Quarterly Activities Report - September 2024
29/10/2024 07:00
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RNS Number : 9420J Castillo Copper Limited 29 October 2024
29 October 2024
CASTILLO COPPER LIMITED
("Castillo", "CCZ" or the "Company")
Quarterly Activities Report - September 2024
Castillo Copper ("Castillo" or "the Company" or "CCZ") is pleased to present
its latest quarterly report for the period 1 July 2024 to 30 September 2024.
Highlights:
Consultant Appointed and Works Imminent at Big One Deposit, NWQ Project1
· Global Ore Discovery was appointed to carry out the Company's
previously devised three-day surface sampling campaign, concentrating on eight
areas across the Big One Deposit with historical anomalous surface copper/high
conductivity zones.
· Campaign was developed with reference to an Induced Polarisation (IP)
survey undertaken by Castillo Copper in 2020, which evidenced:
o Significant incremental copper mineralisation along north-trending fault
structures, rather than within the trachyte dyke, and
o Significant untested bedrock conductor north of the line of lode,
materially larger than the high-grade anomaly drilled in 2020.
· Works were carried out in August 2024, results released subsequent to
quarter end.
Unlocking Value from Non-Core Assets
· CCZ previously announced its intent to align with partners to develop
all remaining assets in NSW and Zambia, which had been designated as non-core
assets.
· This resulted in the successful sale of Castillo's Broken Hill West
Assets((2)), completed in the previous quarter.
· In the Company's Annual Report((3)) (noted as an event subsequent to
the reporting period) Castillo Copper announced it was in advanced discussions
with third parties regarding a possible transaction of another non-core asset.
Subsequent to the Quarter, Castillo announced the Sale of Cangai Copper Mine
to Infinity Mining Ltd.
Cash and Liquid Investments
· Cash on hand at end of quarter totalled $1.041 million.
· Rehabilitation Security Bonds totalled $314,361, of which $158,500 is
expected to be converted to cash on completion of the sale of the Cangai
Copper Mine tenements to ASX: IMI.
· CCZ held 13,440,861 Rimfire Pacific Mining Ltd (ASX: RIM) shares which
as at 30 September 2024 had a market value of ~$632,000 and were sold
subsequent to period end.
Eduardo Robaina, Non-executive Director, commented:
"The Board is pleased with the progress made this quarter with regards to the
divestment of non-core assets, and development efforts at our NWQ Copper
Project.
"Encouragingly, following the successful sale of the BHA West Project, we have
received interest in several of our other non-core assets; and the Board
maintains optimism that similar value can be achieved across our portfolio."
Surface Sampling Campaign at the Big One Deposit, NWQ Copper Project
In mid-August 2024, Castillo Copper announced that a geological consultant -
Global Ore Discovery - had been appointed to carry out imminent development
activities at the Big One Deposit, situated within the Company's NWQ Copper
Project in Mt Isa's copper belt.
The premise of scheduled works was in alignment with Castillo Copper's
previously announced surface sampling campaign strategy4.
CAMPAIGN OBJECTIVES
· Having previously delivered a JORC 2012 compliant inferred MRE at the
Big One Deposit (2.1Mt @ 1.1% Cu for 21,886t contained copper metal)5 (#_ftn5)
- leveraging results from prior drilling campaigns in 2020-21 - a key
objective was to reconcile geochemical and geophysical data to identify
targets to drill-test.
· Subsequent drill-test works would bear potential for the Company to
identify extended mineralisation beyond the identified orebody, effectively
paving the way to grow the known resource.
· The 2020 IP survey comprised six lines, ranging from 500-700m long,
and spaced 200m apart over the 1,200m line of lode (Figure 1).
Figure 1: Line Locations Transversing Big One Deposit
Interpretations of the IP survey from CCZ's then geophysicist suggested there
is a significant untested bedrock conductor north of the line of lode that is
materially larger than the high-grade anomaly drilled in 20206 (Figure 2).
Figure 2: Line 3 - Newly Identified Bedrock Conductors
· Further, the geophysicist implied there is incremental copper
mineralisation along the north-trending fault structures rather than
constrained within the trachyte dyke.
· In addition, based on historical surface observations, circa 200m
north of the line of lode is a sizeable, potentially mineralised gossan that
needs to be thoroughly assessed for its copper potential.
· All samples from the current surface sampling campaign will be sent
to the laboratory for assaying. Once the full suite of geochemical results are
returned and reconciled with historical surface observations / IP survey, then
high conviction test-drill targets can finalised to potentially extend known
mineralisation.
Schedule of Works (Stage 1 - August 2024)
The schedule of works completed by Global Ore Discovery included:
· pXRF rock chip sample readings undertaken concurrently with the
mapping of 8 x target areas.
