121,800 tonnes of copper; 372,600 tonnes of zinc; 46,000 ounces of gold; 11 million ounces of silver and 79,300 tonnes of lead.
Cazaly’s Halls Creek Copper Project is situated 25km southwest of Halls Creek and covers part of the Halls Creek Mobile Zone which is highly prospective for a range of commodities including copper, gold, and nickel. The project includes the Mount Angelo North Copper-Zinc deposit, an extensive zone of near surface oxidised Cu-Zn mineralisation overlying massive Cu-Zn sulphide mineralisation.
Mineral Resources are reported in accordance with the JORC Code 2012, the Mount Angelo North mineral resource estimate1 is reported as 1.72Mt @ 1.4% Cu, 1.4% Zn, 12.3ppm Ag (using 0.4% Cu lower cut) for 23,000 tonnes copper, 25,000 tonnes zinc, 680,000 ounces of silver.
The Bommie Porphyry Copper mineral resource estimate2 is reported as 95.6Mt @ 0.27% Cu for 262,000 tonnes copper metal (using 0.2% Cu lower cut) and includes 16Mt @ 0.3% Cu of indicated material for 48,000 tonnes copper metal.
We are extremely pleased to be working with AuKing. The signing of this MoU is a significant step towards establishing a potential pathway forward to progress the copper deposits at Halls Creek towards development,” MD Tara French said.
