Castillo Copper Releases High-Grade Maiden JORC Copper Resource

By Jonathan Jackson. Published at Sep 6, 2017, in Mining

Castillo Copper today announced a high-grade maiden JORC Inferred Resource for its Cangai Copper Mine.

The Cangai Copper Mine is part of the Jackaderry Southwest Copper Cobalt Project in NSW and has been the subject of intense exploration since the early 1900s.

Legacy mining in the 1900s only went down to 85m and was drilled using manual labour, confirming the presence of a high-grade resource.

In the last 30-40 years, one hole in particular intersected near vertical ore shoots at 230m, which again exhibited significant mineralisation.

The mine was abandoned in the 1990s due to market forces and Rio Tinto’s takeover of Conzinc Riotinto of Australia (CRA).

CCZ recently reopened the Cangai Mine, with a view to capitalising on historical data.

It should be noted that it is still early stages here and investors should seek professional financial advice if considering this stock for their portfolio.

Looking at the numbers, the high grade maiden JORC Inferred Resource for Cangai in unmined working sections of 3.2Mt @ 3.35% Cu implies circa 108,000 tonnes of contained copper.

Cangai inferred resource

On a metal equivalent basis the key base metal results are: CuEq – 4.2%, ZnEq – 9.3% and CoEq – 0.5%, AuEq – 6.9g/t, and AgEq – 503.9g/t.

Castillo cangai copper mine

“This is an outstanding start and arguably delivers CCZ one of the highest-grade copper resources in Australia,” said CCZ Managing Director Alan Armstrong.

Results thus far account for just a small accounts for a small part of CCZ’s Jackaderry Project, which leaves the Board optimistic that incremental desktop work and a maiden drilling program will underpin further exploration and Mineral Resource size upside moving forward.

“Moving forward, the Board plans to further prove up this initial resource by expanding across the Jackaderry project, which includes an inaugural drilling program.

“Within the Cangai Copper Mine, 3D JORC modelling showed there are unmined high-grade supergene ore working sections, which are potentially direct shipping ore material that could be extended further.

Desktop research has confirmed supergene ore present with up to 35% copper.

Castillo copper

High grade copper at the Cangai mine

More significantly, given the resource is relatively shallow and located on the top of a hill, an open pit deposit could potentially be developed. The project has excellent infrastructure with sealed roads that link directly to Newcastle Port.

Comparisons have been drawn with the $904 million Sandfire Resources, which has comparable supergene ore in an open pit environment and has had six years of consistent, safe and profitable production looking at 63-66kt of production in FY 2018.

Whilst CCZ is still a junior and some way off Sandfire, it is confident it can gain traction as it looks to expand its resource.

The Resource size for the Jackaderry Project set to increase substantially with incremental historic assay results and an inaugural drilling campaign which is slated to commence shortly.

The drilling programme will target additional supergene ore mineralisation as 3D JORC modelling has confirmed is open in all directions.

Cangai is the first of four JORC compliant Inferred Resources across CCZ’s Australian projects to be released as the Board looks to expedite proving up then utilising third party processors near excellent transportation infrastructure to fast-track product to key north Asian markets.

If practical, Castillo Copper will sell product to third parties via the London Metal Exchange or enter into offtake agreements.

View Our Investment Portfolios



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.

Australian ASX Small Cap stocks | Why is Australia’s leading small cap publication

Founded seven years ago, is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise. provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more. is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!