Castillo partners with global base metal trader to monetise legacy ore stockpiles

By Meagan Evans. Published at Oct 25, 2018, in Mining

Castillo Copper Limited (ASX:CCZ) has signed an MOU with Noble Group, a global base metal and commodities trader, that provides a clear avenue to monetise the legacy stockpiles at Cangai Copper Mine.

The Cangai Copper Mine, near Grafton in northeast NSW, is CCZ’s flagship project. The project comprises a volcanogenic massive sulphide (VMS) ore deposit, with one of Australia’s highest grade Inferred Resources for copper: 3.2Mt at 3.35% copper. In terms of contained metal, the Inferred Resource is 107,600t copper, 11,900t zinc, 2.1Moz silver and 82,900Moz gold. Notably, supergene ore with up to 35% copper and 10% zinc is present, which is ideal feedstock for direct shipping ore.

CCZ, with Noble Group, will work towards delivering a binding off-take agreement enabling Noble to exclusively distribute up to 200,000t of copper concentrate from existing stockpile ore.

The project holds five historic stock piles of high-grade ore

Upon signing a binding off-take agreement, which the parties aim to expedite, Noble Group will pay CCZ a A$500,000 pre-payment for working capital purposes, subject to satisfactory due diligence and definitive long form documents.

CCZ continues to undertake metallurgical test-work on the stockpile ore which has already demonstrated copper concentrate recoveries >80%, with the grade up to 22% copper.

It is also working to secure regulatory approval to remove the stockpiles and closely follow the legislative protocols to secure the ministerial consent to do so. Work will continue in an attempt to expedite the process, in parallel with CCZ moving towards crystallising the binding off-take agreement.

CCZ continues to progress the diamond drilling campaign at Cangai Copper Mine, focusing on massive sulphide conductors identified during the first DHEM survey program. At the same time, the DHEM survey team will be commencing work on drill-holes from the Phase I campaign to evaluate conductors found from the fixed loop electromagnetic program.

CCZ Chairman Peter Meagher commented: “We are delighted to have signed a collaboration agreement with Noble Group, with the objective being to generate early cash flow by processing of the legacy stockpiles at Cangai, provided regulatory approval can be secured and further test work on the stockpiles is successful.

“The Board intends to work diligently with our counterparts from Noble Group to ensure a binding off-take agreement can be achieved in a timely manner. Concurrently, our legal team are working through the necessary legislative protocols that should hopefully deliver the necessary ministerial consent to remove the stockpiles.”

Where to invest $1,000 right now

When the experts at Next Investors have a stock pick, it may pay to listen.

The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.

They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.

Click the link below to see what they are currently investing in.


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!