· Assessment of drill sites (pegging and photographing pre-disturbance
records).
· Limited soil sampling orientation survey over a number of the key
areas.
Unlocking Value from Non-Core Assets
The Board's strategy to partner with Companies and unlock value through Joint
Ventures (JV) or the sale of non-core assets was catalysed earlier in the year
via a transaction with Rimfire Pacific Mining Ltd; (ASX: RIM) whereby Castillo
Copper divested itself of two tenements composing a portion of the greater
Broken Hill Project (Broken Hill West).
Notably, the 13.4m ASX: RIM shares CCZ received as consideration for the BHA
West tenements grew significantly and were valued at $670,000 as at 30
September 2024, and which were sold subsequent to period end.
Increasingly, with a level of consolidation now apparent across the copper
sector, the Board stated their optimism that a similar arrangement could be
replicated with the remaining non-core assets, once the right partners are
secured.
At the date of the release of Castillo's Annual Report the Company provided an
update on their divestment efforts, stating that the Company was in advanced
discussions with third parties regarding a possible transaction in relation to
its non-core assets; but signed agreements or binding terms were still
outstanding, and subsequent to period end Castillo announced the Sale of
Cangai Copper Mine to Infinity Mining Ltd (ASX: IMI).
Cash and Liquid Investments
CASH ON HAND
Cash on hand at end of quarter totalled $1.041 million.
REHABILITATION SECURITY BONDS
Rehabilitation Security Bonds totalled $314,361, of which $158,500 is expected
to be converted on completion of the sale of the Cangai Copper Mine tenements
to ASX: IMI.
LISTED INVESTMENTS
CCZ held 13,440,861 Rimfire Pacific Mining Ltd (ASX: RIM) shares which as at
30 September 2024 had a market value of ~$632,000, which were sold subsequent
to period end.
R&D TAX INCENTIVE
An income tax refund of $182,756 due to the R&D Tax Incentive claim by CCZ
is expected to be received within 2 months.
Information Required Under ASX Listing Rules
1. ASX LR 5.3.5
During the Quarter $47,000 was paid to related parties of the Company relating
to non-executive director fees and exploration consulting fees paid to an
entity controlled by a related party.
2. ASX LR 5.3.1
A summary of the exploration expenditure incurred during the quarter is set
out below:
Table 1: Summary of Exploration Expenditure
Asset Consulting Fees Rates and Mines Department Fees
Cangai $11,000 $8,000
Broken Hill $6,000 $14,000
NWQ (Mt Isa) $36,000 $1,000
Zambia - -
Totals $53,000 $23,000
3. ASX LR 5.3.3
In accordance with ASX Listing Rule 5.3.3, a schedule of Company's tenements
as at 30 September 2024 can be found at Appendix B.
- ENDS -
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, 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".
COMPETENT PERSON'S STATEMENT
The information in this report that relates to Exploration Results for "BHA
Project" 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. Further, Mr Biggs consents to the inclusion in this
report of the matters based on information in the form and context in which it
appears.
The information in this report that relates to Exploration Results and Mineral
Resource Estimates for "Cangai Copper Mine" 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.
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 Australian Institute of
Geoscientists. 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.
ASX LISTING RULE 5.23.2
Castillo Copper Ltd confirms that it is not aware of any new information or
data that materially affects the information included in this market
announcement and, in the case of estimates of mineral resources, that all
material assumptions and technical parameters underpinning the estimates in
this market announcement continue to apply and have not materially changed.
