Cazaly Resources Limited announced that lithium infill surface sampling has been completed at the Kaoko Project in Namibia, and all samples have been submitted for analysis. Cazaly's recent data review highlighted the presence of a large lithium in soil anomaly in the north-eastern part of the project area stretching over 12km. The anomaly was defined with broad surface samples collected across a 1km grid.

The recent infill sampling program is designed to refine the anomaly, which is in excess of 100 sq. km, with samples collected across the most anomalous areas on a 200m x 50m grid spacing. Cazaly engaged Gecko Exploration (Pty) Ltd, a local Namibian consulting company, to conduct infill soil sampling at the Kaoko lithium anomaly.

The sampling team comprised four geologists and assistants from the surrounding community for the duration of the soil sampling campaign. A total of 287 soil samples were collected from the area (Figure 2) and sent for multi-element analysis. The assay results are expected to be received within eight to twelve weeks.

At this early stage, the potential deposit style is considered to be sedimentary hosted. Sedimentary lithium deposits accumulate as lithium is transported into basins where it reacts with other minerals creating chemical bonds weaker than that found in spodumene (pegmatites) and stronger than those found in brines. The moderate strength of the lithium chemical bonds in sediments when compared to pegmatites provides opportunities for simple low-cost processing with no comminution circuit (crushing and grinding) and simple reagents.

The Project is located in northern Namibia, approximately 800km by road from the capital of Windhoek and approximately 750km from the port of Walvis Bay (Figure 3). There is excellent infrastructure in the region with the Project being only 50 km from the regional capital of Opuwo, with an airport, good bitumen roads, and access to the 320 MW Ruacana hydroelectric power station. Transmission lines run through both the western and eastern parts of the Project.