Highlights

  • Cazaly agreed to a conditional option to acquire up to 90% of Einstein Ventures.
  • The Brazilian portfolio covers 64 tenements and approximately 1,118 square kilometres.
  • The arrangement provides 30 days for Due Diligence followed by a potential 12-month option.
  • Initial auger drilling returned up to 1,763 ppm total rare earth oxides in a reported interval.
  • Further sampling and quality-control work are required before resource potential can be assessed.

Cazaly Resources Limited (ASX:CAZ) explores mineral resources across a portfolio of projects and has expanded its assessment of rare earth and uranium opportunities through a proposed transaction in Brazil. On 4 November 2026, the company announced an agreement providing a pathway to acquire up to 90% of Einstein Ventures, which holds exploration interests in southern and south-eastern Brazil. The Acquisition decision remains conditional on further work.

Brazilian Tenements and Exploration Targets

The package comprises 64 tenements covering approximately 1,118 square kilometres, primarily in Rio Grande do Sul with additional ground in Minas Gerais. The identified project areas include Encruzilhada, West Lavras, Central and MGB. Cazaly Resources Limited (ASX:CAZ) described potential for rare earth mineralisation in weathered regolith and harder rock, alongside uranium targets associated with structural features and sedimentary settings.

Option Terms and Financial Commitments

The agreement allows an initial 30-day due diligence period before Cazaly decides whether to proceed into a 12-month option. During the first six months of that option, Cazaly Resources Limited (ASX:CAZ) must spend AUD 200,000, including relevant holding costs. It may then withdraw without retaining an interest. Continuing into the next six months requires at least AUD 300,000 in further expenditure.

To exercise the option, Cazaly would pay AUD 1 million in cash, establishing a 90/10 joint venture. Additional payments are linked to defined milestones rather than immediate obligations. These include resource thresholds for rare earth oxides exceeding 30 million, 100 million and 300 million tonnes at grades above 0.15%, as well as a uranium resource threshold above 10 million pounds of U3O8 at a grade above 0.1%. A further milestone relates to completion of a definitive feasibility study.

Early Rare Earth Results and Technical Limitations

Reconnaissance auger drilling undertaken in June and July 2026 comprised 30 vertical holes totalling 82.25 metres. Reported intervals included 1,763 parts per million total rare earth oxides (TREO) between two and three metres in hole EVAD0001, including 380 ppm heavy rare earth oxides. Hole EVAD0015 returned 1,074 ppm TREO over a reported one-metre interval. Encruzilhada soil sampling also returned a maximum of 1,145 ppm TREO among 39 samples.

The early results carry material limitations. The company acknowledged that the sampling programme did not use standards, blanks or duplicates, and that later phases would incorporate quality-control procedures. The holes were not drilled on a systematic grid and true mineralised widths remain unknown. Cazaly Resources Limited (ASX:CAZ) will need to establish whether these preliminary anomalies can be reproduced and interpreted reliably before advancing any resource assessment.

Next Steps for the Brazilian Option

The immediate step is completing due diligence and deciding whether to enter the option. If Cazaly proceeds, subsequent fieldwork would need to confirm initial assays, strengthen sample quality assurance and refine targets for additional investigation. The announcement does not establish a mineral resource, mine development schedule or economic study for the Brazilian package.

Key Insights

Cazaly Resources Limited (ASX:CAZ) has secured a conditional route to assess a sizeable Brazilian exploration portfolio without committing immediately to full acquisition. The staged expenditure and contingent payments define the financial framework, while preliminary auger and soil results provide only an initial geological indication. Confirmation sampling, systematic exploration and the outcome of due diligence will determine whether the option progresses beyond its assessment phase.