REG - Castillo Copper Ltd - Picasso Field Trip Findings
22/11/2021 07:05
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RNS Number : 0475T Castillo Copper Limited 22 November 2021
22 November 2021
CASTILLO COPPER LIMITED
("Castillo" or "CCZ" the "Company")
Update on Picasso Lithium Project
Field trip identifies circa 10km zone of pegmatites
Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily
focused on copper across Australia and Zambia, is pleased to provide an update
on its Picasso Lithium Project following the visit of its geology team who
mapped and collected samples from the high-density corridor.
Highlights
· A circa 10km zone of pegmatite occurrences was confirmed in the
north-eastern part of the tenure, which significantly exceeds government
mapping; and
· The observed pegmatites are potentially related to lithium
mineralisation which enhances prospectivity of the tenure's north-eastern
quadrant
· Due diligence for the Litchfield Lithium Project is progressing with
the laboratory expected to return assays within 2-3 weeks
Simon Paull, Managing Director of Castillo Copper, commented: "The geology
team's visit to the Picasso Lithium Project delivered encouraging news,
confirming that a 10km zone of pegmatites is apparent in the tenure's
north-east quadrant. The Board's preliminary conclusion, based on due
diligence undertaken to date, is the Picasso Lithium Project is prospective
for lithium mineralisation and delivers significant incremental exploration
potential."
FIELD TRIP FINDINGS
CCZ's geology team undertook considerable mapping across the Picasso Lithium
Project, though much of the time was focused on the tenure's north-east
quadrant where the high-density pegmatite corridor is located.
Encouragingly, a circa 10km zone of pegmatite occurrences was confirmed in the
tenure's north-east quadrant which is the best exposed part of the Picasso
Lithium Project. Notably, the pegmatites potentially host lithium
mineralisation though this is subject to further investigation.
There are several areas of outcropping basement where granite is the dominant
rock type. Interestingly, there is potential to discover further pegmatites
across the tenure as there is significant shallow sand cover.
Corporate Next steps
For the lithium projects:
o Ongoing due diligence for the Picasso and Litchfield Lithium Projects
In Queensland:
o Further updates on drilling campaign at the Arya Prospect.
In Zambia:
o Update on IP survey at the Mkushi Project.
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."
Competent Person Statement
The information in this announcement that relates to exploration results is
based on and fairly represents information reviewed or compiled by Mr Matt
Bull, a Competent Person who is a Member of the Australasian Institute of
Mining and Metallurgy. Mr Bull is a Consultant of Castillo Copper Limited. Mr
Bull has sufficient experience that is relevant to the styles of
mineralisation and types 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 Bull has provided his prior written
consent to the inclusion in this announcement of the matters based on
information in the form and context in which it appears.
The London Stock Exchange has not reviewed and does not accept
responsibility for the accuracy or adequacy of this release.
APPENDIX A: LOCATION OF PICASSO LITHIUM PROJECT (Available to view on ASX
announcement)
APPENDIX B: JORC CODE, 2012 EDITION - TABLE 1
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary
Sampling techniques · Nature and quality of sampling (eg cut channels, random chips, or · Picasso
specific specialised industry standard measurement tools appropriate to the
minerals under investigation, such as down hole gamma sondes, or handheld XRF Regional aircore drilling was undertaken within tenements E15/946 and
instruments, etc). These examples should not be taken as limiting the broad E63/1083-1084 (Now part of Picasso) in late 2010. Bostech Drilling was
meaning of sampling. contracted to complete this work utilising their light truck mounted Bostech
Drillboss 200 (Atlas Copco XRV9, Compressor - capacity 350psi & 600cfm).
· Include reference to measures taken to ensure sample representivity Holes were drilled to blade refusal along existing tracks in a program of
and the appropriate calibration of any measurement tools or systems used. regional traverses. These traverses were completed to better understand the
depth of cover and the regolith environment and to gain an understanding of
· Aspects of the determination of mineralisation that are Material to the basement geology.
the Public Report.
