Castillo Copper seeks to optimise its assets
After a recent strategy meeting, Castillo Copper Limited (ASX:CCZ) Board has announced that an optimal way to create value for shareholders from its two Queensland projects is to align with groups amenable to form joint-ventures.
The company’s Queensland assets comprises of two projects Mt Oxide and Marlborough.
Mt Oxide is made up of four prospects (three are contiguous) in the Mt Isa region, northwest Queensland, and are well known for copper-cobalt systems.
With the right high-calibre strategic partner, CCZ is targeting to develop a viable copper-cobalt mining operation at its highly prospective Mt Oxide project.
Marlborough includes three prospects located north-west of Gladstone (adjacent to Queensland Nickel mining leases) in an area with proven high-grade cobalt-nickel systems.
Aligning with JV partners will enable CCZ to adopt a two pronged strategy to optimise its assets:
- Leverage experienced third parties for the Queensland projects; and
- Utilise in-house expertise and resources to re-open the Cangai Copper Mine, while simultaneously progressing plans for an inaugural drilling campaign at the Broken Hill project.
The recent transaction with A-Cap Resources (ASX:ACB), which, subject to final documentation, has agreed to invest $2.25 million over the next two years to develop the Marlborough project, is an optimal outcome. For CCZ, the benefit is being free-carried for a 40%-stake in the project through to Bankable Feasibility Study with an experienced strategic partner with significant China end-user connections.
Yet it remains a speculative stock and investors and investors should take a cautious approach to any investment decision made with regard to this stock.
CCZ also has two NSW projects — Jackaderry and Broken Hill.
Jackaderry, which includes Cangai Copper Mine, is in an area highly prospective for copper-cobalt-zinc and made up of three tenements. The Broken Hill project, which consists of two contiguous tenements prospective for cobalt-zinc, is located within a 20 kilometre radius of Broken Hill and just north of Cobalt Blue’s ground (ASX:COB).
CCZ now have exploration teams concurrently in the field at Cangai Copper Mine and "Area 1" at the Broken Hill project.
Short-term positions in small, early stage ASX companies,
with high potential and near term price catalysts.
Focusing on resource exploration, early-stage tech, and biotech.
Exceptional opportunities across a broad range of
early-stage growth sectors with strong management.
Seeking 1,000% plus returns across medium to long-term holds.
Longer-term positions in a variety of sectors.
Seeking strong management where traction is established and have entered into a growth phase.
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.
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.