Base Metals: Castillo reckons it can replicate China’s copper success in Zambia
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Castillo Copper (ASX:CCZ) says recently acquired Zambian copper assets boast comparable geology to “neighbouring operating copper mines and deposits”.
The 45ksqkm Luanshya project is near mines operated by China Nonferrous Mining Corp (CNMC), which produced 5,806 tonnes of copper in 2018.
The results from independent geological review on the under-explored Luanshya project ” exceed initial expectations”, and has verified its copper potential, Castillo says.
While there has been insufficient exploration so far, the promise sent the stock up 5 per cent in morning trade.
The company awaits a further geological review before deciding on exploration plans.
But the review “clearly verifies the Luanshya project has comparable underlying geology to neighbouring operating copper mines and deposits which, in turn, enhances the exploration upside,” Castillo managing director Simon Paul says.
“Moreover this timely news further strengthens the prospectively of our Zambia pillar as we elevate our efforts to transform CCZ into a mid-tier copper group.”
The news comes as the company seeks to be dual listed in London.
Castillo also owns assets in Australia but says its new Zambian assets could take it to the next level. It has previously told investors it aims to prove a JORC compliant resource in 12-18 months.
In other ASX small cap base news today:
Minotaur Exploration (ASX:MEP) has discovered a 3km-long VMS anomaly at its Windsor project in Queensland, and now plans first-pass drilling. Initial results are very similar to Red River Resources’ (ASX:RVR) nearby zinc-rich VMS discovery, Minotaur says, which can earn an 80 per cent interest in Windsor by spending $4 million over 5 years.
Remember that tin company which was suspended for 3 years then raised $20 million? Consolidated Tin Mines (ASX:CSD) announced an updated JORC indicated resource of 16.91 million tonnes at 0.83 per cent copper – for 140,000 tonnes. This is a 9 per cent reduction in tonnes from a previous statement. This area in far north Queensland has received little exploration.
Copper play Hammer Metals (ASX:HMX) has found a new zone of mineralisation at its Queensland project. Preliminary sampling results returned 27.7 per cent copper as well as 4.64 grams per tonne of gold. Meanwhile, drilling at its WA project is complete and results are expected within the next three weeks.
