REG - Castillo Copper Ltd - Update on BHA Project

Castillo CopperAnnouncement

09/02/2022 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:20220209:nRSI0840Ba&default-theme=true

RNS Number : 0840B  Castillo Copper Limited  09 February 2022

 

9 February 2022

 

CASTILLO COPPER LIMITED

("Castillo" or the "Company")

 

Update on BHA Project

 

Strategic focus to develop significant cobalt mineralisation potential at BHA
Project

 

Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily
focused on copper across Australia and Zambia, undertook a strategic review
and determined modelling up a JORC 2012 mineral resource estimate for cobalt,
across the BHA Project's East Zone, was now the key priority. As a result, the
previously announced intent to list the BHA Group on the ASX has been
deferred(3).

 

Highlights

 

·    With further forensic work uncovering up to 6,182 drill-holes across
the East Zone(1) (BHA Project) - undertaken by North Broken Hill Group - the
Board has prioritised codifying the data then modelling up a JORC 2012
compliant cobalt mineral resource estimate:

o  Incrementally, the seven reverse circulation and diamond drill-core
samples (in the GSNSW core library) will be tested for cobalt mineralisation;
and

o  As all previous drilling / assays completed by North Broken Hill Group
meet current QAQC requirements, there should be a high degree of confidence in
the final modelled result

·    Given encouraging results from the initial 108 drill-holes, all
delivering assays from >200ppm Co up to 9,500ppm Co(2), spinning-off the
BHA Group(3) (via an IPO) has been deferred - this will enable the Board to
focus on expediting the development of the East Zone

·    Overall, identifying the cobalt potential within the East Zone is
timely, with the battery metal upcycle ongoing and the NSW government listing
the BHA Project on its Critical Minerals list(4)

 

Dr Dennis Jensen, CEO of Castillo Copper, commented: "After a strategic
review, the Board has prioritised modelling up a global JORC 2012 mineral
resource estimate for cobalt across the BHA Project's East Zone. Further
forensic work has identified up to 6,182 drill-holes, undertaken by the North
Broken Hill Group, which provides a substantial potential data pool to build
into the model. Pleasingly, there are seven reverse circulation and diamond
drill core samples that will be re-analysed for cobalt mineralisation which
should increase confidence in the final modelled outcome. With documented
cobalt readings between >200ppm Co up to 9,500ppm Co from only 108
drill-holes processed, the Board's priority is to fast-track codifying all the
data then produce an initial JORC 2012 compliant mineral resource estimate."

 

COBALT FOCUS AT BHA PROJECT - EAST ZONE

The ongoing upcycle for battery metals, driven by strong down-stream demand
for electric vehicles, makes the case for cobalt increasingly compelling. In
addition, the NSW government's new critical minerals policy(4), which includes
cobalt and specifically lists Castillo's Broken Hill assets, provided extra
impetus for the Board to prioritise developing the BHA Project's East Zone.
Notably, the NSW government's strategic intent is to build a viable downstream
industry for processing critical minerals (including cobalt) and establish a
global supply hub in the state's central west region(4).

 

Recent forensic work has uncovered up to 6,182 drill-holes across the East
Zone, which was undertaken by the reputable North Broken Hill Group(1) (NBH
Group). This is important as a large portion of the drilling undertaken by NBH
Group and other more recent explorers meets current QAQC requirements,
implying there should potentially be a high degree of confidence from
utilising this ample data to model a JORC 2012 compliant mineral resource
estimate.

 

Once the geology team complete codifying the data, then geological modelling
work will commence. In tandem, as there are seven reverse circulation and
diamond core samples in storage, the geology team will re-assay these for
cobalt and rare earth element mineralisation. Potentially, this will increase
the confidence in the final modelled result.

 

Overall, with encouraging results from the initial 108 drill-holes, which all
delivered assays from >200ppm Co up to 9,500ppm Co(2), the Board is
determined to accelerate developing the East Zone in order to produce a
primary JORC 2012 compliant cobalt mineral resource estimate.

 

Next steps

In NSW:

·    JORC 2012 compliant mineral resource estimate for the BHA Project
East Zone; and

·    Cangai ground gravity and magnetics survey

In Queensland:

·    Assay results for Arya Prospect; and

·    Big One Deposit - JORC 2012 compliant mineral resource estimate

In Zambia:

·    Complete geophysical report on the Mkushi Project; and

·    Complete work on the inaugural drilling campaign for the Luanshya
Project

 

 

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

 

For further information, please contact:

 

 Castillo Copper Limited                                             +61 8 6558 0886 
 Dr Dennis Jensen (Australia), Chief Executive Officer                

 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                                           

 

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.     Leyh W.R., 1977 Progress Report on Farmcote Exploration Licenses
780 and 782, Farmcote Area, Broken Hill, NSW for the three months to 27
October 1978, North Broken Hill Limited for the NSW Geological Survey,
(GS1977-078) and Leyh W.R., 1978 Progress Report on Exploration Licenses 1099
and 1100 for the six months to 27 October 1978, North Broken Hill Limited for
the NSW Geological Survey, (GS1978-407)

2.     CCZ ASX Release - 14 January 2022

3.     CCZ ASX Release - 5 August 2021

4.     NSW government - Critical Minerals. Available at:
https://www.regional.nsw.gov.au/meg/nsw-resources/critical-minerals
(https://www.regional.nsw.gov.au/meg/nsw-resources/critical-minerals)

Competent Person Statement

The information in this report that relates to Exploration Results for 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.

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  UPDTPMLTMTTMBLT