Castillo’s latest drill results imply high-grade polymetallic deposit

Published at Nov 27, 2018, in Small Caps

Castillo Copper (ASX:CCZ) today released an update on preliminary diamond drilling results, final assays for drill-holes CC0026-34R, as well as down-hole electromagnetic (DHEM) survey findings that highlight the potential scalability of the polymetallic mineralised system of the Cangai Copper Mine.

Having identified several sizeable conductors with the earlier DHEM campaign, the diamond drill team targeted a known quantity near Volkhardts’ lode that hosts massive sulphides from a nearby position to drill-hole CC0023R.

The result for drill-hole CC0036D was a 9.6m mineralised envelope with two highly distinctive intersections that had up to 45% chalcopyrite and 15% sphalerite from a relatively shallow 50m depth.

In addition to chalcopyrite and sphalerite, the two massive sulphide intercepts – from 49.9m to 50.8m and 53.1m to 54.3m – comprised pyrite and pyrrhrotite hosted within “heavily bleached dacitic ash tuffs” of the Siluro-Devonian Willowie Creek Beds.

All collected samples from the small cap’s latest diamond drilling campaign have been sent to a laboratory for further analysis, with results to be released in due course.

A diamond drill core sample from the latest campaign
A diamond drill core sample from the latest campaign

CCZ’s Chairman, Peter Meagher, commented: “Exploration at the Cangai Copper Mine continues gaining momentum, with high-grade diamond drill core extracted from a shallow depth.

“Further, the DHEM results have provided greater clarity on incremental sizeable massive sulphide conductors interpreted to be open at depth which may deliver the project scale. The geology team are now optimising new priority targets, so the current drilling campaign can finish up enabling the Board to have a solid understanding of the ore body going into 2019.”

Results suggest high-grade polymetallic mineralised system at Cangai

Based on the evidence seen from the diamond drill core and what is already known, CCZ’s geology team increasingly believes that the Cangai Copper Mine is a unique high-grade polymetallic mineralised system.

Notably, over the course of the two drilling campaigns this year, the assay results have confirmed considerable high-grade mineralisation at the mine. Drill-hole CC0023R, the standout, delivered results from shallow depth including: 11m at 5.94% copper, 2.45% zinc & 19.1 g/t silver, including 1m at 10.25% copper, 1.68% zinc & 32.5 g/t silver from 48m.

In addition, assays for CC0026-34R highlighted consistent high-grade results up to 4.57% copper, 1.41% zinc and 19.1 g/t silver.

Massive sulphide DHEM conductors at Cangai
Massive sulphide DHEM conductors at Cangai

Furthermore, the DHEM survey results have been finalised, with several new sizeable massive sulphide target conductors identified under Volkhardts, Greenburg and Mark lodes, highlighting the mineralised system’s potential to be open at depth.

These new targets highlight the potential scalability of the ore body at Cangai Copper Mine and provide fresh targets to be optimised over the rest of the Phase II drilling campaign.

The ASX small cap advised that next steps will include the following key priorities:

- Optimise the final phase of the current RC drilling campaign to factor in the new high-grade massive sulphide targets which were identified by the DHEM campaign

- Report on assay results for the diamond drill core once received

- Provide an update on metallurgical testwork currently being undertaken on stockpile ore in connection with the Noble Group MOU

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.