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Castillo Copper confirms high-grade supergene ore at Cangai Copper Project

Results are similar to those obtained in supergene ore by Sandfire Resources at the Morck’s Well project.
Versatile drilling equipment
Specialised versatile drilling equipment will be used in the phase II campaign

Castillo Copper Ltd (ASX:CCZ) has confirmed the presence of high-grade supergene ore in drilling at the historical Cangai Copper Mine in northern New South Wales.

Assays from phase I drilling have returned copper intersections greater than 3% with mineralisation found in seven out of nine holes.

These results have prompted Castillo to fast-track phase II drilling targeting supergene ore near legacy workings as part of plans to reopen the mine.

READ: Castillo Copper completes phase I drilling aimed at reopening Cangai Copper mine

Similar high-grade copper results from Sandfire Resources NL (ASX:SFR) in supergene ore at Morck’s Well project in Western Australia also provide encouragement.

Castillo’s chairman Peter Meagher said: “The first round of drilling at Cangai, which specifically targeted deeper sulphide mineralisation, has been highly successful.

“This is evidenced by some encouraging assays, which demonstrated extensive mineralisation, that also produced assays over 3% copper.”



The best result was 6 metres at 2.69% copper, 0.39% zinc and 9.2 g/t silver from 1 metre, including 4 metres at 3.08% copper, 0.44% zinc and 10.6 g/t silver.

Mineralisation open

Mineralisation is open to the east and west, while massive sulphides intersected in one hole suggests a potential splay off the main line of lode warranting further investigation.

This hole returned 1 metre at 3.31% copper, 1.11% zinc and 5.7 g/t silver from 39 metres.

In addition, a drill hole electromagnetic anomaly discovered immediately along strike to the east of CRC005 drill hole, warrants further investigation.

This hole had an intersection of 4 metres at 1.54% copper, 1.17% zinc and 11.5 g/t silver.

The phase I program comprised 18 holes along the Cangai line of lode targeting deeper sulphide mineralisation.

READ: Castillo Copper adds cobalt targets at Cangai Project

Castillo’s geology team is delighted with the results as evidence suggests incremental larger scale drilling programs can potentially deliver resource size upside.

It confirmed the integrity of the JORC modelled zone and uncovered new extensions and potential discoveries warranting further investigation.

Next drilling campaign

Meagher said: “Moving forward, the next drilling campaign has been designed specifically to determine the extent of high-grade supergene ore mineralisation near legacy workings.”

Ore from the Smelter Creek stockpile.

This campaign will comprise 39 shallow drill holes focused on supergene ore and is set to begin once regulatory approval is obtained.

A drilling contractor has been appointed and is ready to deploy to site.

The contractor uses highly versatile equipment suitable for the hilly terrain at Cangai.

To further enhance the understanding of the stockpiles, and build on metallurgy test work underway, several drill-holes are planned for the Smelter Stockpile site.

Resource estimate planned

The geology team will then target modelling up a JORC compliant resource as quickly as possible to determine the extent of contained copper-zinc-silver in the ore.

“Further, in an encouraging development, metallurgical test-work and JORC modelling of the stockpiles will be fast-tracked,” Meagher said.

“This comes as several prospective customers are showing interest in signing offtake agreements for the discarded ore.”

Aircore drilling by Sandfire at Morck’s Well intersected narrow zones of sulphide and supergene copper mineralisation.

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