Castillo’s latest drill results imply high-grade polymetallic deposit

Published at Nov 27, 2018, in Mining

Castillo Copper (ASX:CCZ) today released an update on preliminary diamond drilling results, final assays for drill-holes CC0026-34R, as well as down-hole electromagnetic (DHEM) survey findings that highlight the potential scalability of the polymetallic mineralised system of the Cangai Copper Mine.

Having identified several sizeable conductors with the earlier DHEM campaign, the diamond drill team targeted a known quantity near Volkhardts’ lode that hosts massive sulphides from a nearby position to drill-hole CC0023R.

The result for drill-hole CC0036D was a 9.6m mineralised envelope with two highly distinctive intersections that had up to 45% chalcopyrite and 15% sphalerite from a relatively shallow 50m depth.

In addition to chalcopyrite and sphalerite, the two massive sulphide intercepts – from 49.9m to 50.8m and 53.1m to 54.3m – comprised pyrite and pyrrhrotite hosted within “heavily bleached dacitic ash tuffs” of the Siluro-Devonian Willowie Creek Beds.

All collected samples from the small cap’s latest diamond drilling campaign have been sent to a laboratory for further analysis, with results to be released in due course.

A diamond drill core sample from the latest campaign

CCZ’s Chairman, Peter Meagher, commented: “Exploration at the Cangai Copper Mine continues gaining momentum, with high-grade diamond drill core extracted from a shallow depth.

“Further, the DHEM results have provided greater clarity on incremental sizeable massive sulphide conductors interpreted to be open at depth which may deliver the project scale. The geology team are now optimising new priority targets, so the current drilling campaign can finish up enabling the Board to have a solid understanding of the ore body going into 2019.”

Results suggest high-grade polymetallic mineralised system at Cangai

Based on the evidence seen from the diamond drill core and what is already known, CCZ’s geology team increasingly believes that the Cangai Copper Mine is a unique high-grade polymetallic mineralised system.

Notably, over the course of the two drilling campaigns this year, the assay results have confirmed considerable high-grade mineralisation at the mine. Drill-hole CC0023R, the standout, delivered results from shallow depth including: 11m at 5.94% copper, 2.45% zinc & 19.1 g/t silver, including 1m at 10.25% copper, 1.68% zinc & 32.5 g/t silver from 48m.

In addition, assays for CC0026-34R highlighted consistent high-grade results up to 4.57% copper, 1.41% zinc and 19.1 g/t silver.

Massive sulphide DHEM conductors at Cangai

Furthermore, the DHEM survey results have been finalised, with several new sizeable massive sulphide target conductors identified under Volkhardts, Greenburg and Mark lodes, highlighting the mineralised system’s potential to be open at depth.

These new targets highlight the potential scalability of the ore body at Cangai Copper Mine and provide fresh targets to be optimised over the rest of the Phase II drilling campaign.

The ASX small cap advised that next steps will include the following key priorities:

- Optimise the final phase of the current RC drilling campaign to factor in the new high-grade massive sulphide targets which were identified by the DHEM campaign

- Report on assay results for the diamond drill core once received

- Provide an update on metallurgical testwork currently being undertaken on stockpile ore in connection with the Noble Group MOU

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