Craig Dickson: Follow the yellow brick road ... the little-known player sitting on actual gold
There’s a $300m explorer who’s struck literal gold. A grade almost unheard of for Australian operations. Right next door is a small gold company that’s no one’s noticed, writes Craig Dickson.
“What? You serious? You reckon gold cares where some toff drew a line on a map?”
“These structures are ancient mate and the lines on those maps don’t mean a bloody thing. Follow the lines in the ground and you’ll find the gold. Stack the odds, make life easy.”
This one sarcastic rebuke from a laughing geologist taught me a hell of a lot in resource investing.
I’ll show you why this is important to help investors identify what companies could be sitting on gold ... literally.
Gold doesn’t care about a line on a map
Tenement boundaries - which are the edges of a mining claim - are useful for one thing: telling us which company to look at if we want to invest in a certain patch of ground.
Those “lines in the ground” I was told to follow; those are the structures (the geological architecture) that control/hold the gold mineralisation.
The shear zones, the faults, the splays - this is what we follow, the structures, because they control and hold the gold.
Gold doesn’t care about a line on the map. No mineral does for that matter.
Yet people get so caught up on this or that company instead of following what actually makes the company – the mineral.
So lets follow the lines in the ground to find our opportunity.
Our Clues
I want to put our “lines in the ground” together with certain things that often help add share price value:
- two neighbouring companies (one bigger and better known),
- the bigger company has a known mineral deposit,
- there’s an important moment approaching for the bigger company that will draw eyes,
- and the all-important “lines in the ground” continue on to the smaller company’s land.
Gorilla Gold and Cazaly Resources
Gorilla Gold (GG8) went all-in during 2025 exploring for gold, drilling an enormous 120,000 metres across its gold projects in Western Australia.
They now hold 723,000 ounces at 4 grams per tonne (g/t) gold - a gold grade almost unheard of for Australian open-pit operations, where ~1 g/t is the norm.
It’s no surprise the company carries a $300 million market cap.
Grams per tonne (g/t) is the industry measurement of how many grams of gold are in a metric tonne of ore.
This is how every gold deposit on the ASX, and indeed the world, is recorded and is something every investor needs to know about.
The grade, the g/t, of a gold deposit can make or break the economics of a project.
For GG8, the real focus right now is their Comet Vale project, especially the Lakeview prospect.
GG8 has drilled 40,000 metres there and is a couple of months into another 30,000-metre campaign.
This work has uncovered entirely new gold deposits and expanded the known gold areas; they’ve effectively increased the scale of all the gold they know about.
GG8 will release a major upgraded resource estimate for Comet Vale in December 2025.
This resource estimate tells the market how much gold they have.
To upgrade the resource by adding size (more gold) is almost always a big deal and the market will be watching closely.
With GG8 already valued at $300 million, the real question is: how can we position ourselves for possible big news without paying top dollar for GG8 itself?
Follow the Yellow Brick Road to CAZ
The gold at GG8’s Comet Vale exists in a series of north-west trending faults (remember our structures).
These faults are mapped and here’s the important part: they don’t stop at GG8’s fence line.
Right next door, Cazaly Resources (CAZ), another gold explorer, holds ground that includes a major north–south shear zone and a north–south fault corridor (more excellent gold structures). At the northern end of CAZ’s tenement, a cluster of north-west faults cuts across the ground, following the exact direction of GG8’s Comet Vale gold structures.
See those diagonal grey lines on the map?
They’re the faults.
You can see how GG8’s deposits (Lakeview/Comet Vale) sit right on those structures and how those same structures continue straight into CAZ’s ground (that is outlined in red).
Better still, the drill holes already completed at CAZ’s prospect Sir Laurence - right where these faults intersect - have hit gold.
Sir Laurence sits just 5km south of Lakeview, which is expected to be a headline feature in GG8’s upcoming Comet Vale resource upgrade.
All of this tells us that if you follow the structures, the faults, you find gold.
And clearly CAZ has those faults leading right to their ground from GG8, just like a yellow brick road.
The Opportunity
Unlike GG8, CAZ is still largely under the radar.
CAZ doesn’t yet have a defined gold resource and is valued at just $15 million, despite a string of promising gold intersections across their ground.
Their land surrounds an active small gold mine, and just to the south lie four gold deposits totalling more than 80 million ounces.
This tells us that CAZ are clearly in the right location.
CAZ has the cash to keep drilling, and they are.
A steady flow of drill results is due over the coming months, and the market likes drill results. These have potential alone to move the share price if they hit a new area of gold.
The company is led by Managing Director Tara French, who previously worked in exploration at Regis Resources (RRL) when it was a junior explorer, just like CAZ is today.
Over the next decade, she helped drive the discovery of 6 million ounces of gold, with RRL growing into a multi-billion dollar producer.
If anyone knows how to grow a gold explorer, it’s Tara.
The Recipe
GG8 has shown exactly how to find the gold: follow the fault lines.
When the market starts hunting for who else sits on those same structures, those gold bearing faults, there’s only one real answer: CAZ.
CAZ has the fault lines, the team, the location - just not the fame or the price tag.
That’s where the value opportunity lies.
The market has priced CAZ as if they have a low chance of having gold, but the geology is telling us otherwise.
With CAZ we have an opportunity to be involved before the market catches on.
As that sarcastic geologist once told me, follow the “lines in the ground” to stack the odds in your favour.
Well right now, CAZ has a lot of those “lines in the ground” and a lot of odds stacked in its favour.
DISCLAIMER: Information and opinions provided in this column are general in nature and have been prepared for educational purposes only. Always seek personal financial advice tailored to your specific needs before making financial and investment decisions.
More Coverage
Originally published as Craig Dickson: Follow the yellow brick road ... the little-known player sitting on actual gold
Myer Centre’s $200m sale hangs in the balance
