REG - Castillo Copper Ltd - NWQ Copper Project Earmarked Core Asset
24/10/2023 07:00
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RNS Number : 0325R Castillo Copper Limited 24 October 2023
24 October 2023
CASTILLO COPPER LIMITED
("Castillo" or the "Company")
NWQ Copper Project Earmarked Core Asset
Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily
focused on copper across Australia and Zambia, is pleased to announce that NWQ
Copper Project, which is located in Mount Isa's copper-belt (Appendix A), has
been classified as a core asset. As such, the Board will be embarking on a
campaign to deepen its understanding of the 20+ prospects across the tenure
(excluding the Big One Deposit) ahead of engaging with potential strategic
partners.
HIGHLIGHTS:
· The Board has endorsed the geology team's recommendation to classify
the NWQ Copper Project in Mt Isa's copper-belt (Appendix A) as a core asset.
The status of Cangai Copper Mine, BHA Project and Zambia is still under
review
· With over 20 prospects across the tenure, a key focal point has been
to deepen the Board's understanding of their prospectivity (excluding the Big
One Deposit which has been drilled) in readiness of engaging potential
strategic partners
· As part of this process, the geology team recently conducted field
trips to the Boomerang and Josephine Prospects (structurally controlled copper
mineralisation potential)(1-4) to identify future exploration targets:
o Assayed rock chip samples returned anomalous surface readings up to 0.46% Cu
at the Boomerang Prospect (Appendix B)
Ged Hall, Chairman of Castillo Copper, commented: "With over 20 prospects
across the NWQ Copper Project, which is now earmarked as a core asset, the
geology team has considerable work ahead to fully assess the collective
exploration potential. This is critical information to have mapped out as the
Board channels its efforts into aligning with a strategic development
partner."
NWQ COPPER PROJECT - CORE ASSET
Members of the geology team recently visited the Boomerang and Josephine
Prospects to assess the exploration potential, as both are interpreted to be
prospective for structurally controlled copper mineralisation.
To recap, the key historical highlights of these two prospects are as follows:
Boomerang Prospect(1-4)
· Mineralisation is hosted in the Surprise Creek Formation and is
thought to be associated with secondary faulting related to the Mt Gordon
Fault, a regional NE trending structure.
· In 1975, Dampier Mining conducted an exploration campaign that included
geological mapping, rock sampling and drilling nine RAB holes, delineating a
sandstone hosted copper oxide mineralisation over an 800m strike length.
Secondary copper staining has been observed along the strike length.
Josephine Prospect(1-4)
· Occurs within a fault-bounded block of middle-lower Surprise Creek
Formation. Thie host rocks consists of buff, brown and grey thin bedded fine
feldspathic and labile sandstone, ferruginous sandstone, and micaceous
siltstone.
Field trip and rock chip sampling
The field trip included a small program of rock chip sampling (refer Figure 1
& 2) taken across various geological formations. This preliminary work was
undertaken to determine the prospectivity for copper mineralisation and
facilitate the next phase of a more systematic exploration campaign if
suitable targets are determined.
From the Boomerang Prospect 21 rock-chip samples were taken from the exposed
sections of the Surprise Creek Formation. In addition, 13 rock-chip samples
were obtained from the outcrops of the Gunpowder Formation, Paradise Creek
Formation, and Surprise Creek Formation at the Josephine Prospect.
The rock-chip samples were sent to ALS Brisbane for multi-element analysis,
with assay results identifying elevated levels of copper up to 0.46% Cu at the
Boomerang Prospect (refer Appendix B).
FIGURE 1: SAMPLE CCZ05985 (E.339397 N.7864042) FIGURE 2: SAMPLE CCZ05986 (E. 339321 N. 7864037)
Source: CCZ Geology Team Source: CCZ Geology Team
For further information, please contact:
Castillo Copper Limited +61 8 6558 0886
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 announcement that relates to exploration results is
based on and fairly represents information compiled by Jeremy Clark, a
competent person who is a member of the AusIMM. Jeremy Clark is the sole
director of Lily Valley International Pty Ltd. Jeremy Clark has sufficient
experience that is relevant to the style of mineralisation and type of
deposits under consideration and to the activity being undertaken to qualify
as a Competent Person as defined in the 2012 edition of the Australasian Code
of Report of Exploration Results, Mineral Resources and Ore Reserves.
Jeremey Clark consents to the inclusion in this announcement of the matters
based on his work in the form and context in which is appears.