All air core samples were submitted to Genalysis Intertek Laboratory Services
· In cases where 'industry standard' work has been done this would be for analysis. At the laboratory, samples were dried in an oven at 120 degrees
relatively simple (eg 'reverse circulation drilling was used to obtain 1 m and then pulverised in an LMS mill to a nominal size of -75 microns. The
samples from which 3 kg was pulverised to produce a 30 g charge for fire milled pulps were weighed out (to 25g) and underwent stepwise aqua regia
assay'). In other cases more explanation may be required, such as where there digestion in a temperature-controlled laboratory. The analyte was then
is coarse gold that has inherent sampling problems. Unusual commodities or presented to a graphite-furnace AAS (method AR25/GF) for gold analysis, with
mineralisation types (eg submarine nodules) may warrant disclosure of detailed the detection limit for this method being 1 ppb Au.
information.
1,743 unique surface geochemistry samples - historical company samples (Anglo
Gold(11)). The majority of the geochemical sampling had been completed by
Anglo Gold Ashanti Australia focussed solely on gold mineralisation. This
program was not specifically targeting lithium, though results show elevated
lithium, including over 40ppm (Figure 1). It is apparent that outcropping
granite and/or pegmatites may have been a hindrance to soil sampling in areas
and in fact contributed to less sampling near known pegmatites. Rock chip
sampling was not conducted in the area as granites/pegmatites were
historically not considered a target.
Low-impact surface sampling by LV-mounted mechanical auger was completed by
Prodrill Pty Ltd. Auger holes were drilled to a maximum depth of 2.5m, with
single samples taken from the zone of greatest carbonate reactivity down-hole.
Samples were not sieved and averaged approximately 300-500g. Sample hole
locations were acquired using a GPS device attached to a Trimble Nomad rugged
PDA. Standards and blanks were routinely submitted approximately every 50
samples as part of quality control.
Auger Samples were sent to Genalysis in Perth for preparation and analysis.
Samples were dried in an oven at 100 degrees and then pulverised in an
LM2-sized robotic mill to a nominal size of -75 microns. The milled pulps were
weighed out at 25g and underwent stepwise aqua regia digestion in a
temperature-controlled laboratory. The analyte was then presented to a
graphite-furnace and AAS for gold analysis (method code B25/EETA or B/ETA),
followed by ICP mass spectrometry (B25/MS) and optical emission spectrometry
(method code B25/OES) for multi-element analysis.
Drilling techniques · Drill type (eg core, reverse circulation, open-hole hammer, · Picasso
rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter,
triple or standard tube, depth of diamond tails, face-sampling bit or other Regional aircore drilling and auger soil sampling was undertaken within
type, whether core is oriented and if so, by what method, etc). tenements E15/946 and E63/1083-1084 (Now part of Picasso) in late 2010.
Drill sample recovery · Method of recording and assessing core and chip sample recoveries and · Picasso
results assessed.
Drilling to blade refusal was utilised to identify the distribution of
· Measures taken to maximise sample recovery and ensure representative anomalous gold. Collar locations were surveyed using a hand-held GPS with a
nature of the samples. nominal accuracy of +10 m. Drill holes were pegged in the field using GPS and
then the actual location of the hole was picked up after drilling.
· Whether a relationship exists between sample recovery and grade and
whether sample bias may have occurred due to preferential loss/gain of
fine/coarse material.
Logging · Whether core and chip samples have been geologically and · Picasso
geotechnically logged to a level of detail to support appropriate Mineral
Resource estimation, mining studies and metallurgical studies. Aircore drilling was geology, Alteration and weathering logged
· Whether logging is qualitative or quantitative in nature. Core (or
costean, channel, etc) photography.
· The total length and percentage of the relevant intersections logged.
