Castillo Copper closer to mining cobalt in Broken Hill after promising new assay results
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Special report: Castillo Copper is readying itself to begin drilling for cobalt at its Broken Hill project, following new results that indicate the metal is abundant at the site.
The company (ASX:CCZ) is now putting together a maiden drilling campaign targeting the high-priority “Area 1” prospect.
On a field trip undertaken in June, the Castillo geology team collected rock-chip samples from the outcropping Himalaya Formation within Area 1, which was found to contain an elevated 291ppm of cobalt, a clear significant indicator of underlying mineralisation.
The company has also identified the potential for secondary zinc, lead and copper mineralisation in the southern part of the Area 1 target.
Historic results have shown evidence of up to 5300ppm zinc, 12,800ppm lead and 2900ppm copper.
The results are highly promising and come less than a month after the site was tapped to be a substantial cobalt project for the miner.
Broken Hill is a highly prospective region in New South Wales that has been largely underexplored for cobalt.
There is an extensive database of past sampling and drilling information, but so far its cobalt potential has remained unutilised.
Sufficient geological data still needs to be compiled, but once that is done, after an upcoming field trip, the geology team will finalise the Area 1 drill targets and start preparing an application to be lodged with the NSW regulator for approval.
Chairman Peter Meagher said the company was thrilled to be moving quickly on the project. “We’re delighted to confirm plans to progress a drilling campaign at “Area 1” within our Broken Hill tenement,” he said.
“As CCZ owns all mineral rights, and assays confirm the prevalence of high-grade mineralisation, the board is looking forward to starting a drilling campaign on a second front in NSW.”
The company’s recent ASX announcement said the surface mineralisation at “Area 1” would provide “significant opportunity to create incremental value for shareholders” alongside its other priorities, including re-opening the Cangai copper mine in northern NSW and a joint venture deal with A-Cap Resources (ASX:ACB) to explore the potential of Queensland’s Marlborough nickel and cobalt project.
Castillo finds itself in a unique position compared with some of its peers, as it has successfully negotiated land access and compensation agreements across the tenure with all landowners. It owns 100 per cent of the tenure and holds full mineral rights.
This special report is brought to you by Castillo Copper.
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