Key highlights

  • Cazaly Resources (ASX:CAZ) shares fell 10.53% to $0.017 during the Trading session on 20 October 2026.
  • On 8 October 2026 the company announced Reverse Circulation Drilling had begun at the Gulls Blow prospect, the first there since the 1980s.
  • Cazaly holds 51% of the Goongarrie Gold Project and can lift this to 80% by spending a further $1 million by March 2029.

Shares of Cazaly Resources Limited (ASX:CAZ) fell 10.53% to $0.017 during the trading session on 20 October 2026. Separately, on 8 October 2026, the company announced that reverse circulation (RC) drilling had commenced at the Gulls Blow gold prospect within its Goongarrie Gold Project, about 90 kilometres north of Kalgoorlie in Western Australia. The share price move and the announcement occurred on different dates and are not linked in this article.

About Cazaly Resources Limited

Cazaly Resources is a West Perth-based explorer. At the Goongarrie Gold Project in the north-eastern Goldfields, it holds a 51% interest earned from Brightstar Resources Limited, which the company says it achieved twelve months ahead of schedule. It can increase its interest to 80% by spending a further $1 million on exploration by March 2029.

The Gulls Blow drilling program

The initial RC program is designed to test beneath historical shafts and down-dip of shallow historical intercepts in holes GB1, GB2 and GB4. Those holes were drilled by Julia Mines NL in 1986 to a maximum depth of about 70 vertical metres, or 80 metres downhole. A track-mounted RC rig has been mobilised to provide access across hilly terrain and outcropping quartz veins.

The release describes the program as short and focused, aimed at validating and extending the shallow historical intercepts. The historical results are non-JORC and were first reported by the company on 8 September 2026.

Geological setting

Gulls Blow lies within the Bardoc Tectonic Zone, immediately south-east of the historical New Boddington and Frank’s Dam open pits and 1.5 kilometres north along strike of Mason’s Flat. The geological sequence is described as sheared, chlorite and carbonate-altered basalt and gabbro, disrupted by cross-cutting faults and sheeted quartz vein sets striking north-north-west to south-south-east.

The 1986 holes were not followed up, and the company states that the mineralisation remains untested at depth and along strike.

Earn-in position and related programs

Expenditure on the Gulls Blow and Hastings RC programs contributes towards the final earn-in stage to 80%. The release also lists earlier Goongarrie announcements, including drilling at the Hastings prospect and gravity imaging at the Sir Laurence prospect.

Sector backdrop

The Eastern Goldfields of Western Australia host a long history of gold production, and explorers there often revisit old workings and historical drilling with modern techniques. Historical results reported under older standards cannot be treated as current resources and have to be validated by new drilling.

Earn-in structures are common among junior explorers because they allow work to be funded progressively.

Risks shareholders should weigh

The Gulls Blow results are historical, non-JORC and unverified by Cazaly, and the new drilling may not confirm them. The program is small, and the release does not state hole numbers, metres or a results timetable.

To reach 80% Cazaly must spend a further $1 million by March 2029, which requires funding that may be sourced through Equity raisings. At a price of $0.017 the share price can move sharply in percentage terms, as the 10.53% fall on 20 October 2026 shows.

What’s next

The company has begun the first RC hole at Gulls Blow. Assay results from the drilling, and further work at the Hastings prospect, will determine the next steps under the Goongarrie earn-in, although the release does not give specific dates.