Castillo Copper Ltd (ASX:CCZ) has elevated the Mt Oxide pillar to high-priority status after acquiring historical data that reveals new copper targets providing an enlarged pipeline of development work.
The company’s managing director Simon Paull said uncovering this information was a “significant inflection point for the Mt Oxide pillar that enhances its upside appeal”.
This non-JORC (2012) compliant data includes important historical exploration information for the Big One prospect and production statistics for the Boomerang Mine, both within the Mt Oxide project in Queensland’s copper belt.
Big One exploration data
At Big One, the data relates to a relatively shallow 2,000-metre reverse circulation (RC) drilling program in 1993 along a shear zone exceeding 600 metres that intersected supergene copper mineralisation.
This prospect is within a former mining lease held from the 1970s until 2016 and consists of three open-cut workings and a series of shafts.
There is no record of any exploration activity exploring the underlying sulphide mineralisation.
Boomerang Mine records
In addition, legacy mineral production records from 1944-74 for the Boomerang Mine indicate that oxide ore was mined and processed into copper metal.
Along with the known material massive sulphide target at the Arya prospect there is a stronger pipeline of development work ahead for CCZ.
Application for land
The company has also applied for more highly prospective ground directly north and contiguous to Mt Oxide, which would increase the overall footprint by around 30% to 961 square kilometres.
Within the application area are two Openfile Queensland Government identified prospects, The Wall and Pancake, which have elevated surface readings for copper-zinc mineralisation.
Paull said, “We have taken the decision to expand the footprint north to deliver incremental exploration upside over highly prospective ground.
“Overall, the board is highly optimistic that developing the priority targets within the expanded Mt Oxide pillar will create incremental value for shareholders.”
The enlarged Mt Oxide pillar in Queensland's copper belt.
LSE prospectus preparations
As part of preparing a prospectus for the upcoming dual listing on the LSE, the company carried out further desktop work on Mt Oxide, one of three pillars that form part of CCZ’s goal to become a mid-tier copper producer.
During this process, historical reports were acquired identifying Big One and Boomerang Mine.
As key information was not digitalised, CCZ’s geology team had to search through state library hard copy and micro-film archives in Perth/Brisbane and several private sources to secure additional supporting evidence.
CCZ’s London based Director Ged Hall said, “Receiving this positive news on the Mt Oxide pillar, coinciding with the LSE’s first review of the prospectus, is extremely positive newsflow.
“This delivers further confirmation our transformation to emerging copper group is gaining momentum.”
The company’s geology team is working on ascertaining the combined potential scale of Big One and Boomerang Mine with the core objective of revamping the exploration program.
A comprehensive site visit is planned after the wet season ends in the first quarter of 2020 and this will include:
- Reconciling the locations of previous drill holes, locating historic open pit workings to observe exposed sub-surface geology and finding the key mine survey pegs that defined prior mining lease(s); and
- Commence soil sampling and IP survey to expand the known ore body.
As part of this process, CCZ’s management team visited the landowners to secure their agreement for exploration activities to begin in the new year, assess the state of current infrastructure and determine optimal access routes to the various priority targets.
CCZ’s UK-based financial advisor SI Capital has confirmed the first draft of the prospectus to progress the dual listing on the LSE has been submitted for its maiden reading.