REG - Castillo Copper Ltd - Optimising Big One Deposit

Castillo CopperAnnouncement

20/02/2023 07:00

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RNS Number : 3655Q  Castillo Copper Limited  20 February 2023

20 February 2023

 

 

CASTILLO COPPER LIMITED

("Castillo", or the "Company")

 

Optimising Big One Deposit

 

Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily
focused on copper across Australia and Zambia, announces that it has completed
a strategic asset review which approved several initiatives on how to maximise
value from developing the NWQ Copper Project in the Mt Isa copper-belt
(complementing work in Broken Hill). Moreover, with the macro-outlook for
copper remaining positive and several majors - including Rio Tinto, Glencore
and AngloAmerican - active in the Mt Isa region (Figure 1), there is a
compelling case to ramp up exploration activities.

 

HIGHLIGHTS:

·    Complementing efforts at the BHA Project's East Zone, the Board has
approved plans to assess optimising the Big One Deposit (within the NWQ Copper
Project in the Mt Isa copper-belt) via implementing the following:

o  Commissioning an independent engineering contractor to conduct a pit
optimisation study on the viability of commencing copper mining operations,
utilising prospective third-party processors and effective path to market

o  Re-formulating optimal plans for a third drilling campaign and companion
geophysical surveys to extend known mineralisation beyond the line of lode

·    To recap, the Big One Deposit has an inferred Mineral Resource
Estimate (MRE) at 2.1Mt @ 1.1% Cu for 21,886t(2) copper metal - with best
intercepts comprising:

o  40m @ 1.64% Cu from surface incl: 11m @ 4.40% Cu from 24m, 5m @ 7.34% Cu
from 28m & 1m @ 16.65% Cu from 29m (303RC)(3)

o  44m @ 1.19% Cu from surface incl: 14m @ 3.55% Cu from 27m, 3m @ 10.88% Cu
from 37m & 1m @ 12.6% Cu from 37m (301RC)(3)

o  34m @ 1.51% Cu from surface incl: 21m @ 2.25% Cu from surface, 12m @ 3.44%
Cu from 3m, 6m @ 4.79% Cu from 3m and 1m @ 9.4% Cu from 9m (B0017)(3)

·    Post upcoming site visits to several targets - including Arya,
Valparaisa, Boomerang and Josephine - the Board will rank the exploration
potential then present the opportunity to prospective development partners in
the Mt Isa region:

o  Note, several global mining groups have operations proximal to Castillo's
ground including Rio Tinto, Glencore and Anglo American

·    Meanwhile, initial metallurgy test-work results for rare earth
elements from the BHA Project's East Zone are due back shortly

 

Ged Hall, Chairman of Castillo Copper, said: "Following a recent strategic
asset review, the Board approved an optimization study for the Big One Deposit
which should ideally articulate a clear pathway to commence copper mining
operations. With exploratory work ramping up at the NWQ Copper and BHA
Projects, the Board is increasingly optimistic about the group's prospects for
2023."

 

Big One Deposit - Optimisation plans

FIGURE 1:  NWQ COPPER PROJECT VS MT ISA REGIONAL PEERS

Source: CCZ geology team

 

Big One Deposit Optimisation

As the only prospect within the NWQ Copper Project that has an inferred MRE
(2.1Mt @ 1.1% Cu; 21,886t copper metal; Figure 2), the Board had no issues
approving potentially value creating plans, comprising:

·    Commissioning an independent engineering contractor to conduct a pit
optimisation study on the viability of commencing copper mining operations,
utilising prospective third-party processors and effective path to market; and

·    Re-formulating optimal plans for a third drilling campaign and
companion geophysical surveys to extend known mineralisation beyond the line
of lode.

