Castillo Copper Ltd (ASX:CCZ) has intersected sulphide mineralisation grading up to 4.5% copper in recent drilling at its Cangai Copper Mine in New South Wales.
Preliminary assays from the four hole, 436-metre reverse circulation program were gathered using a portable XRF gun.
The drilling program validates the current high-grade JORC inferred resource of 3.2 million tonnes at 3.35% copper, 20.2 g/t silver and 0.80 g/t gold.
Final lab assays remain pending and will be incorporated into a resource update.
Program developing ahead of expectations with potential for resource increase
Alan Armstrong, executive director, said: “When combined with stockpile samples of up to 18% copper and significant cobalt mineralisation, the project is developing ahead of expectations.
“As the program progresses there is significant potential for the resource size to increase materially once the drill rig begins testing between the lodes which are outside of the JORC resource.”
Exploration results provide share price momentum
Castillo Copper released data regarding five significant electromagnetic conductors at the Cangai copper mine in early January.
The identification of multiple conductors is further evidence that there could be parallels with Sandfire Resources’ (ASX:SFR) Degrussa project in Western Australia, where high-grade supergene ore oxide material sits above larger volumes of mineralised sulphides.
READ: Castillo Copper’s shares rise on discovering multiple conductors at Cangai Copper Mine
The company is reorienting the drill program and expediting an application to expand the number of drill pads in order to explore the electromagnetic conductors with a view to accelerating exploration progress.