I am a fan of boxes…

…cash boxes to be precise.

Particularly if you can buy them below cash backing. As I’ve said with SLS, PTN and similar, they only make sense if there are exploration projects worth spending on. In the case of CZR, I think they do as they have two JVs with Mark Creasy.

CZR got its ~$69m (or ~$65m est. post-tax impact) from selling is iron ore asset to the Rio backed Robe Mesa JV for $75m in cash. With the cash banked, CZR has recommenced exploration on its two key projects, Croydon Gold and Budaddoo.

The Croydon gold project comprises two tenements in a 70/30 JV between CZR and Creasy and is in the Pilbara west of NST’s Mallina project. The eastern and western blocks, with the former prospective for Hemi style intrusion-related gold whilst the latter is more prospective for gold but is hosted within the sediment rocks. A 180 hole AC program to test a 6km long gravity anomaly has just been completed with visual descriptions promising. A follow up RC program of 5-6kms will test follow up targets as well as follow up the Top Camp and Bottom Camp prospects in the western block, both of which have shown promise in prior drilling by CZR. OF note is that the Top Camp as the mineralised anomalism sits above a gravity anomaly that is interpreted to be an intrusion.

Budaddoo is an 85/15 JV between CZR and Creasy and comprises two tenements that encompass the eastern margin of the Gullewa greenstone belt. Whilst the southern end of the project area hosts a titanium-vanadium-magnetite deposit (not JORC compliant), the focus is at the northern end at a prospect referred to as Edamurta. Edamurta has had limited historical drilling (including drilling by CZR in 2021) which demonstrated the potential for VMS style base metal mineralisation and was latter supported by a MLEM mid 2025, which detailed 12 conductors along a ~2km strike of the mapped volcanic rock sequence. Drilling is expected to occur this quarter and comprise 11 holes of RC drilling for ~3km, which will test several of the higher conductance plates with downhole EM to follow to better refine the tested conductor plates.

Buying CZR as essentially buying a low-cost call option on Mark doing it again at two different projects. The call option is low cost as given where interest rates are, the cash on hand likely generates enough interest to fully cover G&A and maybe some exploration costs.