TIDMCCZ

RNS Number : 2990A

Castillo Copper Limited

01 June 2021

01 June 2021

CASTILLO COPPER LIMITED

("Castillo" or the "Company")

Expanded drilling campaign set to commence at Big One Deposit

Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily focused on copper across Australia and Zambia, is delighted to announce the geology team has finalised the drilling campaign for the Big One Deposit which will comprise 26 drill-holes for 2,828m. This includes 108m of HQ diamond coring in two drill-holes to collect detailed assay, density, and geotechnical measurements. For comparison, the 2020 drilling programme totalled 21 RC drill-holes for 1,467m.

The programme, which factors in the recent geophysics survey that comprised six 500-700m lines across the 1,200m strike event, is designed to extend known mineralisation and build on previous drill results.

Highlights

-- Castillo's geology team have finalised a new 26 drill-hole campaign for 2,828m to extend known mineralisation:

o A key focus is to build on the stellar results derived from previous programmes which included the following best intercepts

-- 303RC: 40m @ 1.64% from (fm) surface incl: 11m @ 4.40% fm 24m, 5m @ 7.34% fm 28m & 1m @ 16.65% fm 29m

-- 301RC: 44m @ 1.19% Cu fm surface incl: 14m @ 3.55% fm 27m, 3m @ 10.88% fm 37m & 1m @ 12.6% fm 37m

-- BO017: 34m @ 1.51% Cu from surface incl: 21m @ 2.25% Cu fm surface, 12m @ 3.44% Cu fm 3m, 6m @ 4.79% Cu fm 3m and 1m @ 9.4% fm 9m

-- Through reconciling legacy drilling and geochemical data against the 2D and 3D geophysical models, the geology team have optimised and expanded the campaign to target several newly identified bedrock conductors:

o This includes a large, interpreted anomaly north-west of the line of lode that suggests extensive underlying copper mineralisation is potentially located along fault structures rather than constrained within the trachyte dyke.

-- Logistical support for the upcoming campaign is now in place, while the drilling crew is slated to arrive and commence work within the next one-to-two weeks.

-- In readiness for the next phase of the campaign, which will see drilling move on to the Arya and Sansa Prospects, the geology team are reviewing all key data points to ensure optimal results:

o Notably, there are several bedrock conductors across these two prospects that are prime drill-test targets including EG01 - which is interpreted to be 130m thick, 1,500m by 450m, and circa 430m deep.

-- In line with the Castillo's strategic intent to evolve into a mid-tier copper group, the Board remains optimistic 2021 will be a transformative year.

Simon Paull, Managing Director of Castillo Copper, said: "Reconciling geophysics findings with legacy drilling and geochemical data should enable Castillo's geology team to design effective drilling campaigns for the Big One Deposit, Arya and Sansa Prospects with a high degree of confidence. Consequently, as we progress through several phases of exploring the Mt Oxide Project over the balance of 2021, the Board is optimistic value can be created for all stakeholders."

OPTIMAL TARGETS

Big One Deposit

As a result of reconciling historical drilling and geochemical data with the 2D / 3D geophysical models, the geology team has optimised and expanded the drilling campaign at the Big One Deposit. Notably, this includes a large, interpreted bedrock conductor north-west of the line of lode - discovered along Line 3 (Figure 1 and 2) - which is part of the fault structure and not contained within the trachyte dyke.

Note, a summary of the now completed survey and interpretation of the 3D resistivity and chargeability model generated by the geophysicist consultant, GeoDiscovery, is detailed in Appendices B & C of the PDF version.

Figure 1: LINE 3 - NEWLY IDENTIFIED BEDROCK CONDUCTORS and Figure 2: LINE LOCATIONS TRANSVERSING BIG ONE DEPOSIT (refer to PDF version linked below)

Arya and Sansa Prospects

Once drilling is complete at the Big One Deposit, the campaign will move across to the Arya and Sansa Prospects. In readiness for this phase of the programme, the geology team are reviewing all key data points to ensure the highest probability of success.

Across the Arya and Sansa Prospects are several inferred bedrock conductors which are prime test-drill targets including EG01 which is interpreted to be 130m thick, 1,500m by 450m, and circa 430m deep. Further, there are surface soil and rock chip copper anomalies to support the shallower conductors, EG02 & EG10.

Next Steps

The concurrent next steps Castillo's team is working on is as follows:

-- Ensuring logistics are in place so the drilling crew can deploy to site within the next 1-2 weeks so work can commence at the Big One Deposit.

   --      Finalise the design of the drilling programme for the Arya and Sansa Prospects. 

In addition to this release, a PDF version of this report with supplementary information can be found on the Company's website: https://www.castillocopper.com/asx-announcements/

For further information, please contact:

 
Castillo Copper Limited                      +61 8 6558 0886 
Simon Paull (Australia), Managing Director 
 Gerrard Hall (UK), Director 
 
SI Capital Limited (Financial Adviser and 
 Corporate Broker)                           +44 (0)1483 413500 
Nick Emerson 
 
Luther Pendragon (Financial PR)              +44 (0)20 7618 9100 
Harry Chathli, Alexis Gore, Joe Quinlan 
 

About Castillo Copper

Castillo Copper Limited is an Australian-based explorer primarily focused on copper across Australia and Zambia. The group is embarking on a strategic transformation to morph into a mid-tier copper group underpinned by its core projects:

-- The Mt Oxide project in the Mt Isa copper-belt district, north-west Queensland, which delivers significant exploration upside through having several high-grade targets and a sizeable untested anomaly within its boundaries in a copper-rich region.

-- Four high-quality prospective assets across Zambia's copper-belt which is the second largest copper producer in Africa.

-- A large tenure footprint proximal to Broken Hill's world-class deposit that is prospective for zinc-silver-lead-copper-gold.

-- Cangai Copper Mine in northern New South Wales, which is one of Australia's highest grading historic copper mines.

The group is listed on the LSE and ASX under the ticker "CCZ."

Competent Person Statement

The information in this report that relates to Exploration Results for "Mt Oxide Project" is based on information compiled or reviewed by Mr Mark Biggs. Mr Biggs is both a shareholder and director of ROM Resources, a company which is a shareholder of Castillo Copper Limited. ROM Resources provides ad hoc geological consultancy services to Castillo Copper Limited. Mr Biggs is a member of the Australian Institute of Mining and Metallurgy (member #107188) and has sufficient experience of relevance to the styles of mineralisation and types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, and Mineral Resources. Mr Biggs holds an AusIMM Online Course Certificate in 2012 JORC Code Reporting. Mr Biggs also consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

APPIX A: PROSPECTS WITHIN THE MT OXIDE PROJECT. FIGURE A1: MT OXIDE PROJECT - PROSPECT LOCATIONS (refer to PDF version linked above)

APPIX B: APPIX B: JORC CODE, 2012 EDITION - TABLE 1

The following JORC Code (2012 Edition) Table 1 is primarily supplied for cover results from the IP Survey at the Big One Deposit.

Section 1 Sampling Techniques and Data

 
 Criteria       JORC Code explanation                                              Commentary 
 Sampling 
  techniques          *    Nature and quality of sampling (eg cut channels,               *    No additional surface or drilling samples have been 
                           random chips, or specific specialised industry                      collected or assayed as this release talks to the 
                           standard measurement tools appropriate to the                       recently completed IP ground geophysical survey. 
                           minerals under investigation, such as down hole gamma 
                           sondes, or handheld XRF instruments, etc). These 
                           examples should not be taken as limiting the broad             *    Any reference to rock chip samples assay results, 
                           meaning of sampling.                                                please refer to two CCZ ASX releases, 14(th) 
                                                                                               September 2020 "Field Analyses verifies high-grade 
                                                                                               copper with newly identified gold mineralisation at 
                      *    Include reference to measures taken to ensure sample                Big One" and 24(th) September 2020 "Assay results 
                           representivity and the appropriate calibration of any               verify high-grade copper at Big One Deposit" for 
                           measurement tools or systems used.                                  sampling description. 
 
