CCZ completes acquisition of Harts Range Project
28/10/2024 08:18
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RNS Number : 8436J Castillo Copper Limited 28 October 2024
28 October 2024
CASTILLO COPPER LIMITED
("Castillo", "CCZ" or the "Company")
Castillo completes acquisition of Harts Range Project & Expands Footprint
Further to the announcement on 25 October 2024, Castillo Copper Limited (LSE
and ASX: CCZ), a base metal explorer primarily focused on copper across
Australia and Zambia, is delighted to confirm it is moving forward with
acquiring 85% of the highly prospective Harts Range Niobium, Uranium and Heavy
Rare Earths Project via an earn-in arrangement.
Highlights:
· CCZ has met all conditions precedent necessary to progress acquiring
85% of the highly prospective Harts Range Niobium, Uranium and Heavy Rare
Earths Project(1), circa 120km north-east from Alice Springs in the Northern
Territory (NT)
· Historical assays from 28 rock chip samples, sourced from outcropping
pegmatites within the granted tenure, reported grades up to 23.2% Nb, 12.7% U
and 12.7% Heavy Rare Earth Elements (including 2.85% Dy, 0.32% Tb, 14.9%
Ta)(1,2)
· With the recent field trip by CCZ's geology team(1) validating the
Harts Range Project's significant exploration potential, the Board is now
mapping out forward plans to expedite development work commencing with the
Cusp Prospect(1):
o The exploration campaign will comprise comprehensive surface sampling and
geophysical surveys to generate priority targets to test-drill as well as
collecting bulk samples for metallurgical test-work
· Reflecting its high confidence in the region, CCZ has increased its
footprint by ~25% with a proximal exploration license application(3) - "Harts
Range East Project" - that has comparable underlying geology to the granted
tenure (15km west):
o The initial focus will comprise undertaking a desktop review to generate
key insights for the inaugural post-grant exploratory field trip
· The Board's strategy to advance the NWQ Copper Project, possibly with
a development partner, and divest the two remaining assets - BHA West Project
(NSW) and Mkushi Project (Zambia) - remains on track
· CCZ has enjoyed recent inflows of ~$730k, including proceeds from
exiting the RIM(4) position (lifting current liquid funds to ~$1.65m);
pleasingly, the next value creating event for the Board is closing the sale of
Cangai Copper Mine to IMI - currently valued at ~$1.6m(5)
Ged Hall, Chairman, commented: "Recognising the excellent exploration
potential the Harts Range Niobium, Uranium and Heavy Rare Earths Project
delivers, the Board has moved swiftly to close out this transformational
transaction and increase the footprint within the region. The Board is now
working closely with the geology team to expedite ramping up the development
campaign. Concurrently, the Board's strategy to create value from non-core
asset disposals is making solid progress: CCZ has exited its Rimfire Pacific
Mining equity position and is working on closing the Cangai Copper Mine sale
to ASX listed Infinity Mining."
A NEW ERA COMMENCES
Harts Range Project
Within the granted tenure are five prospects - Cusp, Bobs, Bobs West, Thorium
Anomaly and Niobium Anomaly - where 28 assayed historical rock chips from
outcropping pegmatites produced stellar grades up to 23.2% Nb, 12.7% U and
12.7% Heavy Rare Earth Elements (including 2.85% Dy, 0.32% Tb, 14.9% Ta)(1,2).
CCZ's geology team recent field trip to the Harts Range Project was highly
encouraging as it validated the tenure's significant exploration potential. As
a result, the Board is now working closely with the geology team to fast-track
development work, initially focusing on the Cusp Project which shows
consistently high Niobium, Heavy Rare Earths and Uranium grades(1) (Figure 1).