References
(1) CCZ London Listing Prospectus - 28 July 2020
(2) CCZ ASX Announcement - 17 October 2023
(3) CCZ ASZ Announcement - 23 January 2023
(4) Nowland, M. L. (2020-22). EPM 26462 Big Oxide North Annual
Report for period 29th August 2021 to 28th August 2022. Prepared by ROM
Resources for Castillo Copper Limited
APPENDIX A: PROSPECTS WITHIN THE NORTH-WEST QUEENSLAND COPPER PROJECT
Source: CCZ geology team
APPENDIX B: ROCK CHIP ASSAY RESULTS
Sample ID Site_ID Easting (GDA94/z54) Northing (GDA94/z54) Cu (ppm)
CCZ05981 BMG_SM_03 339386 7864168 21.6
CCZ05982 BMG_SM_04 339452 7864076 580
CCZ05983 BMG_SM_05 339408 7864044 117
CCZ05984 BMG_SM_06 339399 7864048 2360
CCZ05985 BMG_SM_07 339397 7864042 641
CCZ05986 BMG_SM_08 339321 7864037 4590
CCZ05987 BMG_SM_09 339507 7863970 4000
CCZ05988 BMG_SM_10 339588 7863946 1170
CCZ05989 BMG_SM_11 339604 7863943 3390
CCZ05990 BMG_SM_12 339668 7863919 746
CCZ05991 BMG_SM_13 339729 7863877 1445
CCZ05992 BMG_SM_14 339770 7863757 1575
CCZ05993 BMG_SM_15 339763 7863704 1060
CCZ05994 BMG_SM_16 339731 7863620 94.2
CCZ05995 BMG_SM_17 339375 7864108 536
CCZ05996 BMG_SM_18 339354 7864237 11.3
CCZ05997 BMG_SM_19 339263 7864192 28.2
CCZ05998 BMG_SM_20 339130 7864191 15.6
CCZ05999 BMG_SM_21 338986 7864124 28.9
CCZ06000 BMG_SM_22 338197 7861004 41.5
CCZ06001 BMG_SM_23 338235 7860956 50.6
Source: ALS Brisbane
Sample_ID Site_ID Easting (GDA94/z54) Northing (GDA94/z54) Cu (ppm)
CCZ06002 JSP_SM_01 335611 7857091 5.3
CCZ06003 JSP_SM_02 335594 7857095 25
CCZ06004 JSP_SM_03 335365 7857061 18
CCZ06005 JSP_SM_04 335343 7857067 80.9
CCZ06006 JSP_SM_05 335321 7857067 4
CCZ06007 JSP_SM_06 335275 7857130 110.5
CCZ06008 JSP_SM_07 335276 7857130 48.9
CCZ06009 JSP_SM_08 335220 7857212 8.2
CCZ06010 JSP_SM_09 335161 7857197 6.8
CCZ06011 JSP_SM_10 335139 7857193 283
CCZ06012 JSP_SM_11 334940 7856936 26
CCZ06013 JSP_SM_12 334857 7856937 5.6
CCZ06014 JSP_SM_13 334587 7857031 40.9
Source: ALS Brisbane
APPENDIX C: JORC TABLE
JORC Code, 2012 Edition - Table 1 Reporting - Rock Chip Program
Section 1 - Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections).
Criteria Commentary
Sampling techniques § Thirty four (34) rock chip samples were collected from prospective
outcropping lithologies in the field using a steel geological hammer.
§ Samples were collected by experienced geologists and samples collected were
based on geological observations and availability of material.
§ Samples are not representative of the deposits. Further exploration is
required.
§ Sample weights ranged between 0.09kg and 0.49kg.
§ The sample size is considered representative of the material sampled.
§ Samples were placed in individually numbered calico bags.
§ Samples were submitted to the independent, international accredited
Australian Laboratory Services (ALS) Brisbane facility for assay.
§ The sampling technique used is deemed appropriate for the style of
mineralization and exploration undertaken.
Drilling techniques § Drilling results are not included in this announcement.
Drill sample recovery § Drilling results are not included in this announcement.
Logging § A description of the sample site, including GPS co-ordinates (GDA94/z54),
the rock-type sampled, and the date and time samples were collected were
recorded at time of sampling.
§ Logging is qualitative in data.
§ Sample sites and rock specimens were photographed.
Sub-sampling techniques and sample preparation § Samples were prepared and analysed at ALS Brisbane's facilities.
§ ALS have internal QA/QC procedures to ensure a representative sample is
assayed.
§ Samples were crushed so that each sample has a nominal 85% passing
<75um.
§ Based on information provided, sample sizes and the sampling preparation
technique is considered appropriate for rock chip sampling and to correctly
represent interpreted mineralisation given the status of the projects and
allow an assessment of exploration potential.
§ Industry standard QAQC was utilised included standards and blanks.
Quality of assay data and laboratory tests § The assay techniques employed included mixed acid digestion with ICP-OES,
ICP-AES, ICP-MS and AAS finishes. These methods are considered appropriate for
the targeted mineralisation and regarded as a 'near total' digestion technique
with resistive phases not expected to affect copper analysis using the
ME-MS61R method.
§ ALS provided their own routine quality controls within their own practices
as per international ISO Standards, including the insertion of standard and
blanks. The company has not included QAQC given the type of sampling.
§ No QAQC issues were noted.
