The phase II program will focus on three areas along the line of lode targeting supergene ore near legacy workings and massive sulphide intersections identified in inaugural drilling.
Castillo’s geology team have developed a 39-hole reverse circulation program aimed at building on work completed to date and expanding the resource size.
Chairman Peter Meagher said: “The board’s priority is to re-open Cangai Copper Mine and commencement of this second drilling campaign takes us one step closer to realising this strategic objective.”
The project near Grafton comprises a volcanogenic massive sulphide ore deposit, with one of Australia’s highest grade JORC-compliant inferred resources for copper.
This inferred resource stands at 3.2 million tonnes at 3.35% copper for 107,600 tonnes of copper, 11,900 tonnes of zinc, 2.1 million ounces of silver and 82,900 ounces of gold.
Notably, this includes the presence of supergene ore with up to 35% copper and 10% zinc, which is ideal feedstock for direct shipping ore.
The project holds five historical stockpiles of high-grade ore near the former copper mine.
Considerable preparations have been made for the phase II drilling with new access tracks cleared and 13 drill pads shaped to cater for an RC rig.
Target areas for the phase II drilling campaign.
After the inaugural holes are reviewed and analysed for prospective mineralisation, the geology team will prepare preliminary field reports.
As well as the flagship Cangai asset within the Jackaderry project, Castillo also has cobalt-zinc interests near Broken Hill in the state’s far west.
There are also two Queensland assets which include copper-cobalt and cobalt-nickel prospects and six exploration concessions in Chile.