 
                      *    Aspects of the determination of mineralisation that 
                           are Material to the Public Report. 
 
 
                      *    In cases where 'industry standard' work has been done 
                           this would be relatively simple (eg 'reverse 
                           circulation drilling was used to obtain 1 m samples 
                           from which 3 kg was pulverised to produce a 30 g 
                           charge for fire assay'). In other cases, more 
                           explanation may be required, such as where there is 
                           coarse gold that has inherent sampling problems. 
                           Unusual commodities or mineralisation types (e.g., 
                           submarine nodules) may warrant disclosure of detailed 
                           information. 
               =================================================================  ========================================================================= 
 Drilling                                                                          *    No new drilling has taken place. 
  techniques           *    Drill type (e.g., core, reverse circulation, 
                            open-hole hammer, rotary air blast, auger, Bangka, 
                            sonic, etc) and details (e.g., core diameter, triple 
                            or standard tube, depth of diamond tails, 
                            face-sampling bit or other type, whether core is 
                            oriented and if so, by what method, etc). 
               =================================================================  ========================================================================= 
 Drill sample                                                                      *    No drilling nor samples were taken. 
  recovery            *    Method of recording and assessing core and chip 
                           sample recoveries and results assessed. 
 
 
                      *    Measures taken to maximise sample recovery and ensure 
                           representative nature of the samples. 
 
 
                      *    Whether a relationship exists between sample recovery 
                           and grade and whether sample bias may have occurred 
                           due to preferential loss/gain of fine/coarse 
                           material. 
               =================================================================  ========================================================================= 
 Logging                                                                           *    No logging took place. 
                       *    Whether core and chip samples have been geologically 
                            and geotechnically logged to a level of detail to 
                            support appropriate Mineral Resource estimation, 
                            mining studies and metallurgical studies. 
 
 
                       *    Whether logging is qualitative or quantitative in 
                            nature. Core (or costean, channel, etc) photography. 
 
 
                       *    The total length and percentage of the relevant 
                            intersections logged. 
               =================================================================  ========================================================================= 
 Sub-sampling                                                                      *    No drilling nor samples were taken. 
  techniques           *    If core, whether cut or sawn and whether quarter, 
  and sample                half or all core taken. 
  preparation 
 
                       *    If non-core, whether riffled, tube sampled, rotary 
                            split, etc and whether sampled wet or dry. 
 
 
                       *    For all sample types, the nature, quality, and 
                            appropriateness of the sample preparation technique. 
 
 
                       *    Quality control procedures adopted for all 
                            sub-sampling stages to maximise representivity of 
                            samples. 
 
 
                       *    Measures taken to ensure that the sampling is 
                            representative of the in-situ material collected, 
                            including for instance results for field 
                            duplicate/second-half sampling. 
 
 
                       *    Whether sample sizes are appropriate to the grain 
                            size of the material being sampled. 
               =================================================================  ========================================================================= 
 Quality 
  of assay            *    The nature, quality and appropriateness of the                 *    Not applicable as no new sampling or assaying took 
  data and                 assaying and laboratory procedures used and whether                 place. 
  laboratory               the technique is considered partial or total. 
  tests 
 
                      *    For geophysical tools, spectrometers, handheld XRF 
                           instruments, etc, the parameters used in determining 
                           the analysis including instrument make and model, 
                           reading times, calibrations factors applied and their 
                           derivation, etc. 
 
 
                      *    Nature of quality control procedures adopted (eg 
                           standards, blanks, duplicates, external laboratory 
                           checks) and whether acceptable levels of accuracy 
                           (i.e. lack of bias) and precision have been 
                           established. 
               =================================================================  ========================================================================= 
 Verification 
 of sampling          *    The verification of significant intersections by               *    Not applicable as no new sampling or assaying took 
 and assaying              either independent or alternative company personnel.                place. 
 
 
                      *    The use of twinned holes. 
 
 
                      *    Documentation of primary data, data entry procedures, 
                           data verification, data storage (physical and 
                           electronic) protocols. 
 
 
                      *    Discuss any adjustment to assay data. 
               =================================================================  ========================================================================= 
 Location 
  of data             *    Accuracy and quality of surveys used to locate drill               *    The survey, as originally proposed, consisted of the 
  points                   holes (collar and down-hole surveys), trenches, mine                   following IP work (as per the survey plan on the next 
                           workings and other locations used in Mineral Resource                  page; Figure B1) six 6 lines each 500m in length with 
                           estimation.                                                                         50m dipoles, totalling 3km. 
 
 
                      *    Specification of the grid system used.                             *    Fender Geophysics had noted in their quote that the 
                                                                                                    methodology may be changed to Pole-Dipole if it is 
                                                                                                    felt this will give better results. Given the line 
                      *    Quality and adequacy of topographic control.                            length and depth of the area of interest (150-200m) 
                                                                                                  Fender planned to extend the transmitter sites out by 
                                                                                                      4 dipoles on the southeast end of the lines to 
                                                                                                         increase depth penetration at that end. 
 
 
                                                                                                 *    The spatial location for these holes has been 
                                                                                                   differentially surveyed into MGA94 - Zone 54. Collar 
                                                                                                       heights are to the Australian Height Datum. 
 
 
 
                                                                                                  FIGURE B1: IP SURVEY LINE LOCATION (refer to PDF 
                                                                                                               version linked above) 
 
                                                                                                 Table B1: Lists the planned drilling program which 
                                                                                               includes a total of 24 reverse-circulation drillholes 
                                                                                                and 2 HQ diamond holes for a total of 2,828m. Eleven 
                                                                                           (11) of the RC holes will investigate the large chargeability 
                                                                                                       anomalies identified by the IP survey. 
               =================================================================  ========================================================================= 
 Data spacing 
 and                  *    Data spacing for reporting of Exploration Results.                        *    The scope of works for the survey is given below: 
 distribution 
 
                      *    Whether the data spacing and distribution is                             o Array: Dipole-Dipole (roll-along) 
                           sufficient to establish the degree of geological and                     o Receiver Dipole Length: 50 m 
                           grade continuity appropriate for the Mineral Resource                    o Transmitter Dipole Length: 50 m 
                           and Ore Reserve estimation procedure(s) and                              o Domain and Cycle: Time domain - 2 seconds or 0.125 
                           classifications applied.                                                 Hz 
                                                                                                    o Line Length: 500 m 
                                                                                                    o Number of Lines: 6 
                      *    Whether sample compositing has been applied.                             o Line kms: 3.0 km 
               =================================================================  ========================================================================= 
 Orientation 
 of data              *    Whether the orientation of sampling achieves unbiased          *    Fender Geophysics (Fender) was contracted to complete 
 in relation               sampling of possible structures and the extent to                   a program of Dipole-Dipole array IP survey work for 
 to                        which this is known, considering the deposit type.                  Castillo Copper Limited at the Big One deposit 
 geological                                                                                    located within Castillo's Mt Oxide Project in the Mt 
 structure                                                                                     Isa copper belt (EPM 26574), approximately 170km 
                      *    If the relationship between the drilling orientation                north of Mt Isa (see location map below; Figure B2). 
                           and the orientation of key mineralised structures is                Most of the interpretation comments have been 
                           considered to have introduced a sampling bias, this                 provided by Ms Kate Nelson of GeoDiscovery. 
                           should be assessed and reported if material. 
 