Sub-sampling techniques and sample preparation · If core, whether cut or sawn and whether quarter, half or all core · Picasso
taken.
Aircore Samples were collected from the cyclone in single meter intervals and
· If non-core, whether riffled, tube sampled, rotary split, etc and laid on the ground in rows of ten for geological logging. Four-meter composite
whether sampled wet or dry. samples weighing approximately 3kg in total were collected from the sample
piles using a scoop and submitted for gold analysis.
· For all sample types, the nature, quality and appropriateness of the
sample preparation technique. The magnetic susceptibility of these samples was measured, in the bag, with a
KT9 magnetic susceptibility meter
· Quality control procedures adopted for all sub-sampling stages to
maximise representivity of samples. Auger Samples were sent to Genalysis in Perth for preparation and analysis.
Samples were dried in an oven at 100 degrees and then pulverised in an
· Measures taken to ensure that the sampling is representative of the LM2-sized robotic mill to a nominal size of -75 microns. The milled pulps were
in situ material collected, including for instance results for field weighed out at 25g and underwent stepwise aqua regia digestion in a
duplicate/second-half sampling. temperature-controlled laboratory. The analyte was then presented to a
graphite-furnace and AAS for gold analysis (method code B25/EETA or B/ETA),
· Whether sample sizes are appropriate to the grain size of the followed by ICP mass spectrometry (B25/MS) and optical emission spectrometry
material being sampled. (method code B25/OES) for multi-element analysis
Quality of assay data and laboratory tests · The nature, quality and appropriateness of the assaying and · Picasso
laboratory procedures used and whether the technique is considered partial or
total. . A 750g composite sample of the last meter (or two meters, if bottom of hole
sample recovery is inadequate) in each hole was collected using a scoop and
· For geophysical tools, spectrometers, handheld XRF instruments, etc, submitted for multi-element analysis.
the parameters used in determining the analysis including instrument make and
model, reading times, calibrations factors applied and their derivation, etc. Blanks and standards were routinely submitted for quality control purposes, at
a nominal ratio of 1 in 40 samples.
· Nature of quality control procedures adopted (eg standards, blanks,
duplicates, external laboratory checks) and whether acceptable levels of All aircore samples were submitted to Genalysis Intertek Laboratory Services
accuracy (ie lack of bias) and precision have been established. for analysis. At the laboratory, samples were dried in an oven at 120 degrees
and then pulverised in an LMS mill to a nominal size of -75 microns. The
milled pulps were weighed out (to 25g) and underwent stepwise aqua regia
digestion in a temperature-controlled laboratory. The analyte was then
presented to a graphite-furnace AAS (method AR25/GF) for gold analysis, with
the detection limit for this method being 1 ppb Au.
All Auger Samples were sent to Genalysis in Perth for preparation and
analysis. Samples were dried in an oven at 100 degrees and then pulverised in
an LM2-sized robotic mill to a nominal size of -75 microns. The milled pulps
were weighed out at 25g and underwent stepwise aqua regia digestion in a
temperature-controlled laboratory. The analyte was then presented to a
graphite-furnace and AAS for gold analysis (method code B25/EETA or B/ETA),
followed by ICP mass spectrometry (B25/MS) and optical emission spectrometry
(method code B25/OES) for multi-element analysis
Verification of sampling and assaying · The verification of significant intersections by either independent · Picasso
or alternative company personnel.
No adjustment is made to any historical assay data.
· The use of twinned holes.
· Documentation of primary data, data entry procedures, data
verification, data storage (physical and electronic) protocols.
· Discuss any adjustment to assay data.
Location of data points · Accuracy and quality of surveys used to locate drill holes (collar Picasso
and down-hole surveys), trenches, mine workings and other locations used in
Mineral Resource estimation. (Image available on PDF version)
· Specification of the grid system used.
· Quality and adequacy of topographic control.
