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REG - Castillo Copper Ltd - Assays verify shallow REE discovery at BHA

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RNS Number : 2806H  Castillo Copper Limited  23 November 2022

 

 

23 November 2022

 

 

CASTILLO COPPER LIMITED

 

("Castillo" or the "Company")

 

Assays verify extensive, shallow REE discovery at Broken Hill

 

Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily
focused on copper across Australia and Zambia, is pleased to announce assays
received for RT_001RC (Reefs Tank) and FG_001RC (Fence Gossan) verify the
extensive, shallow Rare Earth Elements ("REE") mineralisation discovery across
the central part of BHA Project's East Zone (Figure 1).

 

HIGHLIGHTS:

 

·    New assays for RT_001RC (Reefs Tank) and FG_001RC (Fence Gossan) were
positive for Total Rare Earth Oxide ("TREO"), confirming REE are more widely
apparent across the East Zone than initially envisaged in the Company's
announcement on 15 November 2022 - the best intercepts comprise:

o  11m @ 1,078 TREO from 8m (RT_001RC)

o  20m @ 609ppm TREO from surface incl. 4m @ 1,709ppm REO from 8m (FG_001RC)

o  11m @ 862ppm TREO from 58m (FG_001RC)

·    More significantly, all the assays returned to date from Fence
Gossan, Tors Tank and Reefs Tank highlight the REE mineralisation discovered
is extensive and shallow(1):

o  Final insights and interpretations will be fully conveyed once assays for
RT_002-4RC (Reefs Tank) and TT_005DD (Tors Tank) are returned

·    All four drill-holes at the Tors Tank Prospect returned shallow
barium and iron assays, with the best intercepts up to:

o  13m @ 6,388ppm Ba including 4m @ 10,000ppm Ba (TT_001RC)

o  19m @ 38% Fe from 16m (TT_004RC)

·    The Board is now progressing further work to fully delineate the REE
potential within the BHA Project's East Zone, including:

o  A 20m bulk sample - mostly clay and weathered pegmatite from FG_003RC -
will undergo metallurgical test-work to liberate contained REE

o  A hand auger surface sampling campaign, starting at Fence Gossan, to
determine the full scale of REE mineralisation and generate test-drill targets

o  Mapping, surface sampling and drilling campaign for the Iron Blow Prospect

 

Ged Hall, Chairman of Castillo Copper, commented: "The Board is delighted with
the new assays as they show consistent shallow REE mineralisation across a
wide part of the BHA Project's East Zone. Moreover, the interpreted scale of
this shallow REE discovery, within a mining friendly district, is an
outstanding result which has the potential to create significant value for
shareholders."

 

Assays verify extensive, shallow REE discovery

o  11m @ 1,078 TREO from 8m (RT_001RC)

o  20m @ 609ppm TREO from surface incl. 4m @ 1,709ppm REO from 8m (FG_001RC)

o  11m @ 862ppm TREO from 58m (FG_001RC)

Further, this complements the known REE mineralisation discovered at the Iron
Blow Prospect - identified from assaying historical core from drill-hole,
DD90_1B3, which produced:

·    8m @ 1,460ppm TREO from 150m(2)

FIGURE 1: BHA PROJECT's EAST ZONE EXTENSIVE REE MINERALISATION

Note: Refer to Appendix A.

Source: CCZ geology team

REE exploration footprint

As shown in Figure 2 below, the new assays for Reefs Tank and Fence Gossan are
in line with the previous results (refer to Castillo announcement of 15
November 2022). More importantly, however, is they extend known mineralisation
and in effect delineate a sizeable "REE exploration footprint" between Fence
Gossan, Tors and Reefs Tank to channel future development work (refer Figure
1).

 

 FIGURE 2: BEST INTERCEPTS - FENCE GOSSAN / TORS & REEFS TANK PROSPECTS
 v 20m @ 1,780ppm TREO (28.9% Magnet REO) from surface including 4m @ 2,410ppm
 TREO from 16m (FG_003RC)
 v 11m @ 1,078 TREO (24.7% Magnet REO) from 8m (RT_001RC)
 v 7m @ 1,048ppm TREO (29.9% Magnet REO) from 12m (TT_002RC)
 v 11m @ 862ppm TREO (29.0% Magnet REO) from 58m (FG_001RC)
 v 19m @ 847ppm TREO (29.6% Magnet REO) from surface (TT_003RC)
 v 8m @ 773ppm TREO (24.0% Magnet REO) from 48m (FG_004RC)
 v 4m @ 732ppm TREO (27.1% Magnet REO) from 24m (TT_001RC)
 v 19m @ 661ppm TREO (28.0% Magnet REO) from surface (FG_002RC)
 v 32m @ 636ppm TREO (25.7% Magnet REO) from 52m (FG_003RC)
 v 28m @ 614ppm TREO (27.8% Magnet REO) from 4m (FG_004RC)
 v 20m @ 609ppm TREO (29.5% Magnet REO) from surface incl. 4m @ 1,709ppm TREO
 from 8m (FG_001RC)

Note: Refer to Appendix B & C for full results and TREO conversion factor.

Source: CCZ geology team

 

Although final interpretations remain contingent on receiving results for
RT_002-4RC (Reefs Tank) and TT_005DD (Tors Tank - refer Photo Gallery), the
Board is already progressing further work to fully delineate the REE potential
within the exploration footprint and at the Iron Blow Prospect, including:

·    Tors Tank Prospect: A comprehensive surface mapping and rock chip
sampling campaign has just been concluded (Figure 3). The collected samples,
which are now at the laboratory for follow up analyses, should aid identifying
incremental targets for drill-testing.

 

FIGURE 3: TORS TANK FIELD MAPPING AND ROCK CHIP SAMPLING EXAMPLE

Source: CCZ geology team

·    Fence Gossan Prospect: A 200m x 200m grid has been devised as a
precursor to a hand auger surface sampling campaign which will aid determining
the full scale of the REE mineralisation and pinpoint targets to drill-test.
If successful, this could be deployed more widely across the exploration
footprint.

o   In addition, a 20m bulk sample, comprising mostly clay and weathered
pegmatite from FG_003RC, is set to undergo metallurgical test-work to
determine how readily REE mineralisation will liberate to form a concentrate.

·    Iron Blow Prospect(2): With assays already showing REE mineralisation
is apparent below 150m (from DD90_IB3), further core has been cut (from 4m to
82m) and sent to the laboratory for detailed analysis. Once returned this
should provide solid insights into the underlying geology over circa 250m,
especially if there is shallower REE mineralisation.

o   In turn, along with planned mapping and surface sampling, this will build
the case to identify and drill-test priority targets to determine the extent
of REE mineralisation apparent.

 

PHOTO GALLERY: TORS TANK TT_005DD CORE SHOWING VARIOUS LOGGING ASPECTS

Notes:

1.                    Location coordinates: e571250
n6451480

2.                    Hole logged at 1 metre intervals for
magnetic susceptibility and PXRF

3.                    HQ core has been ½ core sawn by a
diamond drill and forwarded for comprehensive assay

Source: CCZ geology team

 

Barium/Iron mineralisation - anomalous results

Whilst interpreting the assays for the Tors Tank Prospect, the geology team
noted all the drill-holes returned varied moderate to high barium trace
element readings. Interestingly, these were sometimes associated with, or on
the margins of, high TREO zones (refer Figure 4).

FIGURE 4: TORS TANK SIGNIFICANT BARIUM INTERSECTIONS >1,000PPM Ba

 Hole      From  (m)   To  (m)   Apparent    Ba      S       La

                                 Width (m)   (ppm)   (ppm)   (ppm)
 TT_001RC  39          52        13          6,388   1,400   107
 Incl.     44          48        4           10,000  2,200   97
 TT_002RC  12          19        7           1,150   400     117
 TT_003RC  4           12        8           1,510   650     91
 TT_003RC  36          39        3           1,580   200     44
 TT_004RC  4           8         4           1,210   200     41

Source: ALS Adelaide Laboratory

Similarly at Tors Tank, all drill-holes returned high iron results from
shallow, thick, magnetite-rich bands variably hosting some of the higher
cobalt mineralisation (refer Figure 5).

FIGURE 5: TORS TANK SIGNIFICANT IRON INTERSECTIONS >20% Fe

 Hole      From  (m)   To  (m)   Apparent    Fe    S       V

                                 Width (m)   (%)   (ppm)   (ppm)
 TT_001RC  36          39        4           21.2  1,400   252
 TT_002RC  0           16        16          27.2  5,700   359
 Incl.     8           12        4           39.3  100     412
 TT_003RC  16          28        19          38.0  220     399
 TT_004RC  28          40        12          32.1  100     370

Source: ALS Adelaide Laboratory

Cobalt mineralisation - Assays in line with expectations

Cobalt is an important, complementary critical mineral to BHA Project's East
Zone following the REE discovery, and the Board still intends to improve the
confidence and grade of the current inferred Mineral Resource Estimate.
Overall, the two new assay results across Reefs Tank and Fence Gossan, are in
line with expectations (Figure 6).

Note, the current inferred Mineral Resource Estimate is 64.4Mt @ 318ppm Co for
21,556t contained cobalt metal (based on data from Reefs Tank and Fence Gossan
only)(1).

FIGURE 6: COBALT ZONES DRILL-HOLES TORS & REEFS TANK; FENCE GOSSAN

 Hole      From  (m)   To  (m)   Width  (m)   Layer  Ag (g/t)  Co (ppm)  Cu (ppm)  Zn (ppm)
 TT_001RC  20          28        8            1      0.20      199       1,029     165
 TT_001RC  36          39        3            2      0.07      156       772       52
 TT_002RC  12          19        7            1      0.51      308       2,205     171
 TT_003RC  8           19        11           1      0.12      216       647       142
 TT_004RC  4           8         4            1      0.05      243       342       127
 TT_004RC  24          40        16           2      0.13      157       991       47
 FG_001RC  48          59        11           1      0.03      107       353       40
 FG_002RC  12          16        4            1      0.01      31        137       44
 FG_003RC  64          72        8            1      0.05      265       301       78
 FG_004RC  40          52        12           1      0.04      158       427       102
 RT_001RC  16          19        3            1      0.72      88        84        624

Notes:

1.        Assays represents 4m composite results which are slated for
individual 1m analyses

2.        Lower cut-off for reporting set to 150ppm

Source: CCZ geology team

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 - 15 November and 9 August 2022

2)        CCZ ASX Release - 31 October 2022

 
 
APPENDIX A: BHA PROJECT'S EAST ZONE
FIGURE A1: BHA PROJECT

Source: CCZ geology team

 

 
APPENDIX B: REE RESULTS / TREO CONVERSION FACTOR

FIGURE B1: TORS & REEFS TANK & FENCE GOSSAN - SIGNIFICANT
INTERSECTIONS >500PPM TREO

 Hole      From  (m)   To  (m)   Apparent    Ag      Th  (ppm)   U  (ppm)   TREO  (ppm)1   TREO-Ce  (ppm)   LREO  (ppm)   HREO  (ppm)   CREO   MREO

                                 Width (m)   (g/t)                                                                                      (%)    (%)
 TT_001RC  24          28        4           0.14    7.2         10.2       732.2          527.69           480.31        251.91        40.8%  27.1%
 TT_001RC  39          52        13          0.07    17.3        2.5        531.5          288.62           489.73        41.80         21.7%  25.1%
 TT_002RC  12          19        7           0.51    1.0         6.9        1,047.5        642.14           788.61        258.90        33.6%  29.9%
 TT_003RC  0           19        19          0.12    2.1         10.5       847.0          624.15           506.59        340.45        45.1%  29.6%
 TT_004RC  19          24        6           0.30    19.2        1.2        TREO<500
 TT_004RC  56          59        3           0.70    21.6        1.7        TREO<500
 FG_001RC  0           20        20          0.07    8.3         11.9       609.2          355.22           531.64        77.51         25.7%  29.5%
 INCL.     8           12        4           0.05    1.1         10.        1,708.7        1,012.18         1554.52       154.16        29.7%  36.1%
 FG_001RC  36          39        3           0.17    14.2        23.0       1,082.3        733.39           784.24        298.02        39.6%  33.7%
 FG_001RC  48          59        11          0.03    10.2        13.9       862.1          522.61           762.40        99.65         27.6%  29.0%
 FG_002RC  0           19        19          0.02    15.0        9.6        660.8          387.06           579.07        81.68         25.3%  28.0%
 FG_003RC  0           20        20          0.04    14.5        22.6       1,779.9        1,133.18         1,472.73      307.20        28.9%  28.8%
 FG_003RC  52          84        32          0.05    12.5        15.4       635.5          377.12           537.57        97.91         26.7%  25.7%
 FG_004RC  4           32        28          0.02    18.3        8.2        613.9          350.25           541.82        72.08         25.2%  27.8%
 FG_004RC  48          56        8           0.08    9.2         24.7       773.1          438.41           626.18        146.97        29.5%  24.0%
 FG_004RC  60          64        4           0.04    12.4        8.7        539.8          312.58           454.38        85.45         26.3%  25.5%
 RT_001RC  8           19        11          0.45    20.6        6.1        1078.0         825.05           565.34        512.56        48.7%  24.7%
 RT_001RC  52          56        4           0.16    41.2        4.1        504.0          282.90           449.27        54.75         24.5%  28.6%

Notes:

1.                        TT_001RC 39-52m composite
also reports 6,388 ppm Ba (Barium); TT_003RC 1,140 ppm Ba.

2.                        Two of the Lanthanum (La)
assay from FG_003R returned >500ppm were re-analysed (514 and 527ppm,
respectively).

3.                        Verification has been
undertaken by ROM Resources personnel.

4.                        Sample results from ALS
method ME-MS61R, where some REE are not totally soluble, future 1m assays will
use ME-ICP81.

