Castillo Copper Ltd (ASX:CCZ) (LON:CCZ) has entered into a binding agreement with private group Wyloo Metals Pty Ltd to acquire two tenements complementing existing tenure in the Broken Hill area of far western NSW.
This acquisition will deliver the company a commanding ground position in Broken Hill with technological advances inferring that this footprint is prospective for Broken Hill-type zinc-silver-lead (BHT) and iron oxide-copper-gold (IOCG) mineralisation.
The company, via its 100%-owned subsidiary Broken Hill Alliance Pty Ltd, will pay Wyloo $215,000 cash plus assign a 2% NSR in the event of future mining operations materialising.
“Treasure trove of targets”
Castillo Copper managing director Simon Paull said: “The advanced predictive geological model has uncovered a potential scalable treasure trove of fresh targets to test-drill for BHT and IOCG mineralisation moving forward.
“More significantly, most of the new targets are at relatively shallow depth as the surficial clay and sand covering ranges from 5-40 metres.
“Our geology team believes with some further localised ground geophysics, a drilling campaign can be formulated and deployed relatively fast.”
“Potentially scalable asset”
Technological progress with advanced predictive geological modelling released by Geological Survey of NSW (GSNSW) highlighted the ground is prospective for Broken Hill-type BHT and IOCG mineralisation.
The advanced predictive geological models generated highlighted that the tenure is prospective for silver-zinc-lead in the West Zone and copper-gold mineralisation in the East Zone of the enlarged tenure package.
Castillo Copper UK director Ged Hall said: “New technology can change fortunes and that is exactly what has transpired here.
“Through acquiring more ground in Broken Hill, we now potentially have a scalable asset that is adjacent to the world-class silver-zinc-lead deposit.”
CCZ’s footprint in Broken Hill relative to the historic mines.
Applying the technology has also generated numerous high-priority drillable targets within the tenure boundaries which deliver a significant pipeline of exploratory work ahead.
Interestingly, conventional exploration methods missed identifying these highly prospective targets as they are below a 5-40 metres covering of surficial clay and sand.
The company is now planning to conduct ground geophysics on priority IOCG and BHT targets then commence formulating the inaugural drilling campaign.