Data spacing and distribution · Data spacing for reporting of Exploration Results. · Picasso
· Whether the data spacing and distribution is sufficient to establish (Image available on PDF version)
the degree of geological and grade continuity appropriate for the Mineral
Resource and Ore Reserve estimation procedure(s) and classifications applied.
· Whether sample compositing has been applied.
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased sampling of · Picasso
possible structures and the extent to which this is known, considering the
deposit type. It is apparent that outcropping granite and/or pegmatites may have been a
hindrance to soil sampling in areas and in fact contributed to less sampling
· If the relationship between the drilling orientation and the near known pegmatites. Rock chip sampling was not conducted in the area as
orientation of key mineralised structures is considered to have introduced a granites/pegmatites were historically not considered a target.
sampling bias, this should be assessed and reported if material.
Sample security · The measures taken to ensure sample security. · Picasso
Chain of Custody procedure by Anglo Gold(11)
Audits or reviews · The results of any audits or reviews of sampling techniques and data. No formal audit or review of sampling techniques has been
undertaken
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation Commentary
Mineral tenement and land tenure status · Type, reference name/number, location and ownership including · Picasso
agreements or material issues with third parties such as joint ventures,
partnerships, overriding royalties, native title interests, historical sites, The area has been classified entirely as 'minimal use' by the Australian
wilderness or national park and environmental settings. Government's Department of Agriculture and Water Resources, which are areas of
land that are largely unused.
· The security of the tenure held at the time of reporting along with
any known impediments to obtaining a licence to operate in the area. Synergy Prospecting Pty Ltd ("Synergy Prospecting") holds one (1) Western
Australia ("WA") Exploration Licence ("E") 63/1888, the Picasso project
(Image available on PDF version)
Exploration done by other parties · Acknowledgment and appraisal of exploration by other parties. · Picasso
Historic exploration data was compiled from DMP open file (WAMEX) reports and
other sources. Exploration has occurred within the project area for at least
40 years with many companies exploring for a number of different commodities
during that time. Goldfields, Newmont, Sipa, Avoca and WMC amongst others,
explored for lode style gold mineralization whereas Epsilon and CRA explored
for uranium/lignite in palaeo-channels. Asarco, as one of the earlier
explorers in the area explored for palaeo-placer deposits of both gold and
uranium.
Geology · Deposit type, geological setting and style of mineralisation. · Picasso
Pegmatites occur in the greenstones at the Mt Belches-Bald Hill pegmatite
belt. Further, pegmatites have also been mapped in the Archaean granite in the
Picasso Project. There are a large number of pegmatite occurrences, with 69
government mapped pegmatites throughout the Picasso Project area. The majority
of the pegmatites occur in the east of the project area, though pegmatites are
also recorded in the south and west of the project.
Drill hole Information · A summary of all information material to the understanding of the · Picasso
exploration results including a tabulation of the following information for
all Material drill holes: Reported in attached Table B1
o easting and northing of the drill hole collar
o elevation or RL (Reduced Level - elevation above sea level in metres) of the
drill hole collar
o dip and azimuth of the hole
o down hole length and interception depth
o hole length.
· If the exclusion of this information is justified on the basis that
the information is not Material and this exclusion does not detract from the
understanding of the report, the Competent Person should clearly explain why
this is the case.
Data aggregation methods · In reporting Exploration Results, weighting averaging techniques, · Picasso
maximum and/or minimum grade truncations (eg cutting of high grades) and
cut-off grades are usually Material and should be stated. (Image available on PDF version)
· Where aggregate intercepts incorporate short lengths of high grade
results and longer lengths of low grade results, the procedure used for such
aggregation should be stated and some typical examples of such aggregations
should be shown in detail.
· The assumptions used for any reporting of metal equivalent values
should be clearly stated.
Relationship between mineralisation widths and intercept lengths · These relationships are particularly important in the reporting of · Picasso
Exploration Results.
