REG - Castillo Copper Ltd - Exploratory work approved for Luanshya Project

Castillo CopperAnnouncement

07/12/2022 07:00

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RNS Number : 8252I  Castillo Copper Limited  07 December 2022

 

 

7 December 2022

 

 

CASTILLO COPPER LIMITED

 

("Castillo" or the "Company")

 

Further exploratory work approved for Luanshya Project in Zambia

 

Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily
focused on copper across Australia and Zambia, has approved further work on
known targets within the highly prospective Luanshya Project in Zambia's
copper belt (Figure 1). Based on current plans, the work is schedule to
progress during 1H2023.

 

HIGHLIGHTS:

 

·    Castillo's Board has approved incremental development work on known
key targets - scheduled to commence in 1H2023 - focusing on the highly
prospective Luanshya Project which is in the heart of Zambia's copper belt

·    The geology team plan to roll out an Induced Polarisation (IP)
geophysics campaign to build on earlier work undertaken in 2021 which focused
on a 6km zone of copper surface anomalism that delineated up to 14 chargeable
zones:(1)

o  A key focus of the upcoming IP campaign will be to refine targets for test
drilling and enhance the confidence of finding structurally controlled copper
mineralisation(1)

·    The plans for development work follow London-based, Metallea Group's
(previously Hyperion Copper) decision to cancel plans to list on the
Alternative Investment Market (AIM) of the London Stock Exchange (LSE)(2), due
to extremely difficult equity market conditions

·    As this was a key requirement to secure funds to progress development
work, Metallea has further advised it will not be exercising the option -
which delivered a US$100,000 non-refundable deposit to Castillo - to acquire
the Zambia assets

·    Moving forward, as Castillo's Board remains committed to aligning
with a development partner or undertaking a trade sale for the Zambia copper
assets, efforts will be re-doubled to deliver this outcome during 2023

 

Dr Dennis Jensen, Managing Director of Castillo Copper, commented: "Castillo's
Board is determined to align with a new development partner or undertake a
trade sale for the Zambia copper assets to crystallise value for shareholders.
All the exploratory work undertaken to date indicates the Luanshya and Mkushi
Projects are highly prospective for copper mineralisation."

 

Advancing Zambia copper projects

 

Focusing on a 6km zone of copper surface anomalism, where 14 chargeable
zones(1) were delineated, the geology team plan to conduct an infill IP
campaign. The core objective is to further refine key targets and boost the
confidence in identifying structurally controlled copper mineralisation.

 

FIGURE 1: HISTORICAL IP SURVEY RELATIVE TO COPPER SURFACE ANOMALISM

Source: CCZ geology team

 

Metallea AIM listing

 

Due to extremely difficult equity market conditions, London-based Metallea
Group (previously Hyperion Copper) have cancelled plans to list on AIM /
LSE(2). As a result, Castillo's Board has been advised the option to acquire
the Zambia assets will not be exercised. Note, Metallea Group paid Castillo a
US$100,000 (A$142,000) non-refundable deposit for the option.

 

Strategic intent unchanged

 

With all previous exploratory work indicating the Luanshya and Mkushi Projects
are highly prospective for copper mineralisation, the Board remains committed
to creating value for shareholders which could include 1) aligning with a
development partner; or, 2) undertaking a trade sale for the Zambia copper
assets or a transaction of a similar nature.

 

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." 

 

References

1)        CCZ ASX Release - 25 October 2021

2)        CCZ ASX Release - 22 June 2022

 
APPENDIX A: LUANSHYA & MKUSHI PROJECTS

The Luanshya Project is 6-10km south of China Nonferrous Mining Corp's (CNMC)
three operating mines (Figure A1), with a combined JORC (2012) compliant
Proven & Probable Reserves at 52.3mt @ 1.26% Cu(1).

Across the region are four NW-SE trendlines, which are ~5-10km wide, that host
numerous historic / current operating mines & deposits(1).

Notably, two trendlines hosts CNMC's three mines, with one directly
intersecting the middle of the project coincident with Lower Roan
Formation(1).

FIGURE A1: LUANSHYA PROJECT

Source: CCZ geology team

 

At the Mkushi Project (Figure A2), a comprehensive soil sampling campaign
completed around Shi Yan Group's operating mining lease(2), comprising
>1,000 data points(2), delivered the following outcomes:

·    Five new, well-defined, anomalous areas identified by Portable XRF
(coded 1 to 5), with respective strike lengths ranging from 2-7km (20.5km in
aggregate)(2); and

·    Relative to Mushiwemba Copper Mine and artisanal pits along the
northern high-grade shear zone, the five anomalous areas are located circa
2-7km SW - NE on the same over-riding system(2).

FIGURE A2: MKUSHI PROJECT

Source: CCZ geology team

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