§ No geophysical surveys were undertaken at this time.
Verification of sampling and assay § No independent sampling was commissioned by CCZ.
§ An experienced geologist reviewed the digital assay data.
§ No adjustments have been made to the digital assay data.
§ CCZ finds no reason to question the veracity of the digital assay data
provided and reported in this announcement.
§ ALS provided their own routine quality controls within their own practices
as per international ISO Standards.
§ No QAQC issues were noted.
Location of data points § The co-ordinates of the sample sites were recorded using a handheld Garmin
GPS.
§ The grid-system used is GDA94 UTM Zone 54.
§ Topographic control is considered adequate.
§ Location accuracy is +/-10m.
§ The approach is considered acceptable for the nature of the sampling
program.
Data spacing and distribution § Sampling was of a reconnaissance nature.
§ The spacing and location of the sample sites, by the nature of early
exploration are variable.
§ The spacing and location of data is currently only being considered for
exploration purposes and is not sufficient to determine geological and grade
continuity.
§ Due to the early stage of exploration, the spacing and location of sample
sites is not material to the type of reporting
§ No sampling compositing was used.
Orientation of data in relation to geological structure § The twenty one (21) rock chip samples collected at Boomerang were taken
from exposed sections of the Surprise Creek Formation.
§ The thirteen (13) rock chip samp les collected at Josephine were taken from
exposed sections of the Gunpowder Creek Formation, Paradise Formation and
Surprise Creek Formation.
§ By its nature, the rock chip data is insufficient to confirm optimal
drilling orientation of a possible future drilling campaign.
Sample security § CCZ staff and contractors ensured a strict chain of custody procedures that
were adhered to for all thirty four (34) rock chip samples.
§ All sample bags were pre-numbered and securely closed, ensuring no material
could spill out during transport.
Audits or reviews § No formal audit has been conducted on the data being reported.
Section 2 - Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section).
Criteria Commentary
Mineral tenure and land tenure status § The North-West Queensland (NWQ) Copper Project consists of five (5)
tenures.
§ Boomerang and Josephine Prospect Areas are located within the same tenure
(EPM26462) and on Chidna Station.
§ No joint ventures of royalties are understood to impact the tenements.
§ No known impediments are understood to occur to allow for further
exploration.
Exploration done by other parties § Several generations of drilling and exploration have been conducted at
Boomerang and Josephine Prospect Areas, including geological mapping,
geochemical surveys and the drilling of nine (9) rotary air blast (RAB) holes,
drilled at Boomerang during the early 1970s.
§ Exploration is considered to be at an early stage across EPM26462.
Geology § The NWQ Copper Project is located within the Mt Isa Inlier of western
Queensland, a large, exposed section of Proterozoic (2.5 billion- to
540-million-year-old) crustal rocks. The inlier records a long history of
tectonic evolution, now thought to be like that of the Broken Hill Block in
western New South Wales.
§ The NWQ Copper Project lies within the Mt Oxide Domain, straddling the Lawn
Hill Platform and Leichhardt River Fault Trough. The geology of the tenement
is principally comprised of rocks of the Surprise Creek and Quilalar
Formations which include feldspathic quartzites, conglomerates, arkosic grits,
shales, siltstones and minor dolomites and limestones.
§ The NWQ Copper Project area is cut by a major fault zone, trending
north-north east to south-southwest across the permits. This fault is
associated with major folding, forming several tight syncline and anticline
structures along its length.
§ Almost without exception known copper mineralisation around Boomerang and
Josephine Prospect Areas is hosted within the upper rock units of the Paradise
Creek and Surprise Creek Formation.
§ Major copper orebodies in the area such as Mt. Oxide and Mt
Gordon/Capricorn Copper are manifested as a breccia and replacement zones
associated with interconnecting faults, especially associated with the Mt
Gordon Fault Zone (MGFZ).
§ The MGFZ bisects the Boomerang and Josephine targets.
§ Mineralisation associated with MGFZ is primarily
chalcopyrite-pyrite-chalcocite, typically as massive sulphide within breccias.
Drill hole information § Drilling results are not included in this announcement.
Data aggregation methods § No weighted averaging techniques of minimum/maximum grade truncations (cut
off/top cut) have been applied.
Relationship between mineralisation widths and intercept widths § This announcement is for surface samples only.
§ Surface samples do not inform the geometry of mineralisation.
Diagrams § Suitable figures have been included in the body of this announcement.
Balanced reporting § Key results have been included in the body of this announcement.
Other substantive exploration data § Historical exploration data mentioned in this announcement can be found in
previous announcements.
§ CCZ notes that historical exploration data is available in the public
domain via the GSQ Open Data Portal.
Further work § As part of the Company's strategic review, assay results will be used in
conjunction with historic exploration data to define priority exploration
targets within the NWQ Copper Project.
§ Follow up field work is planned, potentially including a more extensive
rock chip sampling program.
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