Down-hole lengths reported in attached Table B1
· If the geometry of the mineralisation with respect to the drill hole
angle is known, its nature should be reported.
· If it is not known and only the down hole lengths are reported, there
should be a clear statement to this effect (eg 'down hole length, true width
not known').
Diagrams · Appropriate maps and sections (with scales) and tabulations of Maps for Picasso Lithium Project are included in the announcement
intercepts should be included for any significant discovery being reported
These should include, but not be limited to a plan view of drill hole collar
locations and appropriate sectional views.
Balanced reporting · Where comprehensive reporting of all Exploration Results is not Not applicable.
practicable, representative reporting of both low and high grades and/or
widths should be practiced to avoid misleading reporting of Exploration
Results.
Other substantive exploration data · Other exploration data, if meaningful and material, should be Commencement of due diligence on the Picasso Lithium Project
reported including (but not limited to): geological observations; geophysical
survey results; geochemical survey results; bulk samples - size and method of
treatment; metallurgical test results; bulk density, groundwater, geotechnical
and rock characteristics; potential deleterious or contaminating substances.
Further work · The nature and scale of planned further work (eg tests for lateral Commencement of due diligence on the Picasso Lithium Project.
extensions or depth extensions or large-scale step-out drilling).
For the Picasso Lithium Project, return of assays for circa 30 surface
· Diagrams clearly highlighting the areas of possible extensions, samples.
including the main geological interpretations and future drilling areas,
provided this information is not commercially sensitive.
TABLE B1: PICASSO DRILLING DETAILS
Hole_ID MGA_North (m) MGA_East (m) AHD_RL Total Depth (m) Dip Azimuth Grid_ID DrillDate Hole_Type
NAC087 6454217.53 432545.8 347 33 -90 360 MGA51_94 12/12/2010 AC
NAC088 6454499.12 433188.06 345 13 -90 360 MGA51_94 12/12/2010 AC
NAC089 6454964.3 434047.27 336 23 -90 360 MGA51_94 12/12/2010 AC
NAC090 6455624.62 434645.26 329 13 -90 360 MGA51_94 12/12/2010 AC
NAC091 6456451.31 435179.29 319 13 -90 360 MGA51_94 12/12/2010 AC
NAC092 6457241.91 435793.71 315 48 -90 360 MGA51_94 12/12/2010 AC
NAC093 6458064.62 436321.52 317 26 -90 360 MGA51_94 12/12/2010 AC
NAC094 6458947.88 436697.52 319 20 -90 360 MGA51_94 12/12/2010 AC
NAC095 6459777.13 437250.49 327 13 -90 360 MGA51_94 12/12/2010 AC
NAC096 6460677.14 437633.9 329 16 -90 360 MGA51_94 12/12/2010 AC
NAC097 6461649.86 437873.71 322 31 -90 360 MGA51_94 12/12/2010 AC
NAC098 6462594.06 438145.5 330 13 -90 360 MGA51_94 12/12/2010 AC
NAC099 6463530.86 438497.13 337 13 -90 360 MGA51_94 12/12/2010 AC
NAC100 6464357.73 438985.3 337 31 -90 360 MGA51_94 12/12/2010 AC
NAC101 6465223.1 439392.89 338 15 -90 360 MGA51_94 12/12/2010 AC
NAC102 6466036.42 440055.5 334 43 -90 360 MGA51_94 12/12/2010 AC
NAC103 6466702.1 440423.38 340 49 -90 360 MGA51_94 11/12/2010 AC
NAC114 6461438.7 443489.47 321 13 -90 360 MGA51_94 13/12/2010 AC
NAC115 6462329.98 443763 334 31 -90 360 MGA51_94 13/12/2010 AC
NAC116 6463296.98 443875.8 335 13 -90 360 MGA51_94 13/12/2010 AC
NAC117 6464132.15 444309.43 330 13 -90 360 MGA51_94 13/12/2010 AC
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