Castillo Copper Ltd (ASX:CCZ) has received a report from its geology consultant, indicating anomalous cobalt occurrences across its Broken Hill Project.
The project is just north of the Thackaringa cobalt deposit, which had its JORC resource upgraded today.
Thackaringa is held in joint venture by Cobalt Blue (ASX:COB) and Broken Hill Prospecting (ASX:BPL) and both companies have undergone a share price re-rating.
With the cobalt price remaining around US$85,000 per tonne and the region emerging as a new global supply hub, Castillo is looking to fast-track its cobalt exploration program.
Gaining an understanding of the type and extent of mineralisation across the tenure will assist the company in developing an exploration strategy.
Definition of three major zones
A key feature of the new review is defining three major zones which are to be targeted for potential cobalt mineralisation.
Previous exploration has primarily focused on traditional Broken Hill mineral systems containing zinc, lead and silver.
However, due to growing demand for battery-grade minerals, the economics are favourable for cobalt.
Fast-tracking cobalt focused program
Peter Meagher, chairman said: “With the cobalt price around US$85,000 per tonne, the board has mandated geology consultant, Xplore Resources, to fast-track the assessment program.
“This will assist in understanding the extent of cobalt mineralisation and developing the inaugural drilling program for our Broken Hill asset.”
Proven regional cobalt mineralisation
Management views the regional success of companies such as Cobalt Blue (ASX:COB), Havilah Resources (ASX:HAV), and Alloy Resources (ASX: AYR) as encouraging.
Castillo sees the area as becoming a potential supply chain hub for cobalt which augurs favourably for CCZ, particularly given its proximity to peers with defined JORC resources.
The company will be focusing on reopening its Cangai Copper Mine while gaining a deeper understanding of the cobalt potential at the Broken Hill asset.
Castillo has had recent exploration success at Cangai.