Source: ALS

 

FIGURE B2: TORS TANK - TREO RESULTS PLAN

Source: CCZ geology team

FIGURE B3: FENCE GOSSAN - TREO RESULTS PLAN

Source: CCZ geology team

 

 

FIGURE B4: REEFS TANK - TREO RESULTS PLAN

Source: CCZ geology team

FIGURE B5: TORS TANK DRILL COLLARS

 SiteID      HoleID     Easting (GDA94)   Northing (GDA94)  TDepth (m)  Grid Azimuth  Dip Horizontal  Hole Type  AHD    Start      End
 2022_TT_01  TT_004RC  571250             6451480           120         180           -60             RC         189.2  3-Oct-22   4-Oct-22
 2022_TT_02  TT_001RC  571370             6451395           120         180           -60             RC         191.8  30-Sep-22  1-Oct-22
 2022_TT_03  TT_003RC  571425             6451280           140         180           -60             RC         189.1  2-Oct-22   3-Oct-22
 2022_TT_04  TT_002RC  571475             6451250           108         180           -60             RC         187.2  1-Oct-22   2-Oct-22

Source: CCZ geology team

FIGURE B6: FENCE GOSAN DRILL COLLARS

 Site ID     HoleID    Easting (GDA94)  Northing (GDA94)  Tdepth (m)  Grid Azimuth  Dip Horizontal  Hole Type  AHD    Start     End
 2022_FG_03  FG_002RC  576550           6453755           110         180           -60             RC         169.6  7-Oct-22  8-Oct-22
 2022_FG_04  FG_001RC  576350           6453790           120         180           -60             RC         172.7  4-Oct-22  7-Oct-22
 2022_FG_06  FG_004RC  576000           6453835           120         170           -60             RC         176.8  9-Oct-22  10-Oct-22
 2022_FG_07  FG_003RC  576700           6453835           160         180           -60             RC         170.1  8-Oct-22  9-Oct-22

Source: CCZ geology team

FIGURE B7: REEFS TANK DRILL COLLARS

 SiteID      HoleID    East    North    TD   Azimuth  DipV  DipH  Type  AHD    Start       Finish
 2022_RT_01  RT_001RC  574105  6456245  120  188      30    -60   RC    183.7  10/10/2022  11/10/2022
 2022_RT_02  RT_002RC  574120  6455475  204  188      30    -60   RC    188.2  9/11/2022   10/11/2022
 2022_RT_03  RT_003RC  573725  6454930  120  188      30    -60   RC    187.5  10/11/2022  14/11/2022
 2022_RT_04  RT_004RC  573420  6455250  120  188      30    -60   RC    191.9  14/11/2022  15/11/2022

Source: CCZ geology team

TREO conversion factor

Conversion of elemental analysis (REE parts per million) to stoichiometric
oxide (REO parts per million) was undertaken by ROM geological staff using the
below (Figure B6) element to stoichiometric oxide conversion factors.

FIGURE B8:  ELEMENT - CONVERSION FACTOR - OXIDE FORM

 Rare Earth Element  Factor for Conversion  Rare Earth Oxide Common Form
 Ce                  1.2284                 CeO(2)
 Dy                  1.1477                 Dy(2)O(3)
 Er                  1.1435                 Er(2)O(3)
 Eu                  1.1579                 Eu(2)O(3)
 Gd                  1.1526                 Gd(2)O(3)
 Ho                  1.1455                 Ho(2)O(3)
 La                  1.1728                 La(2)O(3)
 Lu                  1.1371                 Lu(2)O(3)
 Nd                  1.1664                 Nd(2)O(3)
 Pr                  1.2083                 Pr(6)O(11)
 Sm                  1.1596                 Sm(2)O(3)
 Tb                  1.1762                 Tb(4)O(7)
 Tm                  1.1421                 Tm(2)O(3)
 Y                   1.2699                 Y(2)O(3)
 Yb                  1.1387                 Yb(2)O(3)

Rare earth oxide is the industry accepted form for reporting rare earths. The
following calculations are used for compiling REO into their reporting and
evaluation groups:

·    TREO (Total Rare Earth Oxide) = La(2)O(3) + CeO(2) + Pr(6)O(11) +
Nd(2)O(3) + Sm(2)O(3) + Eu(2)O(3) + Gd(2)O(3) + Tb(4)O(7) + Dy(2)O(3) +
Ho(2)O(3) + Er(2)O(3) + Tm(2)O(3) + Yb(2)O(3) + Y(2)O3 + Lu(2)O(3).

·    TREO-Ce = TREO - CeO(2)

·    LREO (Light Rare Earth Oxide) = La(2)O(3) + CeO(2) + Pr(6)O(11) +
Nd(2)O(3) + Sm(2)O(3)

·    HREO (Heavy Rare Earth Oxide) = Eu(2)O(3) + Gd(2)O(3) + Tb(4)O(7) +
Dy(2)O(3) + Ho(2)O(3) + Er(2)O(3) + Tm(2)O(3) + Yb(2)O(3) + Y(2)O(3) +
Lu(2)O(3)

·    CREO (Critical Rare Earth Oxide) = Nd(2)O(3) + Eu(2)O(3) + Tb(4)O(7)
+ Dy(2)O(3) + Y(2)O(3)

·    MREO (Magnetic Rare Earth Oxide) = Pr(6)O(11) + Nd(2)O(3) + Sm(2)O(3)
+ Gd(2)O(3) + Tb(4)O(7) + Dy(2)O(3).

 

Total Rare Earth Oxides (TREO):

To calculate TREO an oxide conversion "factor" is applied to each rare-earth
element assay.

The "factor" equates an elemental assay to an oxide concentration for each
element. Below is an example of the factor calculation for Lanthanum (La).

Relative Atomic Mass (La) = 138.9055

Relative Atomic Mass (O) = 15.9994

Oxide Formula = La(2)O(3)

Oxide Conversion Factor = 1/ ((2x 138.9055)/(2x 138.9055 + 3x 15.9994)) Oxide
Conversion Factor = 1.173 (3 decimal places)

 

APPENDIX C: QUALITATIVE DRILL LOGS

FIGURE C1: BHAE QUALITATIVE LOGGING MINERALS PRESENT DRILL-HOLES

 Borehole  From (m)  To (m)  Apparent Thick. (m)  Magnetite  Epidote (%)  Chlorite (%)  Sulphides (%)  Comments

                                                  (%)
 TT_001RC  1         21      20                   1-5        0            1-3           1-3            Amphibolite, sulphides (mostly pyrite) & trace chalcopyrite
 TT_001RC  25        38      13                   1-12       0            0             0              Pegmatite & clay
 TT_001RC  66        75      9                    0          0-2          1-3           1-3            Schist & sulphides (pyrite)
 TT_001RC  110       118     8                    1-3        0            1-3           0-1            Schist, Iron oxide & haematite (1-3%)
 TT_002RC  4         13      9                    2-40       0            0             0-2            Clayey amphibolite & haematite (2-15%)
 TT_002RC  26        30      4                    1-5        0            0             0              Clay & schist
 TT_002RC  44        47      3                    1-5        0            0-1           0-1            Pegmatite
 TT_002RC  79        80      1                    0          0            1-2           1-3            Pyrite band
 TT_003RC  8         30      22                   3-40       1-2          1-3           1-4            Clay & amphibolite
 TT_003RC  72        79      7                    1-10       0            1-2           0-1            In schist
 TT_003RC  106       132     26                   0          1-3          1-3           1-5            Mostly schist & gneiss
 TT_004RC  1         6       5                    1-5        0            0             0              Amphibolite
 TT_004RC  21        44      23                   1-30       0            0             0              Amphibolite & schist
 TT_004RC  97        104     7                    1-5        0            0             0              Schist
 TT_004RC  108       114     6                    0          1-3          0-1           1-4            Schist & sulphides (mostly pyrite)
 FG_001RC                    0                                                                         No amphibolite logged
 FG_002RC  88        94      6                    0          1-5          0-3           1-6            In schist, no amphibolite logged in hole
 FG_003RC  102       111     9                    1-10       0            1-3           1-3            Amphibolite and gneiss
 FG_003RC  120       124     4                    0          1-10         0-3           0              In schist
 FG_004RC  34        48      14                   1-15       0-1          2-5           2-5            Amphibolite
 FG_004RC  65        82      17                   1-10       0            0-5           1-3            Amphibolite
 RT_001RC                                                                                              No amphibolite recorded
 RT_002RC                                                                                              Geological logging being completed
 RT_003RC                                                                                              Geological logging being completed
 RT_004RC                                                                                              Geological logging being completed

 

Notes:

1.        Drillholes RT_002RC to RT_004RC still being assessed by
geology team.

2.       Ranges of minerals represent qualitative estimation during
geological modelling.

Source: CCZ geology team

 

 

APPENDIX D: JORC CODE, 2012 EDITION - TABLE

Section 1: Sampling Techniques and Data

 Criteria                                                 JORC Code explanation                                                            Commentary
 Sampling techniques                                      Nature and quality of sampling (e.g., cut channels, random chips, or specific    Diamond Drilling (DDH)
                                                          specialised industry standard measurement tools appropriate to the minerals

                                                          under investigation, such as down hole gamma sondes, or handheld XRF             Diamond drilling of HQ diameter (TT_005DD) was completed to 137m recently in
                                                          instruments, etc.). These examples should not be taken as limiting the broad     the current program and was located 5m away from a RC hole already drilled
                                                          meaning of sampling.                                                             (TT_003RC).

                                                          Include reference to measures taken to ensure sample representivity and the      Reverse Circulation ('RC') Drilling
                                                          appropriate calibration of any measurement tools or systems used.

                                                                                RC drilling at Fence Gossan was used to obtain a representative sample by
                                                          Aspects of the determination of mineralisation that are Material to the Public   means of riffle splitting with samples submitted for analysis using the
                                                          Report.                                                                          above-mentioned methodologies.

                                                          In cases where 'industry standard' work has been done this would be relatively   Four (4) holes for a total of 516m have been completed to the 10(th) October
                                                          simple (e.g., 'reverse circulation drilling was used to obtain 1 m samples       2022, all at the Fence Gossan Prospect.
                                                          from which 3 kg was pulverised to produce a 30g charge for fire assay'). In

                                                          other cases, more explanation may be required, such as where there is coarse     One (1) hole to 120m has been completed at Reefs Tank and the others are in
                                                          gold that has inherent sampling problems. Unusual commodities or                 progress.
                                                          mineralisation types (eg submarine nodules) may warrant disclosure of detailed

                                                          information.                                                                     The RC drilling technique was used to obtain a representative sample by means
                                                                                                                                           of a cone or riffle splitter with samples submitted for assay by mixed acid
                                                                                                                                           digestion and analysis via ICP-MS + ICP-AES with anticipated reporting a suite
                                                                                                                                           of 48 elements (sulphur >10% by LECO).
 Drilling techniques                                      Drill type (e.g., core, reverse circulation, open-hole hammer, rotary air        Historical drilling consists of auger, rotary air blast, reverse circulation,
                                                          blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or    and NQ, BQ, and HQ diamond coring.  One cored hole of NQ or BQ diameter will
                                                          standard tube, depth of diamond tails, face-sampling bit or other type,          be completed after all the RC holes have been completed.
                                                          whether core is oriented and if so, by what method, etc.).

                                                                                                                                           Diamond drilling will be completed with standard diameter, conventional HQ and
                                                                                                                                           NQ with historical holes typically utilizing RC and percussion pre-collars to
                                                                                                                                           an average 30 metres (see Drillhole Information for further details).
 Drill sample recovery                                    Method of recording and assessing core and chip sample recoveries and results    Reverse Circulation ('RC') Drilling - Reverse circulation sample recoveries
                                                          assessed.                                                                        were visually estimated during drilling programs. Where the estimated sample

                                                                                recovery was below 100% this was recorded in field logs by means of
                                                          Measures taken to maximise sample recovery and ensure representative nature of   qualitative observation.
                                                          the samples.

                                                                                Reverse circulation drilling employed sufficient air (using a compressor and
                                                          Whether a relationship exists between sample recovery and grade and whether      booster) to maximise sample recovery.
                                                          sample bias may have occurred due to preferential loss/gain of fine/coarse

                                                          material.                                                                        Historical cored drillholes were well documented and generally have >90%
                                                                                                                                           core recovery.

                                                                                                                                           No relationship between sample recovery and grade has been observed.
 Logging                                                  Whether core and chip samples have been geologically and geotechnically logged   The drilling that did occur was completed to modern-day standards. The
                                                          to a level of detail to support appropriate Mineral Resource estimation,         preferred exploration strategy in the eighties and early nineties was to drill
                                                          mining studies and metallurgical studies.                                        shallow auger holes to negate the influence of any Quaternary and Tertiary

                                                                                sedimentary cover, and then return to sites where anomalous Cu or Zn were
                                                          Whether logging is qualitative or quantitative in nature. Core (or costean,      assayed.  In this program at all three areas holes were completed to varying
                                                          channel, etc) photography.                                                       depths ranging from 100-160m.

                                                          The total length and percentage of the relevant intersections logged.            No downhole geophysical logging took place; however, measurements of magnetic
                                                                                                                                           susceptibility were taken at the same 1m intervals as the PXRF readings were
                                                                                                                                           taken.
 Sub-sampling techniques and sample preparation           If core, whether cut or sawn and whether quarter, half or all core taken.        Core samples will be hand-split or sawn with re-logging of available

                                                                                historical core indicating a 70:30 (retained: assayed) split was typical. The
                                                          If non-core, whether riffled, tube sampled, rotary split, etc and whether        variation of sample ratios noted are considered consistent with the
                                                          sampled wet or dry.                                                              sub-sampling technique (hand-splitting).

                                                          For all sample types, the nature, quality, and appropriateness of the sample     No second half samples will be submitted for analysis, but duplicates have
                                                          preparation technique.                                                           been taken at a frequency of 1:20 in samples collected.

                                                          Quality control procedures adopted for all sub-sampling stages to maximise       It is considered water planned to be used for core cutting is unprocessed and
                                                          representivity of samples.                                                       unlikely to have introduced sample contamination.

                                                          Measures taken to ensure that the sampling is representative of the in-situ      Procedures relating to the definition of the line of cutting or splitting are
                                                          material collected, including for instance results for field                     not available.  It is expected that 'standard industry practice' for the
                                                          duplicate/second-half sampling.                                                  period was applied to maximize sample representivity.

                                                          Whether sample sizes are appropriate to the grain size of the material being     Quarter core will be submitted to ALS for chemical analysis using industry
                                                          sampled.                                                                         standard sample preparation and analytical techniques.

                                                                                                                                           The sample interval details and grades quoted for cored intervals described in
                                                                                                                                           various maps in the main section are given in previous ASX releases (Castillo
                                                                                                                                           Copper 2022a, b, c, d, e, f).
 Quality of assay data and laboratory tests               The nature, quality and appropriateness of the assaying and laboratory           The following rare earth elements were analysed using ME-MS61R
                                                          procedures used and whether the technique is considered partial or total.

