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Castillo Copper sampling infers extended mineralisation at Cangai Copper Project

The company is working towards reopening the historical copper mine in northern NSW.

Geology team members at Cangai adit
Members of the geology team examine historical workings in the Cangai East area

Castillo Copper Ltd’s (ASX:CCZ) soil and rock-chip samples have inferred that mineralisation extends from the eastern end of the line of lode at Cangai Copper Project in northern New South Wales.

The geology team discovered two anomalies, Canberra and Sydney, which returned soil readings of 1,660ppm and 500ppm copper respectively.

Rock chip samples delivered strong results with up to 23.9% copper and 55.5 g/t silver recorded.

Castillo Copper’s chairman Peter Meagher said, “After the recent impressive assay results, which confirmed an 11-metre massive sulphide intersection grading close to 6% copper, the positive news continues.

“Clearly, the Board’s core objective is to expand the known mineralised footprint and rock-chip results certainly verify there is a potential northeast extension to the line of lode.

“While significant incremental work needs to be undertaken, the board’s strategic objective remains re-opening Cangai Copper Mine.”

READ: Castillo Copper’s first batch of assays reveal 10.25% copper at Cangai

The potential high-grade northeast trending mineralised extension supports the geology team’s belief the mineralised footprint at Cangai can be scaled.

Since mining operations ceased a century ago, limited exploration has taken place which underscores the potential upside across the Cangai copper tenure.

Follow-up sampling

Follow-up infill soil sampling is set to start shortly with the target area broadened further to the north.

The reading from the Canberra anomaly is a significant potential indicator of sub-surface mineralisation and will be prioritised for this sampling.

The Sydney and Canberra anomalies at Cangai East.

Multiple DHEM surveys and drilling will continue, with the geology team confident of identifying further mineralisation.

Expanding known ore bodies

After the discovery of high-grade massive sulphides in drill hole CC0023R,  which returned 11 metres at 5.94% copper, 2.45% zinc and 19.13 g/t gold, the focus has switched towards expanding the known ore bodies.

Utilising DHEM surveys will aid optimising the remainder of the drilling campaign, which should potentially deliver extensions to known ore bodies.

A cross-section at Cangai showing significant intersections.

Diamond rig to be deployed

A diamond rig will be deployed to the site shortly while the company will also deliver metallurgical samples to potential end-users.

A third-party end-user has requested stockpile samples after test work confirmed copper concentrate recoveries of greater than 80% and grade up to 22% copper.

The board now intends to request official guidance from the regulator on how to legally remove the historical stockpiles for processing by third parties.

Quick facts: Castillo Copper Ltd

Price: 0.026 AUD

Market: ASX
Market Cap: $21.59 m

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