                                                                                         FIGURE B2: SURVEY GENERAL LOCATION (refer to PDF 
                                                                                         version linked above) 
 
                                                                                          *    The core objectives of the survey were to identify 
                                                                                               massive sulphide bedrock conductors along the 1,200m 
                                                                                               strike extent that potentially extends known 
                                                                                               mineralisation and provide geophysical insights into 
                                                                                               several known yet underexplored nearby anomalies 
                                                                                               which includes previously mapped gossanous outcrops 
                                                                                               to the north-east of the recent drilling campaign 
                                                                                               conducted in Q4 2020. 
               =================================================================  ========================================================================= 
 Sample                                                                            *    No new samples were taken. 
 security              *    The measures taken to ensure sample security. 
               =================================================================  ========================================================================= 
 Audits or 
  reviews              *    The results of any audits or reviews of sampling              *    The data was collected by Fender Geophysics, with the 
                            techniques and data.                                               data reduction and modelling being conducted by 
                                                                                               GeoDiscovery, both independent contractors to 
                                                                                               Castillo Copper 
               =================================================================  ========================================================================= 
 

TABLE B1: BIG ONE LOCATION OF NEW PROPOSED DRILLING

 
   SITEID      Holename    E_MGA94_Z54   N_MGA94_Z55    AHD    Already   TDEPTH    TO     AZIMUTH    DIP    TYPE   STATUS     COMMENTS 
                                                               DRILLED     (m)    DRILL 
                                                                                   (m) 
                                                                                                                            Full HQ 
                                                                                                                            core; 
                                                                                                                            move 5m from 
                                                                                                                            RC 
 2021_01        301DDH      335407.5      7880328.0     160      42        54      12      325.0    -60.0   DDH     301     hole 
              ----------  ------------  ------------  ------  --------  -------  ------  --------  ------  -----  -------  ------------- 
                                                                                                                            Full HQ 
                                                                                                                            core; 
                                                                                                                            move 5m from 
                                                                                                                            RC 
 2021_02        303DDH      335436.3      7880341.0     160      44        54      10      325.0    -60.0   DDH     303     hole 
              ----------  ------------  ------------  ------  --------  -------  ------  --------  ------  -----  -------  ------------- 
                                                                                                                            Deepen 
                                                                                                                            existing 
                                                                                                                            hole; is at 
 2021_03        201RC2      335414.9      7880311.0     160      50        85      35      320.0    -61.0    RC    201RC    50m 
              ----------  ------------  ------------  ------  --------  -------  ------  --------  ------  -----  -------  ------------- 
                                                                                                                            Deepen 
                                                                                                                            existing 
                                                                                                                            hole; is at 
 2021_04        202RC2      335428.1      7880299.0     160      82       120      38      345.0    -68.0    RC    202RC    83m 
              ----------  ------------  ------------  ------  --------  -------  ------  --------  ------  -----  -------  ------------- 
                                                                                                                            Deepen 
                                                                                                                            existing 
                                                                                                                            hole; is at 
 2021_05        203RC2      335432.2      7880284.0     160      107      130      23      333.0    -73.0    RC    203RC    103m 
              ----------  ------------  ------------  ------  --------  -------  ------  --------  ------  -----  -------  ------------- 
                                                                                                                            Deepen 
                                                                                                                            existing 
                                                                                                                            hole; is at 
 2021_06        306RC2      335393.9      7880290.5     165      107      180      73      338.7    -60.1    RC    306RC    107m 
              ----------  ------------  ------------  ------  --------  -------  ------  --------  ------  -----  -------  ------------- 
                                                                                                                            Deepen 
                                                                                                                            existing 
                                                                                                                            hole; is at 
 2021_07        312RC2      335285.0      7880268.0     160      83       150      67      346.0    -69.0    RC    312RC    82m 
              ----------  ------------  ------------  ------  --------  -------  ------  --------  ------  -----  -------  ------------- 
                                                                                                                            Changed 
 2021_08         315RC      335539.5      7880352.3     160       0       180      180     350.0    -60.0    RC     New     azimuth 
              ----------  ------------  ------------  ------  --------  -------  ------  --------  ------  -----  -------  ------------- 
 2021_09         316RC      335482.2      7880295.7     160       0       180      180     325.0    -60.0    RC     New 
              ----------  ------------  ------------  ------  --------  -------  ------  --------  ------  -----  -------  ------------- 
 2021_10         317RC      335332.9      7880266.2     160       0       180      180     325.0    -60.0    RC     New 
              ----------  ------------  ------------  ------  --------  -------  ------  --------  ------  -----  -------  ------------- 
 2021_11         318RC      335275.0      7880253.1     160       0       160      160     325.0    -60.0    RC     New 
              ----------  ------------  ------------  ------  --------  -------  ------  --------  ------  -----  -------  ------------- 
 2021_12         319RC      335232.3      7880238.2     160       0       140      140     325.0    -60.0    RC     New 
              ----------  ------------  ------------  ------  --------  -------  ------  --------  ------  -----  -------  ------------- 
 2021_13         320RC      335184.7      7880220.5     160       0       120      120     325.0    -60.0    RC     New 
              ----------  ------------  ------------  ------  --------  -------  ------  --------  ------  -----  -------  ------------- 
                                                                                                                            Changed 
 2021_14         321RC      335117.7      7880196.5     160       0       120      120     335.0    -60.0    RC     New     azimuth 
              ----------  ------------  ------------  ------  --------  -------  ------  --------  ------  -----  -------  ------------- 
 2021_15         322RC      335397.1      7880268.0     160       0       120      120     325.0    -60.0    RC     New 
              ----------  ------------  ------------  ------  --------  -------  ------  --------  ------  -----  -------  ------------- 
                                                                                                                            As suggested 
                                                                                                                            by 
 2021_IP_01      323RC      335606.6      7880272.4    172.5      0       130      130     337.4    -60.0    RC     New     GeoDiscovery 
              ----------  ------------  ------------  ------  --------  -------  ------  --------  ------  -----  -------  ------------- 
                                                                                                                            As suggested 
                                                                                                                            by 
 2021_IP_02      324RC      335499.9      7880530.0    202.1      0       130      130     337.5    -60.0    RC     New     GeoDiscovery 
              ----------  ------------  ------------  ------  --------  -------  ------  --------  ------  -----  -------  ------------- 
                                                                                                                            As suggested 
                                                                                                                            by 
 2021_IP_03      325RC      335415.0      7880213.0    159.2      0       130      130     337.7    -60.0    RC     New     GeoDiscovery 
              ----------  ------------  ------------  ------  --------  -------  ------  --------  ------  -----  -------  ------------- 
                                                                                                                            As suggested 
                                                                                                                            by 
 2021_IP_04      326RC      335379.4      7880299.8    154.8      0       130      130     337.7    -60.0    RC     New     GeoDiscovery 
              ----------  ------------  ------------  ------  --------  -------  ------  --------  ------  -----  -------  ------------- 
                                                                                                                            As suggested 
                                                                                                                            by 
 2021_IP_05      327RC      335324.8      7880172.7    157.9      0       130      130     157.6    -60.0    RC     New     GeoDiscovery 
              ----------  ------------  ------------  ------  --------  -------  ------  --------  ------  -----  -------  ------------- 
                                                                                                                            As suggested 
                                                                                                                            by 
 2021_IP_06      328RC      335312.0      7880203.8    155.7      0       130      130     337.6    -60.0    RC     New     GeoDiscovery 
              ----------  ------------  ------------  ------  --------  -------  ------  --------  ------  -----  -------  ------------- 
                                                                                                                            As suggested 
                                                                                                                            by 
 2021_IP_07      329RC      335296.4      7880241.6    156.4      0       130      130     337.6    -60.0    RC     New     GeoDiscovery 
              ----------  ------------  ------------  ------  --------  -------  ------  --------  ------  -----  -------  ------------- 
                                                                                                                            As suggested 
                                                                                                                            by 
 2021_IP_08      330RC      335159.8      7880189.3    155.6      0       130      130     337.5    -60.0    RC     New     GeoDiscovery 
              ----------  ------------  ------------  ------  --------  -------  ------  --------  ------  -----  -------  ------------- 
                                                                                                                            As suggested 
                                                                                                                            by 
 2021_IP_09      331RC      335115.5      7880295.7    150.9      0       130      130     157.4    -60.0    RC     New     GeoDiscovery 
              ----------  ------------  ------------  ------  --------  -------  ------  --------  ------  -----  -------  ------------- 
                                                                                                                            extra from 
                                                                                                                            IP 
 2021_IP_10      332RC      335497.0      7880060.0     155       0       100      100     180.0    -60.0    RC     New     anomaly 
              ----------  ------------  ------------  ------  --------  -------  ------  --------  ------  -----  -------  ------------- 
                                                                                                                            extra from 
                                                                                                                            IP 
 2021_IP_11      333RC      335461.0      7880427.0     152       0       100      100     75.0     -60.0    RC     New     anomaly 
              ----------  ------------  ------------  ------  --------  -------  ------  --------  ------  -----  -------  ------------- 
 
