REG - Castillo Copper Ltd - Option to acquire Lithium Projects extended

Castillo CopperAnnouncement

25/11/2021 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20211125:nRSY5242Ta&default-theme=true

RNS Number : 5242T  Castillo Copper Limited  25 November 2021

25 November 2021

 

CASTILLO COPPER LIMITED

 

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

 

Option to acquire Litchfield and Picasso Lithium Projects extended

 

Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily
focused on copper across Australia and Zambia, announces it has advised the
Vendor Group that it will be extending the 90-day option to acquire the
Picasso and Litchfield Lithium Projects in prime regions in Western Australia
(WA) and the Northern Territory (NT) respectively. This is primarily due to
processing delays at the laboratories, due to the huge demand to process
samples, which is extending timelines significantly.

 

·    CCZ is extending the 90-day option period to acquire the Litchfield
and Picasso Lithium Projects(1):

 

o  More than 650 surface assays for the Litchfield Lithium Project(1), which
is contiguous to Core Lithium's (ASX: CXO) strategic Finniss Lithium Project
(JORC compliant ore reserves: 7.4Mt @ 1.3% Li2O)(2), remain in process queues
at the laboratory

 

o  Analysing and interpreting these assay results should potentially enable
CCZ's geology team to determine if lithium mineralisation is contiguous
between the Lichfield and Finniss Lithium Projects(1)

 

·    Under the terms of the option agreement, the extension remains
effective until 30 days after the receipt of the full suite of assay results.

 

Simon Paull, Managing Director of Castillo Copper, commented: "The Board has
advised the Vendor Group that it is extending the option period to acquire the
Litchfield and Picasso Lithium Projects due to ongoing delays in receiving key
assay results for both projects. Encouragingly, however, the Board is pleased
with the due process undertaken to date and believes both assets have
considerable potential to host lithium mineralisation. The Board looks forward
to receiving these assays and concluding due diligence shortly thereafter."

 

OPTION EXTENDED

 

Whilst reviewing available information for both projects has been positive,
enhancing their potential to host lithium mineralisation, the assays are
critical to enable due diligence to be finalised. This is especially the case
for the Litchfield Lithium Project as it is contiguous to CXO's Finniss
Lithium Project which has JORC compliant ore reserves of 7.4Mt @ 1.3%
Li(2)O(2).

 

There are over 650 surface samples from four zones on the boundary with the
Finniss Lithium Project. Analysing and interpreting these assay results should
enable CCZ's geology team to potentially determine if there is contiguous
lithium mineralisation apparent and finalise due diligence.

 

Due to unprecedented demand, the timelines to process samples at laboratories
have been extended significantly. CCZ's geology team are in regular contact
with the laboratories and hope to have clarity on when the assays will be
received shortly.

 

Next steps

 

For the lithium projects:

o  Receipt of assays to enable due diligence to be closed for the Litchfield
and Picasso Lithium Projects.

 

For the NWQ Copper Project:

o  Update on Arya Prospect drilling campaign and assay results.

 

For Zambia operations:

o  Update on IP survey at the Mkushi Project; and

o  Commence work on the inaugural drilling campaign for the Luanshya Project.

 

In addition to this release, a PDF version of this report with supplementary
information and images can be found on the Company's website:
https://www.castillocopper.com/asx-announcements/
(https://www.castillocopper.com/asx-announcements/)

 

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, Elsa Darlington

 

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.

·    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 - 29 September & 20 October 2021

2)     CXO ASX Release - 21 September 2021 (Annual Report)

 

Competent Person Statement

The information in this report that relates to Exploration Results for
"Litchfield" and "Picasso" is based on information compiled or reviewed by Mr
Geoffrey Reed, a Non- Executive Director of CCZ.  Mr Reed is both a
shareholder and director of Bluespoint Mining Services, a company which is a
shareholder of Castillo Copper Limited.  Bluespoint Mining Services provides
ad hoc geological consultancy services to Castillo Copper Limited.  Mr Reed
is a member of the Australian Institute of Mining and Metallurgy (CP) (member
#250422) 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 Reed is a member
of the Australian Institute of Geoscientists. Further, Mr Reed consents to the
inclusion in this report of the matters based on information in the form and
context in which it appears.

 

Mr Reed has not verified any of the information regarding any of the
properties or projects referred to herein other than the "Litchfield" and
"Picasso" Properties.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCFEWEFLEFSEIF