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


Published 27-NOV-2018 11:14 A.M.


3 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

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

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (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 and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.


Discover Small Cap
Biotech Stocks

Join thousands of other Investors following our stock commentary for Free