REG - Castillo Copper Ltd - Castillo undertakes soil sampling at Big One

Castillo CopperAnnouncement

14/05/2024 07:00

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RNS Number : 2510O  Castillo Copper Limited  14 May 2024

14 May 2024

 

CASTILLO COPPER LIMITED

("Castillo", "CCZ" or the "Company")

 

Plans underway to fully develop the Big One deposit in the world-class Mt Isa
copper belt

 

Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily
focused on copper across Australia and Zambia, is pleased to announce that it
will be undertaking a comprehensive soil sampling campaign at its Big One
deposit - situated within the NWQ Project in Mt Isa - following reconciliation
of highly prospective historical exploration findings, a recent revival of the
copper market and bullish forecasts from leading investment banks.

 

HIGHLIGHTS:

 

Copper Market Update(1)

·    Copper price in midst of a significant upcycle.

·    Investment Bank Goldman Sachs has revised previous forecasting of
commodity price, now estimated to reach US$12,000/t in 2024, up from
US$10,000.

 

Big One Deposit a Focus for Development

·    Castillo's new Board will channel resources into developing the Big
One Deposit in the world-class Mt Isa copper belt.

·    Located within Castillo's prime NWQ Copper Project, the Big One
Deposit has a JORC 2012 compliant Mineral Resource Estimate (MRE) of 2.1Mt @
1.1% Cu for 21,886t contained metal(2), which includes the following
high-grade drilling results:

o  40m @ 1.64% from surface incl: 11m @ 4.40% from 24m, 5m @ 7.34% from 28m
& 1m @ 16.65% from 29m (BO_303RC)(3)

o  44m @ 1.19% Cu from surface incl:  14m @ 3.55% from 27m, 3m @ 10.88% from
37m & 1m @ 12.6% from 37m (BO_301RC)(3)

·    Once approvals are secured, Castillo's geology team will undertake
soil and rock chip sampling at an area north of the known orebody where there
is a sizeable, untested, bedrock conductor(2):

o  Previous work confirmed the known orebody commences from surface though is
not fully defined as it is open to the north, east and down dip(2).

·    Upon receipt of surface sampling campaign assay results, the geology
team believes there will be sufficient data to formulate a drilling campaign
to test key targets and extend known mineralisation.

 

Strategic Asset Portfolio Review - Additional Resolutions

·    The Board is committed to advancing the NWQ Copper Project, which has
>20 known copper prospects(4).

·    Castillo is actively looking to align with partners to develop the
remaining assets in NSW and Zambia.

 

Ged Hall, Chairman, commented: "Following our strategic asset review in 2023,
the new Board plans to fully develop the Big One Deposit, commencing with a
comprehensive surface sampling campaign north of the known orebody.

 

"Further, with the current upcycle rekindling significant interest in the
world-class Mt Isa copper belt, the Board has decided to prioritise the
advancement of the NWQ Copper Project and seek development partners for the
remaining assets in NSW and Zambia."

 

Big One Deposit Development - Mt Isa Copper Belt

 

Located within Castillo's prime NWQ Copper Project, which is proximal to
ground owned by global blue chips including Anglo American, the Big One
Deposit has a JORC 2012 compliant MRE of 2.1Mt @ 1.1% Cu for 21,886t contained
metal(2).

 

This was modelled from historic data and three drilling campaigns across
2020-21 which produced high-grade results:

·    40m @ 1.64% from surface incl: 11m @ 4.40% from 24m, 5m @ 7.34% from
28m & 1m @ 16.65% from 29m (BO_303RC)(3).

·    44m @ 1.19% Cu from surface incl:  14m @ 3.55% from 27m, 3m @ 10.88%
from 37m & 1m @ 12.6% from 37m (BO_301RC)(3).

 

The focus of the planned soil and rock chip sampling campaign will be north of
the known orebody (Figure 1), where there is a sizeable, untested bedrock
conductor.

 

FIGURE 1: BIG ONE DEPOSIT - LINE OF LODE & HISTORICAL DRILL-HOLES

Source: CCZ geology team

 

Importantly, previous work confirmed the known orebody, which starts from
surface and not fully defined, is open to the north, east and down dip.

