New Gold Zones Drive Cazaly Momentum

Key Concepts

• RC Drilling (Reverse Circulation Drilling): A drilling method used to obtain rock samples for geological analysis.
• Mineralized Shoots: Concentrated zones of high-grade ore within a larger geological structure.
• Strike Length: The horizontal distance along the surface of a geological structure.
• Bardock Tectonic Zone: The primary geological region hosting the project's mineralization.
• Mensy Shear: A major structural feature controlling gold mineralization in the district.
• Ultramafic/Mafic Rocks: Types of igneous rocks that often host gold deposits in this region.
• Costean: A trench dug across a geological structure to expose the bedrock for sampling.

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1. Kungari Project: Drilling Results and Structural Insights

Recent 1-meter split assay results from the Kungari project have confirmed high-grade mineralization at depth, validating the company's geological model.

• Key Intercepts:
  • 2 meters at 26.4 g/t gold from 206 meters.
  • 3 meters at 6.66 g/t gold from 217 meters.
• Significance: These results demonstrate that mineralization is not limited to the upper profile (previously identified as 6 meters at 10 g/t from 27 meters at Duke of York). The data confirms that the structures are mineralized throughout the profile, including the "fresh rock zone," and reveals multiple high-grade shoots between the Duke of York and Duchess prospects.

2. Strategic Exploration Framework

The company manages a 20-kilometer strike length across the Bardock tectonic zone. The exploration strategy follows a systematic process:

1. Initial Testing: Drilling multiple prospects across the project area to identify anomalous mineralization.
2. Assessment: Evaluating results from various sites (e.g., Mason’s Flat, Hastings, Julie Margaret).
3. Ranking: Prioritizing targets based on economic potential to ensure capital is allocated to the most prospective areas.
4. Economic Study: Conducting in-house evaluations of the Duke of York and Duchess prospects to determine viability.

3. Regional Prospects and Future Targets

The company is focusing on several key areas along the Mensy Shear and the Comet Vale trend:

• Hastings: A high-priority target following previous results of 38 meters at 3 g/t gold. It sits on the southern extension of the Mensy Shear.
• Mason’s Flat: Recent drilling returned 7 meters at 2 g/t from 46 meters, following up on a 10 g/t costean sample. This confirms the potential of the ultramafic/mafic rock packages located to the west of the main shear.
• Julie Margaret & Northern License: These areas are slated for exploration to test their potential, with the Julie Margaret prospect specifically noted for its position on the Comet Vale trend, which has seen regional success by other operators (e.g., Ora Banda Mining/Gorilla Gold).
• Sir Lawrence: Identified as a key target within the Northern License.

4. Operational Roadmap

• Heritage Survey: Scheduled for the next month to clear the way for further drilling.
• Drilling Sequence: Following the heritage survey, the company will prioritize drilling at the Hastings project.
• Resource Development: The company aims to leverage the 20-strike-kilometer package to identify multiple economic mineralized zones, moving from broad testing to "honing in" on the most lucrative targets.

Synthesis and Conclusion

The recent drilling at Kungari has successfully proven that the mineralization at the Duke of York and Duchess prospects is continuous and high-grade at depth. By validating the structural integrity of the Bardock tectonic zone and the Mensy Shear, the company has established a clear pipeline for growth. The focus for the coming year is a disciplined, data-driven approach: testing a wide range of prospects, ranking them by economic potential, and concentrating investment on the most promising zones to maximize shareholder value.