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Transcription of Interview with Cazaly Resources Limited (ASX:CAZ) Managing Director, Clive Jones
Clive, Cazaly today announced the discovery of a high grade feeder zone at the Mt Angelo Copper Project. Can you explain the significance of this discovery and what it means for Cazaly shareholders?
I guess when you’re exploring a base metal deposit you’re always after the higher grade portions which can, obviously, effect the economics of these things. The discovery of the feederzone below the known mineralisation at Mount Angelo is hugely significant. The grades we’re getting in that feeder zone, albeit from just a few holes are significantly higher than what we’re seeing from what is otherwise quite a nice deposit anyway.
You are still at an early stage of exploration. Presumably this discovery will now see the focus of future drilling shift to expanding the size of the high grade zone?
Certainly, at first we need to determine the extent of the feeder zone, both at depth and long strike; and in due course drill out the whole orebodyso that we can get a reasonable resource.
How does this discover rank in terms of recent copper discoveries in WA?
It’s a little early to say because we do not know the extent of it. However, the fact that we have a significant body of copper mineralisation near surface, and this now newly discoveredfeeder zone, we’re getting grades well in excess of 10% within the ore body,which puts it right up there with the best copper discoveries in the state.
Prior to the recent discovery, Mt Angelo looked like a growing but relatively low grade copper deposit. Presumably this discovery changes the economic potential of the project?
It certainly has the potential for that, without doubt. As we all know grade is king. The feederzones to these sorts of deposits generally are a high grade. We are quite hopeful and confident that we can delineate a significant deposit at a higher grade.
What is Cazaly’s net interest in the Mt Angelo Project and what are the terms of your earn in agreement with 3D Resources?
Just very briefly, at the moment we control about 20%. We have the ability to go to 75% equity in the project through finalising a pre-feasibility study within three years. So we are well on track to do that. There’s no issues there. And just issuing some paper and a bit morescrip.
How does the Mt Angelo Project rank within Cazaly’s portfolio of exploration and development projects?
Well the company’s key asset has been the Parker Range iron ore project, situated in the Yilgarn region of Western Australia. Parker Range has a completed feasibility study on it, has all its key approvals in place, we’re actually ready-to-go. Unfortunately, we can’t get the order of the market at the moment because of poor constraints. Subsequently, we have shifted our day-to-day focus on the Mount Angelo copper deposits, so it is our key project at the moment, as far as ongoing work goes.
What is the next step for Cazaly’s drilling program at Mt Angelo?
As mentioned the next phase is to really delineate what we’re doing with the feederzone. If we can grow the feederzone and delineate a reasonable size in, that will radically alter the economics of the deposit and what we want to do.
When do you anticipate being in a position to announce a maiden inferred resource at Mt Angelo?
It’s a little early to say. As mentioned we really need to see what we’re dealing with first. We don’t want to go too early with these things. Let’s work out what we’re dealing with first.
Clive, is there anything further you would like to add?
Just that we’re unsure of exactly what we’re dealing with here, and do we have a tiger by the tail? We don’t know, but we’re certainly on the case. All the indications today are that we are dealing with a classic VMS style deposit, which is quite exciting.
Ends
(20min delay)
