Picante positive for CazalyJesse RiseboroughThursday, September...

Picante positive for Cazaly


Jesse Riseborough


Thursday, September 01, 2005
CAZALY Resources says recent RC infill drilling at its prospective Picante deposit within its Kunanalling gold project near Kalgoorlie has reaffirmed the high-grade tenor of the resource with the company now looking to "fast track" the deposit into production.

The latest results included highlights of 10m at 6.31 grams per tonne from 134m, 11m at 2.98gpt from 120m and 4m at 8.7gpt from 135m, while drilling at the nearby Tommy prospect returned a hit of 8m at 8.44gpt 29m including 1m at 508gpt from 31m.

Cazaly managing director Clive Jones told MiningNews.net the latest drilling was conducted to upgrade the resource to a measured status which would then enable the completion of mining optimisation study – producing a reserve figure for the deposit in a month.

"We have begun metallurgical test work and are looking at various scenarios for having it developed," Jones said.

A recent resource estimation from Picante confirmed an indicated and inferred resource of 330,000t at 3.72gpt for 39,500oz, while the company recently signed a mining agreement with major Placer Dome over the historical Catherwood open pit, within Kunanalling, with mining expected to begin in October.

"That is certainly one of the other options [signing a mining agreement with Placer], obviously we will be talking to Placer about Picante but we are not beholden to Placer," he said.

"It is only 200m from the haul road going straight to Paddington so obviously we are talking to Placer."

Jones said the company had not completed any financial modelling on Picante.

Meantime Jones said the nearby Tommy prospect was returning very similar results to Picante and would now be followed up by deeper drilling in October. He said drilling would also focus on other look-a-like targets in the immediate vicinity of Picante.

"We would love to think we could have several pits all within a few hundred metres of each other," he said.

Shares in Cazaly were up 0.5c (2%) to 25.5c in morning trade.

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A section of Cazaly's Picante deposit and Tommy prospect.