Early New Year’s gift for Castillo Copper
Castillo Copper (ASX:CCZ), an ASX-listed base metal junior focusing on copper, cobalt, zinc and nickel, has announced the unexpected discovery of five geological anomalies at its Cangai Copper Mine following electromagnetic surveying.
The EM results indicate there are potentially significant, highly mineralised sulphides within the areas identified, and could also mean CCZ is able to materially build on its existing JORC inferred resource. Its company assets comprise four tenure groups that collectively hold 11 highly prospective copper-cobalt-zinc-nickel project areas in New South Wales and Queensland.
Initial geological interpretation suggests the new anomalies comprise highly mineralised sulphides not factored into the current JORC Inferred Resource which CCZ has at its disposal (3.2 million tonnes @ 3.35 percent copper; 20.2 grams per tonne silver, and 0.80 grams per tonne gold) which derived from historic drilling results.
To facilitate an increase in its overall Resource at Cangai, CCZ says that “more funds are being allocated to expand the current drilling program and incremental surveys,” and hopes to update the market with its latest batch of assay results in the near-term, according to a company shareholder update.
CCZ has called today’s results a “game-changer” that could significantly alter the scale of the current resource at the Cangai Copper Mine.
It is, however, early stages here and investors should seek professional financial advice if considering this stock for their portfolio.
Independent confirmation of today’s results comes via a detailed report from Newexco, the company selected by CCZ to analyse its exploration results. The five significant electro-magnetic (EM) conductors at Cangai Copper Mine are now expected to be further investigated as a first priority.
Given the extraordinary discovery of five new large conductors and the fact that this is the first time a ground EM has been applied to Cangai Copper Mine, CCZ’s Board approved the expansion of its drilling program.
Interestingly, CCZ’s published results bear strong similarities to Sandfire’s (ASX: SFR) Degrussa project in Western Australia (WA), whereby “high-grade supergene ore oxide material sits above larger volumes of highly-mineralised sulphides”.
Drilling will recommence immediately following the New Year break while drilling samples will be assayed by ALS Laboratories (NSW) with results expected in coming weeks.
In response to today’s published EM results, CCZ Executive Director Alan Armstrong said that,” The Board views this development as a pivotal point in Castillo Copper’s evolution, as the EM survey has delivered an outcome that materially exceeds our expectations. Indeed, this new discovery is timely as the current drilling campaign moves into full swing. The Board highly values the work carried out by Newexco, as their experience in major copper discoveries, including work carried out on a massive sulphide deposit in Western Australia, is invaluable to evaluating the potential deposit at Cangai Copper Mine.”
Following this morning’s news, CCZ shares have continued their steady climb from July of last year, now trading at $0.08, up around 280% over the past six calendar months.
The past performance of this product is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.
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