A massive, untested 800-metre diameter magnetic anomaly in northern Namibia’s Otavi Copper Belt has the potential to transform the country into a significant source of critical rare earth elements (REEs), according to a new quarterly activities report released by Australian firm Cazaly Resources Limited.
The report, covering the period ending 31 March 2026, focuses on the company’s 95%-owned Abenab North exclusive prospecting licence (EPL 9852), which spans over 790 square kilometres. While Namibia is historically renowned for its copper and base metals—most notably the legendary Tsumeb mine—Cazaly’s latest data suggests a strategic pivot toward the high-technology metals essential for green energy and defence industries.
The company confirmed that historical drilling from as early as 2004 and 2010 had already intersected significant REE enrichment at the project, but that one specific target remains conspicuously unexplored. Referred to as the Cadix anomaly (Anomaly 13), this geophysical feature is a large, 800-metre diameter magnetic high that Cazaly says has yet to be adequately tested by the drill bit.
“The company is assessing additional geophysics, including magnetic inversions, to refine the anomaly for drill testing,” Cazaly stated in the report, adding that it is finalising access arrangements and plans to conduct ground activities in the forthcoming quarter.
This development positions Namibia not merely as a host for legacy copper production, but as a potential frontier for the heavy rare earths critical to modern supply chains.
Historical data confirms high-grade potential
The potential scale of the discovery is backed by previous drilling campaigns that have yielded remarkably high grades from other targets within the same licence area.
Data compiled by Cazaly from Kudu Minerals’ 2004 drilling shows that hole B6 returned a 45-metre intersection of rare earth enrichment from 55 metres depth, averaging 0.68% combined cerium oxide (CeO₂), lanthanum oxide (La₂O₃), and neodymium oxide (Nd₂O₃). Notably, this included a higher-grade zone of 4 metres at 2.36% for the same three oxides. The total rare earth oxide (TREO) values for these intercepts were 0.73% over 45 metres and an exceptional 2.53% over 4 metres.
Further validation came from Avonlea Minerals in 2010, which drilled into fresh carbonatite—a primary source rock for REEs—at the same project. Results included 16.7 metres at 0.66% TREO from 94.6 metres (including 1.2 metres at 1.89%) and 39.7 metres at 0.55% TREO from 100.6 metres in hole ABD007.
These historical intercepts, while not yet reported under the strict JORC Code according to Cazaly’s cautionary statement, provide a compelling geological blueprint. The company confirmed it has not independently validated the former owners’ results but believes the historical information is a reliable representation of available data.
Strategic location within a proven belt
The Abenab North project’s geography is its second major advantage. Located approximately 450 kilometres by road from Windhoek, the licence sits within the northern carbonate platform of the Pan African Damara Copper Belt. It is dominated by dolomites and sediments of the Otavi Fold Belt—the same geological province that hosts the world-class Tsumeb copper deposit.
Cazaly noted that the historic Tsumeb mine, located just 20 kilometres west of its tenure, produced 30 million tonnes of ore at 4.3% copper, 3.5% zinc, and 10% lead over more than 90 years before closing in 1996. Crucially, the Tsumeb smelter remains one of the few facilities globally capable of treating complex copper concentrates. The smelter is now owned by Sinomine Resource Group, which acquired the asset in September 2024 and is currently undertaking feasibility studies for a potential restart.
While Cazaly’s immediate focus is on REEs, the proximity to existing infrastructure—including a working smelter and major haulage routes—dramatically reduces the capital barriers to entry. Any future mining operation at Abenab North would benefit from established logistics and processing corridors already proven by decades of Namibian mining history.
Landowner negotiations advance
Crucially for a positive Namibian story, Cazaly explicitly disclosed that during the March 2026 quarter, it “commenced landowner negotiations in Namibia.” This early engagement signals a commitment to local partnerships and responsible resource development, essential for any foreign investor seeking long-term tenure in the country’s mining sector.
The company has a clear pathway forward: finalising access arrangements, conducting ground geophysical surveys over the Cadix anomaly, and ultimately drilling the 800-metre magnetic target. Given that previous drilling elsewhere on the property has already defined multiple carbonatite pipes with significant REE grades, the potential for a major new discovery is tangible.
For Namibia, the strategic implications extend beyond simple mining revenue. Rare earth elements—particularly neodymium and praseodymium—are vital for permanent magnets used in electric vehicle motors and wind turbines. A major REE discovery in the Otavi Belt could position Namibia as a critical supplier to global clean energy supply chains, reducing reliance on dominant producers.
Cazaly ended the quarter with a robust balance sheet, holding cash and investments of A$5 million, providing it with the financial capacity to advance the Namibian work programme without immediate capital constraints.
As the company prepares to mobilise ground crews to the Cadix anomaly, the Namibian mining sector watches closely. The ‘giant anomaly’—a term often overused in exploration—may finally live up to its geological promise.