Castillo Copper Ltd (ASX:CCZ, LSE:CCZ) has wrapped up a strategic asset review, approving several initiatives to maximise value from development of the NWQ Copper Project in the Mt Isa copper-belt of Queensland, including optimising the Big One deposit with a view to establishing a clear path to production.
With the macro outlook heating up for copper, and the big guns – including Rio Tinto, Glencore and Anglo-American – active in the Mt Isa region, the company believes there is a compelling case to ramp up exploration activities.
Big One in sights
High on the agenda is the Big One deposit, the only prospect within the NWQ Copper Project with an inferred mineral resource estimate (MRE) of 2.1 million tonnes at 1.1% copper for 21,886 tonnes of copper metal.
Some of the best intersections at the prospect include:
- 40 metres at 1.64% copper from surface including 11 metres at 4.40% from 24 metres, 5 metres at 7.34% from 28 metres and 1-metre at 16.65% from 29 metres;
- 44 metres at 1.19% copper from surface including 14 metres at 3.55% from 27 metres, 3 metres at 10.88% from 37 metres and 1-metre at 12.6% copper from 37 metres; and
- 34 metres at 1.51% copper from surface including 21 metres at 2.25% from surface, 12 metres at 3.44% from 3 metres, 6 metres at 4.79% from 3 metres and 1-metre at 9.4% from 9 metres.
Ramping up activities
The board is contemplating several activities at Big One, including:
- commissioning an independent engineering contractor to conduct a pit optimisation study on the viability of commencing copper mining operations, using prospective third-party processors and effective path to market; and
- re-formulating optimal plans for a third drilling campaign and companion geophysical surveys to extend known mineralisation beyond the line of lode.
Since the 1970s, the deposit has been drilled by three different groups, including Castillo, while there were some limited mining operations during the 1990s.
To "articulate a clear pathway"
“Following a recent strategic asset review, the board approved an optimisation study for the Big One deposit which should ideally articulate a clear pathway to commence copper mining operations,” chairman Ged Hall said.
“With exploratory work ramping up at the NWQ Copper and BHA projects, the board is increasingly optimistic about the group’s prospects for 2023.”
Other targets and activities
There are plans afoot to conduct site visits to several targets – including Arya, Valparaisa, Boomerang and Josephine.
Once these are done, the board will rank the exploration potential of each and present the opportunities to prospective development partners in the Mt Isa region.
Meanwhile, initial metallurgy test-work results for rare earth elements from the BHA Project’s East Zone ion Far West New South Wales are due back shortly.