Castillo Copper Ltd (LSE:CCZ, ASX:CCZ) has encountered a strong cobalt intersection in diamond core assays from The Sisters prospect, part of East Zone within the Broken Hill Alliance (BHA) Project in New South Wales.
The explorer recorded a 24-metre hit grading 424 parts per million (ppm) cobalt from 103 metres, including 2 metres at 1,120ppm from 107 metres, 1-metre at 873ppm from 120 metres and 2 metres at 486ppm from 125 metres.
Castillo is particularly pleased with the new assays, given they are in line with previously reported results from within the BHA project’s defined target area.
What’s more, The Sisters’ location to the target area’s north-northwest provides new evidence there’s possibly a larger-than-anticipated cobalt system within the BHA Project’s East Zone.
Now, the team is hard at work to finalise a mineral resource estimate (MRE) — focused on cobalt — which will encompass the Fence Gossan, Reef & Tors Tank, Ziggy’s Hill and now The Sisters prospects.
Moreover, in a surprising development, assays for diamond drill core from the Iron Blow prospect confirmed the presence of rare earth elements (REE).
The best hit encompassed 8 metres at 1,270ppm total rare earth oxides from 150 metres.
Moving ahead, the REE results from Iron Blow will be followed up. There are six intervals with anomalous TREO readings that could form part of a larger underlying system.
Boosting BHA’s potential
Speaking to diamond core findings, Castillo Copper managing director Dr Dennis Jensen said: “Having reviewed The Sisters prospect’s assays, the board is now convinced the underlying cobalt system within the BHA Project’s East Zone could extend beyond the defined target area.
“Whilst this will be the subject of future exploration campaigns, the geology team is aiming to complete the primary cobalt MRE shortly.
“In a welcome left-field development, diamond core assays from the Iron Blow Prospect highlight significant REE mineralisation was intersected, which further bolsters the BHA Project’s exploration potential.”
Next chapter
Looking out, CCZ is focused on completing the cobalt-centric MRE for the BHA Project’s East Zone.
Beyond the NSW property, it’s also readying to report assays for the Arya prospect in northwest Queensland, as well as formalising the timing for its next drill campaign at the nearby Big One copper deposit.
Across the sea, Castillo is looking for a strategic partner that can help it develop the Luanshya and Mkushi projects in Zambia.