parker iron targets identified caz and gda jv

Was on Fraser Island at Orchid Beach chasing a few tailor when this announcement came out by Cazaly on the JV with GDA....the resource continues to grow :-)

The buy sell sides of total market depth (22m to 12m) and in the top three levels (8m to 4m) look to be building ready for a breakout.

Good LOI and Calcined (CaFe) data looks very likely the extensions in iron to continue, further upgrades, discoveries, product options,including 62% to 65.5% Fe in lump product and up to 63.3% in fines.

A few excerpts.....

24th July 2009
ASX Release
PARKER RANGE IRON TARGETS IDENTIFIED
Drilling Re-commences
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• Exploration mapping identifies numerous iron targets
􀂃 “Rainmaker” Prospect - 1.2km strike extension to
Mount Caudan
􀂃 Rockchips up to 62% Fe at other satellite prospects
• 5,000m drilling program underway
• Mount Caudan infill drilling to increase and lift resource
status
• Indicative quality product streams identified
The directors of Cazaly Resources Limited (ASX: CAZ) (“Cazaly” or “the Company”) are
pleased to announce that exploration has recommenced at its 80% owned Parker Range Iron
Project, a joint venture with Gondwana Resources Ltd (ASX:GDA). The Project lies
approximately 15 kilometres south-east of Marvel Loch and approximately 60 kilometres by road
south of the Perth–Kalgoorlie railway near Southern Cross. The Company has previously
announced an Indicated and Inferred Resource Estimate for the Mount Caudan Deposit of
23.5mt @ 55.4% Fe in May 2009. Recent exploration work has identified several new target
areas that have good potential to increase global resources.
Target Generation
Recent exploration work has involved field mapping and sampling the mineralised Banded Iron
Formation (BIF) over the entire 16km strike length in the Project area. Significant discoveries
include a 1.2km extension of the Mount Caudan iron outcrop, known as the “Rainmaker
Prospect”. Rockchip results from Rainmaker reach up to 61.0% Fe and appear at surface to be
a similar style of mineralisation to that found at Mount Caudan. This area is a priority for drill
testing.

Mount Caudan Deposit
23.5mt @ 55.4%Fe
Rainmaker Prospect
(Mount Caudan Extension)
Possible extension
under cover
1.2 km
siding
Road to rail Project Boundary

Figure 1. Rainmaker Prospect.
Further south, rockchip samples of up to 62% Fe have been returned from several other newly
identified iron outcrops, such as the “Sanctuary”, and “Eclipse” Prospects. These supplement
the previously identified Wrathchild Prospect with approximately 3km strike of high grade iron
outcrop. Full details of rockchip results from these prospects are located in Appendix 1.
Further encouragement is also taken from the discovery of significant widths of mineralised BIF
in historical drilling in areas of limited or no iron outcrop.
All prospects have potential to provide additional resources to Mount Caudan. Drilling at these
prospects has already commenced with a second RC rig to be mobilised to site by the end of
the month.
Mount Caudan
The Company is continuing with development work at Mount Caudan and will commence infill
drilling during this program to lift the confidence level of the current resource.
Recent work has also highlighted indicative options for products from the project. These include
a single ‘Fines only’ product or a dual ‘Lump & Fines’ product stream. Indicative ore chemistry is
as follows;
This work has also shown that the ore has many similarities with Pilbara Channel Iron Deposits
(‘CID’s’) with low Phosphorus levels and good upgrades in Fe content when calcined.
Table 1. Indicative Product Options
Two Product Option
Fe % Al2O3 % SiO2 % MnO % P % LOI % Fe % (ex LOI)
Lump 57 - 59 1 – 1.8 3 - 5 0.7 – 1.2 0.015-0.025 9.8 - 10 62.0 – 65.5
Fines 55 - 57 1.5 – 3 4 - 6 0.7 – 1.2 0.015-0.025 9.8 - 10 59.8 – 63.3
Nb. Preliminary lump to fines ratio of 57% lump to 43% fines
Single Product Option
Fe % Al2O3 % SiO2 % MnO % P % LOI % Fe % (ex LOI)
Fines Only 56 -58 1.4 – 2.5 3.5 – 5.5 0.7 – 1.2 0.015-0.025 9.8 - 10 60.9 – 64.4
Nb; Based on metallurgical test results to date from PQ drill core.
Fe % (ex LOI) (Calcined Fe) determined by Fe(100-LOI)*100.
Summary
Drill testing of priority targets and within the Mount Caudan iron ore deposit has commenced
this week with a second rig due on-site by the end of the month. The Company is well funded
following a recently completed capital raising. These funds have allowed the Company to
expedite the drilling of the deposit and nearby targets as well as for the funding of further
development work. This includes ongoing metallurgical test work and the commencement of
feasibility studies into the potential mining of the deposit at Mount Caudan.
Yours sincerely,
Nathan McMahon
Managing Director
The information that relates to exploration targets, exploration results and drilling data is based on information
compiled by Gregory Miles who is a Member of The Australian Institute of Geoscientists and an employee of the
Company. The information that relates to the Mineral Resource Estimate has been authorized by Mr Paul Payne
who is a member of the Australasian Institute of Mining and Metallurgy and an employee of Runge Limited. Both
Mr Miles and Mr Payne have sufficient experience which is relevant to the style of mineralisation and type of
deposit under consideration and to the activity which they are undertaking to qualify as a Competent Persons as
defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves’. Mr Miles and Mr Payne consent to the inclusion in their names in the matters based on their
information in the form and context in which it appears.