Castillo Copper Releases High-Grade Maiden JORC Copper Resource
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.
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.
“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.
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.
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