Cazaly Resources Limited has exercised its option to proceed with the earn-in Joint Venture (JV) at the Goongarrie Gold Project. This decision secures Cazaly’s right to earn up to an 80% interest by funding exploration activities worth up to $3 million.
This marks a significant step in the partnership between Cazaly and Brightstar Resources Limited, providing both companies with growth opportunities in the prolific Kalgoorlie gold region.
Figure 1: Cazaly Resources Limited has exercised its option to proceed with the earn-in Joint Venture (JV) at the Goongarrie Gold Project [Cazaly Resources]
Key Terms of the Earn-In Agreement
Cazaly will earn its stake in the project through a staged investment approach:
- Stage 1: $1 million expenditure within 12 months to earn a 25% interest.
- Stage 2: An additional $1 million over 18 months to earn a further 26% interest, increasing its stake to 51%.
- Stage 3: A final $1 million over another 18 months to secure a total 80% interest in the project.
Once Cazaly reaches its earn-in milestones, a Joint Venture will be formed to advance exploration and development.
Exploration Plans Underway
Cazaly has wasted no time in beginning exploration activities. The company is currently reprocessing geophysical data across the project area to refine drill targets. It has prioritised drilling at the Duke of York and Hastings prospects, both of which have shown strong gold potential based on historical data.
Reverse circulation (RC) drilling will focus on testing existing gold intercepts, while aircore (AC) drilling will explore underexplored zones along the Bardoc Tectonic Zone (BTZ). The BTZ is a major structure associated with significant gold mineralisation in the Kalgoorlie region.
Figure 2: Menzies tenure & Lake Goongarrie tenure
Strategic Advantage for Brightstar
Brightstar’s decision to proceed with this JV aligns with its broader strategy of focusing on core mining and development assets at Laverton, Menzies, and Sandstone. The company will retain a meaningful exposure to Goongarrie’s potential discovery success while concentrating its resources on existing production and development projects.
Alex Rovira, Managing Director of Brightstar, highlighted the benefits of the partnership:
“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. 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.”
Brightstar’s exploration strategy remains focused on increasing and upgrading mineral resources at granted mining leases with near-term development potential. This JV allows the company to divest non-core assets while still benefiting from future discoveries.
The Potential of the Goongarrie Gold Project
The Goongarrie Gold Project spans 70km² of highly prospective greenstone belt within the Kalgoorlie Terrain. It includes 12km of strike along the Bardoc Tectonic Zone, which is known for hosting significant gold deposits.
Located 30km south of Menzies, the project has excellent infrastructure, including access via the sealed Goldfields Highway. Its geological setting and past drilling results indicate strong potential for further gold discoveries.
What Comes Next?
Cazaly will now:
- Advance RC and AC drilling at priority targets.
- Reprocess aeromagnetic data to refine structural interpretations.
- Identify and assess new exploration opportunities across the tenure.
Brightstar will continue its primary focus on its flagship projects while closely monitoring Goongarrie’s progress through the JV. The companies will share exploration results as they become available, with potential for significant upside if drilling confirms new gold zones.
Conclusion
The decision by Cazaly to exercise its option in the Goongarrie JV marks a major milestone for both companies. Cazaly secures a pathway to a majority stake in a high-potential project, while Brightstar retains exposure to discovery upside without committing capital.
As drilling programs ramp up, the market will be watching closely for results that could unlock new value in one of Western Australia’s most renowned gold regions.