                                                                                Sample Decomposition is by HF-HNO(3)-HClO(4) acid digestion,
                                                          For geophysical tools, spectrometers, handheld XRF instruments, etc, the

                                                          parameters used in determining the analysis including instrument make and        HCl leach (GEO-4A01).  The Analytical Method for Silver is shown below:
                                                          model, reading times, calibrations factors applied and their derivation, etc.
Element  Symbol  Units  Lower Limit  Upper Limit

                                                                                Silver   Ag      ppm    0.01         100
                                                          Nature of quality control procedures adopted (eg standards, blanks,

                                                          duplicates, external laboratory checks) and whether acceptable levels of
Inductively Coupled Plasma - Atomic Emission Spectroscopy (ICP - AES)
                                                          accuracy (i.e. lack of bias) and precision have been established.                Inductively Coupled Plasma - Mass Spectrometry (ICP-MS)

                                                                                                                                           Aprepared sample (0.25 g) is digested with perchloric, nitric, hydrofluoric,
                                                                                                                                           and hydrochloric acids. The residue is topped up with dilute hydrochloric acid
                                                                                                                                           and analyzed by inductively coupled plasma atomic emission spectrometry.
                                                                                                                                           Following this analysis, the results are reviewed for high concentrations of
                                                                                                                                           bismuth, mercury, molybdenum, silver, and tungsten and diluted accordingly.

                                                                                                                                           Samples meeting this criterion are then analyzed by inductively coupled
                                                                                                                                           plasma-mass spectrometry. Results are corrected for spectral interelement
                                                                                                                                           interferences.

                                                                                                                                           Four acid digestions can dissolve most minerals: however, although

                                                                                                                                           the term "near total" is used, depending on the sample matrix, not all
                                                                                                                                           elements are quantitatively extracted.

                                                                                                                                           Results for the additional rare earth elements will represent the acid
                                                                                                                                           leachable portion of the rare earth elements and as such, cannot be used, for
                                                                                                                                           instance to do a chondrite plot.

                                                                                                                                           Geochemical Procedure

                                                                                                                                           Element geochemical procedure reporting units and limits are listed below:

Element      Symbol  Units  Lower Limit  Upper Limit
                                                                                                                                           Molybdenum   Mo      ppm    0.05         10 000
                                                                                                                                           Sodium       Na      %      0.01         10
                                                                                                                                           Niobium      Nb      ppm    0.1          500
                                                                                                                                           Nickel       Ni      ppm    0.2          10 000
                                                                                                                                           Phosphorous  P       ppm    10           10 000
                                                                                                                                           Lead         Pb      ppm    0.5          10 000
                                                                                                                                           Rubidium     Rb      ppm    0.1          10 000
                                                                                                                                           Rhenium      Re      ppm    0.002        50
                                                                                                                                           Sulphur      S       %      0.01         10
                                                                                                                                           Antimony     Sb      ppm    0.05         10 000
                                                                                                                                           Scandium     Sc      ppm    0.1          10 000
                                                                                                                                           Selenium     Se      ppm    1            1 000
                                                                                                                                           Tin          Sn      ppm    0.2          500
                                                                                                                                           Strontium    Sr      ppm    0.2          10 000
                                                                                                                                           Tantalum     Ta      ppm    0.05         100
                                                                                                                                           Tellurium    Te      ppm    0.05         500
                                                                                                                                           Thorium      Th      ppm    0.2          10 000
                                                                                                                                           Titanium     Ti      %      0.005        10
                                                                                                                                           Thallium     Tl      ppm    0.02         10 000
                                                                                                                                           Uranium      U       ppm    0.1          10 000
                                                                                                                                           Vanadium     V       ppm    1            10 000
                                                                                                                                           Tungsten     W       ppm    0.1          10 000

 

Element       Symbol  Units  Lower Limit  Upper Limit
                                                                                                                                           Yttrium       Y       ppm    0.1          500
                                                                                                                                           Zinc          Zn      ppm    2            10 000
                                                                                                                                           Zirconium     Zr      ppm    0.5          500
                                                                                                                                           Dysprosium    Dy      ppm    0.05         1 000
                                                                                                                                           Erbium        Er      ppm    0.03         1 000
                                                                                                                                           Europium      Eu      ppm    0.03         1 000
                                                                                                                                           Gadolinium    Gd      ppm    0.05         1 000
                                                                                                                                           Holmium       Ho      ppm    0.01         1 000
                                                                                                                                           Lutetium      Lu      ppm    0.01         1 000
                                                                                                                                           Neodymium     Nd      ppm    0.1          1 000
                                                                                                                                           Praseodymium  Pr      ppm    0.03         1 000
                                                                                                                                           Samarium      Sm      ppm    0.03         1 000
                                                                                                                                           Terbium       Tb      ppm    0.01         1 000
                                                                                                                                           Thulium       Tm      ppm    0.01         1 000
                                                                                                                                           Ytterbium     Yb      ppm    0.03         1 000

 

Inductively Coupled Plasma - Atomic Emission Spectroscopy (ICP - AES)
                                                                                                                                           Inductively Coupled Plasma - Mass Spectrometry (ICP-MS)

                                                                                                                                           A prepared sample (0.25 g) is digested with perchloric, nitric, hydrofluoric,
                                                                                                                                           and hydrochloric acids. The residue is topped up with dilute hydrochloric acid
                                                                                                                                           and analyzed by inductively coupled plasma atomic emission spectrometry.
                                                                                                                                           Following this analysis, the results are reviewed for high concentrations of
                                                                                                                                           bismuth, mercury, molybdenum, silver, and tungsten and diluted accordingly.

                                                                                                                                           Samples meeting this criterion are then analyzed by inductively coupled
                                                                                                                                           plasma-mass spectrometry. Results are corrected for spectral interelement
                                                                                                                                           interferences.

                                                                                                                                           Four acid digestions can dissolve most minerals: however, although

                                                                                                                                           the term "near total" is used, depending on the sample matrix, not all
                                                                                                                                           elements are quantitatively extracted.

                                                                                                                                           Results for the additional rare earth elements will represent the acid
                                                                                                                                           leachable portion of the rare earth elements and as such, cannot be used, for
                                                                                                                                           instance to do a chondrite plot.

                                                                                                                                           Geochemical Procedure

                                                                                                                                           Element geochemical procedure reporting units and limits are listed below:

Element      Symbol  Units  Lower Limit  Upper Limit
                                                                                                                                           Molybdenum   Mo      ppm    0.05         10 000
                                                                                                                                           Sodium       Na      %      0.01         10
                                                                                                                                           Niobium      Nb      ppm    0.1          500
                                                                                                                                           Nickel       Ni      ppm    0.2          10 000
                                                                                                                                           Phosphorous  P       ppm    10           10 000
                                                                                                                                           Lead         Pb      ppm    0.5          10 000
                                                                                                                                           Rubidium     Rb      ppm    0.1          10 000
                                                                                                                                           Rhenium      Re      ppm    0.002        50
                                                                                                                                           Sulphur      S       %      0.01         10
                                                                                                                                           Antimony     Sb      ppm    0.05         10 000
                                                                                                                                           Scandium     Sc      ppm    0.1          10 000
                                                                                                                                           Selenium     Se      ppm    1            1 000
                                                                                                                                           Tin          Sn      ppm    0.2          500
                                                                                                                                           Strontium    Sr      ppm    0.2          10 000
                                                                                                                                           Tantalum     Ta      ppm    0.05         100
                                                                                                                                           Tellurium    Te      ppm    0.05         500
                                                                                                                                           Thorium      Th      ppm    0.2          10 000
                                                                                                                                           Titanium     Ti      %      0.005        10
                                                                                                                                           Thallium     Tl      ppm    0.02         10 000
                                                                                                                                           Uranium      U       ppm    0.1          10 000
                                                                                                                                           Vanadium     V       ppm    1            10 000
                                                                                                                                           Tungsten     W       ppm    0.1          10 000

 

Element       Symbol  Units  Lower Limit  Upper Limit
                                                                                                                                           Yttrium       Y       ppm    0.1          500
                                                                                                                                           Zinc          Zn      ppm    2            10 000
                                                                                                                                           Zirconium     Zr      ppm    0.5          500
                                                                                                                                           Dysprosium    Dy      ppm    0.05         1 000
                                                                                                                                           Erbium        Er      ppm    0.03         1 000
                                                                                                                                           Europium      Eu      ppm    0.03         1 000
                                                                                                                                           Gadolinium    Gd      ppm    0.05         1 000
                                                                                                                                           Holmium       Ho      ppm    0.01         1 000
                                                                                                                                           Lutetium      Lu      ppm    0.01         1 000
                                                                                                                                           Neodymium     Nd      ppm    0.1          1 000
                                                                                                                                           Praseodymium  Pr      ppm    0.03         1 000
                                                                                                                                           Samarium      Sm      ppm    0.03         1 000
                                                                                                                                           Terbium       Tb      ppm    0.01         1 000
                                                                                                                                           Thulium       Tm      ppm    0.01         1 000
                                                                                                                                           Ytterbium     Yb      ppm    0.03         1 000

 

Element    Symbol  Units  Lower Limit  Upper Limit
                                                                                                                                           Aluminum   Al      %      0.01         50
                                                                                                                                           Arsenic    As      ppm    0.2          10 000
                                                                                                                                           Barium     Ba      ppm    10           10 000
                                                                                                                                           Beryllium  Be      ppm    0.05         1 000
                                                                                                                                           Bismuth    Bi      ppm    0.01         10 000
                                                                                                                                           Calcium    Ca      %      0.01         50
                                                                                                                                           Cadmium    Cd      ppm    0.02         1 000
                                                                                                                                           Cerium     Ce      ppm    0.01         500
                                                                                                                                           Cobalt     Co      ppm    0.1          10 000
                                                                                                                                           Chromium   Cr      ppm    1            10 000
                                                                                                                                           Cesium     Cs      ppm    0.05         500
                                                                                                                                           Copper     Cu      ppm    0.2          10 000
                                                                                                                                           Iron       Fe      %      0.01         50
                                                                                                                                           Gallium    Ga      ppm    0.05         10 000
                                                                                                                                           Germanium  Ge      ppm    0.05         500
                                                                                                                                           Hafnium    Hf      ppm    0.1          500
                                                                                                                                           Indium     In      ppm    0.005        500
                                                                                                                                           Potassium  K       %      0.01         10
                                                                                                                                           Lanthanum  La      ppm    0.5          10 000
                                                                                                                                           Lithium    Li      ppm    0.2          10 000
                                                                                                                                           Magnesium  Mg      %      0.01         50
                                                                                                                                           Manganese  Mn      ppm    5            100 000

Laboratory inserted standards, blanks and duplicates were analysed per
                                                                                                                                           industry standard practice. There was no evidence of bias from these results.
 Verification of sampling and assaying                    The verification of significant intersections by either independent or           None of the drillholes have been twinned, as they are historical holes.
                                                          alternative company personnel.

                                                                                Conversion of elemental analysis (REE parts per million) to stoichiometric
                                                          The use of twinned holes.                                                        oxide (REO parts per million) was undertaken by ROM geological staff using the

                                                                                below (Table D1-1) element to stoichiometric oxide conversion factors
                                                          Documentation of primary data, data entry procedures, data verification, data    (https://www.jcu.edu.au/news/releases/2020/march/rare-earth-metals-an-untapped-resource
                                                          storage (physical and electronic) protocols.                                     (https://www.jcu.edu.au/news/releases/2020/march/rare-earth-metals-an-untapped-resource)

                                                                                )
                                                          Discuss any adjustment to assay data.

                                                                                                                                           Table D1-1:  Element -Conversion Factor -Oxide Form

Ce  1.2284        CeO2
                                                                                                                                           Dy  1.1477        Dy2O3
                                                                                                                                           Er  1.1435        Er2O3
                                                                                                                                           Eu  1.1579        Eu2O3
                                                                                                                                           Gd  1.1526        Gd2O3
                                                                                                                                           Ho  1.1455        Ho2O3
                                                                                                                                           La  1.1728       La2O3
                                                                                                                                           Lu  1.1371       Lu2O3
                                                                                                                                           Nd  1.1664       Nd2O3
                                                                                                                                           Pr  1.2083       Pr6O11
                                                                                                                                           Sm  1.1596      Sm2O3
                                                                                                                                           Tb  1.1762      Tb4O7
                                                                                                                                           Tm  1.1421  Tm2O3
                                                                                                                                           Y 1.2699  Y2O3
                                                                                                                                           Yb  1.1387  Yb2O3

 

                                                                                                                                           Rare earth oxide is the industry accepted form for reporting rare earths. The
                                                                                                                                           following calculations are used for compiling REO into their reporting and
                                                                                                                                           evaluation groups:

                                                                                                                                           TREO (Total Rare Earth Oxide) = La2O3 + CeO2 + Pr6O11 + Nd2O3 + Sm2O3 + Eu2O3
                                                                                                                                           + Gd2O3 + Tb4O7 + Dy2O3 + Ho2O3 + Er2O3 + Tm2O3 + Yb2O3 + Y2O3 + Lu2O3.

                                                                                                                                           TREO-Ce = TREO - CeO2

                                                                                                                                           LREO (Light Rare Earth Oxide) = La2O3 + CeO2 + Pr6O11 + Nd2O3 + Sm2O3

                                                                                                                                           HREO (Heavy Rare Earth Oxide) = Eu2O3 + Gd2O3 + Tb4O7 + Dy2O3 + Ho2O3 + Er2O3
                                                                                                                                           + Tm2O3 + Yb2O3 + Y2O3 + Lu2O3

                                                                                                                                           CREO (Critical Rare Earth Oxide) = Nd2O3 + Eu2O3 + Tb4O7 + Dy2O3 + Y2O3

                                                                                                                                           MREO (Magnetic Rare Earth Oxide) = Pr6O11 + Nd2O3 + Sm2O3 + Gd2O3 + Tb4O7 +
                                                                                                                                           Dy2O3.

                                                                                                                                           Total Rare Earth Oxides (TREO):

                                                                                                                                           To calculate TREO an oxide conversion "factor" is applied to each rare-earth
                                                                                                                                           element assay.  The "factor" equates an elemental assay to an oxide
                                                                                                                                           concentration for each element. Below is an example of the factor calculation
                                                                                                                                           for Lanthanum (La):

                                                                                                                                           o  Relative Atomic Mass (La) = 138.9055

                                                                                                                                           o  Relative Atomic Mass (O) = 15.9994

                                                                                                                                           o  Oxide Formula = La(2)O(3)

                                                                                                                                           o  Oxide Conversion Factor = 1/ ((2x 138.9055)/(2x 138.9055 + 3x 15.9994))
                                                                                                                                           Oxide Conversion Factor = 1.173 (3dp)

                                                                                                                                           None of the historical data has been adjusted.
 Location of data points                                  Accuracy and quality of surveys used to locate drill holes (collar and           In general, locational accuracy does vary, depending upon whether the
                                                          down-hole surveys), trenches, mine workings and other locations used in          historical surface and drillhole samples were digitised off plans or had their
                                                          Mineral Resource estimation.                                                     coordinated tabulated.  Many samples were originally reported to AGD66 or

                                                                                AMG84 and have been converted to MGA94 (Zone 54)
                                                          Specification of the grid system used.

