TIDMCCZ
RNS Number : 9073N
Castillo Copper Limited
07 June 2022
7 June 2022
CASTILLO COPPER LIMITED
("Castillo", "CCZ" or the "Company")
Strategic Update: Creating value developing core projects
Castillo Copper Limited (LSE and ASX: CCZ), a base metal
explorer primarily focused on copper across Australia and Zambia,
is pleased to provide a strategic update across its projects.
BHA Project - East & West Zone
Following the announcement on 1 June 2022 of a shallow inferred
Mineral Resource Estimate (MRE) at 21,556t contained cobalt metal
(64Mt @ 318 ppm Co)(1) for the BHA Project's East Zone, the geology
team are defining an exploration target which will factor in
several more prospects and deeper depths.
In addition, the geology team are finalising planning and
approvals for two RC drilling campaigns across the BHA Project. The
first will focus on extending known cobalt mineralisation within
the East Zone, while the second will test targets identified in the
West Zone(2) which is proximal to Cobalt Resources' (ASX: COB)
Broken Hill Project(3) .
Since announcing the MRE, the Board has been approached by
several groups interested in becoming potential off-take partners
and providing a clear path to market. To aid progressing these
discussions to an eventual definitive outcome, the Board has
dispatched diamond drill core - extracted from The Sisters
Prospect(4) - for metallurgical analysis and potential to create a
cobalt concentrate suitable for downstream applications.
As the BHA Project is listed on the NSW government's critical
minerals list(5) , the Board intends to engage with key
stakeholders to see what potential support can be secured to aid
developing the cobalt potential at a faster pace.
FIGURE 1: WEST AND EAST ZONE - BHA PROJECT (Available to view on
PDF version of the announcement)
NWQ Copper Project
Big One Deposit
Having produced a shallow MRE at 21,886t contained copper metal
(2.1Mt @ 1.1% Cu)(6) , the Board has been reviewing the optimal
paths to market. This has involved discussions with several parties
with processing operations in the Mt Isa copper-belt region that
are potential off-take partners. In tandem with this process,
diamond drill core samples have been sent for metallurgical
analysis and potential to produce a viable copper concentrate for
downstream analysis.
The Board believes there is a reasonable prospect of securing an
off-take partner, as many of the processing operators are operating
below optimal capacity.
In addition, the Board is planning another RC and diamond core
drilling campaign for the Big One Deposit which will focus on
extending known mineralisation and elevating confidence in the
MRE.
FIGURE 2: NWQ COPPER PROJECT, MT ISA COPPERBELT (Available to
view on PDF version of the announcement)
Arya Prospect
The Board is waiting for the final geological report on the
graphite discovery(7) which will include a metallurgical analysis
on the flake size composition.
However, as there is still strong geochemistry and geophysical
evidence suggesting copper mineralisation potential(7) , the
geology team have developed another proof-of-concept campaign that
will target a sizeable magnetic anomaly. This is interpreted to be
massive sulphides with potential to host copper mineralisation.
Note, this differs from the large electro-magnetic anomaly drilled
in late 2021 which produced the graphite discovery.
Cangai Copper Mine
Like its sister project in NSW, the Cangai Copper Mine features
on the NSW government's critical minerals list(5) . As such, the
Board intends to see the degree of government support that can be
secured to aid further advancing the Cangai Copper Mine,
considering it has an MRE at 107,589t contained copper metal (3.2Mt
@ 3.35%)(8) and is one of Australia's highest grading historic
copper mines.
In addition, the Cangai Copper Mine still delivers significant
exploration potential as there are several untested bedrock
conductors that are interpreted to be open at depth(8) .
Factoring in these positive points, the Board is in preliminary
discussions with several prospective development partners to
further advance the Cangai Copper Mine.
FIGURE 3: CANGAI COPPER MINE (Available to view on PDF version
of the announcement)
Zambia Copper Projects
The comprehensive geochemistry and geophysical campaigns
undertaken at the Luanshya and Mkushi Projects in Zambia have
identified multiple high quality copper targets for
drill-testing(9) .
Pleasingly, several prospective development partners have
expressed an interest in forming a Joint-Venture to advance these
two projects via funding drilling campaigns.
Moving forward, the Board is optimistic that progressing
discussions further could potentially secure an outcome.
FIGURE 4: ZAMBIA PROJECTS (Available to view on PDF version of
the announcement)
Dr Dennis Jensen, Managing Director of Castillo Copper,
commented : "The Board's core strategic intent is to create value
for shareholders via developing the core projects. With cobalt
remaining over U$$70,000/t, the priority is to extend known
mineralisation across the BHA Project's East & West Zones via
targeted drilling campaigns and formalising a clear path to market.
Similarly, with copper above US$9,000/t, the Board will apply the
same formula for the Big One Deposit within the NWQ Copper Project.
Concurrently, the Board intends to align with development partners
to advance Cangai Copper Mine and four prospective copper projects
in Zambia."
In addition to this release, a PDF version with supplementary
information and images can be found on the Company's website:
https://castillocopper.com/investors/announcements/
For further information, please contact:
Castillo Copper Limited +61 8 6558 0886
Dr Dennis Jensen (Australia), Managing Director
Gerrard Hall (UK), Chairman
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, Tan Siddique
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:
-- A large footprint 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."
References
1) CCZ ASX Release - 1 June 2022
2) CCZ ASX Release - 27 June 2018
3) COB ASX Release - 28 September 2021 (Annual Report 2021)
4) CCZ ASX Release - 5 May 2022
5) CCZ ASX Release - 28 January 2022 AND NSW government -
Critical Minerals. Available at:
https://www.regional.nsw.gov.au/meg/nsw-resources/critical-minerals
6) CCZ ASX Release - 28 February 2022
7) CCZ ASX Release - 17 November 2021
8) CCZ ASX Release - 28 September 2018 (Annual Report 2018), 3
September 2018, 19 February 2020 & 28 April 2020
9) CCZ ASX Release - 25 October 2021 & 5 April 2022
Competent Person Statement
The information in this report that relates to Exploration
Results and mineral resource estimates for "BHA Project, East Zone"
is based on information compiled or reviewed by Mr Mark Biggs. Mr
Biggs is a 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.
APPENDIX A: NWQ Copper Project
FIGURE A1: PROSPECTS ACROSS NWQ COPPER PROJECT (Available to
view on PDF version of the announcement)
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