Castillo Copper confirms extensive mineralisation at Cangai
Castillo Copper (ASX:CCZ) announced highly promising new assay results on Monday from its Cangai Copper mine, part of the Jackaderry project located in the New England Orogen in New South Wales.
These results effectively confirm extensive high-grade copper mineralisation within the JORC-modelled boundary.
It is also worth noting that incrementally, strong assay readings were received in relation to silver, zinc and lead mineralisation with gold assays still pending.
CCZ collected multiple rock-chip samples from within and external to the JORC-modelled boundary at Cangai Copper Mine during a recent field trip. The below diagram shows where the samples were collected along the line of lode at the historic mine site:
It should be noted here that this is an early stage play and investors should seek professional financial advice before making an investment decision.
Stockpiles and unmined working sections can also be identified, and the copper grades returned from the assay results ranged from 1.5 per cent up to 14 per cent.
The key takeaway is that the assay results support the JORC compliant inferred resource (3.2 million tonnes grading 3.35 per cent copper). Based on these assay results, management is now confident the average copper grade within the lodes and mineralisation halo will be in a range between 1 per cent and 4 per cent post the inaugural drilling campaign.
On this basis the empirical evidence now indicates there is considerable resource size upside potential for copper, silver and potentially gold.
On this note, management said, “While the readings from the stockpiles were excellent for copper mineralisation, more work needs to be done to determine the average grade and size of the ore volume available, and in the event of mining operations commencing, the stockpiles will likely be extracted first, which should enable cash flow generation to start almost immediately”.
Drill testing will start immediately after receipt of permitting approvals with the phase 1 program targeting known unmined working sections, as well as the mineralisation halo.
Phase 2 drilling will be deeper with a view to determining the decks of the orebody, a factor that remains relatively unknown due to shallower drilling that has been done in the past.