                                                                                The holes are currently surveyed with handheld GPS, awaiting more accurate
                                                          Quality and adequacy of topographic control.                                     DGPS survey.  It is thus estimated that locational accuracy therefore varies
                                                                                                                                           between 2-4m until the more accurate surveying is completed.

                                                                                                                                           The quality of topographic control (GSNSW 1 sec DEM) is deemed adequate for
                                                                                                                                           the purposes of the exploration drilling program.
 Data spacing and distribution                            Data spacing for reporting of Exploration Results.                               The average sample spacing from the current drilling program across the tenure

                                                                                varies per prospect, and sample type, as listed in Table D1-2, below:
                                                          Whether the data spacing and distribution is sufficient to establish the

                                                          degree of geological and grade continuity appropriate for the Mineral Resource                          Table D1-2:  EL 8434 Drillhole
                                                          and Ore Reserve estimation procedure(s) and classifications applied.             Spacing

Prospect      Drillholes Completed  RMS Drillhole Spacing (m)
                                                          Whether sample compositing has been applied.                                     The Sisters   Not yet
                                                                                                                                           Iron Blow     Not Yet
                                                                                                                                           Tors Tank     4                     127
                                                                                                                                           Fence Gossan  4                     208
                                                                                                                                           Ziggy's Hill  n/a                   n/a
                                                                                                                                           Reefs Tank    1

The Datamine software allows creation of fixed length samples from the
                                                                                                                                           original database given a set of stringent rules.
 Orientation of data in relation to geological structure  Whether the orientation of sampling achieves unbiased sampling of possible       Historical drill holes at the BHAE are typically drilled vertically for auger
                                                          structures and the extent to which this is known, considering the deposit        and RAB types (drilled along section lines) and angled at -55˚ or -60˚ to
                                                          type.                                                                            the horizontal and drilled perpendicular to the mineralised trend for RC and

                                                                                DDH (Figure D1-3 and D1-4).
                                                          If the relationship between the drilling orientation and the orientation of

                                                          key mineralised structures is considered to have introduced a sampling bias,     Drilling orientations are adjusted along strike to accommodate folded
                                                          this should be assessed and reported if material.                                geological sequences.  All Fence Gossan holes were designed to drill toward
                                                                                                                                           grid south at an inclination of 60 degrees from horizontal.

                                                                                                                                           The drilling orientation is not considered to have introduced a sampling bias
                                                                                                                                           on assessment of the current geological interpretation.

                                                                                                                                           Geological mapping by various companies has reinforced that the strata dips
                                                                                                                                           variously between 5 and 65 degrees.
 Sample security                                          The measures taken to ensure sample security.                                    Sample security procedures are considered 'industry standard' for the current
                                                                                                                                           period.

                                                                                                                                           Samples obtained during drilling completed between 4/10/22 to the 10/10/22
                                                                                                                                           were transported by exploration employees or an independent courier directly
                                                                                                                                           from Broken Hill to ALS Laboratory, Adelaide.

                                                                                                                                           The Company considers that risks associated with sample security are limited
                                                                                                                                           given the nature of the targeted mineralisation.
 Audits or reviews                                        The results of any audits or reviews of sampling techniques and data.            No external audits or reviews have yet been undertaken.

Inductively Coupled Plasma - Atomic Emission Spectroscopy (ICP - AES)
Inductively Coupled Plasma - Mass Spectrometry (ICP-MS)

A prepared sample (0.25 g) is digested with perchloric, nitric, hydrofluoric,
and hydrochloric acids. The residue is topped up with dilute hydrochloric acid
and analyzed by inductively coupled plasma atomic emission spectrometry.
Following this analysis, the results are reviewed for high concentrations of
bismuth, mercury, molybdenum, silver, and tungsten and diluted accordingly.

Samples meeting this criterion are then analyzed by inductively coupled
plasma-mass spectrometry. Results are corrected for spectral interelement
interferences.

Four acid digestions can dissolve most minerals: however, although

the term "near total" is used, depending on the sample matrix, not all
elements are quantitatively extracted.

Results for the additional rare earth elements will represent the acid
leachable portion of the rare earth elements and as such, cannot be used, for
instance to do a chondrite plot.

 

 

 

Geochemical Procedure

Element geochemical procedure reporting units and limits are listed below:

 Element      Symbol  Units  Lower Limit  Upper Limit
 Molybdenum   Mo      ppm    0.05         10 000
 Sodium       Na      %      0.01         10
 Niobium      Nb      ppm    0.1          500
 Nickel       Ni      ppm    0.2          10 000
 Phosphorous  P       ppm    10           10 000
 Lead         Pb      ppm    0.5          10 000
 Rubidium     Rb      ppm    0.1          10 000
 Rhenium      Re      ppm    0.002        50
 Sulphur      S       %      0.01         10
 Antimony     Sb      ppm    0.05         10 000
 Scandium     Sc      ppm    0.1          10 000
 Selenium     Se      ppm    1            1 000
 Tin          Sn      ppm    0.2          500
 Strontium    Sr      ppm    0.2          10 000
 Tantalum     Ta      ppm    0.05         100
 Tellurium    Te      ppm    0.05         500
 Thorium      Th      ppm    0.2          10 000
 Titanium     Ti      %      0.005        10
 Thallium     Tl      ppm    0.02         10 000
 Uranium      U       ppm    0.1          10 000
 Vanadium     V       ppm    1            10 000
 Tungsten     W       ppm    0.1          10 000

 

 

 Element       Symbol  Units  Lower Limit  Upper Limit
 Yttrium       Y       ppm    0.1          500
 Zinc          Zn      ppm    2            10 000
 Zirconium     Zr      ppm    0.5          500
 Dysprosium    Dy      ppm    0.05         1 000
 Erbium        Er      ppm    0.03         1 000
 Europium      Eu      ppm    0.03         1 000
 Gadolinium    Gd      ppm    0.05         1 000
 Holmium       Ho      ppm    0.01         1 000
 Lutetium      Lu      ppm    0.01         1 000
 Neodymium     Nd      ppm    0.1          1 000
 Praseodymium  Pr      ppm    0.03         1 000
 Samarium      Sm      ppm    0.03         1 000
 Terbium       Tb      ppm    0.01         1 000
 Thulium       Tm      ppm    0.01         1 000
 Ytterbium     Yb      ppm    0.03         1 000

 

 

 

 

 

 

 

 

 

 

 

 

 

 Element    Symbol  Units  Lower Limit  Upper Limit
 Aluminum   Al      %      0.01         50
 Arsenic    As      ppm    0.2          10 000
 Barium     Ba      ppm    10           10 000
 Beryllium  Be      ppm    0.05         1 000
 Bismuth    Bi      ppm    0.01         10 000
 Calcium    Ca      %      0.01         50
 Cadmium    Cd      ppm    0.02         1 000
 Cerium     Ce      ppm    0.01         500
 Cobalt     Co      ppm    0.1          10 000
 Chromium   Cr      ppm    1            10 000
 Cesium     Cs      ppm    0.05         500
 Copper     Cu      ppm    0.2          10 000
 Iron       Fe      %      0.01         50
 Gallium    Ga      ppm    0.05         10 000
 Germanium  Ge      ppm    0.05         500
 Hafnium    Hf      ppm    0.1          500
 Indium     In      ppm    0.005        500
 Potassium  K       %      0.01         10
 Lanthanum  La      ppm    0.5          10 000
 Lithium    Li      ppm    0.2          10 000
 Magnesium  Mg      %      0.01         50
 Manganese  Mn      ppm    5            100 000

Laboratory inserted standards, blanks and duplicates were analysed per
industry standard practice. There was no evidence of bias from these results.

Verification of sampling and assaying

The verification of significant intersections by either independent or
alternative company personnel.

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.

None of the drillholes have been twinned, as they are historical holes.

Conversion of elemental analysis (REE parts per million) to stoichiometric
oxide (REO parts per million) was undertaken by ROM geological staff using the
below (Table D1-1) element to stoichiometric oxide conversion factors
(https://www.jcu.edu.au/news/releases/2020/march/rare-earth-metals-an-untapped-resource
(https://www.jcu.edu.au/news/releases/2020/march/rare-earth-metals-an-untapped-resource)
)

 

Table D1-1:  Element -Conversion Factor -Oxide Form

 Ce  1.2284        CeO2
 Dy  1.1477        Dy2O3
 Er  1.1435        Er2O3
 Eu  1.1579        Eu2O3
 Gd  1.1526        Gd2O3
 Ho  1.1455        Ho2O3
 La  1.1728       La2O3
 Lu  1.1371       Lu2O3
 Nd  1.1664       Nd2O3
 Pr  1.2083       Pr6O11
 Sm  1.1596      Sm2O3
 Tb  1.1762      Tb4O7
 Tm  1.1421  Tm2O3
 Y   1.2699  Y2O3
 Yb  1.1387  Yb2O3

 

 

 

 

Rare earth oxide is the industry accepted form for reporting rare earths. The
following calculations are used for compiling REO into their reporting and
evaluation groups:

TREO (Total Rare Earth Oxide) = La2O3 + CeO2 + Pr6O11 + Nd2O3 + Sm2O3 + Eu2O3
+ Gd2O3 + Tb4O7 + Dy2O3 + Ho2O3 + Er2O3 + Tm2O3 + Yb2O3 + Y2O3 + Lu2O3.

TREO-Ce = TREO - CeO2

LREO (Light Rare Earth Oxide) = La2O3 + CeO2 + Pr6O11 + Nd2O3 + Sm2O3

HREO (Heavy Rare Earth Oxide) = Eu2O3 + Gd2O3 + Tb4O7 + Dy2O3 + Ho2O3 + Er2O3
+ Tm2O3 + Yb2O3 + Y2O3 + Lu2O3

CREO (Critical Rare Earth Oxide) = Nd2O3 + Eu2O3 + Tb4O7 + Dy2O3 + Y2O3

MREO (Magnetic Rare Earth Oxide) = Pr6O11 + Nd2O3 + Sm2O3 + Gd2O3 + Tb4O7 +
Dy2O3.

Total Rare Earth Oxides (TREO):

To calculate TREO an oxide conversion "factor" is applied to each rare-earth
element assay.  The "factor" equates an elemental assay to an oxide
concentration for each element. Below is an example of the factor calculation
for Lanthanum (La):

o  Relative Atomic Mass (La) = 138.9055

o  Relative Atomic Mass (O) = 15.9994

o  Oxide Formula = La(2)O(3)

o  Oxide Conversion Factor = 1/ ((2x 138.9055)/(2x 138.9055 + 3x 15.9994))
Oxide Conversion Factor = 1.173 (3dp)

None of the historical data has been adjusted.

Location of data points

Accuracy and quality of surveys used to locate drill holes (collar and
down-hole surveys), trenches, mine workings and other locations used in
Mineral Resource estimation.

Specification of the grid system used.

Quality and adequacy of topographic control.

In general, locational accuracy does vary, depending upon whether the
historical surface and drillhole samples were digitised off plans or had their
coordinated tabulated.  Many samples were originally reported to AGD66 or
AMG84 and have been converted to MGA94 (Zone 54)

The holes are currently surveyed with handheld GPS, awaiting more accurate
DGPS survey.  It is thus estimated that locational accuracy therefore varies
between 2-4m until the more accurate surveying is completed.

The quality of topographic control (GSNSW 1 sec DEM) is deemed adequate for
the purposes of the exploration drilling program.

Data spacing and distribution

Data spacing for reporting of Exploration Results.

Whether the data spacing and distribution is sufficient to establish the
degree of geological and grade continuity appropriate for the Mineral Resource
and Ore Reserve estimation procedure(s) and classifications applied.

Whether sample compositing has been applied.

The average sample spacing from the current drilling program across the tenure
varies per prospect, and sample type, as listed in Table D1-2, below:

                       Table D1-2:  EL 8434 Drillhole
Spacing

 Prospect      Drillholes Completed  RMS Drillhole Spacing (m)
 The Sisters   Not yet
 Iron Blow     Not Yet
 Tors Tank     4                     127
 Fence Gossan  4                     208
 Ziggy's Hill  n/a                   n/a
 Reefs Tank    1

The Datamine software allows creation of fixed length samples from the
original database given a set of stringent rules.

Orientation of data in relation to geological structure

Whether the orientation of sampling achieves unbiased sampling of possible
structures and the extent to which this is known, considering the deposit
type.

If the relationship between the drilling orientation and the orientation of
key mineralised structures is considered to have introduced a sampling bias,
this should be assessed and reported if material.

Historical drill holes at the BHAE are typically drilled vertically for auger
and RAB types (drilled along section lines) and angled at -55˚ or -60˚ to
the horizontal and drilled perpendicular to the mineralised trend for RC and
DDH (Figure D1-3 and D1-4).

Drilling orientations are adjusted along strike to accommodate folded
geological sequences.  All Fence Gossan holes were designed to drill toward
grid south at an inclination of 60 degrees from horizontal.

The drilling orientation is not considered to have introduced a sampling bias
on assessment of the current geological interpretation.

Geological mapping by various companies has reinforced that the strata dips
variously between 5 and 65 degrees.

Sample security

The measures taken to ensure sample security.

Sample security procedures are considered 'industry standard' for the current
period.

Samples obtained during drilling completed between 4/10/22 to the 10/10/22
were transported by exploration employees or an independent courier directly
from Broken Hill to ALS Laboratory, Adelaide.

The Company considers that risks associated with sample security are limited
given the nature of the targeted mineralisation.

Audits or reviews

The results of any audits or reviews of sampling techniques and data.

No external audits or reviews have yet been undertaken.

 

Drilling Summary

The final drilling details for Reefs Tank and the other prospects are shown in
Figures D1-1 to D1-3.  Figure D1-4 sows the downhole distribution for Cobalt
and cerium at Tors Tank.  All four RC holes intersected targeted zones of
cobalt mineralisation at the Tors Tank and to a lesser degree at the Fence
Gossan and Reefs Tank prospects.  Cobalt mineralisation was evidenced across
sequences comprising clay, amphibolite, schist, and gneiss, with assay closely
correlating with previously published qualitative logging and field XRF
observations.  An HQ fully cored hole (TT_005DD; see main text Figures) was
completed to 137.7m next to TT_003RC that returned an 11m cobalt horizon from
8-19m.  Castillo Copper expect to receive the final assay results from this
cored hole and the Reefs Tank suite within the coming weeks.

