CAZ 14.3% 1.6¢ cazaly resources limited

Ann: High Cobalt Grades Returned from Bungonia Project, page-31

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  1. 961 Posts.
    lightbulb Created with Sketch. 249
    this phd thesis from 2006 has a whole section on Bungonia: http://researchdirect.westernsydney.edu.au/islandora/object/uws:2409
    The exploration summary from Tharsis Mining in 2013 is also useful:

    "5. PREVIOUS EXPLORATION
    A literature review of previous work in the Bungonia area was completed. The focus of
    Tharsis' exploration in the Bungonia area is the manganiferous cobalt ± nickel/copper
    deposits in the area (Figure 3). These deposits have been known since the late 19th
    century, and since that time a number of companies have evaluated them.
    Mcintyre Mines Limited / Vam Limited / ASARCO (1969-1972)

    The first attempt at systematic evaluation was conducted by Mcintyre Mines Limited in 1969
    in Authorities to Prospect 2975 and 3315. Vam Limited took over exploration of the
    manganese deposits in 1969 and was granted EL 279. The program on EL 279 was then
    continued by ASARCO when Vam went into receivership. ASARCO discontinued the
    manganese programme and concentrated on basemetal evaluation.

    Mcintyre Mines does not appear to have conducted any detailed exploration in the area and
    Vam apparently concentrated its activities in the vicinity of the mineral occurrence site
    referred to as Mine No. 294 on the Goulburn 1:250,000 Metallogenic sheet. Vam's
    activities included costeaning, and although detailed results of this work have not been
    sighted, it is believed that Vam calculated resource estimates on the basis of this work.
    The costeans have subsequently been infilled. In total, the area was believed to host nearsurface
    deposits amounting to approximately 200,000 tonnes grading 0.4% cobalt.

    North Broken Hill Limited (1980-1981)
    North Broken Hill Limited were granted EL 1315 in February, 1980 and commenced
    exploration for large tonnage manganiferous wad deposits. Extensions to the
    manganiferous grits were traced to the southwest and Exploration Licences 1351 and 1477
    were subsequently granted to cover possible extensions. Although the company failed to
    locate any significant new reserves, with total possible reserves quoted as 40,226 tonnes
    grading 0.40% cobalt, they did note that the material was very amenable to simple
    metallurgical treatment.
    No significant manganiferous wad occurrences were found in EL 1351. In all, 766 rock chip
    samples were taken and assayed for copper, lead, zinc, silver. nickel, cobalt and
    manganese.
    Insufficient manganese-cobalt reserves, limited signs of "true" gossan, lack of IP anomalies
    and limited anomalous gold assays downgraded the area and the licences were
    subsequently relinquished.

    Red Anchor Resources (1991-1996)
    Red Anchor initially identified a large number of manganese wad deposits containing
    potentially economic grades of cobalt, nickel and copper in Tertiary grits occur within a
    narrow zone striking NNE and extending from Bogungra Creek to Bungonia. a distance of
    some 18 kilometres.
    The high grades present were probably due to a form of scavenging. The high levels of
    contained metals were thought to have been derived from a local metal source within this
    May 2013 - 6 - EL7919 Bungonia
    NNE- trending corridor, since most manganiferous deposits outside this corridor had low
    manganese-cobalt ratios. The source of the metals in the wad was not conclusively
    proven, but is probably of local derivation with the metals released into the groundwater
    during weathering. The low cobalt content of the Budjong deposits precluded this area as a
    source. The overlying basalts of Tertiary age were anomalously high in cobalt, and may be
    the source of at least this element.
    Red Anchor concluded that although the manganese wad-cobalt-nickel-copper deposits
    contain metal values which may be extracted economically, previous drilling programmes
    encountered problems, but did demonstrate the erratic nature of the mineralization and the
    low tonnage problem. A limited exploration programme was considered warranted if:
    - significant potential tonnages have been overlooked (considered unlikely)
    - the mineralization is the redistributed component of basemetal deposits in the
    bedrock.

    In summary, the manganese wad deposits carrying high cobalt-nickel-copper values are
    mainly restricted to the northern portion of the Cullulla-Bungonia trend between Bogungra
    Creek and Bungonia in the Northwestern Zone, and a local source of these metals is
    inferred. Previous exploration has down-graded the chances of finding large tonnages of
    cobaltiferous wad, however the source of the cobalt and nickel had not been adequately
    defined. The source may be the Tertiary basalts, but it may also be from intrusive igneous
    phases comagmatic with the basalts or perhaps of Upper Palaeozoic age and now covered
    by Tertiary and Quaternary deposits. A number of the drillholes which tested the
    manganese wad deposits penetrated into bedrock, however no bedrock samples appear to
    have been assayed for basemetals. A scout geophysical testing programme was
    considered warranted over a few selected deposits which occur in interesting structural
    locations.

    Cobalt Resources / Stuart Metals (1994-1996)
    As a result of Stuart Metals' field reconnaissance, rock-chip sampling and more detailed
    geological mapping, it has been shown that these mineralised grit occurrences are more
    widespread than previously recognised within the licence area.
    In particular, a north-north-east trending, possibly structurally controlled zone in the
    southern portion of the licence hosts numerous occurrences which return rock-chip assays
    of up to 1.8% cobalt. Locally, mineralised grit exposures in the above southern zone
    appear to be thicker (up to 5 metres) and to have greater areal extent than occurrences
    elsewhere in the region.
    Stuart Metals completed a total of 77 Rotary Air Blast (RAB) reconnaissance drilling,
    totalling 621 metres of drilling at five prospects. This work has confirmed the presence of
    mineralised grit horizons with thicknesses of up to 6 metres. Several occurrences appear
    to be lag or remnant deposits with limited economic potential; other occurrences appear to
    have been preserved under resistant laterite (and possibly basalt) cappings.
    It was recommended that future exploration employ a more powerful drilling rig capable of
    investigating mineralised horizons preserved beneath resistant cappings. Stuart Metals
    was not able to give this work priority in relation to its other projects, and recommended that
    title to the area be relinquished.

    The previous exploration referred to above is generally consistent in two respect:-
    a. Manganese-cobalt occurrences in the area appear to be of limited lateral extent with
    somewhat limited tonnage potential.
    b. Rock-chip samples which contain anomalous cobalt typically assay in the range 0.1-
    1.5% cobalt, with an average value of approximately 0.4-0.5% cobalt."

    Tharsis was after nickel, and didn't find much, so relinquished the tenement.

    The gamble here is whether CAZ can extend the resource from Kt to Mt. I would read these reports on NSW DIGS very carefully. Central West Gold 2009 is also useful. Every explorer has called for more drilling to prove extensions but without doing it themselves.

    I'm also curious as to whether the lithium in the lithiophorite can be won alongside the cobalt. When North Broken Hill did their acid leaching mets lithium wasn't really a concern. Having cobalt+lithium in one project could be an edge.
 
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