This follows the completion of a review by the company’s independent geologist, which forms part of the company’s three-pillar strategy aimed at transforming Castillo into a mid-tier copper producer.
The final review results have added the Lumwana North & South project along with the Mwansa project to the two other projects, Luanshya and Mkushi, that will be followed up.
Castillo Copper’s managing director Simon Paull said, “The independent geological review clearly highlights that CCZ has selected four high-quality prospective projects that deliver exploration upside for primarily copper mineralisation.
“The board’s focus now is to formulate exploration plans for the Zambia assets then deploy teams to the priority Mkushi and Luanshya projects to commence fieldwork.
“We look forward to updating shareholders on progress as development work on our exciting third pillar unfolds.”
After reviewing the remaining projects, the independent geologist has concluded they are all prospective for copper mineralisation and further follow-up exploration is justified.
Completion of the review coincides with a visit to Zambia by SRK to undertake due process on the assets.
This visit and review is part of the process ahead of the company’s proposed London listing being finalised.
As Castillo’s geologists will accompanying the SRK team, they will use the opportunity to conduct fieldwork and collect samples then have them analysed.
Strong position in Copperbelt
CCZ’s London-based director Ged Hall said, “So far, we have been delighted with the results from the Zambian copper project review.
“Indeed, CCZ has done extremely well to position itself in one of the world’s leading copper belts, which augurs favourably ahead of the London listing.”
Located north of the traditional Copperbelt region, the geological structure underlying the Lumwana North & South projects is known as the Mombezhi Dome.
This is one of several in the ‘Domes’ region in northwest Zambia, which is where several large-scale copper occurrences exist.
The Lumwana North and South projects in the north of the Copperbelt.
Barrick Gold Corp's (NYSE:GOLD) Lumwana project is within a 50-kilometre radius of Castillo’s ground in the Mombezhi Dome.
According to the 2018 Annual Report, the Lumwana project produced 224 million pounds of copper generating revenues of US$502 million and has NI43-101 proven & probable reserves at 375 million tonnes at 0.6% copper.
Demonstrating the potential scale across this region is First Quantum Minerals’ two copper mines, Sentinel and Kansanshi, which are within a 100-200 kilometres of the Lumwana N&S projects.
These projects produced about 475,000 tonnes of copper in 2018, generating approximately US$2.9 billion in revenues.
The Mwansa project is in northeast Zambia in a relatively under-explored region.
Mwansa is in northeast Zambia in a relatively under-explored region.
However, the underlying geology is prospective for copper, manganese and other base metals which delivers upside potential.
With four sizeable projects spanning the Copperbelt region, the board decided not to proceed with the acquisition of the Lusemfwa project.
The three pillars of Castillo’s copper strategy are:
- Cangai Copper Mine in northern New South Wales, which is one of Australia’s highest grading historic copper mines with a JORC inferred resource of 3.2 million tonnes at 3.35% copper;
- The Mt Oxide project in the Mt Isa district, northwest Queensland, which delivers significant exploration upside through having a sizeable untested anomaly within its boundaries in a copper-rich region.
- Several high-quality prospective assets in Zambia, which is the second-largest copper producer in Africa.
In addition, the ASX-listed company is progressing a dual listing on the standard board of the London Stock Exchange.