Metallurgical Testing

Planning is now underway for a high level initial metallurgical extraction
pilot program, based on approximately 60kg of material, consisting of:

•           Construct a testwork composite (0-20m whole received
mass)

•           Confirm P100 3.35mm crush size, split into 1kg charges

•           Head assay (Ce, La, Pr, Nd, Y, SiO(2))

•           Grind establishment for fine grind size (assumed P80
53µm)

•           A few rougher floats to trial FA2 reagent (w / wo
sodium silicate) at elevated temperature

•           Assume 6 cons and 1 tail per float, assayed for Ce,
La, Pr, Nd, Y, SiO(2)

This will give an initial assessment.  Given the complicated nature of rare
earth element flotation further work would require a specialist consultant to
direct the testwork program.

 

FIGURE D1-1: FENCE GOSSAN DRILLHOLE LOCATION AND TREO RESULTS NOVEMBER 2022

Source: CCZ geology team

FIGURE D1-2: TORS TANK DRILLHOLE LOCATION AND TREO RESULTS NOVEMBER 2022

Notes:

1. Current 2022 drillholes shown and deposit block model mask, All holes
orientated south at -60 degrees from horizontal.

Source: CCZ geology team

FIGURE D1-3: REEFS TANK DRILLHOLE LOCATION AND TREO RESULTS NOVEMBER 2022

Source: CCZ geology team

FIGURE D1-4   TORS TANK DOWNHOLE PLOTS FOR TRACE ELEMENTS COBALT AND CERIUM
(ppm)

Source: CCZ geology team

 

 

 

 

 

 

 

 

 

 

 

TABLE D1-5: RARE EARTH ELEMENT RETURNED ASSAY (ME-MS61R)

 HOLEID    XRF_SAMPLE / SAMPID  FROM   TO                    Ag (ppm)  Th (ppm)  U (ppm)  Ce  (ppm)   La  (ppm)   Y (ppm)  Dy  (ppm)   Er (ppm)  Eu  (ppm)   Gd  (ppm)   Ho  (ppm)   Lu  (ppm)   Nd  (ppm)   Pr  (ppm)   Sm  (ppm)   Tb  (ppm)   Tm  (ppm)   Yb (ppm)  TREO  (ppm)   TREO-Ce  (ppm)   LREO  (ppm)   HREO  (ppm)   CREO %  MREO %
 FG_002RC  CCZ03982 - CCZ03985  0.00   4.00                  0.02      10.15     9.9      156.50      83.80       18.70    4.11        1.81      1.53        5.99        0.70        0.21        62.00       18.25       9.36        0.81        0.25        1.55
 FG_002RC  CCZ03986 - CCZ03989  4.00   8.00                  0.01      17.35     6.8      234.00      121.50      28.10    6.12        2.93      1.93        8.67        1.13        0.36        88.50       26.20       12.45       1.27        0.40        2.58
 FG_002RC  CCZ04404 - CCZ04407  8.00   12.00                 0.02      16.45     8.5      221.00      114.50      28.70    6.55        3.16      2.12        9.75        1.18        0.38        91.70       25.80       13.20       1.35        0.44        2.86
 FG_002RC  CCZ04408 - CCZ04411  12.00  16.00                 0.01      10.45     17.6     347.00      198.00      58.30    12.65       5.47      4.22        18.65       2.12        0.58        150.00      41.00       23.80       2.47        0.69        4.08
 FG_002RC  CCZ04412 - CCZ04414  16.00  19.00                 0.03      19        5.4      155.50      92.20       46.30    8.01        4.07      1.94        10.75       1.57        0.45        71.50       18.95       12.20       1.52        0.53        3.24
 FG_002RC                                     Avge. Element  0.02      14.7      9.6      222.80      122.00      36.02    7.49        3.49      2.35        10.76       1.34        0.40        92.74       26.04       14.20       1.48        0.46        2.86
 FG_002RC                                     Avge.Oxide                         273.69   143.08      45.74       8.59     3.99        2.72      12.40       1.53        0.45        108.17      31.46       22.67       1.75        0.53        3.26                  660.04        386.35           579.07        80.96

 FG_003RC  CCZ04511 - CCZ04514  0.00   4.00                  0.02      16.5      11.1     550.00      297.00      44.70    13.55       4.49      6.67        23.70       2.06        0.47        263.00      72.60       40.40       2.90        0.62        3.54
 FG_003RC  CCZ04515 - CCZ04518  4.00   8.00                  0.02      19.3      9.1      452.00      268.00      34.70    12.00       3.76      5.50        21.50       1.80        0.39        209.00      57.70       32.30       2.55        0.52        3.03
 FG_003RC  CCZ04519 - CCZ04522  8.00   12.00                 0.02      18.8      9.9      355.00      214.00      31.40    8.84        3.50      3.65        13.85       1.44        0.48        153.50      42.10       22.20       1.77        0.52        3.46
 FG_003RC  CCZ04523 - CCZ04526  12.00  16.00                 0.02      21.4      15.3     465.00      298.00      59.90    15.75       6.59      5.80        24.80       2.78        0.79        212.00      56.10       33.70       3.23        0.93        5.72
 FG_003RC  CCZ04527 - CCZ04529  16.00  19.00                 0.04      9.5       42.8     690.00      448.00      109.50   29.70       11.55     9.76        43.80       4.91        1.32        306.00      83.20       49.00       5.93        1.68        9.70
 FG_003RC  CCZ04530             19.00  20.00                 0.11      1.9       47.6     647.00      510.00      510.00   99.90       65.40     17.10       101.00      22.90       9.02        388.00      95.20       74.30       15.65       9.77        58.70
 FG_003RC                                     Avge. Element  0.04      14.5      22.6     526.50      339.17      131.70   29.96       15.88     8.08        38.11       5.98        2.08        255.25      67.82       41.98       5.34        2.34        14.03
 FG_003RC                                     Avge.Oxide                                  646.75      397.77      167.25   34.38       18.16     9.36        43.92       6.85        2.36        297.72      81.94       48.53       6.28        2.67        15.97     1779.93       1133.18          1472.73       307.20        28.9%
 FG_003RC  CCZ04563 - CCZ04566  52.00  56.00                 0.17      2.1       40.6     168.00      91.50       63.10    10.05       5.95      2.68        11.90       2.06        0.88        76.70       21.20       12.40       1.72        0.92        5.75
 FG_003RC  CCZ04567 - CCZ04569  56.00  59.00                 0.05      4.0       35.3     271.00      171.00      68.20    12.05       5.68      3.27        15.40       2.22        0.74        114.50      32.60       18.20       2.05        0.81        4.81
 FG_003RC  CCZ04570             59.00  60.00                 0.04      8.7       25.1     213.00      165.50      90.60    13.05       7.99      2.82        13.95       2.77        1.17        100.50      29.30       15.25       2.11        1.21        7.48
 FG_003RC  CCZ04571 - CCZ04574  60.00  64.00                 0.06      9.2       18.7     236.00      165.00      62.60    10.75       5.44      3.11        14.30       2.13        0.70        105.00      30.30       16.25       2.03        0.78        4.71
 FG_003RC  CCZ04575 - CCZ04578  64.00  68.00                 0.07      12.7      12.8     218.00      102.50      38.80    6.56        3.49      1.79        8.18        1.30        0.47        68.60       20.50       11.00       1.19        0.53        3.20
 FG_003RC  CCZ04579 - CCZ04582  68.00  72.00                 0.03      7.1       10.0     385.00      169.50      42.80    9.65        4.18      3.47        13.30       1.65        0.50        120.00      33.80       19.15       1.82        0.61        3.68
 FG_003RC  CCZ04583 - CCZ04586  72.00  76.00                 0.01      15.1      4.3      115.00      60.20       27.20    4.64        2.58      1.49        5.80        0.90        0.36        46.90       13.60       7.88        0.82        0.40        2.52
 FG_003RC  CCZ04587 - CCZ04589  76.00  79.00                 0.01      22.1      3.1      152.50      73.50       16.20    3.13        1.38      1.27        5.64        0.54        0.18        55.90       16.25       8.72        0.67        0.20        1.23
 FG_003RC  CCZ04590             79.00  80.00                 0.01      23.9      1.8      134.50      68.40       13.90    3.21        1.10      1.69        5.87        0.49        0.13        55.90       15.35       9.03        0.68        0.15        0.85
 FG_003RC  CCZ04591 - CCZ04594  80.00  84.00                 0.01      20.3      2.0      122.00      61.00       15.60    3.54        1.30      1.72        6.30        0.57        0.16        54.10       15.10       8.87        0.73        0.17        1.02
 FG_003RC                                     Avge. Element  0.05      12.5      15.4     210.33      118.57      47.04    8.12        4.20      2.40        10.48       1.56        0.57        82.67       23.66       13.10       1.45        0.62        3.80
 FG_003RC                                     Avge.Oxide                                  258.37      139.05      59.74    9.32        4.80      2.78        12.08       1.79        0.65        96.42       28.58       15.14       1.71        0.71        4.33      635.49        377.12           537.57        97.91         26.7%
 FG_004RC  CCZ04683 - CCZ04686  4.00   8.00                  0.01      20.8      3.9      164.00      81.20       11.80    3.23        1.18      1.57        6.17        0.50        0.13        62.20       19.10       9.60        0.74        0.15        0.89
 FG_004RC  CCZ04687 - CCZ04690  8.00   12.00                 0.01      17.1      7.2      407.00      181.50      24.70    9.13        2.92      4.50        16.80       1.32        0.30        183.50      49.90       29.20       2.12        0.36        2.18
 FG_004RC  CCZ04691 - CCZ04694  12.00  16.00                 0.01      17.9      7.0      149.00      74.40       32.60    6.98        3.24      2.33        9.90        1.25        0.42        71.70       19.25       12.45       1.36        0.44        2.84
 FG_004RC  CCZ04695 - CCZ04697  16.00  19.00                 0.01      20.5      5.5      152.00      78.30       21.30    5.01        1.94      1.87        8.29        0.83        0.24        63.00       17.80       10.20       1.08        0.26        1.61
 FG_004RC  CCZ04698             19.00  20.00                 0.01      17.2      6.3      137.00      70.40       27.50    5.67        2.57      1.82        8.15        1.03        0.32        58.70       17.10       9.62        1.10        0.36        2.18
 FG_004RC  CCZ04699 - CCZ04702  20.00  24.00                 0.01      16.7      6.9      160.50      80.70       43.70    7.85        4.13      2.08        10.15       1.52        0.45        71.00       19.70       12.05       1.43        0.53        3.19
 FG_004RC  CCZ04703 - CCZ04706  24.00  28.00                 0.01      18.6      8.5      137.50      71.30       31.60    5.20        2.89      1.47        6.86        1.05        0.39        54.60       16.00       8.69        0.96        0.39        2.50
 FG_004RC  CCZ04707 - CCZ04710  28.00  32.00                 0.07      17.9      26.7     410.00      237.00      55.50    10.10       5.49      2.79        14.00       2.00        0.67        144.00      43.70       18.60       1.95        0.74        4.44
 FG_004RC
 FG_004RC                                     Avge. Element  0.02      18.3      9.0      214.63      109.35      31.09    6.65        3.05      2.30        10.04       1.19        0.37        88.59       25.32       13.80       1.34        0.40        2.48
 FG_004RC                                     Avge.Oxide                                  263.65      128.25      39.48    7.63        3.48      2.67        11.57       1.36        0.42        103.33      30.59       16.00       1.58        0.46        3.44      613.90        350.25           541.82        72.08         25.2%
 FG_004RC  CCZ04727 - CCZ04730  48.00  52.00                 0.08      5.3       24.3     209.00      168.50      64.10    7.05        3.43      2.21        9.14        1.30        0.42        78.30       23.20       12.40       1.36        0.46        2.77
 FG_004RC  CCZ04731 - CCZ04734  52.00  56.00                 0.08      12.9      25.1     336.00      57.30       98.80    11.95       6.05      2.51        14.25       2.29        0.73        108.50      32.40       16.05       2.14        0.81        5.17
 FG_004RC
 FG_004RC                                     Avge. Element  0.08      9.1       24.7     272.50      112.90      81.45    9.50        4.74      2.36        11.70       1.80        0.58        93.40       27.80       14.23       1.75        0.64        3.97
 FG_004RC                                     Avge.Oxide                                  334.74      132.41      103.43   10.90       5.42      2.73        13.48       2.06        0.65        108.94      33.59       16.50       2.06        0.73        5.51      773.14        438.41           626.18        146.97        29.5%
 FG_004RC  CCZ04739 - CCZ04742  60.00  64.00                 0.04      12.4      8.7      185.00      94.10       39.90    7.34        3.94      1.71        9.22        1.43        0.50        68.10       20.10       10.80       1.35        0.58        3.45
 FG_004RC
 FG_004RC                                     Avge. Element  0.04      12.4      8.7      185.00      94.10       39.90    7.34        3.94      1.71        9.22        1.43        0.50        68.10       20.10       10.80       1.35        0.58        3.45
 FG_004RC                                     Avge.Oxide                                  227.25      110.36      50.67    8.42        4.51      1.98        10.63       1.64        0.57        79.43       24.29       13.05       1.59        0.66        4.79      539.83        312.58           454.38        85.45         26.3%

 

 

