REG - Castillo Copper Ltd - Eldorado prospective for copper mineralisation

Castillo CopperAnnouncement

06/10/2020 07:00

RNS Number : 1605B
  
Castillo Copper Limited
  
06 October 2020
  
 

6 October 2020
 
CASTILLO COPPER LIMITED

("Castillo", "CCZ", or the "Company")
 
Geochemical review interprets Eldorado to be prospective for structurally controlled copper
 
Eldorado prospect becomes tenth viable target across Mt Oxide Project  
 
Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily focused on copper across Australia and Zambia, is pleased to announce that, following a review of historic soil samples, it has interpreted the Eldorado prospect at its Mt Oxide Project to be prospective for structurally controlled copper and gold mineralisation. 
 
The Company has now completed its geological review of its 100% owned Mt Oxide Project, identifying a significant pipeline of exploratory work with a total of ten viable targets.  
 
Highlights
 
·    To conclude the Mt Oxide Project geological review, the geology team have interpreted the Eldorado prospect, which is circa 4km south-east from the Arya prospect, to be prospective for non-coincident structurally controlled copper and gold mineralisation 
 
·    Analysing historic assayed soil samples, the geology team verified there are several anomalous geochemical zones within two well defined soil grids - Grid A and Eldorado - that have elevated non-coincident copper-gold readings requiring follow up: 
 
Grid A (SE quadrant):
o  Soil sampling identified anomalous copper values over a 200m by 500m area up to 310ppm Cu; 
o  Rock chip samples returned anomalous copper up to 5,400ppm Cu over a 320m by 600m area which is circa 650m south-east of the historic Eldorado copper workings; and
o  Notably, the anomalous copper values may be linked with a major NNE trending fault 
 
Eldorado (NW quadrant):
o  A 200m by 500m area, with anomalous gold up to 20ppb Au, was identified from soil samples; and  
o  Rock chip sampling returned anomalous gold up to 35ppm Au slightly to the west of the grid boundary
 
·    Mt Oxide Project geological review now complete, identifying ten viable targets, although a field trip is key to determine if structurally controlled copper-gold mineralisation is apparent 
 
·    Castillo, Depco Drilling and third-party service providers are on track to mobilise to site mid-month to commence work on the inaugural Mt Oxide drilling campaign  
 
Next steps for the Company
 
·    Commence the drilling programme at Mt Oxide Project
·    Broken Hill update
·    Update on Mkushi Project in Zambia
·    Cangai update
 
Simon Paull, Managing Director of Castillo Copper, commented: "The geological review has provided Castillo Copper with invaluable insights into ten viable targets across the Mt Oxide Project. Furthermore, this clearly delivers a significant pipeline of exploratory work ahead, on top of the targeted drilling campaign which is slated to get underway at the Big One Deposit and Arya Prospect shortly."  
 
Ged Hall, UK Director of Castillo Copper, said: "Without question, the geological review has provided us with an encyclopedia on various types of copper mineralisation prevalent across the Mt Oxide Project. Encouragingly, as the macro environment for copper remains buoyant, this provides a positive backdrop on the eve of development work ramping up."  
 
 
Further information following geological review of the Eldorado Prospect 
 
Castillo's geology team have completed a review of the Eldorado prospect, within the Mt Oxide Project, interpreting it to be primarily prospective for non-coincident structurally controlled copper and gold mineralisation. To determine the veracity of this interpretation, the next key step is for the geology team to undertake a site visit. 
 
Within two well defined soil grids, Eldorado and Grid A, there are several anomalous geochemical zones with elevated copper-gold readings:
 
Grid A
With reference to Grid A, soil sampling identified a 200m by 500m area with anomalous copper values up to 310ppm Cu, while rock chips returned up to 5,400ppm Cu within a 320m by 600m area. Interestingly, the anomalous copper values could potentially be associated with a significant NNE trending fault.
 
Eldorado
With reference to the Eldorado grid in, there is a 200m by 500m area with anomalous gold up to 20ppb Au that was identified from soil samples. In addition, rock chip sampling returned anomalous gold up to 35ppm Au which is slightly to the west of the Eldorado soil grid boundary.
 
 
Overview of Mt Oxide Project 
 
Castillo is targeting the development of a viable copper mining operation at the Mt Oxide Project, which is located in the copper-belt district approximately 150km north of Mt Isa in north-west Queensland. The project is within the proximity of several historic and currently operating copper mines including Lady Annie and Capricorn Copper. 
 
Currently, the main highlight within the Mt Oxide Project is the exploration targets known as the Big One Deposit, which comprises shallow high-grade supergene ore up to 28.4% Cu, and the Arya Prospect, which was identified through an airborne electromagnetic survey conducted by Geoscience Australia in March 2019. Geochemical sampling and geophysical surveys have been conducted on known exploration targets over several site visits. This has helped to develop a clear exploration strategy for the inaugural test drilling campaign, which has been contracted to Depco Drilling and will commence in October 2020.
 
