REG - Castillo Copper Ltd - June 2023 Quarterly Activities Report
26/07/2023 10:30
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230726:nRSZ2665Ha&default-theme=true
RNS Number : 2665H Castillo Copper Limited 26 July 2023
26 July 2023
CASTILLO COPPER LIMITED
("Castillo", or the "Company")
June 2023 Quarterly Activities Report
Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily
focused on copper across Australia and Zambia, is pleased to present
shareholders its latest quarterly report for the period 1 April to 30 June
2023.
HIGHLIGHTS:
· EAST ZONE, BHA PROJECT, NSW
o Specialist, consultant, ANSTO, performed metallurgical test-work on six
samples from the Fence Gossan, Reefs and Tors Tanks Prospects(1)
o The Total Rare Earth Element plus Yttrium ("TREY") grades for the six
samples ranged from 227 to 1,632 ppm TREY(1)
DEVELOPMENT WORK
Castillo has four properties comprising the NWQ Copper Project in Mt Isa's
copper-belt, the BHA Project near Broken Hill's world class silver-zinc-lead
deposit in NSW, the historic Cangai Copper Mine and four assets across
Zambia's copper-belt.
East Zone, BHA Project, NSW
On 13 April 2023, specialist consultant, ANSTO, was appointed to undertake
comprehensive metallurgical test-work on six samples from Fence Gossan, Reefs
and Tors Tanks Prospects to understand the potential to extract rare earth
elements ("REE") from shallow clay zones.
The scope of work will focus on characterising REE leachability from the six
samples which comprise fresh pegmatite to highly weathered clay, especially
with Magnetic Rare Earth Oxide ("MREO") grades ranging from 362-603ppm.
This is an important step towards advancing the viability of the BHA Project's
East Zone REE potential and securing interest from prospective development
partners, especially given the extent of high-value MREO (Nd+Pr+Dy+Tb) within
the system(1).
On 14 June 2023, specialist consultant, ANSTO, performed metallurgical
test-work on six samples from the Fence Gossan, Reefs, and Tors Tanks
Prospects which produced the following preliminary findings:
· The Total Rare Earth Element plus Yttrium grades for the six samples
ranged from 227 to 1,632 ppm TREY;
· The proportion of high-value Magnetic Rare Earth Oxides (MREO;
Nd+Pr+Dy+Tb) to Total REO (TREO) across the six samples ranged from 22% to
27%; and
· The best TREY extraction, using a direct leach process at pH 1, was
30%
The Board is reviewing next steps, including trialling alternate leach tests
proposed by ANSTO to improve extraction results(1).
PAYMENTS TO, OR TO AN ASSOCIATE OF, A RELATED PARTY OF THE ENTITY DURING QUARTER DURING THE QUARTER
$202,000 was paid to related parties of Castillo relating to executive
director salary, non-executive director fees and exploration expenditure paid
to Field Crew, a related entity of director David Drakeley.
SUMMARY OF THE EXPLORATION EXPENDITURE INCURRED DURING THE QUARTER
Consulting fees Rates and mines departments fees
Cangai $96,000
-
Broken Hill Alliance $28,000 $1,000
Mt Isa $77,000 $38,000
Zambia $27,000 $1,000
Total $228,000 $40,000
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) Note - All information referenced is from CCZ ASX Releases, as
dated in text, from 1 January 2022 to 28 April 2022 inclusive
APPENDIX A: KEY PROJECTS
FIGURE A1: WEST AND EAST ZONE - BHA PROJECT, BROKEN HILL REGION
Source: CCZ geology team
FIGURE A2: ZAMBIA COPPER-BELT PROJECTS
Source: CCZ geology team
FIGURE A3: NWQ COPPER PROJECT, MT ISA REGION
Source: CCZ geology team
APPENDIX B: INTEREST IN MINING TENEMENTS HELD
JACKADERRY (CANGAI)
New England Orogen in NSW
Tenement ID Ownership at start of Quarter Ownership at end of Quarter Change during the Quarter
EL8635 100% 100% -
EL8625 100% 100% -
EL8601 100% 100% -
BROKEN HILL
located within a 20km radius of Broken Hill, NSW
Tenement ID Ownership at start of Quarter Ownership at end of Quarter Change during the Quarter
EL8599 100% 100% -
EL8572 100% 100% -
EL 8434 100% 100% -
EL 8435 100% 100% -
MT OXIDE
Mt Isa region, northwest Queensland