APPENDIX A: Key Projects
Figure 1: NWQ Copper Project, Mt Isa Region (Source: CCZ Geology Team)
APPENDIX B: Interest in mining tenements held
Table 1: 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% -
Table 2: Broken Hill East, located within a 20km radius of Broken Hill in NSW
Tenement ID Ownership at start of Quarter Ownership at end of Quarter Change during the Quarter
EL8434 100% 100% -
EL8435 100% 100% -
Table 3: Mt Oxide, Mt Isa region in North West 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% -
Table 4: Zambia
Tenement ID Ownership at start of Quarter Ownership at end of Quarter Change during the Quarter
24659-HQ-LEL (Mkushi) 100% 50% 50%
APPENDIX C: RESOURCE TONNAGES - BIG ONE DEPOSIT
Resource Type Ore Type Inferred (Mt) Indicated (Mt) Measured (Mt) Copper Grade (%) Silver Grade (g/t) Contained Copper (t) Contained Silver (kg)
Mine Dumps Oxidised 0 0.007 - 1.2 4.0 86 29
Mine Insitu Oxidised 1.7 0 - 1.0 1.1 17,000 1,870
Mine Insitu Fresh 0.4 0 0 1.2 1.4 4,800 560
Sub-Totals 2.1 0.007 0 21,886 2,459
Notes:
Cut-off grade 0.45% Cu. Source: CCZ geology team
Refer to ASX announcement dated 28 February 2022
APPENDIX D: RESOURCE TONNAGES - CANGAI
Category Inferred Mass Cu Co Zn Au Ag Cu Co Zn Au Ag
(Tonnes) (%) (%) (%) (g/t) (g/t) (Tonnes) (Tonnes) (Tonnes) (Kg) (Kg)
Oxide Insitu 634,000 2.65 0.01 0.65 0.15 16.1 16,801 63 4,121 95 10,207
Fresh 3,773,000 2.48 0.01 0.55 0.31 15.2 93,570 226 20,752 1,170 57,350
Ex-Mine Oxide Dumps 29,000 2.10 0.02 0.3 0.58 14.5 609 5 87 17 421
Total 4,436,000 2.5 0.01 0.6 0.29 15.3 110,980 294 24,960 1,282 67,978
Historic Stockpiles
Category Indicated Mass Cu Co Zn Au Ag Cu Co Zn Au Ag
(Tonnes) (%) (%) (%) (g/t) (g/t) (Tonnes) (Tonnes) (Tonnes) (Kg) (Kg)
Smelter Slag and Ex-Mine Oxide Dumps 199,000 1.35 0.02 1.9 0.1 4.6 2,687 48 3,781 20 915
199,000 1.35 0.02 1.9 0.1 4.6 2,687 48 3,781 20 915
4,635,000 2.45 0.01 0.6 0.28 14.9 113,667 342 28,741 1,301 68,893
Notes:
1. All Resource tonnages rounded to nearest 1,000
tonnes.
2. Refer to JORC Table 1 for details on data and
estimation.
3. Insitu tonnages calculated as a guide only, no
recovery factor, loss or dilution considered.
Source: CCZ geology team
Refer to ASX announcement dated 25 July 2024
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 September 2024
Consolidated statement of cash flows Current quarter Year to date (3 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 (338) (338)
1.3 Dividends received (see note 3)
1.4 Interest received 12 12
1.5 Interest and other costs of finance paid
1.6 Income taxes paid
1.7 Government grants and tax incentives 183 183
1.8 Other (provide details if material)
1.9 Net cash from / (used in) operating activities (143) (143)
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 (76) (76)
(e) investments
(f) other non-current assets
2.2 Proceeds from the disposal of:
(a) entities
(b) tenements
(c) property, plant and equipment
(d) investments
(e) other non-current assets 173 173
2.3 Cash flows from loans to other entities
2.4 Dividends received (see note 3)
2.5 Other (provide details if material) (37) (37)
2.6 Net cash from / (used in) investing activities 60 60
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 1,118 1,118
4.2 Net cash from / (used in) operating activities (item 1.9 above) (143) (143)
4.3 Net cash from / (used in) investing activities (item 2.6 above) 60 60
4.4 Net cash from / (used in) financing activities (item 3.10 above) - -
4.5 Effect of movement in exchange rates on cash held 6 6
4.6 Cash and cash equivalents at end of period 1,041 1,041
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
$A'000
$A'000
flows) to the related items in the accounts
5.1 Bank balances 741 718
5.2 Call deposits 300 400
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) 1,041 1,118
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 47(1)
in item 1
6.2 Aggregate amount of payments to related parties and their associates included 0
in item 2
(1)Comprises director's fees for the quarter.
7. Financing facilities Total facility amount at quarter end Amount drawn at quarter end
Note: the term "facility' includes all forms of financing arrangements
$A'000
$A'000
available to the entity.
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) (143)
8.2 (Payments for exploration & evaluation classified as investing activities) (76)
(item 2.1(d))
8.3 Total relevant outgoings (item 8.1 + item 8.2) (219)
8.4 Cash and cash equivalents at quarter end (item 4.6) 1,041
8.5 Unused finance facilities available at quarter end (item 7.5)
8.6 Total available funding (item 8.4 + item 8.5) 1,041
8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 4.8
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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: 29 October 2024
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.
1 CCZ ASX Release 12 August 2024 - Consultant Appointed, Works Imminent at
the NWQ Copper Project
2 CCZ ASX Release 21 March 2024 - Completion of Broken Hill Acquisition
3 CCZ ASX Release 26 September 2024 - Annual Report to Shareholders
4 CCZ ASX Release 27 May 2024 - Plans for Big One Cu Deposit Surface Sampling
Campaign
5 CCZ ASX Release 1 June 2022 - Maiden Mineral Resource Estimate 21,556t
Contained Cobalt at Broken Hill
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