Cazaly Resources (ASX:CAZ) completed initial drilling at the Kaoko project in Namibia to determine lithium mineralization concentrations below a surface geochemical anomaly, according to a Monday filing with the Australian Securities Exchange.

Drilling revealed intercalated dolomite, dolostone, chert, and minor chloritic sandstone, with quartz veins and faults identified over three traverses, suggesting fluid pathways and potential mineralization, the filing said.

Shares fell nearly 7% in midday trade.