Tenement ID Ownership at start of Quarter Ownership at end of Quarter Change during the Quarter
EPM 26513 100% 100% -
EPM 26525 100% 100% -
EPM 26574 100% 100% -
EPM 26462 100% 100% -
EPM 27440 100% 100% -
ZAMBIA
Project Tenement ID Ownership at start of Quarter Ownership at end of Quarter Change during the Quarter
Lumwana North 23914-HQ-SEL 100% nil 100%
Lumwana South 23913-HQ-SEL 100% nil 100%
Mkushi 24659-HQ-LEL 100% 100% -
Luanshya * 22448-HQ-LEL - - -
Luanshya 25195-HQ-LEL 55% 55% -
Luanshya 25273-HQ-LEL 55% 55% -
Mwansa 25261-HQ-LEL 100% 100% -
* CCZ can earn up to 80% by meeting previously disclosed milestones
The mining tenement interests relinquished during the quarter and their location
· Lumwana North 23914-HQ-SEL Zambia
· Lumwana South 23913-HQ-SEL Zambia
· Luanshya (1 ) 22448-HQ-LEL Zambia
(1) CCZs right to earn up to 80% by meeting previously disclosed milestones lapsed during the quarter.
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
Name of entity
Castillo Copper Ltd
ABN Quarter ended ("current quarter")
52 137 606 476 30 June 2023
Consolidated statement of cash flows Current quarter Year to date (12 months)
$A'000
$A'000
1. Cash flows from operating activities
1.1 Receipts from customers
1.2 Payments for
(a) exploration & evaluation
(b) development
(c) production
(d) staff costs
(e) administration and corporate costs (192) (1,067)
1.3 Dividends received (see note 3)
1.4 Interest received 8 18
1.5 Interest and other costs of finance paid
1.6 Income taxes paid
1.7 Government grants and tax incentives
1.8 Other (provide details if material)
1.9 Net cash from / (used in) operating activities (184) (1,049)
2. Cash flows from investing activities
2.1 Payments to acquire or for:
(a) entities
(b) tenements
(c) property, plant and equipment
(d) exploration & evaluation (268) (1,722)
(e) investments
(f) other non-current assets - (82)
2.2 Proceeds from the disposal of:
(a) entities
(b) tenements
(c) property, plant and equipment
(d) investments
(e) other non-current assets
2.3 Cash flows from loans to other entities
2.4 Dividends received (see note 3)
2.5 Other (provide details if material)
2.6 Net cash from / (used in) investing activities (268) (1,804)
3. Cash flows from financing activities
3.1 Proceeds from issues of equity securities (excluding convertible debt
securities)
3.2 Proceeds from issue of convertible debt securities
3.3 Proceeds from exercise of options
3.4 Transaction costs related to issues of equity securities or convertible debt
securities
3.5 Proceeds from borrowings
3.6 Repayment of borrowings
3.7 Transaction costs related to loans and borrowings
3.8 Dividends paid
3.9 Other (provide details if material)
3.10 Net cash from / (used in) financing activities - -
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 3,332 5,754
4.2 Net cash from / (used in) operating activities (item 1.9 above) (184) (1,049)
4.3 Net cash from / (used in) investing activities (item 2.6 above) (268) (1,804)
4.4 Net cash from / (used in) financing activities (item 3.10 above) - -
4.5 Effect of movement in exchange rates on cash held 20 (1)
4.6 Cash and cash equivalents at end of period 2,900 2,900
5. Reconciliation of cash and cash equivalents Current quarter Previous quarter
at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts
$A'000
$A'000
5.1 Bank balances 2,808 3,240
5.2 Call deposits 92 92
5.3 Bank overdrafts
5.4 Other (provide details)
5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 2,900 3,332
6. Payments to related parties of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to related parties and their associates included 51(1)
in item 1
6.2 Aggregate amount of payments to related parties and their associates included 151(2)
in item 2
(1)Comprises director's fees for the quarter.
(2)Comprises consulting fees paid to the Managing Director and exploration
expenditure paid to Field Crew, a related entity of director David Drakeley.
7. Financing facilities Total facility amount at quarter end Amount drawn at quarter end
Note: the term "facility' includes all forms of financing arrangements available to the entity.
