Castillo Copper Ltd’s (ASX:CCZ) shares are trading circa 12% higher intra-day at $0.085 after identifying five significant electromagnetic (EM) conductors at its Cangai Copper Mine in New South Wales.
The preliminary geological interpretation suggests there is substantial incremental sulphide mineralisation at depth and outside the resource zone that exceeds the geology team’s expectations.
Meanwhile, the drilling at Cangai will recommence immediately following the Christmas and New Year break, with the results expected in the coming weeks.
The results from the EM survey show conductors that are below or well outside the JORC modelled zone which generated an inferred resource of 107,600 tonnes copper, 2,080,100 ounces silver and 82,900 ounces gold.
Alan Armstrong, executive director, said: “The board views this development as a pivotal point in Castillo Copper’s evolution, as the EM survey has delivered an outcome that materially exceeds our expectations.
“Indeed, this new discovery is timely as the current drilling campaign moves into full swing.”
Resemblance to Sandfire Resources’ Degrussa project
This is a significant result since it is the first time a ground electromagnetic survey has been applied to the high-grade Cangai Copper Mine and surrounding areas.
Moreover, this result resembles Sandfire Resources’ (ASX:SFR) Degrussa project in Western Australia, whereby high-grade supergene ore oxide material sits above larger volumes of mineralised sulphides.
Current drilling program expanded
Given the extraordinary discovery of five new large conductors, the board has approved to expand the current drilling program.
More funds are being allocated to expand the drilling and incremental surveys to help Castillo increase the existing resource at Cangai Copper Mine.
Having recently raised >$3 million from a placement, the company has adequate funds to progress an expanded exploration program at Cangai.
Castillo recently revealed more extensive cobalt mineralisation than originally envisaged at its 100% owned Broken Hill Project in New South Wales.
The company had sourced updated surface sampling and regional geophysical surveys as part of the current exploration program.
This incremental data highlights more extensive cobalt anomalism at surface across the tenure than previously reported.