 HOLEID    XRF_SAMPLE / SAMPID  FROM    TO                     Ag (ppm)  Th (ppm)  U (ppm)  Ce  (ppm)   La  (ppm)   Y (ppm)  Dy  (ppm)   Er (ppm)  Eu  (ppm)   Gd  (ppm)   Ho  (ppm)   Lu  (ppm)   Nd  (ppm)   Pr  (ppm)   Sm  (ppm)   Tb  (ppm)   Tm  (ppm)   Yb (ppm)  TREO  (ppm)   TREO-Ce  (ppm)   LREO  (ppm)   HREO  (ppm)   CREO %  MREO %
 TT_001RC  CCZ03772 - CCZ03775  24.00   28.00                    0.14    7.2       10.2     166.50      105.00      132.00   19.00       11.40     3.89        17.50       4.01        1.50        87.00       21.60       15.70       2.95        1.55        9.54
 TT_001RC                                       Avge. Element  0.14      7.2       10.2     166.50      105.00      132.00   19.00       11.40     3.89        17.50       4.01        1.50        87.00       21.60       15.70       2.95        1.55        9.54
 TT_001RC                                       Avge.Oxide                         204.53   123.14      167.63      21.81    13.04       4.50      20.17       4.59        1.71        101.48      26.10       25.06       3.47        1.77        10.86                 729.85        525.32           480.31        249.55        41.0%   27.1%
 TT_001RC  CCZ03787             39.00   40.00                  0.05      19.2      1.7      271.00      132.50      13.70    3.13        1.22      1.79        6.17        0.51        0.20        102.50      28.30       11.95       0.66        0.16        1.06
 TT_001RC  CCZ03788 - CCZ03791  40.00   44.00                  0.04      14.0      2.3      188.00      101.50      16.00    3.54        1.61      1.90        6.33        0.60        0.27        78.80       21.50       10.20       0.73        0.23        1.51
 TT_001RC  CCZ03792 - CCZ03795  44.00   48.00                  0.07      9.3       3.1      150.00      97.20       17.80    3.44        1.56      1.14        4.94        0.59        0.23        49.80       16.15       6.88        0.64        0.22        1.38
 TT_001RC  CCZ03796 - CCZ03799  48.00   52.00                  0.07      26.7      3.0      182.00      95.50       25.80    5.11        2.33      1.40        6.12        0.95        0.29        60.80       18.85       8.83        0.90        0.34        2.03
 TT_001RC                                       Avge. Element  0.06      17.3      2.5      197.75      106.68      18.33    3.81        1.68      1.56        5.89        0.66        0.25        72.98       21.20       9.47        0.73        0.24        1.50
 TT_001RC                                       Avge.Oxide                         242.92   125.11      23.27       4.37     1.92        1.80      6.79        0.76        0.28        85.12       25.62       10.98       0.86        0.27        1.70                  531.76        288.84           489.73        42.03         21.7%   25.1%
 TT_002RC  CCZ03886 - CCZ03889  12.00   16.00                  0.32      1.0       7.0      426.00      128.00      94.20    20.80       9.41      6.27        23.50       3.78        1.09        133.50      32.10       26.70       3.67        1.29        7.78
 TT_002RC  CCZ03890 - CCZ03892  16.00   19.00                  0.69      1.0       6.8      234.00      105.50      137.50   30.10       14.55     7.67        33.80       5.53        1.65        145.00      31.20       30.50       5.14        1.96        12.20
 TT_002RC
 TT_002RC                                       Avge. Element  0.51      1.0       6.9      330.00      116.75      115.85   25.45       11.98     6.97        28.65       4.66        1.37        139.25      31.65       28.60       4.41        1.63        9.99
 TT_002RC                                       Avge.Oxide                         405.37   136.92      147.12      29.21    13.70       8.07      33.02       5.33        1.56        162.42      38.24       45.65       5.18        1.86        11.38                 1045.03       639.66           788.61        256.42        33.7%   30.0%
 TT_003RC  CCZ04252 - CCZ04255  0       4                      0.04      6.1       7.3      150.50      52.80       34.00    7.53        3.62      2.54        9.58        1.37        0.49        57.60       14.95       10.25       1.38        0.55        3.47
 TT_003RC  CCZ04256 - CCZ04259  4.00    8.00                   0.21      1.6       6.5      212.00      82.50       62.90    16.60       6.11      6.71        27.60       2.63        0.66        157.00      40.70       28.30       3.33        0.83        4.94
 TT_003RC  CCZ04260 - CCZ04263  8.00    12.00                  0.19      0.8       14.2     236.00      98.70       90.40    16.95       8.21      5.59        22.90       3.18        1.09        110.00      27.00       22.00       3.04        1.19        7.36
 TT_003RC  CCZ04264 - CCZ04267  12.00   16.00                  0.07      1.4       12.2     242.00      132.00      290.00   51.40       30.50     9.28        50.90       11.30       3.81        148.00      33.80       32.20       8.12        4.06        24.90
 TT_003RC  CCZ04268 - CCZ04270  16.00   19.00                  0.09      0.6       12.5     66.70       76.70       366.00   45.40       32.90     5.02        35.50       11.05       4.18        59.40       12.05       13.80       6.07        4.32        26.90
 TT_003RC
 TT_003RC                                       Avge. Element  0.12      2.09      10.54    181.44      88.54       168.66   27.58       16.27     5.83        29.30       5.91        2.05        106.40      25.70       21.31       4.39        2.19        13.51
 TT_003RC                                       Avge.Oxide                         222.88   103.84      214.18      31.65    18.60       6.75      33.77       6.77        2.33        124.10      31.05       24.71       5.16        2.50        15.39                 843.68        620.80           506.59        337.09        45.3%   29.7%
 TT_003RC  CCZ04351             99.00   100.00                 0.01      26.9      1.8      137.50      70.20       14.50    3.58        1.26      1.53        6.15        0.57        0.15        58.50       16.40       8.80        0.78        0.17        0.96
 TT_003RC  CCZ04352 - CCZ04355  100.00  104.00                 0.01      27.4      2.7      158.50      85.00       16.00    3.73        1.30      1.73        6.69        0.59        0.14        66.10       18.75       9.89        0.83        0.16        0.93
 TT_003RC
 TT_003RC                                       Avge. Element  0.01      27.2      2.3      148.00      77.60       15.25    3.66        1.28      1.63        6.42        0.58        0.15        62.30       17.58       9.35        0.81        0.17        0.95
 TT_003RC                                       Avge.Oxide                         181.80   91.01       19.37       4.19     1.46        1.89      7.40        0.66        0.16        72.67       21.24       10.84       0.95        0.19        1.08                  414.90        233.10           377.55        37.35         23.9%   28.3%
 TT_004RC  CCZ04019             19.00   20.00                  0.02      23.6      0.7      127.50      49.80       25.80    4.59        2.24      1.14        5.44        0.88        0.25        35.00       10.50       6.48        0.84        0.32        1.72
 TT_004RC  CCZ04020 - CCZ04023  20.00   24.00                  0.04      15.6      1.6      107.00      50.40       29.70    5.83        3.07      1.66        6.79        1.12        0.37        39.30       11.30       7.57        1.07        0.43        2.65
 TT_004RC
 TT_004RC                                       Avge. Element  0.03      19.6      1.2      117.25      50.10       27.75    5.21        2.66      1.40        6.12        1.00        0.31        37.15       10.90       7.03        0.96        0.38        2.19
 TT_004RC                                       Avge.Oxide                         144.03   58.76       35.24       5.98     3.04        1.62      7.05        1.15        0.35        43.33       13.17       11.21       1.12        0.43        2.49                  328.96        184.93           270.50        58.46         26.5%   24.9%
 TT_004RC  CCZ04056 - CCZ04058  56.00   59.00                  0.70      21.2      1.6      126.00      63.40       22.40    4.43        1.93      1.68        6.61        0.77        0.25        48.10       14.05       8.27        0.90        0.26        1.68
 TT_004RC
 TT_004RC                                       Avge. Element  0.70      21.2      1.6      126.00      63.40       22.40    4.43        1.93      1.68        6.61        0.77        0.25        48.10       14.05       8.27        0.90        0.26        1.68
 TT_004RC                                       Avge.Oxide                         154.78   74.36       28.45       5.08     2.21        1.95      7.62        0.88        0.28        56.10       16.98       9.59        1.06        0.30        1.91                  361.54        206.76           311.80        49.74         25.6%   26.7%

Source: CCZ geology team

SECTION 2: REPORTING OF EXPLORATION RESULTS

 Criteria                                                          JORC Code explanation                                                            Commentary
 Mineral tenement and land tenure status                           Type, reference name/number, location and ownership including agreements or      EL 8434 is located about 28km east of Broken Hill whilst EL 8435 is 16km east
                                                                   material issues with third parties such as joint ventures, partnerships,         of Broken Hill.  Both tenures are approximately 900km northwest of Sydney in
                                                                   overriding royalties, native title interests, historical sites, wilderness or    far western New South Wales (Figures D2-1 and D2-2 in Appendix A &B,
                                                                   national park and environmental settings.                                        above).

                                                                   The security of the tenure held at the time of reporting along with any known    EL 8434 and EL 8435 were both granted on the 2(nd of) June 2016 to Squadron
                                                                   impediments to obtaining a licence to operate in the area.                       Resources for a term of five (5) years for Group One Minerals.  On the 25(th
                                                                                                                                                    of) May 2020, Squadron Resources changed its name to Wyloo Metals Pty Ltd
                                                                                                                                                    (Wyloo).  In December 2020 the tenure was transferred from Wyloo Metals to
                                                                                                                                                    Broken Hill Alliance Pty Ltd a 100% subsidiary company of Castillo Copper
                                                                                                                                                    Limited.  Both tenures were renewed on the 12(th of) August 2021 for a
                                                                                                                                                    further six (6) years and are due to expire on the 2(nd of) June 2027.

                                                                                                                                                    EL 8434 lies across two (2) 1:100,000 geology map sheets Redan 7233 and
                                                                                                                                                    Taltingan 7234, and two (2) 1:250,000 geology map sheets, SI54-3 Menindee, and
                                                                                                                                                    SH54-15 Broken Hill in the county of Yancowinna.  EL 8434 consists of one
                                                                                                                                                    hundred and eighty-six (186) units) in the Adelaide and Broken Hill
                                                                                                                                                    1:1,000,000 Blocks covering an area of approximately 580km(2).

                                                                                                                                                    EL 8435 is located on the 1:100,000 geology map sheet Taltingan 7234, and the
                                                                                                                                                    1:250,000 geology map sheet SH/54-15 Broken Hill in the county of
                                                                                                                                                    Yancowinna.  EL 8435 consists of twenty-two (22) units (Table 1) in the
                                                                                                                                                    Broken Hill 1:1,000,000 Blocks covering an area of approximately 68km(2).

                                                                                                                                                    Access to the tenures from Broken Hill is via the sealed Barrier Highway.
                                                                                                                                                    This road runs north-east to south-west through the northern portion of the EL
                                                                                                                                                    8434, passes the southern tip of EL 8435 eastern section and through the
                                                                                                                                                    middle of the western section of EL 8435.  Access is also available via the
                                                                                                                                                    Menindee Road which runs north-west to south-east through the southern section
                                                                                                                                                    of the EL 8434.  The Orange to Broken Hill Rail line also dissects EL 8435
                                                                                                                                                    western section the middle and then travels north-west to south-east slicing
                                                                                                                                                    through the eastern arm of EL 8434 (Figure D2-1).

                                                                                                                                                    Figure D2-1:  EL 8434 and EL 8435 General Location Map
 Exploration done by other parties                                 Acknowledgment and appraisal of exploration by other parties.                    Explorers who were actively involved over longer historical periods in various
                                                                                                                                                    parts of EL8434 were: - North Broken Hill Ltd, CRAE Exploration, Major Mining
                                                                                                                                                    Ltd and Broken Hill Metals NL, Pasminco Exploration Ltd, Normandy Exploration
                                                                                                                                                    Ltd, PlatSearch NL/Inco Ltd/ EGC Pty Ltd JV and the Western Plains Gold
                                                                                                                                                    Ltd/PlatSearch/EGC Pty Ltd JV.

                                                                                                                                                    A comprehensive summary of work by previous explorers was presented in Leyh
                                                                                                                                                    (2009). However, more recently, follow-up field reconnaissance of areas of
                                                                                                                                                    geological interest, including most of the prospective zones was carried out
                                                                                                                                                    by EGC Pty Ltd over the various licenses. This work, in conjunction with a
                                                                                                                                                    detailed interpretation of aeromagnetic, gravity plus RAB / RC drill hole
                                                                                                                                                    logging originally led to the identification of at least sixteen higher
                                                                                                                                                    priority prospect areas. All these prospects were summarized in considerable
                                                                                                                                                    detail in Leyh (2008).  Future work programs were then also proposed for each
                                                                                                                                                    area.  Since then, further compilation work plus detailed geological
                                                                                                                                                    reconnaissance mapping and sampling of gossans and lode rocks has been carried
                                                                                                                                                    out.

                                                                                                                                                    A total of 22 prospects were then recognised on the exploration licence with
                                                                                                                                                    at least 12 occurring in and around the tenure.

                                                                                                                                                    With less than 45% outcropping Proterozoic terrain within the licence, this
                                                                                                                                                    makes it very difficult to explore and is in the main very effectively
                                                                                                                                                    screened from the easy application of more conventional exploration
                                                                                                                                                    methodologies due to a predominance of extensive Cainozoic cover sequences.
                                                                                                                                                    These include recent to young Quaternary soils, sands, clays and older more
                                                                                                                                                    resistant, only partially dissected, Tertiary duricrust regolith covered
                                                                                                                                                    areas.  Depth of cover ranges from a few metres in the north to over 60
                                                                                                                                                    metres in some areas on the southern and central license.

                                                                                                                                                    Exploration by EGC Pty Ltd carried out in the field in the first instance has
                                                                                                                                                    therefore been heavily reliant upon time consuming systematic geological
                                                                                                                                                    reconnaissance mapping and relatable geochemical sampling. These involve a
                                                                                                                                                    slow systematic search over low outcropping areas, poorly exposed subcrops and
                                                                                                                                                    float areas as well as the progressive development of effective regolith
                                                                                                                                                    mapping and sampling tools.  This work has been combined with a vast amount
                                                                                                                                                    of intermittently acquired past exploration data.  The recent data
                                                                                                                                                    compilation includes an insufficiently detailed NSWGS regional mapping scale
                                                                                                                                                    given the problems involved, plus some regionally extensive, highly variable,
                                                                                                                                                    low-level stream and soil BLEG geochemical data sets over much of the area.

                                                                                                                                                    There are also a few useful local detailed mapping grids at the higher
                                                                                                                                                    priority prospects, and many more numerous widespread regional augers, RAB,
                                                                                                                                                    and percussion grid drilling data sets. Geophysical data sets including ground
                                                                                                                                                    magnetics, IP and EM over some prospect areas have also been integrated into
                                                                                                                                                    the exploration models.  These are located mainly in former areas of moderate
                                                                                                                                                    interest and most of the electrical survey methods to date in this type of
                                                                                                                                                    terrain continue to be of limited application due to the high degree of
                                                                                                                                                    weathering and the often prevailing and complex regolith cover constraints.

