Castillo Copper Moves Forward with Big One Deposit Development
CCZ (CCZ) Share Update August 2024 Sunday 11th
Castillo Copper Appoints Consultant for Big One Deposit Development
Castillo Copper Ltd (ASX: CCZ) has announced the appointment of geological consultant Global Ore Discovery to spearhead imminent development activities at the Big One Deposit, part of the NWQ Copper Project in Mt Isa's copper belt.
Instant Summary:
- Appointment of Global Ore Discovery as geological consultant.
- Imminent surface sampling campaign at Big One Deposit.
- Big One Deposit has an inferred Mineral Resource Estimate of 2.1Mt @ 1.1% Cu.
- Queensland government commits $30m to the Mount Isa Mining Acceleration Program.
- Successful sale of BHA West Project shares to Rimfire Pacific Mining valued over $700k.
Consultant Appointment and Campaign Objectives
Castillo Copper Ltd has appointed Global Ore Discovery, a leading minerals and energy exploration consultancy, to carry out development activities at the Big One Deposit. This move aligns with Castillo Copper's previously announced surface sampling campaign strategy aimed at areas with historical anomalous surface copper and high conductivity zones.
The exploration campaign will begin with a comprehensive surface sampling program. The goal is to identify fresh targets for test-drilling that could extend known mineralization. The Big One Deposit already has a JORC 2012 compliant inferred Mineral Resource Estimate (MRE) of 2.1Mt @ 1.1% Cu, making it a key focus area within the NWQ Copper Project.
Government Support and Strategic Developments
The timing of this development is favorable as the Queensland government has committed $30 million to the Mount Isa Mining Acceleration Program. This funding is expected to boost mining activities in the region, providing further support for Castillo Copper's initiatives.
Additionally, Castillo Copper has successfully unlocked value from selling non-core assets. The 13.4 million shares in Rimfire Pacific Mining (ASX: RIM) received in return for selling the BHA West Project are now valued at over $700k. The Board is optimistic that similar performance can be replicated with other non-core assets, including the Cangai Copper Mine and BHA East Project in NSW, and the Mkushi Copper Project in Zambia.
Exploration and Sampling Details
The surface sampling campaign will involve mapping and pXRF rock chip sample readings across eight target areas. The primary objective is to reconcile geochemical and geophysical data to identify high-conviction test-drill targets. These targets could potentially extend the known mineralization beyond the identified orebody, paving the way to grow the resource.
Subject to securing approvals and access, the work is expected to commence this week. The schedule includes the arrival of a senior geoscience consultant and a field technician at Mt Isa, followed by biosecurity clearance and site visits.
The appointment of Global Ore Discovery and the commencement of the surface sampling campaign are positive developments for Castillo Copper. This could potentially lead to the discovery of new mineralization, thereby increasing the resource estimate. The Queensland government's funding support further strengthens the outlook for the project.
Investor Reaction:
Analysts are likely to view this announcement positively, given the potential for resource expansion and the backing of government funding. The successful sale of non-core assets also demonstrates the company's strategic acumen in unlocking value.
Conclusion:
Investors should keep an eye on the progress of the surface sampling campaign and subsequent test-drilling results. The potential for resource expansion at the Big One Deposit, combined with government support, makes this a promising development for Castillo Copper.