FIGURE 2: RESOURCE TONNAGES BIG ONE DEPOSIT

 Tenure Name  Ore Type  Inferred (Mt)  Indicated (Mt)  Measured (Mt)  Copper Grade (%)  Silver Grade  Contained Copper (t)  Contained

                                                                                        g/t                                 Silver (kg)
 Mine Dumps   Oxidised  -              0.007           -              1.2               4.0           86                    29
 Mine Insitu  Oxidised  1.7            -               -              1.0               1.1           17,000                1,870
 Mine Insitu  Fresh     0.4            -               -              1.2               1.4           4,800                 560
 Sub-Totals             2.1            0.007           0                                              21,886                2,459

Source: CCZ geology team

Since the 1970s, the Big One Deposit has been drilled by three different
groups (including CCZ), while there were limited mining operations during the
1990s(4). The best intercepts (shown below) highlight the shallow nature of
the known ore body:

·    40m @ 1.64% Cu from surface incl: 11m @ 4.40% Cu from 24m, 5m @ 7.34%
Cu from 28m & 1m @ 16.65% Cu from 29m (303RC)(3)

·    44m @ 1.19% Cu from surface incl: 14m @ 3.55% Cu from 27m, 3m @
10.88% Cu from 37m & 1m @ 12.6% Cu from 37m (301RC)(3)

·      34m @ 1.51% Cu from surface incl: 21m @ 2.25% Cu from surface,
12m @ 3.44% Cu from 3m, 6m @ 4.79% Cu from 3m and 1m @ 9.4% Cu from 9m
(B0017)(3)

Site visit and targeting prospective development partners

As outlined in Castillo's recent ASX Release (23 January 2023), the geology
team intend to visit several prospects within the NWQ Copper Project including
Arya, Valparaisa, Boomerang and Josephine (Appendix A). Once the post visit
review write-ups are complete and exploration potential ranked, the Board
intend to present this opportunity to prospective development partners in the
Mt Isa region.

 

 

For further information, please contact:

 

 Castillo Copper Limited                                             +61 8 6558 0886 
 Dr Dennis Jensen (Australia), Managing Director                      

 Gerrard Hall (UK), Chairman 
                                                                      
 SI Capital Limited (Financial Adviser and Corporate Broker)         +44 (0)1483 413500 
 Nick Emerson                                                          
                                                                       
 Gracechurch Group (Financial PR)                                    +44 (0)20 4582 3500
 Harry Chathli, Alexis Gore, Henry Gamble                             

 

About Castillo Copper

 

Castillo Copper Limited is an Australian-based explorer primarily focused on
copper across Australia and Zambia. The group is embarking on a strategic
transformation to morph into a mid-tier copper group underpinned by its core
projects: 

 

·    A large footprint in the Mt Isa copper-belt district, north-west
Queensland, which delivers significant exploration upside through having
several high-grade targets and a sizeable untested anomaly within its
boundaries in a copper-rich region. 

·    Four high-quality prospective assets across Zambia's copper-belt
which is the second largest copper producer in Africa. 

·    A large tenure footprint proximal to Broken Hill's world-class
deposit that is prospective for zinc-silver-lead-copper-gold and platinoids.
 

·    Cangai Copper Mine in northern New South Wales, which is one of
Australia's highest grading historic copper mines. 

 

The group is listed on the LSE and ASX under the ticker "CCZ." 

 

Competent Person's Statement

The information in this report that relates to Exploration Results and Mineral
Resource Estimates for "BHA Project, East Zone" is based on information
compiled or reviewed by Mr Mark Biggs.  Mr Biggs is a director of ROM
Resources, a company which is a shareholder of Castillo Copper Limited.  ROM
Resources provides ad hoc geological consultancy services to Castillo Copper
Limited.  Mr Biggs is a member of the Australian Institute of Mining and
Metallurgy (member #107188) and has sufficient experience of relevance to the
styles of mineralisation and types of deposits under consideration, and to the
activities undertaken, to qualify as a Competent Person as defined in the 2012
Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for
Reporting of Exploration Results, and Mineral Resources. Mr Biggs holds an
AusIMM Online Course Certificate in 2012 JORC Code Reporting.  Mr Biggs also
consents to the inclusion in this report of the matters based on information
in the form and context in which it appears.

 

References

1)        CCZ ASX Release - 30 January 2022

2)        CCZ ASX Release - 28 February 2022

3)        Katz (1970) (CR5353); CCZ ASX Release - 14 January 2020 and
West Australian Metals NL (WME) ASX Release - 31 January

1994; and CCZ ASX Release - 11 January 2021

4)        CCZ ASX Release - 14 January 2020

APPENDIX A: NWQ COPPER PROJECT
FIGURE A1: PROSPECTS WITHIN NWQ COPPER PROSPECT

 

Source: CCZ geology team

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