                                                                                                                                                    Between 2007 and 2014 Eaglehawk Geological Consulting has carried out detailed
                                                                                                                                                    research, plus compilation and interpretation of a very large volume of
                                                                                                                                                    historic exploration data sourced from numerous previous explorers and dating
                                                                                                                                                    back to the early 1970's. Most of this data is in non-digital scanned form.
                                                                                                                                                    Many hard copy exploration reports (see references) plus several hundred plans
                                                                                                                                                    have been acquired from various sources, hard copy printed as well as
                                                                                                                                                    downloaded as scans from the Geological Survey of NSW DIGS system. They also
                                                                                                                                                    conducted field mapping, costean mapping and sampling, and rock chip sampling
                                                                                                                                                    and analysis.

                                                                                                                                                    Work Carried out by Squadron Resources and Whyloo Metals 2016-2020

                                                                                                                                                    Research during Year 1 by Squadron Resources revealed that the PGE-rich,
                                                                                                                                                    sulphide-bearing ultramafic rocks in the Broken Hill region have a
                                                                                                                                                    demonstrably alkaline affinity.  This indicates a poor prospectivity for
                                                                                                                                                    economic accumulations of sulphide on an empirical basis (e.g., in comparison
                                                                                                                                                    to all known economic magmatic nickel sulphide deposits, which have a
                                                                                                                                                    dominantly tholeiitic affinity).  Squadron instead directed efforts toward
                                                                                                                                                    detecting new Broken Hill-Type (BHT) deposits that are synchronous with basin
                                                                                                                                                    formation.  Supporting this modified exploration rationale are the EL's
                                                                                                                                                    stratigraphic position, proximity to the Broken Hill line of lode, abundant
                                                                                                                                                    mapped alteration (e.g., gahnite and/or garnet bearing exhalative units) and
                                                                                                                                                    known occurrences such as the "Sisters" and "Iron Blow" prospects.

                                                                                                                                                    The area overlies a potential magmatic Ni-Cu-PGE source region of
                                                                                                                                                    metasomatised sub-continental lithospheric mantle (SCLM) identified from a
                                                                                                                                                    regional targeting geophysical data base.  The exploration model at the time
                                                                                                                                                    proposed involved remobilization of Ni-Cu-PGE in SCLM and incorporation into
                                                                                                                                                    low degree mafic-ultramafic partial melts during a post-Paleoproterozoic plume
                                                                                                                                                    event and emplacement higher in the crust as chonoliths/small intrusives -
                                                                                                                                                    Voisey's Bay type model.  Programs were devised to use geophysics and
                                                                                                                                                    geological mapping to locate secondary structures likely to control and
                                                                                                                                                    localise emplacement of Ni-Cu-PGE bearing chonoliths. Since EL8434 was
                                                                                                                                                    granted, the following has been completed:

                                                                                                                                                    •               Airborne EM survey.

                                                                                                                                                    •               Soil and chip sampling.

                                                                                                                                                    •               Data compilation.

                                                                                                                                                    •               Geological and logistical reconnaissance.

                                                                                                                                                    •               Community consultations; and

                                                                                                                                                    •               Execution of land access agreements.

                                                                                                                                                    Airborne EM Survey

                                                                                                                                                    Geotech Airborne Limited was engaged to conduct an airborne EM survey using
                                                                                                                                                    their proprietary VTEM system in 2017.  A total of 648.92-line kilometres
                                                                                                                                                    were flown on a nominal 200m line spacing over a portion of the project area.
                                                                                                                                                    Several areas were infilled to 100m line spacing.

                                                                                                                                                    The VTEM data was interpreted by Southern Geoscience Consultants Pty Ltd, who
                                                                                                                                                    identified a series of anomalies, which were classified as high or low
                                                                                                                                                    priority based on anomaly strength (i.e., does the anomaly persist into the
                                                                                                                                                    latest channels).  Additionally, a cluster of VTEM anomalies at the "Sisters"
                                                                                                                                                    prospect have been classified separate due to strong IP effects observed in
                                                                                                                                                    the data.  Geotech Airborne have provided an IP corrected data and
                                                                                                                                                    interpretation of the data has since been undertaken.

                                                                                                                                                    Soil and Chip sampling

                                                                                                                                                    The VTEM anomalies were followed up by a reconnaissance soil sampling
                                                                                                                                                    programme. Spatially clustered VTEM anomalies were grouped, and follow-up soil
                                                                                                                                                    lines were designed.  Two (2) VTEM anomalies were found to be related to
                                                                                                                                                    culture and consequently no soils were collected.  Two (2) other anomalies
                                                                                                                                                    were sampled which were located above thick alluvium of Stephens Creek and
                                                                                                                                                    were therefore not sampled.  A line of soil samples was collected over a
                                                                                                                                                    relatively undisturbed section at Iron Blow workings and the Sisters Prospect.

                                                                                                                                                    One hundred and sixty-six (166) soil samples were collected at a nominal 20cm
                                                                                                                                                    depth using a 2mm aluminum sieve.  Two (2) rock chips were also collected
                                                                                                                                                    during this program.  The samples were collected at either 20m or 40m spacing
                                                                                                                                                    over selected VTEM anomalies.  The samples were pulverised and analysed by
                                                                                                                                                    portal XRF at ALS laboratories in Perth.

                                                                                                                                                    Each site was annotated with a "Regolith Regime" such that samples from a
                                                                                                                                                    depositional environment could be distinguished from those on exposed
                                                                                                                                                    Proterozoic bedrock, which were classified as an erosional environment.  The
                                                                                                                                                    Regolith Regime groups were used for statistical analysis and levelling of the
                                                                                                                                                    results.  The levelled data reveals strong relative anomalies in zinc at VTEM
                                                                                                                                                    anomaly clusters 10, 12 and 14 plus strong anomalous copper at VTEM 17.
 Geology                                                           Deposit type, geological setting, and style of mineralisation.                   Regional Geology

                                                                                                                                                    The Broken Hill polymetallic deposits are located within Curnamona Province
                                                                                                                                                    (Willyama Super group) (Figure D2-2) that hosts several world-class deposits
                                                                                                                                                    of lead, zinc, silver, and copper.  The Willyama Supergroup consists of
                                                                                                                                                    highly deformed metasedimentary schists and gneisses with abundant
                                                                                                                                                    quartz-feldspathic gneisses, lesser basic gneisses, and minor 'lode' rocks
                                                                                                                                                    which are quartz-albite and calc-silicate rocks (Geoscience Australia,
                                                                                                                                                    2019).  Prograde metamorphism ranges from andalusite through sillimanite to
                                                                                                                                                    granulite grade (Stevens, Barnes, Brown, Stroud, & Willis, 1988).

                                                                                                                                                    Regionally, the tenures are situated in Broken Hill spatial domain which
                                                                                                                                                    extends from far western New South Wales into eastern South Australia.  The
                                                                                                                                                    Broken Hill Domain hosts several major fault systems and shear zones, which
                                                                                                                                                    were formed by various deformation events and widespread metamorphism which
                                                                                                                                                    has affected the Willyama Supergroup (Figure D2-3).

                                                                                                                                                    Major faults in the region include the Mundi Mundi Fault to the west of Broken
                                                                                                                                                    Hill, the Mulculca Fault to the east, and the Redan Fault to the south. Broken
                                                                                                                                                    Hill is also surrounded by extensive shear zones including the Stephens Creek,
                                                                                                                                                    Globe-Vauxhall, Rupee, Pine Creek, Albert, and Thackaringa-Pinnacles Shear
                                                                                                                                                    Zones.

                                                                                                                                                    Figure D2-2:  Regional Stratigraphy

Modified after: (Stevens, Barnes, Brown, Stroud, & Willis, 1988)

                                                                                                                                                    Figure D2-3:  Regional Geological Map

Modified after (Peljo, 2003)

                                                                                                                                                    Local Geology

                                                                                                                                                    There are over twenty (20) rock formations mapped within the project area.
                                                                                                                                                    Parts of the project area are covered by Quaternary alluvium, sands, and by
                                                                                                                                                    Tertiary laterite obscuring the basement geology.  Within the Lower to Middle
                                                                                                                                                    Proterozoic Willyama Supergroup (previously Complex) there are two (2) groups,
                                                                                                                                                    the Thackaringa Group, and the younger Broken Hill Group (Colquhoun, et al.,
                                                                                                                                                    2019).  A summary of the units that host or appear to host the various
                                                                                                                                                    mineralisation styles within EL 8434 and EL 8435 is given below.

                                                                                                                                                    Broken Hill Group

                                                                                                                                                    The Hores Gneiss is mostly comprised of quartz-feldspar-biotite-garnet gneiss,
                                                                                                                                                    interpreted as metadacite with some minor metasediments noted.  An age range
                                                                                                                                                    from Zircon dating has been reported as 1682-1695Ma (Geoscience Australia,
                                                                                                                                                    2019).  The Allendale Metasediments unit contains mostly metasedimentary
                                                                                                                                                    rocks, dominated by albitic, pelitic to psammitic composite gneiss, including
                                                                                                                                                    garnet-bearing feldspathic composite gneiss, sporadic basic gneiss, and
                                                                                                                                                    quartz-gahnite rock.  Calc-silicate bodies can be found at the base of the
                                                                                                                                                    unit and the formation's average age is 1691 Ma (Geoscience Australia, 2019).

                                                                                                                                                    Thackaringa Group

                                                                                                                                                    The Thorndale Composite Gneiss is distinguished by mostly gneiss, but also
                                                                                                                                                    migmatite, amphibolite, and minor magnetite.  The age of this unit is
                                                                                                                                                    >1700Ma (Geoscience Australia, 2019) and is one of the oldest formations in
                                                                                                                                                    the Group.  The Cues Formation is interpreted as a deformed sill-like
                                                                                                                                                    granite, including Potosi-type gneiss.  Other rock-types include pelitic
                                                                                                                                                    paragneiss, containing cordierite.  The average age: ca 1700-1730 Ma.
                                                                                                                                                    (Stevens, Barnes, Brown, Stroud, & Willis, 1988).  Other rock types
                                                                                                                                                    include mainly psammo-pelitic to psammitic composite gneisses or
                                                                                                                                                    metasedimentary rocks, and intercalated bodies of basic gneiss.  This unit is
                                                                                                                                                    characterised by stratiform horizons of granular garnet-quartz +/-magnetite
                                                                                                                                                    rocks, quartz-iron oxide/sulphide rocks and quartz-magnetite rocks (Geoscience
                                                                                                                                                    Australia, 2019).  This is a significant formation as it hosts the Pinnacles
                                                                                                                                                    Ag-Pb-Zn massive sulphide deposit along with widespread Fe-rich stratiform
                                                                                                                                                    horizons.

                                                                                                                                                    The protolith was probably sandy marine shelf sedimentary rocks.  An
                                                                                                                                                    intrusion under shallow cover was syn-depositional.  The contained
                                                                                                                                                    leuco-gneisses and Potosi-type gneisses are believed to represent a felsic
                                                                                                                                                    volcanic or volcaniclastic protolith.  Basic gneisses occur in a substantial
                                                                                                                                                    continuous interval in the middle sections of the Formation, underlain by
                                                                                                                                                    thinner, less continuous bodies.  They are moderately Fe-rich (abundant
                                                                                                                                                    orthopyroxene or garnet) and finely layered, in places with pale feldspar-rich
                                                                                                                                                    layers, and are associated with medium-grained quartz-feldspar-biotite-garnet
                                                                                                                                                    gneiss or rock which occurs in thin bodies or pods ('Potosi-type' gneiss).

                                                                                                                                                    A distinctive leucocratic quartz-microcline-albite(-garnet) gneiss
                                                                                                                                                    (interpreted as meta-rhyolite) occurs as thin, continuous, and extensive
                                                                                                                                                    horizons, in several areas.  The sulphide-bearing rocks may be lateral
                                                                                                                                                    equivalents of, or associates of Broken Hill type stratiform mineralisation.
                                                                                                                                                    Minor layered garnet-epidote-quartz calc-silicate rocks occur locally within
                                                                                                                                                    the middle to basal section.  The unit is overlain by the Himalaya
                                                                                                                                                    Formation.

                                                                                                                                                    The Cues Formation is intruded by Alma Granite (Geoscience Australia, 2019).
                                                                                                                                                    The Himalaya Formation (Figure D2-4) consists of medium-grained saccharoidal
                                                                                                                                                    leucocratic psammitic and albitic meta-sedimentary rocks (average age
                                                                                                                                                    1700Ma).  The unit comprises variably interbedded albite-quartz rich rocks,
                                                                                                                                                    composite gneiss, basic gneiss, horizons of thinly bedded quartz-magnetite
                                                                                                                                                    rock.

                                                                                                                                                    Pyrite-rich rocks occur at the base of the formation (Geoscience Australia,
                                                                                                                                                    2019).  It is overlain by the Allendale Metasediments (Broken Hill Group).
                                                                                                                                                    The Himalaya Formation hosts cobalt-rich pyritic horizons at Pyrite Hill and
                                                                                                                                                    Big Hill.  The protolith is probably sandy marine shelf sedimentary rocks
                                                                                                                                                    with variable evaporitic or hypersaline component.  Plagioclase-quartz rocks
                                                                                                                                                    are well-bedded (beds 20 - 30mm thick), with rare scour-and-fill and
                                                                                                                                                    cross-bedded structures.

                                                                                                                                                    Thin to thick (0.5 - 10m) horizons of thinly bedded quartz-magnetite rock also
                                                                                                                                                    occur with the plagioclase-quartz rocks.  In some areas the formation
                                                                                                                                                    consists of thin interbeds of plagioclase-quartz rocks within meta-sedimentary
                                                                                                                                                    rocks or metasedimentary composite gneiss (Geoscience Australia, 2019).  Lady
                                                                                                                                                    Brassey Formation which is well-to-poorly-bedded leucocratic sodic
                                                                                                                                                    plagioclase-quartz rock, as massive units or as thick to thin interbeds within
                                                                                                                                                    psammitic to pelitic metasedimentary composite gneisses.  A substantial
                                                                                                                                                    conformable basic gneiss.  It overlies both Mulculca Formation and Thorndale
                                                                                                                                                    Composite Gneiss.  Part of the formation was formerly referred to as Farmcote
                                                                                                                                                    Gneiss in the Redan geophysical zone of Broken Hill Domain - a zone in which
                                                                                                                                                    the stratigraphy has been revised to create the new Rantyga Group (Redan and
                                                                                                                                                    Ednas Gneisses, Mulculca Formation, and the now formalised Farmcote Gneiss).

