Cazaly Resource managing director Nathan McMahon told MiningNews.net that the tenement application may well have overlapped, unintentionally.

“Just by the way the tenements have to be applied for, there is always an overlap,” he said. “That may well be the case [but] I can’t second guess what the objection is about until we see it.”

“Right now there have been two objections lodged and we have to attend to that.”

BHPB spokeswoman Emma Meade confirmed to MiningNews.net that this was the basis for BHPB’s objection to Cazaly’s application.

“That is our only issue, that their application licence actually overlaps our existing tenement,” she said. “Apparently it is quite common for this to happen. We are just procedurally lodging an objection because they are pegging over our ground.

“When Rio had the ground there was a boundary, a very clear line where theirs ended and ours began. If Cazaly are successful, they need to peg back to that boundary.

“We are not going to allow them to come on to our tenement – that is our only issue.”

Cazaly made an application for the Shovelanna exploration licence on August 29 after the previous licence holders, Hamersley Iron [50%], Hancock Prospecting [25%] and Wright Prospecting [25%] allowed the licence to lapse on August 26. Hancock Prospecting has also lodged an objection.

McMahon conceded there remained the possibility that the previous holder could also apply directly to the minister. However MiningNews.net understands that the overturning of an application in such instances is rare.

“I am confident but it is not over until the fat lady sings,” McMahon said.

Shares in Cazaly were off 1.5c [3.1%] to 46.5c in morning trade.