In addition to this release, a PDF version of this report with supplementary JORC-compliant information can be found on the Company's website: https://www.castillocopper.com/asx-announcements/ 
 
Geological review complete
The completion of the Mt Oxide Project geological review has provided significant insights into ten prospects and highlighted an array of differing copper mineralisation styles (Table 1). The next phase of the exploration plan, outside drilling Big One Deposit and Arya prospect, will be site visits to reconcile desk top findings, undertake sampling and determine geophysics programs.   




TABLE 1: MINERALISATION SUMMARY FOR THE MT OXIDE PILLAR PROSPECTS




Arya


Sizeable massive sulphide anomaly with IOCG potential




The Wall 


Mt Isa style mineralisation 




Pancake


Mt Isa style mineralisation with IOCG potential 




Johnnies


Shear-hosted copper and supergene ore potential




Crescent


IOCG target with Mt Isa style mineralisation potential  




Flapjack


IOCG target with Mt Isa style mineralisation potential




Big One Deposit


Shallow high-grade supergene ore up to 28.4% Cu from drilling intercepts*




Boomerang Mine


Historically produced circa 4,211t high-grade oxide ore grading circa 6% Cu, with an output of circa 251t Cu*




Valparaisa Prospect


Structurally controlled copper




Eldorado Prospect


Structurally controlled copper




 
 
For further information, please contact:
 




Castillo Copper Limited


+61 8 6558 0886




Simon Paull (Australia), Managing Director
Gerrard Hall (UK), Director


 




 


 




SI Capital Limited (Financial Adviser and Corporate Broker)


+44 (0)1483 413500




Nick Emerson


 




 


 




Luther Pendragon (Financial PR) 


+44 (0)20 7618 9100 




Harry Chathli, Alexis Gore, Joe Quinlan


 




 
 
Notes to Editors: 
About Castillo Copper 
Castillo Copper Limited is an Australian-based explorer primarily focused on copper across Australia and Zambia. Castillo Copper is listed on the LSE and ASX under the ticker "CCZ". 
The three main projects across Australia and Zambia include:
Australia
Mt Oxide Project
Castillo is targeting the development of a viable copper mining operation at the Mt Oxide Project, which has significant exploration upside with several high-grade targets including an interpreted 130m thick by 1,500m by 450m massive sulphide bedrock conductor that is about to be drilled. The project is located approximately 150km north of Mt Isa in northwest Queensland. The project is within the proximity of several historic and currently operating copper mines including Lady Annie and Capricorn Copper. 
Cangai Project
The Cangai Project is in northern New South Wales, where the Cangai Copper Mine is located, one of Australia's highest grading historic copper mines. The Company's core focus is the development and expansion of the Cangai Copper Mine, which comprises a volcanogenic massive sulphide deposit, with a JORC Code compliant Inferred Resource of 3.2Mt at 3.35 per cent. Cu. and up to 14.45 per cent. Cu in assayed diamond core intersections. 
Zambia
Zed Projects
The Company is the sole shareholder of Zed, an Australian company which holds four high-quality prospective assets across Zambia's copper-belt, the second largest copper producer in Africa. Castillo Copper intends to initially focus on the Luanshya Project, which sits on the Zambian copper belt's Lufilian Arc geological structure. The second priority for the Company is the Mkushi Project, which contiguously surrounds an operating open-pit copper mine, in a region proven to be highly prospective for Cu-Au mineralisation. The Company is currently working towards establishing a Zambian in-country presence, utilising local geologists and joint venture partner teams.
Visit Castillo Copper's website: https://www.castillocopper.com/
Competent Person Statement 
The information in this report that relates to Exploration Results for the Mt Oxide pillar for the 'Eldorado prospect' contained in this announcement is based on a fair and accurate representation of the publicly available information at the time of compiling the RNS Release, and is based on information and supporting documentation compiled by Matthew Stephens, a Competent Person who is a Fellow of The Australian Institute of Geoscientists. Matthew Stephens is a Senior Consultant Geologist consulting to Xplore Resources Pty Ltd. Mr Stephens has been a Fellow of the Australian Institute Geoscientists for 11 years and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Stephens consents to the inclusion in the report of the matters based on his information and the form and context in which it appears.
 
 
APPENDIX A: ELDORADO PROSPECT - SURFACE OCCURENCES DATA & MAPS
FIGURE A1 - ELDORADO ROCK CHIP ASSAY VALUES
 




Original Sample ID


Sample ID


Easting (MGA94 Zone 54)


Northing (MGA94 Zone 54)