FIGURE 1: HISTORICAL ROCK CHIP RESULTS - CUSP PROSPECT (PCT)
Sample ID HR419 HR420 HR421 HR480 HR481 HR482 HR483 HR484 HR485 HR486 HR487 HR488 HR490
Niobium (%) 17.5 1.1 22.7 21.0 16.3 23.2 23.0 1.0 24.0 20.6 20.0 19.4 18.0
Uranium (%) 10.1 2.0 11.0 11.4 10.4 12.1 12.2 0.0 11.6 11.2 11.2 11.3 11.3
Yttrium (%) 5.6 16.0 6.9 8.0 3.3 8.6 8.1 0.0 7.9 7.4 8.3 7.8 7.3
Tantalum (%) 9.3 0.9 5.5 7.0 11.0 5.9 6.6 0.1 5.9 4.1 5.2 4.7 6.3
Dysprosium (%) 1.1 0.0 1.6 1.7 0.7 1.9 1.7 0.0 1.8 1.6 1.8 1.7 1.5
Terbium (%) 0.18 0.05 0.24 0.27 0.10 0.29 0.27 <0.01 0.27 0.25 0.27 0.26 0.24
Note: Niobium is typically coincident with Heavy Rare Earths mineralisation,
Tantalum and Uranium
Source: CCZ ASX Release - 21 October 2024
The objective of the exploration campaign is to undertake comprehensive
surface sampling and geophysical surveys to generate priority targets to
test-drill. Complementing this effort will be collecting bulk samples to
simultaneously progress metallurgical test-work to ascertain if mineralisation
will liberate easily.
Harts Range East Project
Following the geology team's positive visit to the region, the Board decided
to further expand the footprint given the encouraging prospectivity for
Niobium, Heavy Rare Earths and Uranium mineralisation. As a result, CCZ has
applied for incremental ground circa 15km east of the granted tenure - "Harts
Range East Project" - which increases the footprint by circa 25% (~135km(2)).
As shown in Figure 2, the Harts Range East Project (~25km(2)) is in the
central portion of the Enita Dome, with arguably comparable underlying geology
to the granted tenure 15km west.
Notably, the Entia Dome is underlain by the Harts Range Group (Harts Range
Meta-igneous Complex), which predominantly consists of
feldspar-biotite-amphibole-garnet gneisses. Moreover, the Harts Range region
has undergone repeated and substantial crustal re-working between Proterozoic
and Palaeozoic times. As a result, it is now believed to represent an ancient
and strongly altered/metamorphosed version of a continental collision zone(6).
Magnetotelluric data interpreted by a team consisting of Adelaide University
and NTGS geologists (Selway et al, 2006)(7) suggests the Entia Dome system is
a deep-crustal feature that can be shown extending to the mantle.
FIGURE 2: HARTS RANGE / (EAST) PROJECTS RELATIVE TO ENTIA DOME
Source: Scrimgeour 2013 (Reference 6)
Similar to the granted tenure, the Harts Range East Project is readily
accessible via a sealed highway and well-maintained tracks. Furthermore, given
the close proximity of ASX-listed Independence Group's (ASX: IGO) sizeable
Irindina Project(8), the mining infrastructure and access to a talented labour
pool is first rate (Figure 3).
The initial focus for the Harts Range East Project will comprise undertaking a
desktop review to garner key insights for the maiden post-grant exploratory
field trip.
FIGURE 3: HARTS RANGE EAST PROJECT RELATIVE TO MINING INFRASTRUCTURE
Source: CCZ geology team (Reference 1 & 8)
NEXT STEPS
To recap, the geology team intends to fully unpack the potential of the Harts
Range Niobium, Uranium and Heavy Rare Earths Project through undertaking a
systematic and rigorous exploration strategy that will encompass the following
steps in subsequent visits:
· Full historic and spatial database compilation;
· Reconnaissance mapping programs;
· Close spaced geophysical survey;
· Detailed mapping and rock chip sampling across prospects;
· Regional soil sampling campaigns as required;
· Mineral characterisation studies and petrological analysis;
· Trenching and bulk sample test work;
· Target generation and prioritisation; and
· Drill-testing.
In accordance with ASX Listing Rule 5.23.2 and in relation to exploration
results reported in the Announcement, Castillo is not aware of any new
information or data that materially affects the exploration results included
in previous market announcements.