 

Once the surface results have been assayed, the geology team believe there
should be adequate data to formulate a drilling campaign to potentially extend
known mineralisation at the Big One Deposit.

 

Joel Logan, Non-Executive Director and Chief Geologist, commented: "The ground
north of the Big One Deposit's line of lode, which contains a sizeable
anomaly, is highly prospective.

 

"Indeed, drill-hole designs can be inferred via the nearby orientation of
multiple extensions from confirmed highly mineralised lodes. Moreover,
structural, petrographic and GIS analysis suggest the potential for shear
hosted and IOCG style mineralisation in the current areas of interest.

 

"With the presence of malachite, azurite, and cuprite on the surface above
potential targets, adjacent tenement holdings owned by majors, and the
relative proximity to established and historic mine sites underpin the Big One
Deposit's exploration potential."

 

Copper Market Update

 

The copper market has been making steady growth over the course of 2024, with
the price having increased by 17% since the beginning of the calendar year
(January)(5).

 

Strong gains, particularly in late April, saw the commodity price momentarily
climb to USD$10,000/tonne(1). Since, it has remained quite comfortably in a
range upwards of USD$9,700.

 

In addition, probable and intensified supply stress has prompted Investment
Bank Goldman Sachs to raise its end of year price target from USD$10,000 per
tonne, up to $12,000(1).

 

For further information, please contact:

 

 Castillo Copper Limited                                             +61 8 6558 0886 
 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                             

 

Competent Person's Statement

 

The information in this report that relates to Exploration Results and Mineral
Resource Estimates for "Plans Underway to Fully Develop the Big One Deposit in
the World-Class Mt Isa Copper Belt" 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)           Bloomberg News (7 May 2024: "Copper Touches $10,000 as
Goldman Sees 'Stockout' Risk" Available at:
https://www.bloomberg.com/news/articles/2024-05-07/copper-advances-on-goldman-forecast-and-fed-rate-cut-optimism?embedded-checkout=true
(https://www.bloomberg.com/news/articles/2024-05-07/copper-advances-on-goldman-forecast-and-fed-rate-cut-optimism?embedded-checkout=true)

2)           CCZ ASX Release - 28 February 2022

3)           CCZ ASX Release - 14 January 2020, 11 January 2021
& 10 February 2021

4)           CCZ ASX Release - 24 October 2023

5)           Bloomberg News (10 May 2024: "Copper Above $10,000 as
Supply Worries Counter Faltering Demand" Available at:
https://www.bloomberg.com/news/articles/2024-05-10/copper-near-10-000-as-supply-worries-counter-faltering-demand
(https://www.bloomberg.com/news/articles/2024-05-10/copper-near-10-000-as-supply-worries-counter-faltering-demand)

 

About Castillo Copper

 

Castillo Copper Limited is an Australian-based, Australian-focussed copper
exploration Company with a strategy to develop multi-commodity assets that
demonstrate future potential as an economic mining operation.

Through the application of disciplined and structured exploration and
analysis, Castillo Copper has identified assets deemed core to the Company's
sustained growth and is actively progressing these interests up the value
curve.

Current focus will be on advancing exploration activity at the Company's
wholly owned NWQ Project, situated in the copper-belt district approximately
150km north of Mt Isa in north-west Queensland.

Other interests include the Broken Hill Project in western New South Wales and
the Cangai Copper Mine in north-east New South Wales, as well as exploration
targets in Zambia.

Castillo Copper is listed on the LSE and ASX under the ticker "CCZ".

 

 

APPENDIX 1

 

Please refer to the Figure A1 which shows the extent of the IP anomaly north
and south of the current line-of-lode for copper mineralisation(4).

 

Figure A1:  IP Anomaly (Chargeability Trends) at 120m depth.

 

 

Notes:

1.    Coordinate system is MGA94-Z54S.

2.    Geological Formation boundaries shown in black.

3.    Line of Lode shown in thick blue line.

4.    For more detail see JORC Table 1 at:

a.    CCZ ASX Release (1 June 2021) - Expanded drilling campaign set to
commence at Big One Deposit

 

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