TIDMCCZ
RNS Number : 8252I
Castillo Copper Limited
07 December 2022
7 December 2022
CASTILLO COPPER LIMITED
("Castillo" or the "Company")
Further exploratory work approved for Luanshya Project in
Zambia
Castillo Copper Limited (LSE and ASX: CCZ), a base metal
explorer primarily focused on copper across Australia and Zambia,
has approved further work on known targets within the highly
prospective Luanshya Project in Zambia's copper belt (Figure 1).
Based on current plans, the work is schedule to progress during
1H2023.
HIGHLIGHTS:
-- Castillo's Board has approved incremental development work on
known key targets - scheduled to commence in 1H2023 - focusing on
the highly prospective Luanshya Project which is in the heart of
Zambia's copper belt
-- The geology team plan to roll out an Induced Polarisation
(IP) geophysics campaign to build on earlier work undertaken in
2021 which focused on a 6km zone of copper surface anomalism that
delineated up to 14 chargeable zones:(1)
o A key focus of the upcoming IP campaign will be to refine
targets for test drilling and enhance the confidence of finding
structurally controlled copper mineralisation(1)
-- The plans for development work follow London-based, Metallea
Group's (previously Hyperion Copper) decision to cancel plans to
list on the Alternative Investment Market (AIM) of the London Stock
Exchange (LSE)(2) , due to extremely difficult equity market
conditions
-- As this was a key requirement to secure funds to progress
development work, Metallea has further advised it will not be
exercising the option - which delivered a US$100,000 non-refundable
deposit to Castillo - to acquire the Zambia assets
-- Moving forward, as Castillo's Board remains committed to
aligning with a development partner or undertaking a trade sale for
the Zambia copper assets, efforts will be re-doubled to deliver
this outcome during 2023
Dr Dennis Jensen, Managing Director of Castillo Copper,
commented : "Castillo's Board is determined to align with a new
development partner or undertake a trade sale for the Zambia copper
assets to crystallise value for shareholders. All the exploratory
work undertaken to date indicates the Luanshya and Mkushi Projects
are highly prospective for copper mineralisation."
Advancing Zambia copper projects
Focusing on a 6km zone of copper surface anomalism, where 14
chargeable zones(1) were delineated, the geology team plan to
conduct an infill IP campaign. The core objective is to further
refine key targets and boost the confidence in identifying
structurally controlled copper mineralisation.
FIGURE 1: HISTORICAL IP SURVEY RELATIVE TO COPPER SURFACE
ANOMALISM
Source: CCZ geology team
Metallea AIM listing
Due to extremely difficult equity market conditions,
London-based Metallea Group (previously Hyperion Copper) have
cancelled plans to list on AIM / LSE(2) . As a result, Castillo's
Board has been advised the option to acquire the Zambia assets will
not be exercised. Note, Metallea Group paid Castillo a US$100,000
(A$142,000) non-refundable deposit for the option.
Strategic intent unchanged
With all previous exploratory work indicating the Luanshya and
Mkushi Projects are highly prospective for copper mineralisation,
the Board remains committed to creating value for shareholders
which could include 1) aligning with a development partner; or, 2)
undertaking a trade sale for the Zambia copper assets or a
transaction of a similar nature.
For further information, please contact:
Castillo Copper Limited +61 8 6558 0886
Dr Dennis Jensen (Australia), Managing Director
Gerrard Hall (UK), Chairman
SI Capital Limited (Financial Adviser and Corporate
Broker) +44 (0)1483 413500
Nick Emerson
Gracechurch Group (Financial PR) +44 (0)20 4582 3500
Harry Chathli, Alexis Gore, Henry Gamble
About Castillo Copper
Castillo Copper Limited is an Australian-based explorer
primarily focused on copper across Australia and Zambia. The group
is embarking on a strategic transformation to morph into a mid-tier
copper group underpinned by its core projects:
-- A large footprint in the Mt Isa copper-belt district,
north-west Queensland, which delivers significant exploration
upside through having several high-grade targets and a sizeable
untested anomaly within its boundaries in a copper-rich region.
-- Four high-quality prospective assets across Zambia's
copper-belt which is the second largest copper producer in
Africa.
-- A large tenure footprint proximal to Broken Hill's
world-class deposit that is prospective for
zinc-silver-lead-copper-gold and platinoids.
-- Cangai Copper Mine in northern New South Wales, which is one
of Australia's highest grading historic copper mines.
The group is listed on the LSE and ASX under the ticker
"CCZ."
References
1) CCZ ASX Release - 25 October 2021
2) CCZ ASX Release - 22 June 2022
APPENDIX A: LUANSHYA & MKUSHI PROJECTS
The Luanshya Project is 6-10km south of China Nonferrous Mining
Corp's (CNMC) three operating mines (Figure A1), with a combined
JORC (2012) compliant Proven & Probable Reserves at 52.3mt @
1.26% Cu(1) .
Across the region are four NW-SE trendlines, which are 5-10km
wide, that host numerous historic / current operating mines &
deposits(1) .
Notably, two trendlines hosts CNMC's three mines, with one
directly intersecting the middle of the project coincident with
Lower Roan Formation(1) .
FIGURE A1: LUANSHYA PROJECT
Source: CCZ geology team
At the Mkushi Project (Figure A2), a comprehensive soil sampling
campaign completed around Shi Yan Group's operating mining lease(2)
, comprising >1,000 data points(2) , delivered the following
outcomes:
-- Five new, well-defined, anomalous areas identified by
Portable XRF (coded 1 to 5), with respective strike lengths ranging
from 2-7km (20.5km in aggregate) (2) ; and
-- Relative to Mushiwemba Copper Mine and artisanal pits along
the northern high-grade shear zone, the five anomalous areas are
located circa 2-7km SW - NE on the same over-riding system (2)
.
FIGURE A2: MKUSHI PROJECT
Source: CCZ geology team
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