Castillo Copper (ASX: CCZ) has intersected extensive hydrothermal alteration and mineralisation in all three holes drilled at its Posada Copper Project in Chile, successfully testing a 4 kilometre by 1 kilometre geophysical anomaly.
Despite this, the large extent of the alteration and occurrence of copper and gold in the drill core, and the size of the geophysical anomaly has led to the interpretation that the intercepts are peripheral to an important porphyry copper occurrence.
This interpretation is consistent with the presence of Mesozoic age porphyry copper deposits in the Coastal Ranges of Chile, many of which overprint IOCG assemblages, such as Inca de Oro and Carmen, north of Copiapo.
Castillo will now carry out the next phase of deep drilling to definitively intercept the copper mineralisation.
This will target magnetic features associated with the main induced polarisation anomaly.
Castillo's other Chilean projects, Resguardo and Rio Rocin, are prospective for porphyry and supergene copper mineralisation.
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