Castillo Copper (ASX:CCZ) has approved plans to update and enhance the confidence in the 2017 inferred JORC Mineral Resource Estimate (MRE) for its wholly owned Cangai Copper Mine within its Cangai Project in New South Wales.
The company says the optimising of the Cangai mine comes following a recent visit to the site by company Director and Geologist David Drakeley, and seeks to enhance the confidence of the mines 2017 inferred JORC MRE of 3.2 million tonnes (Mt) @ 3.35% copper (Cu) for 107,589 tonnes contained copper metal.
Castillo notes the updated geological model will factor in ‘considerable’ work post-2017 which includes 34 reverse circulation (RC) and 2 diamond core drillholes for a total of 5,222m. Intercepts returned from drilling include hole CC0023R with 11m @ 5.94% Cu, 2.45% zinc (Zn) and 19.13g/t silver (Ag) from 40m including 1m @ 10.25% Cu, 1.68% Zn and 32.50g/t Ag from 48m.
The company also notes the updated model will include bulk sampling and metallurgical sampling done on several historic stockpiles, as well as a drone topographic survey and re-positioned mine workings that are accurately geo-referenced.
Optimisation work is expected to be completed in the next 4-8 weeks.
Speaking on the optimisation of the Cangai Mine, Castillo Copper Director and Geologist David Drakeley said: “Cangai Copper Mine’s underlying geology is impressive, but more work is required to fully understand the system. As such, the board sees considerable potential to create incremental value for shareholders by updating the 2017 MRE for subsequent drilling campaigns and geophysical surveys.
“Cangai Copper Mine’s underlying geology is impressive, but more work is required to fully understand the system”
Moreover, as a standalone project, Cangai Copper Mine still delivers significant exploration potential with two bedrock conductors, open at depth, yet to be drill-tested. Once the updated MRE and key geological interpretations are complete, the board looks forward to outlining optimal steps to fully develop Cangai Copper Mine.”
In addition, it is reported Cangai still delivers exploration potential following the identification of 2 untested off-hole bedrock conductors from 6 downhole electromagnetic (DHEM) surveys. It has been interpreted that these conductors are open at depth.
With optimisation work now underway, Castillo Copper announces the board will review the findings and determine the optimal way to further develop Cangai Copper Mine’s full potential following completion of work.
Castillo Copper is an ASX-listed exploration company focused on copper across Australia and Zambia in hopes of morphing into a mid-tier copper group underpinned by its core projects. The company’s Cangai mine is located in New South Wales and represents one of Australia’s highest grading historic copper mines with a current defined JORC MRE of 3.2Mt @ 3.35% Cu for 107,589 tonnes contained copper metal.
Other assets contained in the company’s expiration arsenal include the NWQ Copper Project in Queensland, the Lumwana North and South projects in Zambia, and the Broken Hill Project in NSW.
Images: Castillo Copper Ltd
