Castillo Copper report widespread mineralisation at Cangai

By Meagan Evans. Published at May 17, 2018, in Mining

Castillo Copper Limited (ASX:CCZ) today announced that it has finished up its first round of drilling at the Cangai Copper Mine in NSW and is shifting its focus onto the next campaign.

Phase I of the drilling program, which comprised 18 holes along the line of lode targeting deeper sulphide mineralisation, has successfully concluded with assays confirming extensive mineralisation outside the JORC modelled zone.

Now that the initial phase is complete, the company has shifted its focus on to the next campaign.

Assay results, reported today, from the final nine holes of the Phase I drilling campaign that was targeting deeper sulphide mineralisation confirmed high-grade copper intersections greater than 3% off the line of lode.

Mineralisation was found in seven out of the nine drill-holes with the best result being 6m at 2.69% copper, 0.39% zinc and 9.2g/t silver, which included 4m at 3.08% copper, 0.44% zinc and 10.6g/t silver.

Notably, new mineralisation outside the JORC modelled envelope was discovered at CRC013 and CRC016-18 drill-holes, while the drill-hole electromagnetic (DHEM) survey identified an anomaly near CRC005 drill-hole.

The mineralisation remains open to the east and west, while massive sulphides intersected at drill hole CRC018, which included a massive sulphide intersection reading of 1m at 3.31% copper, 1.11% zinc and 5.7 g/t silver. This intersection is potentially a splay off the main line of lode and warrants further investigation from the next drilling campaign.

However it is an early stage of this company’s development and if considering this stock for your portfolio you should take all public information into account and seek professional financial advice.

Completed drillholes along the line of lode:

The DHEM anomaly — discovered immediately along strike to the east of CRC005 drill-hole — will also be investigated further in the upcoming drilling campaign. The geology team believe it comprises massive sulphides with high-grade copper-zinc-silver mineralisation, given CRC005 had an intersection of 4m at 1.54% copper, 1.17% zinc and 11.5 g/t silver.

Long section of Cangai Coper Mine including the new results:

The results suggest that incremental larger scale drilling programs could deliver Resource size upside.

For that reason, the next drilling campaign is due to start as soon as regulatory approval is granted, while a drilling contractor has already been appointed and is ready to deploy to site. The next campaign will comprise 39 shallow drillholes focused on supergene ore near legacy workings.

To further enhance the understanding of the stockpiles, and build on metallurgy test-work currently underway, several drill-holes are planned for the Smelter Stockpile site. From there, the geology team will then target modelling up a JORC compliant Resource.

CCZ Chairman Peter Meagher commented: “The first round of drilling at Cangai Copper Mine, which specifically targeted deeper sulphide mineralisation, has been highly successful, evidenced by some encouraging assays, which demonstrated extensive mineralisation, that also produced assays over 3% copper.

“Moving forward, the next drilling campaign, which is set to commence once regulatory approval is secure, has been designed specifically to determine the extent of high-grade supergene ore mineralisation near legacy workings.

“Further, in an encouraging development, metallurgical test-work and JORC modelling of the stockpiles will be fast-tracked, as several prospective customers are showing interest in signing offtake agreements for the discarded ore.”

CCZ also reported that the Board has held discussions with prospective customers interested in reviewing stockpile samples and committing to off-take agreements post metallurgical testwork.

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.

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