Castillo Copper Ltd (LSE:CCZ, ASX:CCZ) has confirmed a 10-kilometre zone of pegmatite occurrences in the northeast part of the Picasso Lithium Project in Western Australia that significantly exceeds government mapping.
The company’s geology team spent several days at the project mapping and collecting samples with a particular focus on the high-density corridor in the project’s north-eastern quadrant.
Pegmatites observed are potentially related to lithium mineralisation which enhances prospectivity of this quadrant, which is the best exposed part of the project.
Exploration potential
CCZ’s managing director Simon Paull said: “The geology team’s visit to the Picasso Lithium Project delivered encouraging news, confirming that a 10-kilometre zone of pegmatites is apparent in the tenure’s northeast quadrant.
"The board’s preliminary conclusion, based on due diligence undertaken to date, is the Picasso Lithium Project is prospective for lithium mineralisation and delivers significant incremental exploration potential.”
In lithium-rich region
The Picasso Project is in a lithium-rich region, with the Mt Marion and Bald Hill Mines within 120 kilometres to the northwest of the tenure.
Moreover, the project is proximal to Liontown Resources (ASX:LTR) Limited’s Buldania Project which has a JORC-compliant resource at 14.9 million tonnes at 0.97% Li2O.
CCZ’s geology team undertook considerable mapping across the project although much of the time was focused on the tenure’s northeast quadrant where the high-density pegmatite corridor is located.
Notably, the pegmatites potentially host lithium mineralisation though this is subject to further investigation.
There are several areas of outcropping basement where granite is the dominant rock type.
The company believes there is potential to discover further pegmatites across the tenure as there is considerable shallow sand cover.
Meanwhile, due diligence for the Litchfield Lithium Project in the Northern Territory is progressing with the laboratory expected to return assays within 2-3 weeks.