                                                                                                                                                    Lady Louise Suite

                                                                                                                                                    This unit is approximately 1.69Ma in age comprising amphibolite,
                                                                                                                                                    quartz-bearing, locally differentiated to hornblende granite, intrusive sills,
                                                                                                                                                    and dykes, metamorphosed, and deformed; metabasalt with pillows (Geoscience
                                                                                                                                                    Australia, 2019).  Annadale Metadolerite is basic gneisses, which includes
                                                                                                                                                    intervening metasedimentary rocks possibly dolerite (Geoscience Australia,
                                                                                                                                                    2021).

                                                                                                                                                    Rantya Group

                                                                                                                                                    Farmcote Gneiss contains metasedimentary rocks and gneiss and is a new unit at
                                                                                                                                                    the top of Rantyga Group.  It is overlain by the Cues Formation and
                                                                                                                                                    Thackaringa Group, and it overlies the Mulculca Formation.  The age of the
                                                                                                                                                    unit is between 1602 to 1710Ma.  Mulculca Formation is abundant
                                                                                                                                                    metasedimentary composite gneiss, variable sodic plagioclase-quartz-magnetite
                                                                                                                                                    rock, quartz-albite-magnetite gneiss, minor quartz-magnetite rock common,
                                                                                                                                                    minor basic gneiss, albite-hornblende-quartz rock (Geoscience Australia,
                                                                                                                                                    2019).  Ednas Gneiss contains quartz-albite-magnetite gneiss, sodic
                                                                                                                                                    plagioclase-quartz-magnetite rock, minor albite-hornblende-quartz rock, minor
                                                                                                                                                    quartzo-feldspathic composite gneiss.  It is overlain by Mulculca Formation.

                                                                                                                                                    Silver City Suite

                                                                                                                                                    Formerly mapped in the Thackaringa Group this new grouping accommodates the
                                                                                                                                                    metamorphosed and deformed granites.  A metagranite containing
                                                                                                                                                    quartz-feldspar-biotite gneiss with variable garnet, sillimanite, and
                                                                                                                                                    muscovite, even-grained to megacrystic, elongate parallel to enclosing
                                                                                                                                                    stratigraphy. It occurs as sills and intrudes both the Thackeringa Group and
                                                                                                                                                    the Broken Hill Group.  This unit is aged between 1680 to 1707Ma.

                                                                                                                                                    Torrowangee Group

                                                                                                                                                    Mulcatcha Formation comprises flaggy, quartzose sandstone with lenticular
                                                                                                                                                    boulder and arkosic sandstone beds.  Yangalla Formation contains boulder
                                                                                                                                                    beds, lenticular interbedded siltstone, and sandstone.  It overlies the
                                                                                                                                                    Mulcatcha Formation (Geoscience Australia, 2020).

                                                                                                                                                    Sundown Group

                                                                                                                                                    The Sundown Group contains Interbedded pelite, psammopelitic and psammitic
                                                                                                                                                    metasedimentary rocks and it overlies the Broken Hill Group.  The unit age is
                                                                                                                                                    from 1665 to 1692Ma (Figure D2-4).

                                                                                                                                                    There is also an unnamed amphibolite in Willyama Supergroup, which present
                                                                                                                                                    typically medium grained plagioclase and amphibole or pyroxene rich stratiform
                                                                                                                                                    or discordant dykes.

                                                                                                                                                    Figure D2-4:  EL 8434 and EL 8435 Solid Geology
 Drill hole Information                                            A summary of all information material to the understanding of the exploration    Header information about all drillholes completed at Tors Tank and Fence
                                                                   results including a tabulation of the following information for all Material     Gossan have been tabulated in previous ASX releases.
                                                                   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 methods                                          In reporting Exploration Results, weighting averaging techniques, maximum        No metal equivalents have been reported.  Rare earth element results, have
                                                                   and/or minimum grade truncations (e.g., cutting of high grades) and cut-off      been converted to rare earth oxides as per standard industry practice
                                                                   grades are usually Material and should be stated.                                (Castillo Copper 2022f).

                                                                   Where aggregate intercepts incorporate short lengths of high-grade results and   No compositing of assay results has taken place, but rather menu options
                                                                   longer lengths of low-grade results, the procedure used for such aggregation     within the Datamine GDB module have been used to create fixed length 1m assay
                                                                   should be stated and some typical examples of such aggregations should be        intervals from the original sampling lengths.
                                                                   shown in detail.

                                                                                The rules follow very similarly to those used by the Leapfrog Geo software in
                                                                   The assumptions used for any reporting of metal equivalent values should be      creating fixed length samples.
                                                                   clearly stated.
 Relationship between mineralisation widths and intercept lengths  These relationships are particularly important in the reporting of Exploration   A database of all the historical borehole sampling has been compiled and
                                                                   Results.                                                                         validated. It is uncertain if there is a strong relationship between the

                                                                                surface sample anomalies to any subsurface anomalous intersections due to the
                                                                   If the geometry of the mineralisation with respect to the drill hole angle is    possible masking by variable Quaternary and Tertiary overburden that varies in
                                                                   known, its nature should be reported.                                            depth from 0-40m.

                                                                   If it is not known and only the down hole lengths are reported, there should     As the strata is tightly folded, the intersected cobalt-rich layers are
                                                                   be a clear statement to this effect (e.g. 'down hole length, true width not      overstated in terms of apparent thickness, however the modelling software
                                                                   known').                                                                         calculates a true, vertical thickness.

                                                                                                                                                    Mineralisation is commonly associated with shears, faults, amphibolites, and a
                                                                                                                                                    quartz-magnetite rock within the shears, or on or adjacent to the boundaries
                                                                                                                                                    of the Himalaya Formation.

                                                                                                                                                    In general, most of the cobalt-rich layers have a north-northwest to north
                                                                                                                                                    strike.
 Diagrams                                                          Appropriate maps and sections (with scales) and tabulations of intercepts        Current surface anomalies are shown on maps released on the ASX (Castillo
                                                                   should be included for any significant discovery being reported These should     Copper 2022d, 2022e and 2022f).  All historical surface sampling has had
                                                                   include, but not be limited to a plan view of drill hole collar locations and    their coordinates converted to MGA94, Zone 54.
                                                                   appropriate sectional views.
 Balanced reporting                                                Where comprehensive reporting of all Exploration Results is not practicable,     All recent laboratory analytical results have been recently reported (see
                                                                   representative reporting of both low and high grades and/or widths should be     Castillo Copper 2022a, b, c, d, e, and f) for assay results.
                                                                   practiced to avoid misleading reporting of Exploration Results.

                                                                                                                                                    Regarding the surface and sampling, no results other than duplicates, blanks
                                                                                                                                                    or reference standard assays have been omitted.
 Other substantive exploration data                                Other exploration data, if meaningful and material, should be reported           Historical explorers have also conducted airborne and ground gravity,
                                                                   including (but not limited to): geological observations; geophysical survey      magnetic, EM, and IP resistivity surveys over parts of the tenure area but
                                                                   results; geochemical survey results; bulk samples - size and method of           this is yet to be fully georeferenced (especially the ground IP surveys).
                                                                   treatment; metallurgical test results; bulk density, groundwater, geotechnical   Squadron Resources conducted an airborne EM survey in 2017 that covers Iron
                                                                   and rock characteristics; potential deleterious or contaminating substances.     Blow and The Sisters, but not the southern cobalt and REE prospects.
 Further work                                                      The nature and scale of planned further work (e.g., tests for lateral            It is recommended that:
                                                                   extensions or depth extensions or large-scale step-out drilling).

                                                                                ·      The remaining non-sampled zones within the Core Library
                                                                   Diagrams clearly highlighting the areas of possible extensions, including the    drillholes, BH1, BH2, and DD90-IB3 in the north of the tenure group be
                                                                   main geological interpretations and future drilling areas, provided this         relogged and sampled.  DD90-IB3 is a good candidate for hyperspectral
                                                                   information is not commercially sensitive.                                       logging.

                                                                                                                                                    ·      A program of field mapping and ground magnetic or EM surveys be
                                                                                                                                                    planned and executed at Fence Gossan.  Mapping of pegmatite outcrops is a
                                                                                                                                                    high priority.

                                                                                                                                                    ·      Complete the comprehensive drilling campaign that will comprise
                                                                                                                                                    RC drilling and specifically target coring the known cobalt and REE
                                                                                                                                                    mineralisation downdip to at least 100m depth at the Iron Blow prospects.
                                                                                                                                                    The current drilling program is also designed to increase the resource
                                                                                                                                                    confidence and has its ESF4 applications approved by the NSW Resource
                                                                                                                                                    Regulator.

 

 

References

Biggs, M. S., 2021a, Broken Hill Alliance, NSW Tenure Package Background
Geological Information, unpublished report to BH Alliance Pty Ltd, Sep 21,
30pp.

Biggs, M. S., 2021b, EL 8434 and EL 8435, Brief Review of Surface Sample
Anomalies Lithium, Rare Earth Elements and Cobalt, unpublished report to BH
Alliance Pty Ltd, Nov 21, 18pp.

Biggs, M.S., 2022a, BHA Cobalt Modelling and Mineral Resource Estimate Update,
unpublished memo for Castillo Copper by ROM Resources.

Biggs, M.S., 2022b, Broken Hill BHA Tenures Update, Castillo Copper,
unpublished memo prepared by ROM Resources, Mar 22, 5pp

Burkett R.D., 1975, Progress Report on Exploration Licenses 780, 781, 782 and
783, Broken Hill Area, NSW for the six months to 23(rd) November 1975, North
Broken Hill Limited for the NSW Geological Survey, (GS1975-328)

Castillo Copper Limited, 2022a, ASX Release Battery metal drill-hole assays
unlock BHA East Zone potential / lithium update, 5(th) January 2022.

Castillo Copper Limited, 2022b, ASX Release Strategic focus to develop
significant cobalt mineralisation potential at BHA Project, 9(th) February
2022.

Castillo Copper Limited, 2022c, ASX Release High grade platinum confirmed at
BHA Project, 9(th) March 2022.

Castillo Copper Limited, 2022d ASX Release Diamond core tests demonstrate
high-grade cobalt-zinc potential at Broken Hill, 21 March 2022

Castillo Copper Limited, 2022e ASX Release, Drilling hits targeted cobalt
zones & wide pegmatite intercepts at Broken Hill 12 October 2022

Castillo Copper Limited, 2022f ASX Release, Drilling hits more wide pegmatite
intercepts at Broken Hill   24 October 2022

Gilfillan J.F., 1971, Report on Exploration by Falconbridge (Australia) Pty
Ltd on ATP 3091 Broken Hill Area NSW under option from Minerals Recovery
(Australia) N.L., Falconbridge (Australia) Pty Limited, Jan 1971, 93pp

Lees, T.C., 1978, Progress Report on Farmcote Exploration Licenses 780 and
782, Farmcote Area, Broken Hill, NSW for the six months to 23(RD) November
1978, North Broken Hill Limited for the NSW Geological Survey, (GS1978-043)

Leyh, W.R., 1976, Progress Report on Exploration Licence, No. 846 Iron Blow
-Yellowstone Area, Broken Hill, New South Wales for the six months period
ended 29(th) June 1976, North Broken Hill Limited, Report GS1976-198, Jul 76,
88pp

Leyh, W.R., 1977a, Progress Report on Exploration Licence, No. 846 Iron Blow
-Yellowstone Area, Broken Hill, New South Wales for the six months period
ended 29(th) December 1976, North Broken Hill Limited, Report GS1976-198, Feb
1977, 24pp

Leyh W.R., 1977b, Progress Report on Farmcote Exploration Licenses 780 and
782, Farmcote Area, Broken Hill, NSW for the three months to 5th March 1977,
North Broken Hill Limited for the NSW Geological Survey, (GS1977-078)

Leyh W.R., 1977c, Progress Report on Farmcote Exploration Licenses 780 and
782, Farmcote Area, Broken Hill, NSW for the three months to 23rd May 1977,
North Broken Hill Limited for the NSW Geological Survey, (GS1977-078)

Leyh W.R., 1978, Progress Report on Farmcote Exploration Licenses 780 and 782,
Farmcote Area, Broken Hill, NSW for the three months to 27 October 1978, North
Broken Hill Limited for the NSW Geological Survey, (GS1977-078)

Leyh W.R., 1978 Progress Report on Exploration Licenses 1099 and 1100 for the
six months to 27 October 1978, North Broken Hill Limited for the NSW
Geological Survey, (GS1978-407)

Leyh, W.R., 1990, Exploration Report for the Third Six Monthly Period ended
12th June 1990 for EL 3238 (K Tank), Broken Hill District, New South Wales for
the six months period, Pasminco Limited, Report GS1989-226, Jun 90, 22pp

Leyh, W.R., and Lees T.C., 1977, Progress Report on Exploration Licence, No.
846 Iron Blow -Yellowstone Area, Broken Hill, New South Wales for the six
months period ended 29(th) June 1977, North Broken Hill Limited, Report
GS1976-198, Jul 77, 35pp

Leyh, W.R., and Larson P.D., 1981, Final Report for the Third Six Monthly
Period ended 12th June 1990 for EL 3238 (K Tank), Broken Hill District, New
South Wales for the six months period, Pasminco Limited, Report GS1989-226,
Jun 90, 22pp

McConachy, G.W., 1997, EL 4792 Redan, Annual Report for the period ending
19/2/1997, Normandy Exploration Limited, unpublished report to the GSNSW, RIN
00002672

Main, J.V., and Tucker D.F., 1981, Exploration Report for Six Month Period
8(th) November 1980 to 7(th) May 1981, EL 1106 Rockwell, Broken Hill, NSW, CRA
Exploration Pty Ltd, GS1980-080, Jul 1981, 40pp

Mohoney, M., 2018, BHA Broken Hill Project Position Paper, Squadron Resources
Pty Ltd., Unpublished report, Mar2018, 8pp

Mortimer R., 2017, Re-interpretation of VTEM Profiles Broken Hill Area,
unpublished report by Southern Geoscience Consultants for Squadron Resources
Pty Ltd, Oct 17.

Squadron Resources Pty Ltd, 2018, Broken Hill Project Status, August 2018,
unpublished confidential presentation by Squadron Resources,

Timms, P.D., and Groves A.J., 2003, Exploration Licence 4846, The Sisters,
Annual Report to 29th May 2003, Endeavour Minerals Pty Ltd., RIN

Willis, I.L., Brown, R.E., Stroud, W.J., Stevens, B.P.J., 1983, The Early
Proterozoic Willyama Supergroup: stratigraphic subdivision and interpretation
of high to low-grade metamorphic rocks in the Broken Hill Block, New South
Wales., Geological Society of Australia Journal, 30(2), p195-2

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