RNS20 Feb 2023 08:30
CASTILLO COPPER LIMITED("Castillo", or the "Company")
Optimising Big One Deposit
Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily focused on copper across Australia and Zambia, announces that it has completed a strategic asset review which approved several initiatives on how to maximise value from developing the NWQ Copper Project in the Mt Isa copper-belt (complementing work in Broken Hill). Moreover, with the macro-outlook for copper remaining positive and several majors - including Rio Tinto, Glencore and AngloAmerican - active in the Mt Isa region (Figure 1), there is a compelling case to ramp up exploration activities.
HIGHLIGHTS:
· Complementing efforts at the BHA Project's East Zone, the Board has approved plans to assess optimising the Big One Deposit (within the NWQ Copper Project in the Mt Isa copper-belt) via implementing the following:
o Commissioning an independent engineering contractor to conduct a pit optimisation study on the viability of commencing copper mining operations, utilising prospective third-party processors and effective path to market
o Re-formulating optimal plans for a third drilling campaign and companion geophysical surveys to extend known mineralisation beyond the line of lode
· To recap, the Big One Deposit has an inferred Mineral Resource Estimate (MRE) at 2.1Mt @ 1.1% Cu for 21,886t2 copper metal - with best intercepts comprising:
o 40m @ 1.64% Cu from surface incl: 11m @ 4.40% Cu from 24m, 5m @ 7.34% Cu from 28m & 1m @ 16.65% Cu from 29m (303RC)3
o 44m @ 1.19% Cu from surface incl: 14m @ 3.55% Cu from 27m, 3m @ 10.88% Cu from 37m & 1m @ 12.6% Cu from 37m (301RC)3
o 34m @ 1.51% Cu from surface incl: 21m @ 2.25% Cu from surface, 12m @ 3.44% Cu from 3m, 6m @ 4.79% Cu from 3m and 1m @ 9.4% Cu from 9m (B0017)3
· Post upcoming site visits to several targets - including Arya, Valparaisa, Boomerang and Josephine - the Board will rank the exploration potential then present the opportunity to prospective development partners in the Mt Isa region:
o Note, several global mining groups have operations proximal to Castillo's ground including Rio Tinto, Glencore and Anglo American
· Meanwhile, initial metallurgy test-work results for rare earth elements from the BHA Project's East Zone are due back shortly
Ged Hall, Chairman of Castillo Copper, said: "Following a recent strategic asset review, the Board approved an optimization study for the Big One Deposit which should ideally articulate a clear pathway to commence copper mining operations. With exploratory work ramping up at the NWQ Copper and BHA Projects, the Board is increasingly optimistic about the group's prospects for 2023."
Big One Deposit - Optimisation plans
FIGURE 1: NWQ COPPER PROJECT VS MT ISA REGIONAL PEERS
Source: CCZ geology team
Big One Deposit Optimisation
As the only prospect within the NWQ Copper Project that has an inferred MRE
Sign In
Follow the stocks