 

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

 
 Criteria         JORC Code explanation                                              Commentary 
 Mineral 
 tenement                *    Type, reference name/number, location and ownership                    *    The following mineral tenures are held 100% by 
 and land                     including agreements or material issues with third                      subsidiaries of Castillo Copper Limited, totalling an 
 tenure status                parties such as joint ventures, partnerships,                            area of 736.8 km(2) in the "Mt Oxide North Project" 
                              overriding royalties, native title interests,                                      and as illustrated by Figure B3. 
                              historical sites, wilderness or national park and 
                              environmental settings. 
                                                                                                    o EPM 26574 (Valparaisa North) - encompasses the Big 
                                                                                                   One historical mineral resource, Holder Total Minerals 
                         *    The security of the tenure held at the time of                       Pty Ltd, granted 12-June-2018 for a 5-year period over 
                              reporting along with any known impediments to                         100 sub-blocks (323.3Km(2) ), Expires 11-June-2023. 
                              obtaining a licence to operate in the area.                       o EPM 26462 (Big Oxide North) - encompasses the 'Boomerang' 
                                                                                                   historical Prospect and the 'Big One' historical mine, 
                                                                                                   Holder: QLD Commodities Pty Ltd, granted: 29-Aug-2017 
                                                                                                     for a 5-year period over 67 sub-blocks (216.5Km(2) 
                                                                                                                  ), Expires: 28-Aug-2022. 
                                                                                                     o EPM 26525 (Hill of Grace) - encompasses the Ayra 
                                                                                                  (previously Myally Gap) significant airborne EM anomaly, 
                                                                                                     Holder: Total Minerals Pty Ltd for a 5-year period 
                                                                                                  over 38 sub-blocks (128.8Km(2) ), Granted: 12-June-2018, 
                                                                                                                   Expires: 11-June-2023. 
                                                                                                    o EPM 26513 (Torpedo Creek/Alpha Project) - Granted 
                                                                                                     13-Aug-2018 for a 5-year period over 23 sub-blocks 
                                                                                                           (74.2Km(2) ), Expires 12-Aug-2023; and 
                                                                                                   o EPMA 27440 (The Wall) - Granted on the 08-March-2021 
                                                                                                     over 70 sub-blocks (215Km(2) ) by Castillo Copper 
                                                                                                             Limited. Expires 7(th) March 2026. 
 
                                                                                                     FIGURE B3: CASTILLO COPPER PROSPECTS (refer to PDF 
                                                                                                                   version linked above) 
 
                                                                                                   *    A check on the tenures in 'application status' was 
                                                                                                         completed in 'GeoResGlobe' on the 15th May 2021. 
                 =================================================================  ============================================================================= 
 Exploration 
  done by other          *    Acknowledgment and appraisal of exploration by other          *    Historical QDEX / mineral exploration reports have 
  parties                     parties.                                                           been reviewed for historical tenures that cover or 
                                                                                                 partially cover the Project Area in this 
                                                                                                 announcement. Federal and State Government reports 
                                                                                                 supplement the historical mineral exploration 
                                                                                                 reporting (QDEX open file exploration records). 
 
 
                                                                                            *    Most explorers were searching for Cu-Au-U, and, 
                                                                                                 proving satellite deposit style extensions to the 
                                                                                                 several small sub-economic copper deposits (e.g., Big 
                                                                                                 Oxide and Josephine). 
 
 
                                                                                            *    With the Mt Oxide North Project in regional proximity 
                                                                                                 to Mt Isa and numerous historical and active mines, 
                                                                                                 the Project area has seen portions of the historical 
                                                                                                 mineral tenure subject to various styles of surface 
                                                                                                 sampling, with selected locations typically targeted 
                                                                                                 by shallow drilling (Total hole depth is 
                                                                                                 characteristically less than 50m). 
 
 
                                                                                            *    The Mt Oxide North project tenure package has a 
                                                                                                 significant opportunity to be reviewed and explored 
                                                                                                 by modern exploration methods in a coherent package 
                                                                                                 of EPM's, with three of these forming a contiguous 
                                                                                                 tenure package. 
 
 
                                                                                            *    Various Holders and related parties of the 'Big One' 
                                                                                                 historical mining tenure (ML8451) completed a range 
                                                                                                 of mining activities and exploration activities on 
                                                                                                 what is now the 'Big One' prospect for EPM 26574. The 
                                                                                                 following unpublished work is acknowledged (and 
                                                                                                 previously shown in ASX releases' reference lists): 
 
 
                                                                                           o Katz, E., 1970, Report on the Big One, Mt Devine, 
                                                                                           and Mt Martin Mining Lease Prospects, Forsayth Mineral 
                                                                                           Exploration NL, report to the Department of Mines, 
                                                                                           CR5353, 63pp 
                                                                                           o West Australian Metals NL, 1994. Drill Programme 
                                                                                           at the "Big One" Copper Deposit, North Queensland for 
                                                                                           West Australian Metals NL. 
                                                                                           o Wilson, D., 2011. 'Big One' Copper Mine Lease 5481 
                                                                                           Memorandum - dated 7 May 2011. 
                                                                                           o Wilson, D., 2015. 'Big One' Mining Lease Memorandum 
                                                                                           - dated 25 May 2015: and 
                                                                                           o Csar, M, 1996. Big One & Mt Storm Copper Deposits. 
                                                                                           Unpublished field report. 
                                                                                            *    The reader of the current ASX Release is referred to 
                                                                                                 the CCZ's first publication of the 1993 historical 
                                                                                                 reverse circulation drilling results for additional 
                                                                                                 diagrams and drilling information ("Historic drill 
                                                                                                 data verifies grades up to 28.40% Cu from 
 
