Castillo Copper Ltd’s (ASX:CCZ) geology team has collected samples from the stockpiles around the Cangai Copper Mine in New South Wales as part of its off-take deal with Noble Group (SGX:CGP).
The samples have been sent to a specialist metallurgical group offshore for third-party verification and optimisation.
Once these results are returned, which the team anticipates will show some improvement on initial test work conducted at McDonoughs’ stockpile, then the board aims to finalise the agreement with Noble Group to sell and distribute up to 200,000 tonnes of copper concentrate.
Securing this agreement with Noble Group is important as it will validate the high-grade polymetallic nature of the ore body at Cangai Copper Mine and provide early stage cash flow.
Legacy stockpiles at Cangai Copper Mine
Castillo chairman Peter Meagher said: “Behind the scenes, Castillo’s various teams have been working extremely hard to progress the board’s strategic agenda to re-open Cangai Copper Mine.
“Once the metallurgical results for the various stockpiles are returned, we hope to finalise our agreement with Noble Group, as this will be an important source of early stage cash flow.
“Incrementally, the board is looking forward to presenting an update to shareholders on the drilling campaign targeting high-grade ore and DHEM survey findings at Cangai Copper Mine.”