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
REFERENCES
1) CCZ ASX Release - 21 October 2024
2) Barfuss, R. (Barfuss Corporation Pty Ltd) 19 November 2007: "A Brief
report on Samarskite Mineralisation in the Harts Range Project" (unpublished
report) and Barfuss, R. (Barfuss Corporation) 2014: The Harts Range Project
Exploration Licence (EL 24552) - inclusive of the following references:
a. Caughey, A.R. (Flagstaff Geo Consultants Pty Ltd.), November 2007:
Annual Report for Exploration Licence EL24552 for the period ending 25(th)
August 2007 (for Barfuss Corporation Pty. Ltd.)
b. Caughey, R. (Flagstaff Geo Consultants Pty Ltd.) 2002 to 2006: various
unpublished reports for Barfuss Corporation Pty. Ltd.
c. PNC Exploration (Australia): various open-file tenement annual, final
and partial relinquishment reports,1994 to 1997; Report Numbers CR1994-0325,
CR995-0298, CR1995-0525, CR1995-0697, CR-1996-0285, CR1996-0286, CR-1997-0611.
*
d. Rutter, H. (Flagstaff Geo Consultants Pty Ltd.) 2006. 'An analysis of
airborne radiometric data from the Harts Range, N.T.' (unpublished report)
e. Shaw, R.D., Senior, B.R., Offe, L.A., Stirzaker, J.F., Walton, D.G.,
Apps, H.E., Freeman, M.J.1:250,000 Geological Map Series Explanatory Notes
Illogwa Creek SF53-15. Bureau of Mineral Resources Australia & Northern
Territory Geological Survey,1985.
Note: * Open file company reports sourced from the Northern Territory Mineral
Industry Reports Management System (IRMS). Available at:
https://geoscience.nt.gov.au/gemis/ntgsjspui/handle/1/3
3) Spatial Territory Resource Information Kit for Exploration (STRIKE); NT
Government - Department of Industry, Tourism and Trade. Available at:
http://strike.nt.gov.au/wss.html
4) RIM ASX Release - 11 January 2024
5) CCZ ASX Release - 3 October 2024. Note: Estimated value of ~$1.6m based
on consideration of 40m IMI shares at a price of $0.03 per shares as at 23
October 2024 (i.e. 40m x $0.03 = $1.2m) and 20m 5 year options exercisable at
$0.07 cents using the Black-Scholes Option Model (below).
BLACK SCHOLES OPTION MODEL
Assumed grant date 1 November 2024
Assumed expiry date 31 October 2029
Share price at assumed grant date $0.030
Exercise price $0.070
Risk-free rate 3.84%
Volatility 100%
Fair value per Option $0.019
Total number 20,000,000
Total fair value $386,000
6) Scrimgeour IR, 2013. Chapter 29: Irindina Province: in Ahmad M and
Munson TJ (compilers). 'Geology and mineral resources of the Northern
Territory'. Northern Territory Geological Survey, Special Publication5.
7) Selway K, Heinson G and Hand M, 2006: Electrical evidence of
continental accretion: Steeply dipping crustal-scale conductivity contrast.
Geophysical Research Letters 33, L06305, doi:10.1029/2005GL025328.
8) IGO Exploration Activities in Northern Territory. 2024 Annual Report
(p.6) IGO ASX Release - 29 August 2024. Available at:
https://www.igo.com.au/site/investor-center/annual-reports
About Castillo Copper
Castillo Copper Limited is an Australian-based, Australian-focussed copper
exploration Company with a strategy to develop multi-commodity assets that
demonstrate future potential as an economic mining operation.
Through the application of disciplined and structured exploration and
analysis, Castillo Copper has identified assets deemed core to the Company's
sustained growth and is actively progressing these interests up the value
curve.
Current focus will be on advancing exploration activity at the Company's
wholly owned NWQ Project, situated in the copper-belt district approximately
150km north of Mt Isa in north-west Queensland.
Other interests include the Broken Hill Project in western New South Wales and
the Cangai Copper Mine in north-east New South Wales, as well as exploration
targets in Zambia.
Castillo Copper is listed on the LSE and ASX under the ticker "CCZ".
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