Castillo Copper Ltd (LSE:CCZ, ASX:CCZ) has reviewed a comprehensive surface sampling campaign carried out at Litchfield Lithium Project in Australia's Northern Territory, becoming the only third party to date to do so.
A review of the extensive site visit reports to the Litchfield Project was arranged by the vendor group’s geology consultant.
The reports highlighted four target zones where comprehensive surface sampling was undertaken, primarily along the western boundary which is contiguous to Core Lithium Ltd (ASX:CXO)’s Finniss Lithium Project and coincident with government mapped pegmatite occurrences.
With satellite imagery already confirming there is comparable geology between the Finniss and Litchfield lithium projects, assay results for 657 surface samples are likely to have a key bearing on the due diligence process, especially if the lithium mineralisation is proved contiguous.
Case for Litchfield Lithium Project
CCZ managing director Simon Paull said: “The depth of the surface sampling program conducted by the Vendor Group’s geology consultant is impressive, especially as it covers our main area of interest within the tenure.
“Favourable assay results should make the case for the Litchfield Lithium Project significantly more compelling and hasten our due diligence efforts.”
Reviewing historical data, as well as the extensive site visit reports, has provided considerable insight into the project’s exploration potential.
The pending assay results – which are due in the coming weeks – should advance the due diligence progress significantly.
Sampling program
The sampling program was conducted in two stages with the first focused on pegmatite dykes and Stage 2 comprising soil sampling across four grids within four zones on the western boundary contiguous to CXO’s Finniss Lithium Project.
The main geological formation observed within the Litchfield Project are metamorphic rocks associated with the Burrell Creek formation comprising conglomerates, quartzites, schists and slates.
In general, this unit represents the host rock for the regional occurrences of pegmatites that can potentially host lithium mineralisation.
Encouragingly, conglomerates – a Burrell Creek formation indicator – were observed extensively in the western portion of the Litchfield Project which further supported focusing the sampling campaigns on this area.
Next steps
For the lithium projects, there is ongoing due diligence for the Picasso and Litchfield lithium projects, including the return of assay results for surface sampling campaigns.
In Queensland, updates on drilling at the Arya Copper Prospect are set to take place over the coming weeks.
There are several ongoing steps for the Zambian copper properties, including IP survey progress updates at the Luanshya & Mkushi projects followed by analysing the results for incremental targets for test-drilling.
Work will also commence work on the inaugural drilling campaign at the Luanshya Project.