TIDMCCZ
RNS Number : 3655Q
Castillo Copper Limited
20 February 2023
20 February 2023
CASTILLO COPPER LIMITED
("Castillo", or the "Company")
Optimising Big One Deposit
Castillo Copper Limited (LSE and ASX: CCZ), a base metal
explorer primarily focused on copper across Australia and Zambia,
announces that it has completed a strategic asset review which
approved several initiatives on how to maximise value from
developing the NWQ Copper Project in the Mt Isa copper-belt
(complementing work in Broken Hill). Moreover, with the
macro-outlook for copper remaining positive and several majors -
including Rio Tinto, Glencore and AngloAmerican - active in the Mt
Isa region (Figure 1), there is a compelling case to ramp up
exploration activities.
HIGHLIGHTS:
-- Complementing efforts at the BHA Project's East Zone, the
Board has approved plans to assess optimising the Big One Deposit
(within the NWQ Copper Project in the Mt Isa copper-belt) via
implementing the following:
o Commissioning an independent engineering contractor to conduct
a pit optimisation study on the viability of commencing copper
mining operations, utilising prospective third-party processors and
effective path to market
o Re-formulating optimal plans for a third drilling campaign and
companion geophysical surveys to extend known mineralisation beyond
the line of lode
-- To recap, the Big One Deposit has an inferred Mineral
Resource Estimate (MRE) at 2.1Mt @ 1.1% Cu for 21,886t(2) copper
metal - with best intercepts comprising:
o 40m @ 1.64% Cu from surface incl: 11m @ 4.40% Cu from 24m, 5m
@ 7.34% Cu from 28m & 1m @ 16.65% Cu from 29m (303RC)(3)
o 44m @ 1.19% Cu from surface incl: 14m @ 3.55% Cu from 27m, 3m
@ 10.88% Cu from 37m & 1m @ 12.6% Cu from 37m (301RC)(3)
o 34m @ 1.51% Cu from surface incl: 21m @ 2.25% Cu from surface,
12m @ 3.44% Cu from 3m, 6m @ 4.79% Cu from 3m and 1m @ 9.4% Cu from
9m (B0017)(3)
-- Post upcoming site visits to several targets - including
Arya, Valparaisa, Boomerang and Josephine - the Board will rank the
exploration potential then present the opportunity to prospective
development partners in the Mt Isa region:
o Note, several global mining groups have operations proximal to
Castillo's ground including Rio Tinto, Glencore and Anglo
American
-- Meanwhile, initial metallurgy test-work results for rare
earth elements from the BHA Project's East Zone are due back
shortly
Ged Hall, Chairman of Castillo Copper, said: "Following a recent
strategic asset review, the Board approved an optimization study
for the Big One Deposit which should ideally articulate a clear
pathway to commence copper mining operations. With exploratory work
ramping up at the NWQ Copper and BHA Projects, the Board is
increasingly optimistic about the group's prospects for 2023."
Big One Deposit - Optimisation plans
FIGURE 1 : NWQ COPPER PROJECT VS MT ISA REGIONAL PEERS
Source: CCZ geology team
Big One Deposit Optimisation
As the only prospect within the NWQ Copper Project that has an
inferred MRE (2.1Mt @ 1.1% Cu; 21,886t copper metal; Figure 2), the
Board had no issues approving potentially value creating plans,
comprising:
-- Commissioning an independent engineering contractor to
conduct a pit optimisation study on the viability of commencing
copper mining operations, utilising prospective third-party
processors and effective path to market; and
-- Re-formulating optimal plans for a third drilling campaign
and companion geophysical surveys to extend known mineralisation
beyond the line of lode.
FIGURE 2: RESOURCE TONNAGES BIG ONE DEPOSIT
Tenure Ore Inferred Indicated Measured Copper Silver Contained Contained
Name Type (Mt) (Mt) (Mt) Grade Grade Copper Silver
(%) g/t (t) (kg)
============ ========== ========= ========== ========= ======= ======= ========== ==========
Mine
Dumps Oxidised - 0.007 - 1.2 4.0 86 29
============ ========== ========= ========== ========= ======= ======= ========== ==========
Mine
Insitu Oxidised 1.7 - - 1.0 1.1 17,000 1,870
============ ========== ========= ========== ========= ======= ======= ========== ==========
Mine
Insitu Fresh 0.4 - - 1.2 1.4 4,800 560
============ ========== ========= ========== ========= ======= ======= ========== ==========
Sub-Totals 2.1 0.007 0 21,886 2,459
======================== ========= ========== ========= ======= ======= ========== ==========
Source: CCZ geology team
Since the 1970s, the Big One Deposit has been drilled by three
different groups (including CCZ), while there were limited mining
operations during the 1990s(4) . The best intercepts (shown below)
highlight the shallow nature of the known ore body:
-- 40m @ 1.64% Cu from surface incl: 11m @ 4.40% Cu from 24m, 5m
@ 7.34% Cu from 28m & 1m @ 16.65% Cu from 29m (303RC)(3)
-- 44m @ 1.19% Cu from surface incl: 14m @ 3.55% Cu from 27m, 3m
@ 10.88% Cu from 37m & 1m @ 12.6% Cu from 37m (301RC)(3)
-- 34m @ 1.51% Cu from surface incl: 21m @ 2.25% Cu from
surface, 12m @ 3.44% Cu from 3m, 6m @ 4.79% Cu from 3m and 1m @
9.4% Cu from 9m (B0017) (3)
Site visit and targeting prospective development partners
As outlined in Castillo's recent ASX Release (23 January 2023),
the geology team intend to visit several prospects within the NWQ
Copper Project including Arya, Valparaisa, Boomerang and Josephine
(Appendix A). Once the post visit review write-ups are complete and
exploration potential ranked, the Board intend to present this
opportunity to prospective development partners in the Mt Isa
region.
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
Gracechurch Group (Financial PR) +44 (0)20 4582 3500
Harry Chathli, Alexis Gore, Henry Gamble
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 and platinoids.
-- 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's 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.
References
1) CCZ ASX Release - 30 January 2022
2) CCZ ASX Release - 28 February 2022
3) Katz (1970) (CR5353); CCZ ASX Release - 14 January 2020 and
West Australian Metals NL (WME) ASX Release - 31 January
1994; and CCZ ASX Release - 11 January 2021
4) CCZ ASX Release - 14 January 2020
APPENDIX A: NWQ COPPER PROJECT
FIGURE A1: PROSPECTS WITHIN NWQ COPPER PROSPECT
Source: CCZ geology team
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