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Cazaly loads up on Carb Lake rare earths in Canada


Cazaly Resources has picked up the Carb Lake rare earths project in Canada. Credit: File

Cazaly Resources has made a significant addition to its rare earths portfolio after acquiring the Carb Lake project, which is within a major carbonatite complex in the north-west corner of Ontario in Canada.


The project takes in a 2.5km to 3km diameter circular magnetic anomaly known as the Carb Lake Carbonatite Complex and the company believes it is prospective for rare earths and niobium.


Cazaly has agreed to pay a non-refundable option fee of C$15,000 (AU$16,575) to the unnamed vendors for a two-month exclusivity period to complete due diligence. Once satisfied, the company will pay an additional C$85,000 (AU$92,860) in cash, with the vendors to also receive a 2 per cent net smelter royalty.


Carb Lake has been the target of limited historical exploration, with four shallow diamond holes in 1968 the only drilling completed at the site. The operation has been untouched for more than a decade with the most recent work conducted by South American Rare Earth Corporation, which conducted an airborne magnetic-radiometric survey in 2011 and collected a total of 275 surface samples, including 10 duplicate fields samples.


In 1969, the Ontario Department of Mines Geological Survey tested the area for lanthanum, cerium and niobium using 18 samples from the previous diamond drill program. Two samples showed positive results of more than 5 per cent cerium and 1 per cent lanthanum.


Nearly a decade later in 1978, the drill core was tested again by the Geological Survey, with the analysis of an additional 36 samples. Results showed up to 5620 parts per million cerium and 7.1 per cent niobium.


We are extremely pleased to have acquired the Carb Lake carbonatite project. The carbonatite complex is of significant scale, situated below shallow cover and to date has flown under the radar and remains largely untested. This is despite excellent historical results which are certainly eye-catching in today’s market.


Historical data is currently being sourced for further analysis. Once due diligence is complete and a decision to complete the transaction is made, a field assessment will be conducted and follow-up exploration activities will be prioritised. Cazaly Resources managing director Tara French

Cazaly has been making some big moves in the rare earths space this year. In January, the company highlighted a major trend of rare earths that coincides with anomalous historical results at its Ashburton project in Western Australia’s Pilbara region.


The explorer says a 50km-long thorium anomaly was highlighted across the southern area of the project’s tenements adjacent to the Blair Fault – a deep-seated regional scale structure at the contact between the Ashburton formation and the Capricorn group.


Previous exploration at the site conducted by Fortescue Metals Group saw 11 rock-chip samples collected and analysed for gold, base metals and rare earths. Six samples were taken from along the Blair Fault and returned elevated rare earths results including up to 2840 parts per million cerium, 86.5ppm dysprosium, 1370ppm lanthanum, 314ppm praseodymium and 1650ppm phosphorous.


The acquisition of Carb Lake gives Cazaly an opportunity to further raise its rare earths profile in an area that has seen limited previous exploration, despite positive anomalous results.


And the company may just prove that finally exploring the project was worth the long wait.


Is your ASX-listed company doing something interesting? Contact: office@bullsnbears.com.au

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