Castillo makes new high-grade copper and silver discovery at Cangai mine
Mining & Resources
Special report: Castillo Copper is continuing its successful run at the Cangai mine in New South Wales with a new high-grade copper and silver discovery.
Soil and rock chip sampling has uncovered a potential high-grade north-east trending mineralised extension, returning grades of as high as 23.9 per cent copper and 55.5 grams per tonne (g/t) silver.
Anything above 1.5 per cent copper and 50 g/t silver is considered high-grade.
Castillo (ASX:CCZ) discovered two anomalies, named Canberra and Sydney, which returned results from surface soil sampling of 1660 parts per million and 500 parts per million copper, respectively
The reading from the Canberra anomaly is a significant potential indicator of sub-surface mineralisation and Castillo plans to make it a priority for the next broader infill sampling program.
The discovery supports the geology team’s belief that the mineralised footprint at Cangai can be scaled.
“After the recent impressive assay results, which confirmed an 11m massive sulphide intersection grading close to 6 per cent copper, the positive news flow continues,” chairman Peter Meagher said.
“Clearly, the board’s core objective is to expand the known mineralised footprint and rock-chips grading up to 23.9 per cent copper and 55.5g/t silver certainly verify there is a potential north-east extension to the line of lode.
“While significant incremental work needs to be undertaken, the board’s strategic objective remains re-opening Cangai copper mine.”
Follow up infill soil sampling is set to begin shortly, with the target area broadened further to the north.
Since mining operations ceased a century ago, limited exploration has taken place which Castillo says underscores the potential upside across the Cangai copper tenure.
Castillo is confident it will identify further mineralisation. The company is undertaking multiple surveys and continuing drilling.
The company is also advancing its plans to monetise the legacy stockpiles after metallurgical test-work confirmed copper concentrate recoveries of over 80 per cent and grades up to 22 per cent copper.
The project hosts five historic stock piles of high-grade ore located near the Cangai mine.
Castillo has received strong interest from customers interested in buying the discarded ore.
The company will now request official guidance from the regulator on the pathway to remove the historic stockpiles for processing by third parties.
This special report is brought to you by Castillo Copper.
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