 
                                                                                            *    The SRK Independent Geologists Report released by CCZ 
                                                                                                 on the ASX on 28-July-2020 contains further details 
                                                                                                 on the 'Exploration done by other parties - 
                                                                                                 Acknowledgment and appraisal of exploration by other 
                                                                                                 parties' this report is formally titled "A Competent 
                                                                                                 Persons Report on the Mineral Assets of Castillo 
                                                                                                 Copper Limited" Prepared as part of the Castillo 
                                                                                                 Copper Limited (ASX: CCZ, LSE: CCZ) LSE Prospectus, 
                                                                                                 with the effective date of the 17-July-2020. 
                 =================================================================  ============================================================================= 
 Geology 
                         *    Deposit type, geological setting, and style of                *    The Mt Oxide North project is located within the Mt 
                              mineralisation.                                                    Isa Inlier of western Queensland, a large, exposed 
                                                                                                 section of Proterozoic (2.5 billion- to 
                                                                                                 540-million-year-old) crustal rocks. The inlier 
                                                                                                 records a long history of tectonic evolution, now 
                                                                                                 thought to be like that of the Broken Hill Block in 
                                                                                                 western New South Wales. 
 
 
                                                                                            *    The Mt Oxide North project lies within the Mt Oxide 
                                                                                                 Domain, straddling the Lawn Hill Platform and 
                                                                                                 Leichhardt River Fault Trough. The geology of the 
                                                                                                 tenement is principally comprised of rocks of the 
                                                                                                 Surprise Creek and Quilalar Formations which include 
                                                                                                 feldspathic quartzites, conglomerates, arkosic grits, 
                                                                                                 shales, siltstones and minor dolomites and 
                                                                                                 limestones. 
 
 
                                                                                            *    The Project area is cut by a major fault zone, 
                                                                                                 trending north- northeast - south- southwest across 
                                                                                                 the permits. This fault is associated with major 
                                                                                                 folding, forming several tight synclines- anticline 
                                                                                                 structures along its length. 
 
 
                                                                                            *    The Desktop studies commissioned by CCZ on the 
                                                                                                 granted mineral tenures described four main styles of 
                                                                                                 mineralisation account for most mineral resources 
                                                                                                 within the rocks of the Mt Isa Province (after 
                                                                                                 Withnall & Cranfield, 2013). 
 
 
                                                                                           o Sediment hosted silver-lead-zinc - occurs mainly 
                                                                                           within fine-grained sedimentary rocks of the Isa Super 
                                                                                           basin within the Western Fold Belt. Deposits include 
                                                                                           Black Star (Mount Isa Pb-Zn), Century, George Fisher 
                                                                                           North, George Fisher South (Hilton) and Lady Loretta 
                                                                                           deposits. 
                                                                                           o Brecciated sediment hosted copper - occurs dominantly 
                                                                                           within the Leichhardt, Calvert, and Isa Super basin 
                                                                                           of the Western Fold Belt, hosted in brecciated dolomitic, 
                                                                                           carbonaceous, and pyritic sediments or brecciated rocks 
                                                                                           proximal to major fault/shear zones. Includes the Mount 
                                                                                           Isa copper orebodies and the Esperanza/Mammoth mineralisation. 
                                                                                           o Iron-oxide-copper-gold ("IOCG") - predominantly chalcopyrite-pyrite 
                                                                                           magnetite/hematite mineralisation within high grade 
                                                                                           metamorphic rocks of the Eastern Fold Belt. Deposits 
                                                                                           of this style include Ernest Henry, Osborne, and Selwyn; 
                                                                                           and 
                                                                                           o Broken Hill type silver-lead-zinc - occur within 
                                                                                           the high-grade metamorphic rocks of the Eastern Fold 
                                                                                           Belt. Cannington is the major example, but several 
                                                                                           smaller currently sub-economic deposits are known. 
                                                                                            *    Gold is primarily found associated with copper within 
                                                                                                 the IOCG deposits of the Eastern Fold Belt. However, 
                                                                                                 a significant exception is noted at Tick Hill where 
                                                                                                 high grade gold mineralisation was produced, between 
                                                                                                 1991 and 1995 by Carpentaria Gold Pty Ltd, some 700 
                                                                                                 000 tonnes of ore was mined at an average grade of 
                                                                                                 22.5 g/t Au, producing 15 900 kg Au. The Tick Hill 
                                                                                                 deposit style is poorly understood (Withnall & 
                                                                                                 Cranfield, 2013). 
 
 
                                                                                            *    ROM Resources had noted in a series of recent reports 
                                                                                                 for CCZ on the granted tenures, that cover the known 
                                                                                                 mineralisation styles including: 
 
 
                                                                                           o Stratabound copper mineralisation within ferruginous 
                                                                                           sandstones and siltstones of the Surprise Creek Formation. 
                                                                                           o Disseminated copper associated with trachyte dykes. 
                                                                                           o Copper-rich iron stones (possible IOCG) in E-W fault 
                                                                                           zones; and 
                                                                                           o possible Mississippi Valley Type ("MVT") stockwork 
                                                                                           sulphide mineralisation carrying anomalous copper-lead-zinc 
                                                                                           and silver. 
                                                                                            *    The Mt Oxide and Mt Gordon occurrences are thought to 
                                                                                                 be breccia and replacement zones with interconnecting 
                                                                                                 faults. The Mt Gordon/Mammoth deposit is hosted by 
                                                                                                 brittle quartzites, and Esperanza by carbonaceous 
                                                                                                 shales. Mineralisation has been related to the Isan 
                                                                                                 Orogeny (1,590 - 1,500 Ma). 
 
 
                                                                                            *    Mineralisation at all deposits is primarily 
                                                                                                 chalcopyrite-pyrite-chalcocite, typically as massive 
                                                                                                 sulphide within breccias. 
 
 
                                                                                            *    At the Big One prospect, West Australian Metals NL 
                                                                                                 described the mineralisation as (as sourced from the 
                                                                                                 document "West Australian Metals NL, 1994. Drill 
                                                                                                 Programme at the "Big One" Copper Deposit, North 
                                                                                                 Queensland for West Australian Metals NL."): 
 
 
                                                                                           o The targeted lode / mineralised dyke is observable 
                                                                                           on the surface. The mineralisation targeted in the 
                                                                                           1993 drilling programmed is a supergene copper mineralisation 
                                                                                           that includes malachite, azurite, cuprite, and tenorite, 
                                                                                           all associated with a NE trending fault (062(o) to 
                                                                                           242(o) ) that is intruded by a porphyry dyke. 
                                                                                           o The mineralised porphyry dyke is vertical to near 
                                                                                           vertical (85(o) ), with the 'true width' dimensions 
                                                                                           reaching up to 7m at surface. 
                                                                                           o At least 600m in strike length, with strong Malachite 
                                                                                           staining observed along the entire strike length, with 
                                                                                           historical open pits having targeted approximately 
                                                                                           200m of this strike. Exact depth of mining below the 
                                                                                           original ground surface is not clear in the historical 
                                                                                           documents, given the pits are not battered it is anticipated 
                                                                                           that excavations have reached 5m to 10m beneath the 
                                                                                           original ground surface. 
                                                                                           o Associated with the porphyry dyke are zones of fractured 
                                                                                           and/or sheared rock, the siltstones are described as 
                                                                                           brecciated, and sandstones around the shear as carbonaceous. 
                                                                                           o The known mineralisation from the exploration activities 
                                                                                           to date had identified shallow supergene mineralisation, 
                                                                                           with a few drillholes targeting deeper mineralisation 
                                                                                           in and around the 200m of strike historical open cut 
                                                                                           pits. 
                                                                                           o A strongly altered hanging wall that contained malachite 
                                                                                           and cuprite nodules. Chalcocite mineralization has 
                                                                                           been identified but it is unclear on the prevalence 
                                                                                           of the Chalcocite; and 
                                                                                           o The mineralisation was amenable to high grade open 
                                                                                           pit mining methods of the oxide mineralization (as 
                                                                                           indicated by numerous historical open pit shallow workings 
                                                                                           into the shear zone). 
                                                                                            *    Desktop studies commissioned by CCZ and completed by 
                                                                                                 ROM Resources and SRK Exploration have determined 
                                                                                                 that the Big One prospect is prospective for Cu, Co, 
                                                                                                 and Ag. 
 
