Castillo Copper (ASX:CCZ) has produced an updated JORC (2012)-compliant Mineral Resource Estimate (MRE) for its Cangai Copper Mine in New South Wales, Australia.
The $11.69 million market capitalisation company reports the updated MRE includes 4.4 million tonnes (Mt) @ 2.5% Cu inferred in-situ and 0.2Mt @ 1.35% Cu indicated from historical stockpiles for about 114,000 tonnes of contained copper metal, augmented further by zinc, gold, and silver credits.
Working in conjunction with a specialist geological consultancy, Castillo’s geology team used data from reverse circulation (RC) and diamond core drilling campaigns conducted across 2017 and 2018 to bolster its confidence in the updated MRE. The company says it used ‘conservative’ assumptions when making its estimations.
Commenting on the updated MRE, Castillo Copper Chairman Ged Hall says: “Having a high-grade MRE for circa 114,000 tonnes copper metal plus significant exploration potential is an excellent value-add outcome.
“the board believes it has a compelling business case to leverage and align with a strategic development partner”
Moreover, when reconciling Cangai Copper Mine’s favourable fundamentals with long-term global demand trends for copper, the board believes it has a compelling business case to leverage and align with a strategic development partner.”
Castillo notes that there are several ‘encouraging’ observations that underpin ‘significant’ exploration potential for Cangai, including the underlying orebody, which begins from surface and is not fully defined as it remains open to the east, southeast, and down-dip.
Further, the company says there are numerous sizeable downhole electromagnetic (DHEM) conductors proximal to the line of lode that could potentially extend known mineralisation along strike.
Now that the revised MRE has been conducted, Castillo says its board is ‘highly optimistic’ that the company can align with a strategic partner to support the development of the copper potential and map out a viable path to market.
The Cangai Copper Mine is wholly owned by Castillo and is reported to be 1 of the ‘highest-grade’ copper resources in Australia.
Castillo Copper is a copper-focused exploration company with 4 projects across Australia and Zambia. The company’s portfolio of assets includes the NWQ Copper, Broken Hill, and Cangai Copper Mine in Australia, alongside 4 ‘highly prospective’ exploration targets located in Zambia.
On 31 March 2023, the company had $3.332 million cash and cash equivalents at hand, according to its latest quarterly report published on 26 April 2023.
Write to Aaliyah Rogan at Mining.com.au
Images: Castillo Copper Ltd