Cu ppm


Pb ppm


Zn ppm


Au ppm


A (R) ppm




ER_3748


435284


353707.2444


7860643.927


37


45


48


NT


NT




ER_3749


435285


353544.2164


7860431.979


320


120


150


NT


NT




QQ82150


444592


351711.709


7860292.8


39


BDL


9


BDL


BDL




QQ82151


444593


351721.5274


7860248.384


600


BDL


48


BDL


BDL




QQ82152


444594


351736.2892


7860164.716


212


BDL


38


BDL


BDL




82328


444381


352133.1353


7861747.434


175


BDL


93


NT


NT




ER_3750


435286


354381.215


7864498.941


86


150


470


NT


NT




ER_3751


435287


354902.2034


7864461.931


33


40


48


NT


NT




QQ82329


515740


354786.3704


7866375.058


20


24


BDL


35


NT




QQ82334


515741


354040.1103


7861829.823


16


BDL


32


NT


NT




QQ82335


515742


353991.6871


7861828.106


10


BDL


55


NT


NT




QQ82346


515743


355168.6494


7865774.658


72


BDL


82


NT


NT




QQ82349


515744


355400.7251


7865611.696


210


BDL


42


NT


NT




QQ82350


515745


355408.2414


7865657.689


122


BDL


57


NT


NT




QQ82319


444606


354727.1901


7865441.745


151


8


76


0.01


0.01




QQ82320


444607


354608.9345


7862475.579


60


BDL


12


BDL


BDL




QQ82327


444608


354405.9921


7862350.319


447


40


13


0.04


NT




QQ82333


444609


354530.0907


7862480.482


40


BDL


30


BDL


BDL




QQ82336


444610


353771.2771


7862046.816


27


39


97


BDL


BDL




QQ82337


444611


354948.8937


7863140.739


40


BDL


48


BDL


BDL




QQ82338


444612


354968.647


7863061.868


48


BDL


58


BDL


BDL




QQ82339


444613


354505.4768


7864387.37


104


40


74


BDL


BDL




QQ82340


444614


354367.4487


7864446.477


28


5


34


BDL


BDL




QQ82347


444619


355367.7562


7865555.096


74


BDL


34


BDL


BDL




QQ82348


444620


356200.4391


7865441.715


BDL


BDL


7


BDL


BDL




QQ83129


444634


354268.9712


7865550.093


76


BDL


126


BDL


BDL




QQ83130


444635


354791.1885


7865362.895


47


14


79


BDL


BDL




QQ83131


444636


354746.8429


7865520.598


70


BDL


173


BDL


BDL




82088


444338


354840.8724


7864918.011


63


BDL


16


0.01


NT




82089


444339


354883.843


7864589.956


34


BDL


9


0.01


NT




82090


444340


354858.911


7864751.355


32


BDL


21


0.01


NT




82327


545191


354386.4521


7862363.002


447


40


13


0.04


NT




A47512


133355


354627.1061


7866078.041


25


35


80


NT


NT




A36501


133318


354038.4694


7860766.133


20


20


15


NT


NT




A36502


133319


354291.2805


7861443.227


15


20


10


NT


NT




A36503


133320


355937.2144


7864310.886


15


20


15


NT


NT




A42742


133323


355235.3048


7862392.365


50


5


2


NT


NT




A42743


133324


355229.8211


7862289.386


50


10


BDL


NT


NT




A42744


133325


355157.9971


7862204.694


920


15


5


NT


NT




A42745


133326


355157.9971


7862204.694


400


5


2


NT


NT




A42746


133327


355124.0674


7862111.448


5400


10


15


NT


NT




A42747


133328


355041.9587


7862130.717


500


BDL


15


NT


NT




A42748


133329


354872.4522


7862173.637


700


10


5


NT


NT




A42749


133330


355041.7295


7862027.779


55


5


2


NT


NT




A42750


133331


355095.1882


7861911.987


660


5


5


NT


NT




A42751


133332


355007.8096


7861933.427


110


5


5


NT


NT




A42752


133333


354979.3808


7861940.948


960


BDL


BDL


NT


NT




A42753


133334


354896.2043


7861962.42


125


10


10


NT


NT




A42754


133335


355163.3814


7861792.992


10


10


2


NT


NT




A42755


133336


354984.4139


7861836.945


720


15


15


NT


NT




A42756


133337


354770.704


7861889.472


40


10


5


NT


NT




A42757


133338


354606.4609


7861931.325


10


10


2


NT


NT




A42758


133339


355114.7264


7861701.844


15


15


2


NT


NT




A42759


133340


355042.0839


7861720.08


2000


15


5


NT


NT




A42760


133341


354683.9126


7861706.149


10


10


2


NT


NT




A42761


133342


355546.1348


7861490.554


15


15


2


NT


NT




A42762


133343


354629.9894


7861617.171


30


10


2


NT


NT




A47501


133344


354029.2781


7860837.782


5


5


10


NT


NT




A47502


133345


354297.5807


7861496.074


BDL


10


15


NT


NT




A47503


133346


355980.2298


7864438.955


BDL


5


5


NT


NT




A47511


133354


354385.8527


7865258.602


20


60


80


NT


NT




* = Source: Xplore Resources (for data sources and further information refer References 1-6, Appendices B & C)
Note: (1) BDL = Below Detectable Limit 
Note: (2) NT = Not Tested 
Detection Limits were as follows: [A] Cu: BDL <5 ppm,  <2 ppm
[B] Pb: BDL <5 ppm
[C] Zn: BDL <5 ppm, <2 ppm
[D] Au: BDL <0.01 ppm
 

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