Geological & Corporate Fundamentals

FACTS

GEOLOGY
CLZ is exploring for structurally controled blind orogenic Gold in a belt which has been biased for Nickel since the AMEX early days.
Katgap fIrst began as a 40+ ppb anomaly In BLEG stream sedIment samples It then eventually progressed to grams per metre AC refusals.
These above 1 gram per tonne hIts were mothballed for some tIme due to a number of reasons IncludIng gold price and corporate governance.
In the FGB regolith transport and depth makes exploratIon difficult and expensive sInce AC drIllIng essentially becomes a soil sampling method ($25/m).
Therefore:
In order to be a successful junior exploration company exploring for these deposit types you need to have a highly competent structural geologist running the exploration program who is regularly updating a working field model in three dimensions. This is Dean Goodwin, he has worked in this belt field mapping and doing target generation since the 80s/90s.
The one redeemable thing that the board has done is hire the right person for the task of unlocking the value at Forrestania.

CLZ is consistently hitting high grade gold intersects at shallow depths at Kat Gap. Why is this so? it leads back to structure mentioned previously. Dean understands the orientation of the gold lodes because he understands how the crust has been faulted and where the gold rich fluid is thus being emplaced. On top of this reef gold there is the additional benefit of there being dolerite dyke emplaced gold. What does this all mean? It is highly likely that the high gold grade intercepts will continue and a significant resource will be put on the board at Kat Gap.

Why hasn't Dean drilled several diamond holes yet? He doesn't need to, the gold mineralisation is open in many directions therefore the best value is to continue until its closed out and then bring 50 m diamond spacing in to get a confident reserve and resource model locked in. So yes geologically speaking the high grade gold will continue until enough RC drilling is complete, the tenement boundary is encounted or the structure changes in a way that reduces gold endowment. Without a great deal of dIfferent rock types present, the dominant regime should be brittle making predictability/modelling easIer. Go over to the other sIde of the belt at Hatters Hill very sImIlar story with a 200,000 oz resource also lInked to dolerite dyke fluid emplacement. It is possIble that a similar size or larger resource can be achieved at Kat Gap.

CORPORATE
The company secretary does not have the rIght level of corporate legislative understanding to fulfIll the role. He needs to either resign or be fIred ImmedIately.
The company is backed by Argonaut Securities but wIth an exceptional Kat Gap asset and more lIke Blue Haze etc it would be prudent and very easy to get other backing for the expensive diamond drilling ahead.
The board needs to at the very least plan for a shareholding consolidation to attract the phuck you money required to build or lease mining Infrastructure. Big money wont touch a 0.005 stock.
Short term trading needs to cease.

DISCLOSURE
Yes I have a geoscIence degree.
Yes I am a very HAPPY long term shareholder who was fortunate to enter at 0.004.
Yes I wIsh I held more.
CongratulatIons Dean and the fIeld crew for some textbook exploration.
I wish every long term investor success over the coming months.