 
                                                                                            *    Desktop studies commissioned by CCZ have determined 
                                                                                                 the Boomerang prospect contains: 
 
 
                                                                                           o Secondary copper staining over 800m of strike length. 
                                                                                           o Associated with a major east-west trending fault 
                                                                                           that juxtaposes the upper Surprise Creek Formation 
                                                                                           sediments against both the underlying Bigie Formation 
                                                                                           and the upper Quilalar Formation units. 
                                                                                            *    At the 'Flapjack' prospect there is the additional 
                                                                                                 potential for: 
 
 
                                                                                           o Skarn mineralisation for Cu-Au and/or Zn-Pb-Cu from 
                                                                                           replacement carbonate mineralisation, particularly 
                                                                                           the Quilalar Formation. 
                                                                                           o Thermal Gold Auroele mineralisation is a potential 
                                                                                           model due to the high silica alteration in thermal 
                                                                                           aureole with contact of A-Type Weberra Granite - related 
                                                                                           to the Au mineralisation; and/or 
                                                                                           o IOCG mineralisation related to chloride rich fluids. 
                                                                                            *    At the 'Crescent' prospect there is the additional 
                                                                                                 potential for: 
 
 
                                                                                           o Skarn mineralisation for Cu-Au and/or Zn-Pb-Cu from 
                                                                                           replacement carbonate mineralisation, particularly 
                                                                                           the Quilalar Formation; and/or 
                                                                                           o Thermal Gold Auroele mineralisation is a potential 
                                                                                           model due to the high silica alteration in thermal 
                                                                                           aureole with contact of A-Type Weberra Granite - related 
                                                                                           to the Au mineralisation; and 
                                                                                           o IOCG mineralisation related to potassic rich fluids. 
                                                                                            *    At the 'Arya' prospect there is the additional 
                                                                                                 potential for: 
 
 
                                                                                           o Supergene mineralisation forming at the surface along 
                                                                                           the fault, fault breccia, and the Surprise Creek Formation 
                                                                                           'PLrd' rock unit ('Prd' historical). 
                                                                                           o Epigenetic replacement mineralisation for Cu (with 
                                                                                           minor components of other base metals and gold) from 
                                                                                           replacement carbonate mineralisation, particularly 
                                                                                           the Surprise Creek Formation. 
                                                                                           o Skarn mineralisation for Cu-Au and/or Zn-Pb-Cu from 
                                                                                           replacement carbonate mineralisation, particularly 
                                                                                           the Surprised Creek Formation. 
                                                                                           o Sulphide mineralisation within breccia zones, along 
                                                                                           stress dilation fractures, emplaced within pore spaces, 
                                                                                           voids, or in other rock fractures; and/or 
                                                                                           o IOCG mineralisation related to chloride rich fluids. 
                                                                                            *    A selection of publicly available QDEX documents / 
                                                                                                 historical exploration reports have been reviewed, 
                                                                                                 refer to Section 2, sub-section "Further Work" for 
                                                                                                 both actions in progress and proposed future actions. 
 
 
                                                                                            *    The SRK Independent Geologists Report released by CCZ 
                                                                                                 on the ASX on 28-July-2020 contains further details 
                                                                                                 on the 'Geology - Deposit type, geological setting 
                                                                                                 and style of mineralisation': this report is formally 
                                                                                                 titled "A Competent Persons Report on the Mineral 
                                                                                                 Assets of Castillo Copper Limited" Prepared as part 
                                                                                                 of the Castillo Copper Limited (ASX: CCZ, LSE: CCZ) 
                                                                                                 LSE Prospectus, with the effective date of the 
                                                                                                 17-July-2020. 
                 =================================================================  ============================================================================= 
 Drill hole 
  Information            *    A summary of all information material to the                  *    This ASX release concerns itself with geophysical 
                              understanding of the exploration results including a               survey whereas previous ASX releases have discussed 
                              tabulation of the following information for all                    the 2020 drilling program in detail. 
                              Material drill holes: 
 
 
                        o easting and northing of the drill 
                        hole collar 
                        o elevation or RL (Reduced Level 
                        - elevation above sea level in metres) 
                        of the drill hole collar 
                        o dip and azimuth of the hole 
                        o down hole length and interception 
                        depth 
                        o hole length. 
                         *    If the exclusion of this information is justified on 
                              the basis that the information is not Material and 
                              this exclusion does not detract from the 
                              understanding of the report, the Competent Person 
                              should clearly explain why this is the case. 
                 =================================================================  ============================================================================= 
 Data 
 aggregation            *    In reporting Exploration Results, weighting averaging          *    The new work was a ground geophysical dipole-dipole 
 methods                     techniques, maximum and/or minimum grade truncations                IP survey so there was no sample to aggregate. 
                             (e.g., cutting of high grades) and cut-off grades are 
                             usually Material and should be stated. 
 
 
                        *    Where aggregate intercepts incorporate short lengths 
                             of high-grade results and longer lengths of low-grade 
                             results, the procedure used for such aggregation 
                             should be stated and some typical examples of such 
                             aggregations should be shown in detail. 
 
 
                        *    The assumptions used for any reporting of metal 
                             equivalent values should be clearly stated. 
                 =================================================================  ============================================================================= 
 Relationship 
 between                *    These relationships are particularly important in the          *    The strike of the dyke is at 73 degrees (east) and 
 mineralisation              reporting of Exploration Results.                                   variably 70-85 degrees dip to the south. The 
 widths and                                                                                      mineralised zones for copper (>500ppm) interested in 
 intercept                                                                                       drillholes range from 1m to 44m wide apparent, 
 lengths                *    If the geometry of the mineralisation with respect to               averaging 9m apparent (6.8m true width). The IP 
                             the drill hole angle is known, its nature should be                 survey was designed to intersect the strike of the 
                             reported.                                                           mineralisation at a perpendicular angle. 
 
 
                        *    If it is not known and only the down hole lengths are          *    All mineralised intervals (i.e., >500ppm) have been 
                             reported, there should be a clear statement to this                 reported in this and previous ASX releases as the 
                             effect (eg 'down hole length, true width not known').               "as-intersected" apparent thickness (in metres) and 
                                                                                                 given that most drillholes dip at -60 degrees from 
                                                                                                 the horizontal, true intersection widths will be less, 
                                                                                                 but will be calculated during the block modelling 
                                                                                                 process. 
                 =================================================================  ============================================================================= 
 Diagrams 
                         *    Appropriate maps and sections (with scales) and               *    Appropriate diagrams are presented in the body and 
                              tabulations of intercepts should be included for any               the Appendices of the current ASX Release. Where 
                              significant discovery being reported These should                  scales are absent from the diagram, grids have been 
                              include, but not be limited to a plan view of drill                included and clearly labelled to act as a scale for 
                              hole collar locations and appropriate sectional                    distance. 
                              views. 
 
