• CAZ has exercised its option to earn up to 80% in the Goongarrie gold project
• CAZ has kicked off a $3m exploration spend at the project
• Companies will enter JV to consider project development in future

Special Report: In a key step Brightstar Resources has confirmed a joint venture for the Goongarrie gold project after Cazaly Resources (ASX:CAZ) exercised an option to earn up to an 80% interest.

The non-core asset is around 30km south of Menzies and spans 70km2 of prospective greenstone sequence within the Kalgoorlie Terrain, including 12km of strike along the Bardoc Tectonic Zone (BTZ).

Cazaly will sole fund staged exploration expenditure of up to $3m consisting of:

• $1m expenditure within 12 months to earn 25%;
• A further $1m over 18 months to earn another 26% (total 51%); and
• A further $1m over 18 months to earn an additional 29% (total 80%).

Upon Cazaly earning an interest, the companies will form a joint venture to further explore and potentially develop Goongarrie.

The JV will allow Brightstar Resources (ASX:BTR) to retain exposure to exploration upside while focusing on its core operational and development assets in the Laverton, Menzies, and Sandstone regions.

Cazaly ramps up exploration 

Exploration activities have already commenced, with Cazaly reprocessing geophysical data across the project area and prioritising drill planning at the Duke of York and Hastings gold prospects.

“We are pleased to see Cazaly exercise its option to advance exploration at the Goongarrie gold project, as Brightstar streamlines its portfolio to focus on our core development and operational assets at Laverton, Sandstone and Menzies,” managing director Alex Rovira said.

“This joint venture enables Brightstar to retain meaningful exposure to exploration success at Goongarrie while directing our resources toward ongoing mining operations at Second Fortune, the development of the Fish underground mine and advancing the Laverton-Menzies definitive feasibility study.

“We look forward to working with Cazaly as it ramps up its exploration of the Goongarrie gold project.”

This article was developed in collaboration with Brightstar Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.