Castillo Copper Ltd (ASX:CCZ) has identified new primary cobalt targets at surface within the Cangai Project in New South Wales which previously focused on copper.
Exploration for new cobalt targets is set to progress concurrently with the Cangai Copper Mine expansion campaign.
The new primary cobalt targets were a result of the board holding an onsite strategic review at the project.
READ: Castillo Copper looks to restart production at the Cangai Copper Mine
Castillo Copper’s chairman Peter Meagher said: “Our first onsite board meeting at Cangai Copper Mine commenced with total agreement to re-brand the project name to Cangai Cobalt and Cangai Copper reflective of where mineralisation has been identified.
"While the core focus remains Cangai Copper Mine, the board is keen to garner a greater understanding of the extent of cobalt mineralisation across the entire tenure and ramp up exploration efforts in Broken Hill.
“The board is focused on creating value for shareholders where practical, which explains the recent move to monetise the legacy stockpiles.”
Occurrences more than 300ppm cobalt at surface
The desktop review highlighted Castillo’s ground has occurrences more than 300ppm cobalt at surface.
With high cobalt soil anomalies in the project area, the company is well positioned to expedite exploring these zones.
Corazon intends to employ a similar strategy used by neighbouring cobalt explorer, Corazon Mining Ltd (ASX:CZN).
The company also has tenure near Broken Hill located 2-3 kilometres from Cobalt Blue Holdings Ltd’s (ASX:COB) tenure, which it intends to investigate.
Fast-track phase II drilling still a priority
While the strategic review at Cangai has added cobalt to the exploration objectives, fast-tracking the Cangai Copper Mine into production is still a top priority.
Foremostly, this means fast-tracking the phase II drilling program, which is awaiting regulatory approval.