Castillo Copper Ltd (ASX:CCZ) has completed the phase I, 18-hole reverse circulation drill program at the Cangai Copper Mine located in New South Wales.
While assays for the remaining nine holes are pending, seven out of the final nine drill-holes intersected shallow mineralisation between 0 and 20 metres.
With the drilling program intersecting mineralisation outside the JORC modelled zone, the geology team are optimistic phase I may increase the resource size.
READ: Castillo Copper assay results confirm copper mine’s expansion potential
Castillo’s chairman Peter Meagher said: “The completion of phase I of the Cangai drilling campaign is a significant milestone, as the board progresses with plans to fast-track re-opening the mine.
“Once regulatory approval for phase II is approved, drilling will commence across 13 drill pads closer to the legacy workings targeting high-grade supergene ore, which is expected to facilitate the commencement of JORC modelling.”
Consultant appointed to monetise legacy stockpiles
Meagher added: “The board is now exploring options on how to monetise the legacy stockpiles, which includes appointing Hetherington Exploration & Mining Title Services to provide holistic guidance on how progress this initiative.”
The board has been reviewing a range of options on how to create value for shareholders in the near-term and believes monetising the legacy stockpiles is a realistic plan.
To date, the geology team have reviewed the McDonoughs stockpile and were encouraged with assay results confirming up to 2.13% copper.
A preliminary study of the Smelter Creek slag stockpile, which is off the line of lode, highlighted it was larger in volume than the other legacy stockpiles.
Next priority is to secure phase II drilling approval
The next priority is to secure regulatory approval for phase II of the drilling campaign and establish a timeline for when it can commence.
The regulatory application for phase II drilling, which focuses on shallower supergene ore across 13 drill pads near legacy workings, is expected to be submitted shortly