Big Picture – A Deep Dive Examination of Castillo Copper Ltd
Castillo Copper Ltd Snapshot
Castillo Copper Ltd(ASX:CCZ) is an ASX-listed base metal explorer – primarily focused on copper, cobalt, zinc and nickel – that has the bulk of its core operating assets in eastern Australia.
MT OXIDE PROJECT
- With the right high-calibre strategic partner, CCZ is targeting to develop a viable Cu-Co mining operation at its highly prospective Mt Oxide project – which has a large mineralised footprint near Mt Isa
- High values, up to 2.9%, for copper mineralisation and encouraging cobalt occurrences up to 2,400ppm
- The project is close to supporting infrastructure, ready access to skilled labour and third party processors amenable to off-take arrangements
The Mt Oxide Project includes four tenements.
- Legacy data shows the area covered by the Marlborough project and Queensland Nickel contains proven and probable reserves of 48.7Mt at 0.94% nickel and 0.06% cobalt; and
- A-Cap Resources (ASX: ACB), has agreed to invest $2.25m through to BFS for 60% earn in; CCZ is free-carried with 40%
The Marlborough Project comprises three prospects.
CANGAI COPPER PROJECT (INCLUDES HISTORIC CANGAI COPPER MINE) & CANGAI COLBALT
- The Cangai Copper & Cobalt Project is on an ultramafic system that is well known for high-grade copper-cobalt;
- Exceptional high-grade JORC Inferred Resource for Cangai Copper Mine derived from 3D modelling of legacy data at 3.2MT @ 3.35% Cu, representing circa 108,000MT contained copper;
- Core strategy to re-open Cangai Copper Mine
- Shallow massive sulphide mineralisation confirmed outside existing known ore bodies
- High-grade assay results – up to 10.25% Cu, 6.04% Zn and 32.5g/t Ag
- Best intersection 11m @ 5.94% Cu from 41m incl: 1m @ 10.25% Cu; 3m @ 8.1% Cu; 1m @ 7.53% Cu
- Multiple DHEM surveys to optimise the current (39-hole, Phase II) drilling campaign
- Potential for high-grade north-east trending extensions, with high grade soil and rock-chip assay results up to 1,660ppm Cu and 23.9% Cu respectively
- Metallurgical test-work from McDonoughs stockpile can be beneficiated materially – with copper concentrate recoveries >80%, grading up to 22%
The Cangai Copper and Cobalt Projects includes two tenements.
BROKEN HILL PROJECT
- The Broken Hill Project is prospective for cobalt-zinc-lead-copper mineralisation
- Distinct comparative advantages relative to peers in the region include full mining rights and 100%-tenure ownership
- Recent field trips have concentrated on the “Area 1” prospect which delivered assay results that confirmed cobalt mineralisation up to 291ppm Co at surface within the Himalaya Formation
- There is mineralisation potential south of “Area 1” for zinc-lead-copper judging by solid historic assays up to 5,300ppm Zn; 12,800ppm, Pb; 2,900ppm Cu
- CCZ’s geology team is continuing to compile data to formulate inaugural drilling campaign
The Broken Hill Project Group includes two tenements.
Through its wholly owned Chilean subsidiary, Castillo Copper has six concession blocks covering an area of 1,800 hectares. Known as the Trueno concessions, they are in a zone known for high grade copper-gold projects such as El Indio but containing identified and underexplored porphyry copper-gold deposits.
Last updated 4th December 2018
Mr Meagher commenced his career as an equity analyst with roles in London and Hong Kong, before to moving to Sydney with a merchant bank in a corporate finance role. Subsequently, he has held senior corporate advisory roles with several investment banks in Sydney and Perth. He has also worked as a finance director for a large listed group with operations in hotels, property development, mining and exploration. Mr Meagher has been involved in a number of private and public companies, including Oklo Resources (Mali gold exploration) and White Star Resources (Chile copper/gold exploration).
He has Commerce/Economics degrees from the University of Western Australia and is a Certified Practising Accountant.
Mr Smith is a geophysicist with 30 years’ experience in base metal mineral exploration having worked for Normandy, Pasminco, BHP Billiton and several junior mining companies. He has held senior exploration manager roles, including Regional Exploration Manager Australia for Cliffs Natural Resources.
Reflecting his diverse experience, Mr Smith has worked on base metal projects in Africa, Australia, Philippines, Pakistan, USA and Peru. More importantly, he has managed projects through exploration, development then leading to production.
Mr Smith is a qualified Competent Person and has memberships with the Australian Society of Exploration Geophysicists and Australian Institute of Geoscientists (AIG). He obtained a Bachelor of Science from the University of Sydney.
Mr Armstrong is an experienced chartered accountant and has spent his career focused on advising small-to-medium sized businesses. From late 2014 to mid-2016, as managing director, Mr Armstrong was instrumental in transforming Tanzanian-focused graphite explorer, Volt Resources (ASX: VRC), from a start-up to business with a $180 million market capitalisation upon departure.
Notably, other than taking charge of strategic and finance issues, Mr Armstrong developed extensive relationships with the investment community during his tenure.
Mr Armstrong has a Bachelor of Business from Charles Sturt University and is a member of the Institute of Australian Chartered Accountants and Australian Institute of Company Directors.
Last updated 4th December 2018