                                                                                            *    Maps and Plans presented in the current ASX Release 
                                                                                                 are in MGA94 Zone 54, Eastings (mN), and Northing 
                                                                                                 (mN), unless clearly labelled otherwise. 
 
 
                                                                                            *    A series of cross-sections were generated at Big One 
                                                                                                 displaying copper analyses in ppm to aid 
                                                                                                 interpretation and exploration planning as can be 
                                                                                                 seen in Figure B4, below, which shows the geological 
                                                                                                 section through which IP Line 3 traverses. 
 
 
 
                                                                                           FIGURE B4: NORTH-SOUTH CROSS-SECTION AT BO_306RC (refer 
                                                                                           to PDF version linked above) 
                 =================================================================  ============================================================================= 
 Balanced 
  reporting              *    Where comprehensive reporting of all Exploration              *    All survey lines except Line 6 which was scrapped in 
                              Results is not practicable, representative reporting               favour of extending Line 3 are discussed in detail in 
                              of both low and high grades and/or widths should be                Appendix 3, following the JORC Table 1. 
                              practiced to avoid misleading reporting of 
                              Exploration Results. 
                 =================================================================  ============================================================================= 
 Other 
 substantive            *    Other exploration data, if meaningful and material,                       *    Several airborne EM and magnetic surveys have been 
 exploration                 should be reported including (but not limited to):                             conducted nearby by historical explorers and Castillo 
 data                        geological observations; geophysical survey results;                           Copper has conducted its own surface sampling program 
                             geochemical survey results; bulk samples - size and                            prior to drilling commencing as noted above. 
                             method of treatment; metallurgical test results; bulk 
                             density, groundwater, geotechnical and rock 
                             characteristics; potential deleterious or                                 *    As a result of further examination CCZ's geology team 
                             contaminating substances.                                                      made the following recent key interpretations: 
 
 
                                                                                                      o The full assay results, which included the entire 
                                                                                                      twenty-one (21) drill-holes completed are awaiting 
                                                                                                      some clarifications and re-assay of composites before 
                                                                                                      a complete assessment of the data can be made and reported. 
                                                                                                      Surface geochem sampling plots for copper ppm (Figure 
                                                                                                      B5, below) highlight drilled and some undrilled anomalies. 
                                                                                                      o The presence of at least two mineralised lenses and 
                                                                                                      a low-grade halo (100-1,500ppm) around the main ore 
                                                                                                      body appears to hold along strike. 
                                                                                                      o For drill-holes 213RC, 301RC, 303RC, 307RC, and 313RC 
                                                                                                      the mineralisation is spread out which is significant 
                                                                                                      given the trachyte to diorite dyke is generally 4-6m 
                                                                                                      wide. 
                                                                                                      o There is more than one dyke, however they may be 
                                                                                                      offshoots of the main body. Compositions vary as rock 
                                                                                                      types logged from the chips in both 1993 and the current 
                                                                                                      campaign include trachyte, diorite, and granite (more 
                                                                                                      probably a porphyritic syenite). 
                                                                                                      o Some of the drillholes will need to be deepened (or 
                                                                                                      used as a seed hole for downhole EM) as they appear 
                                                                                                      not to have been drilled deep enough to intersect the 
                                                                                                      projected dyke at depth. The affected holes are 201RC, 
                                                                                                      202RC, 203RC, and 304RC. 
                                                                                                      o Planning for the IP Survey highlighted more target 
                                                                                                      areas near Big One to the south and south-west where 
                                                                                                      there are more trachyte dyke swarms that could be affected 
                                                                                                      by structural control. 
                 =================================================================  ============================================================================= 
 Further work 
                         *    The nature and scale of planned further work (e.g.,                      *    Future potential work is described within the body of 
                              tests for lateral extensions or depth extensions or                           the ASX Release, and will include: 
                              large-scale step-out drilling). 
 
                                                                                                      o Of the current planned drilling program, eleven (11) 
                         *    Diagrams clearly highlighting the areas of possible                     of the reverse circulation drillholes are designed 
                              extensions, including the main geological                               to target chargeability anomalies identified from 
                              interpretations and future drilling areas, provided                     interpretation 
                              this information is not commercially sensitive.                         of the resistivity 3D block model. 
                                                                                                      o Geological mapping and rock chip sampling over the 
                                                                                                      anomalous chargeability zones along each survey line 
                                                                                                      o Ground gravity and/or magnetic surveys. 
                                                                                                      o Reverse Circulation Drilling 
                                                                                                      o Diamond Coring. 
                                                                                                      o Block modelling and wireframing. 
                                                                                                      o Resource Estimation. 
                 =================================================================  ============================================================================= 
 

FIGURE B5: BIG ONE IP 3D SHALLOW MODEL OVERLAIN BY SURFACE GEOCHEMICAL ASSAY RESULTS (refer to PDF version linked above)

APPIX C: APPIX 3: IP SUMMARY OF SURVEY RESULTS

INTRODUCTION

Castillo Copper retained Fender Geophysics to complete a total of five reconnaissance lines of 50m dipole-dipole (DP-DP) Induced Polarisation (IP) surveying over the company's Big One prospect in May 2021. The location of the planned versus actual lines are shown in black on Figure C1 and Figure C3 with respect to the mapped dyke (blue), copper assays (orange) and mapped geology (black lines).

FIGURE C1: BIG ONE IP SURVEY TRAVERSE LINES (refer to PDF version linked above)

Due to the mine being privately held under mining lease (ML5481, now defunct) historical work has focussed on drilling and geochemical sampling, with no detailed geophysical data collection.

The copper intersected to date appears to be associated with a NE-SW trending dyke. It occurs in two zones - oxidised (malachite, azurite, tenorite, cuprite) and chalcocite. The aim of the IP survey was to ascertain if the copper mineralisation intersected to date has a discernible electrical response (chargeable and / or conductive). If so, it is hoped that other zones of similar electrical response can be highlighted to better focus the upcoming drill program. As drilling had occurred along the main trachyte/microsyenite dyke, calibration of the resistivity and chargeability responses was possible.

Six lines were originally planned to be acquired over intersected mineralisation associated with the dyke, however due to anomalous readings located at the end of lines, Lines 1 and 3 were extended in a NW direction, therefore Line 6 was not acquired at this stage. The lines are orientated NW-SE (perpendicular to the dyke) and spaced between 100 - 150m apart. Figure C3 displays the regional magnetic data (1991 MIM dataset).

Not unexpectedly, the copper mineralisation intersected to date does not display a mappable magnetic response, likely the result of the regional nature of the available magnetics. The highest intensity magnetic response is located to the east of the region of interest and thought to reflect possible underlying Eastern Creek Volcanics. Interestingly, the copper mineralisation appears to be associated with the north-western edge of the magnetic feature. The acquisition of detailed magnetics at appropriate line spacing should be considered.

Figure C2 illustrates the available open file airborne EM surveys from the QLD Department of Resources. There is no airborne EM coverage at Big One.

FIGURE C2: OPEN FILE AIRBORNE EM SURVEYS (refer to PDF version linked above)

Figure C3 displays the regional magnetic data (1991 MIM Open Range Survey). Not unexpectedly, the copper mineralisation intersected to date does not display a mappable magnetic response, likely the result of the regional nature of the available magnetics. The highest intensity magnetic response is located to the east of the region of interest and thought to reflect possible underlying Eastern Ck Volcanics. Interestingly, the copper mineralisation appears to be associated with the north-western edge of the magnetic feature. The acquisition of detailed magnetics at appropriate line spacing should be considered.