$A'000
$A'000
Add notes as necessary for an understanding of the sources of finance available to the entity.
7.1 Loan facilities
7.2 Credit standby arrangements
7.3 Other (please specify)
7.4 Total financing facilities
7.5 Unused financing facilities available at quarter end
7.6 Include in the box below a description of each facility above, including the
lender, interest rate, maturity date and whether it is secured or unsecured.
If any additional financing facilities have been entered into or are proposed
to be entered into after quarter end, include a note providing details of
those facilities as well.
8. Estimated cash available for future operating activities $A'000
8.1 Net cash from / (used in) operating activities (item 1.9) (184)
8.2 (Payments for exploration & evaluation classified as investing activities) (268)
(item 2.1(d))
8.3 Total relevant outgoings (item 8.1 + item 8.2) (452)
8.4 Cash and cash equivalents at quarter end (item 4.6) 2,900
8.5 Unused finance facilities available at quarter end (item 7.5)
8.6 Total available funding (item 8.4 + item 8.5) 2,900
8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 6.4
No
te
:
if
th
e
en
ti
ty
ha
s
re
po
rt
ed
po
si
ti
ve
re
le
va
nt
ou
tg
oi
ng
s
(i
e
a
ne
t
ca
sh
in
fl
ow
)
in
it
em
8
.3
,
an
sw
er
it
em
8
.7
as
"N
/A
".
Ot
he
rw
is
e,
a
fi
gu
re
fo
r
th
e
es
ti
ma
te
d
qu
ar
te
rs
of
fu
nd
in
g
av
ai
la
bl
e
mu
st
be
in
cl
ud
ed
in
it
em
8.
7.
8.8 If item 8.7 is less than 2 quarters, please provide answers to the following
questions:
8.8.1 Does the entity expect that it will continue to have the current
level of net operating cash flows for the time being and, if not, why not?
Answer: N/A
8.8.2 Has the entity taken any steps, or does it propose to take any
steps, to raise further cash to fund its operations and, if so, what are those
steps and how likely does it believe that they will be successful?
Answer: N/A
8.8.3 Does the entity expect to be able to continue its operations and
to meet its business objectives and, if so, on what basis?
Answer: N/A
Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2
and 8.8.3 above must be answered.
Compliance statement
1 This statement has been prepared in accordance with accounting
standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters
disclosed.
Date: 25 July 2023
Authorised by: The Board of Directors
(Name of body or officer authorising release - see note 4)
Notes
1. This quarterly cash flow report and the accompanying
activity report provide a basis for informing the market about the entity's
activities for the past quarter, how they have been financed and the effect
this has had on its cash position. An entity that wishes to disclose
additional information over and above the minimum required under the Listing
Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in
accordance with Australian Accounting Standards, the definitions in, and
provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and
AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash
flow report has been prepared in accordance with other accounting standards
agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent
standards apply to this report.
3. Dividends received may be classified either as cash flows
from operating activities or cash flows from investing activities, depending
on the accounting policy of the entity.
4. If this report has been authorised for release to the
market by your board of directors, you can insert here: "By the board". If it
has been authorised for release to the market by a committee of your board of
directors, you can insert here: "By the [name of board committee - eg Audit
and Risk Committee]". If it has been authorised for release to the market by a
disclosure committee, you can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the
market by your board of directors and you wish to hold yourself out as
complying with recommendation 4.2 of the ASX Corporate Governance Council's
Corporate Governance Principles and Recommendations, the board should have
received a declaration from its CEO and CFO that, in their opinion, the
financial records of the entity have been properly maintained, that this
report complies with the appropriate accounting standards and gives a true and
fair view of the cash flows of the entity, and that their opinion has been
formed on the basis of a sound system of risk management and internal control
which is operating effectively.
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 UPDMZGZNLVMGFZGRecent news on Castillo Copper
See all newsREG - Castillo Copper Ltd - March 2024 Quarterly Activities Report
AnnouncementREG - Castillo Copper Ltd - Completion of Sale of Broken Hill Licenses
AnnouncementREG - Castillo Copper Ltd - Initial and Final Director’s Interest Notice
AnnouncementREG - Castillo Copper Ltd - Half-year Financial Report
AnnouncementREG - Castillo Copper Ltd - Board Changes
Announcement