Cazaly Resources Limited announced the application for a new exploration licence located in the northern region of Namibia through its 95% owned local subsidiary company Philco One Hundred and Seventy Three (Proprietary) Limited. The remaining 5% interest in Philco is held by a local Namibian company controlled by historically disadvantaged Namibians. The Abenab North Project lies in the Otavi Mountain Land region of northern Namibia located approximately 450km by road from the capital of Windhoek in an area comprising the towns of Tsumeb and Grootfontein.

The region is a significant well mineralised base metal province with historic production from several mines including Tsumeb, Kombat, Abenab and the Berg Aukas mines. Tsumeb is a world-famous Cu-Pb-Zn-Ag-Ge-Cd mine renowned for its wealth of rare and unusual minerals and was mined from 1897 to 1996. There is excellent infrastructure in the region which is well served by sealed roads, rail to port, high voltage power, telephone lines, and water.

The Abenab North Project is close to major towns and mining processing facilities. The exploration licence application, EPL 9110 Abenab North, has no competing applications and covers an area of approximately 790 km. The project is located on the Neo-Proterozoic Damaran platform carbonate succession of the Otavi Group overlying basal clastic sediments of the Nosib Group, which in turn rest upon Paleo-Proterozoic granitic basement.

The project is considered to be highly prospective for base metal and rare earth element (REE) mineralisation as evidenced from the results of previous but limited exploration. In the early 2000's Anglo American Corporation explored for base metal mineralisation in the area now covered by the EPL application. The program was short-lived however, and the ground was relinquished after the completion of a ground geophysical campaign.

In 2004 Kudu Minerals (Pty) Ltd. applied for a portion of the ground abandoned by Anglo American also targeting Tsumeb style hydrothermal pipes. Kudu Minerals interpreted and modelled airborne and ground magnetic data, the results highlighted 9 targets for follow up drilling. The drilling was aimed at testing these anomalies by drilling a single hole into each target into the fresh rock whilst two other targets, numbered 11 & 12, were tested by surface geochemistry only.

Drilling intersected fresh carbonatitic material in five drill holes (B1-B4, B7). In two drill holes ferruginous quartzites were intersected (B5, B9). B8 did not intersect the target due to excessive ground water at 118m.

Drill hole B6 intersected soft, red clays with minor iron oxides and dolomitic fragments over 43m from 57m to 100m downhole, the hole was abandoned within oxidised clays. Geological logging and petrographic analyses confirmed that carbonatite was intersected in 6 of the 9 drill holes. Drill holes B3, B4 and B6 all ended in carbonatite, however only limited sampling and analysis for REE was carried out.

Drill hole B6 showed a 45m intersection (55m-100m end of hole) of REE enrichment in carbonatite material comprising red clays with minor iron oxides and dolomite fragments. Drill hole B6 showed an average grade of 0.68% (CeO2 + La2O3 + Nd2O3) over 45m from 55m, including a higher grade zone assaying 2.36% (CeO2 + La2O3 + Nd2O3) over 4m from 86m. Total Rare Earth Oxide (TREO) values for these intercepts, as reported in the highlights section of this announcement, are 0.73% over 45m and 2.53% over 4m respectively.