FIGURE C3: REDUCED TO POLE REGIONAL MAGNETICS WITH HIGH PASS (4KM) FILTER APPLIED (refer to PDF version linked above)

Figure C4 illustrates modelling of the regional magnetic data (1991 MIM Open Range Survey) along traverse Line 4. The section is looking east.

FIGURE C4: LINE 4 MODELLED TMI AND DRILLING (refer to PDF version linked above)

The depth of penetration of the survey was between 160-180m below the surface, that showed that mineralisation on some lines extended beyond these depths. Figures C5 and C6 show cross-sections of chargeability in mV/V for Lines 3 and 4, showing existing drilling, additional undrilled and unmapped anomalies, and proposed drilling.

FIGURE C5: LINE 3 CHARGEABILITY AND PROPOSED DRILLING (YELLOW) (refer to PDF version linked above)

FIGURE C6: LINE 4 CHARGEABILITY AND PROPOSED DRILLING (YELLOW) (refer to PDF version linked above)

2D IP Chargeability and Resistivity Modelling

2D chargeability and resistivity modelling were then undertaken on the data using the Geotomo "RES2DINV" software tools. The tool allows data QC as well as inverse modelling to determine 2-D resistivity and IP models for the subsurface. A final check made there to remove any obvious outliers in the data prior to modelling and after first initial model run. The initial modelling was undertaken using a fine mesh (half unit dipole), smooth model inversion and a second model run and 12.5m cell size. IP chargeability was modelled for channels 10 - 15.

The smooth model output produces model changes in a smooth manner and minimises the difference between measured and calculated results point by point. The level of detail returned in the smooth IP models is high, especially near surface.

To allow direct comparison between profiles, the same resistivity colour-stretch has been applied to each line of the DP-DP survey. Resistive regions in the 2D models are displayed in warm colours, conductive regions in cool colours (top model) and regions of high chargeability are displayed with warm colours (bottom model). Topography has been included in all the models.

The 2D modelling indicates a maximum depth penetration of around 150 - 180 m (at N=10). Modelled 2D chargeability was found to range between 0 - 15 mV/V with several weak to moderate chargeable zones / trends mapped in the top 150m.

The 2D modelling of this survey data indicates a variably resistive response with sone regions of higher conductivity noted in the top 25 - 50m, particularly in topographically low regions likely to reflect clays associated drainage. The variably resistive basement is also interrupted in places, with regions of elevated conductivity (indicative of faults / possible association with mineralisation).

Results from line 3 (10400) and Line 4 (10300), as shown in Figures C5 and C6, indicate that the mineralisation is weak to moderately chargeable and generally resistive (but may be associated with structures displaying slight decrease in resistivity). It appears that the drilling undertaken to date proximal to Line 4 (10300) and Line 5 (10150) have not adequately tested areas of elevated chargeability. Several untested zones of elevated chargeability are also mapped on the northern lines.

It is recommended that where modelling indicates elevated chargeability occurs near surface, that the response be checked in the field to see if it can be explained by lithology. It is important to note that not all chargeable anomalies will reflect mineralisation - typically clays, uneconomic sulphides and some lithologies such as shales can also give chargeable responses.

3D IP Chargeability and Resistivity Modelling

3D modelling was undertaken to obtain an improved representation of the chargeability distribution in 3D. Topography was included in the 3D modelling. Although the 3D modelling is a compromise in that you lose some of the detail along line (evident in the 2D models) due to the necessary increased cell size, the benefits of 3D model output include ability to map trends between lines (useful for mapping stratigraphy and potential structures) as well as the model output may give indications of anomalies between lines.

The DP-DP profiles were input into a 3D modelling package "Res3DInv". This package uses the smoothness-constrained least-squares inversion technique to produce a 3D model of the subsurface chargeability and resistivity. Whilst the output displays slightly less detail than the 2D smooth sections along line, more continuity of anomalies is noted, especially between lines.

The output from the "Res3DInv" model was imported into Geosoft, clipped to data boundaries and topography and regular depth slices (20m intervals) through the 3D chargeability and resistivity model output, as well as sections were extracted at regular intervals. A representative snapshot of output from Res3DInv is shown in Figure C7, at a representative 40m depth slice and tilt-filtered through the 3D chargeability model.

Several shallow and deeper trends are evident in the data. These have been highlighted by applying a tilt derivate to the model output in in the figure. It is thought that these trends may reflect structures that may be important in understanding the mineralisation control.

FIGURE C7: SHALLOW CHARGEABILITY AND PROPOSED 2021 DRILLING (WHITE DOTS). (refer to PDF version linked above)

Conclusions & Recommendations

3D inversion modelling of available IP sections acquired at the Big One prospect has been undertaken to provide an improved representation to the resistivity and chargeability distribution in the 3D space. In general, results are broadly like the detailed 2D section modelling (previous section) although there is a slight decrease in resolution along line, particularly near surface. This is to be expected with 3D modelling. The benefit of the 3D modelling is that more continuity is noted between lines and the centre of anomalies have been shifted to between line in some places.

The 3D modelling indicates the maximum depth of investigation of the DP-DP survey is likely to be around 150 - 180m at N=10. The known copper mineralisation displays a weak to moderate chargeable response and is generally resistive (although also appears to be proximal to a slight increase in conductivity which may reflect shears / structures).

It should be noted that whilst there is typically a direct correlation between chargeability and sulphide / clay concentration, it does not necessarily correlate to economic mineralisation. Lower amplitude chargeable anomalies can be of interest. It should also be recognised that a lower amplitude anomaly may simply reflect a deeper source (less power reaching source at greater depths).

Chargeable zones modelled at or near surface should be field verified to see if the response can be explained by lithology or evidence of sulphides. It is therefore recommended that the IP model output be reviewed in conjunction with other auxiliary datasets such as field mapping geochemistry and structural interpretation. Acquisition of detailed magnetics and gravity data would also assist structural interpretations.

In addition to the region of known mineralisation, it is recommended that the chargeability output be used to better target the continuation of chargeable trends (proximal to the dyke). A possible low - moderately chargeable off-shoot is also mapped adjacent and to the SW of the main known mineralised body and is worthy of further testing. To the north of the dyke, some higher chargeable responses are also noted. These features should be ground-truthed to see if they can be explained by a mapped sedimentary copper horizon.

As a result of the evaluation of data from the IP surveys carried out, the following recommendations are made:

-- The 2D section models are likely to give the most accurate representation of the earth's conductivity and chargeability variations and should be used when drill targeting. The 3D model output allows trends and structures to be mapped and may give some indications of off-line anomalies.

-- Treat anomalies on the edge of lines (and at depth) with caution. Although care was taken to remove spurious data, some edge effects may persist in the data. Before testing any anomalies, GeoDiscovery can check the raw data to verify if a particular anomaly likely to be real.

-- 50m DP-DP is shown to be a cost-effective method to cover ground relatively quickly and map the electrical properties of the top 150m or so. If drill testing the regions of elevated chargeability proves successful, a larger 100m DP-DP or P-DP campaign may be considered to cover more ground and to greater depth.

-- Incorporate the 3D and 2D IP models into the available geological database to determine the extent to which the chargeable zones may or may not have been tested, as well as their geological / stratigraphic significance.

-- It is recommended that where IP anomalies occur near surface, a field visit is undertaken to see if anomaly can be explained by surficial clays / lithology.

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(END) Dow Jones Newswires

June 01, 2021 02:00 ET (06:00 GMT)

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