Castillo proves there is still plenty more high-grade copper to come from Cangai
Special report: The latest drilling results continue to confirm that Castillo Copper has one of Australia’s highest-grade copper deposits.
Castillo (ASX:CCZ) has reported a new hit of 14.45 per cent copper, 5.93 per cent zinc and 40.1 grams per tonne (g/t) silver from less than 50m deep.
Anything above about 6 per cent copper is generally considered high-grade.
These are even better than the last reported hits of 10.25 per cent copper, 2.45 per cent zinc and 32.5g/t silver.
“The assay results from the diamond drill core significantly exceeded the board’s expectations, especially the 14.45 per cent copper reading,” chairman Peter Meagher said.
“Clearly, in the board’s view, Cangai copper mine is one of the highest grading copper deposits across Australia.”
The considerable exploration upside has prompted Castillo to expand its exploration program.
Its immediate priorities are to complete the phase two campaign, which includes further drill testing the targets identified under the Mark’s, Greenberg’s and Volkhardts lodes to unlock potential extensions to known massive sulphide mineralisation.
Castillo also plans to conduct further drill hole electromagnetics to identify new targets.
Close to locking in early cash flow
Castillo’s plan all along has been to monetise the legacy stockpiles surrounding the Cangai mine to generate early cash flow.
There are five historic stock piles of high-grade ore located near the mine.
Metallurgical test-work confirmed copper concentrate recoveries of over 80 per cent and grades up to 22 per cent copper from the McDonoughs’ stockpile.
But Castillo expects new samples it has collected will show some improvement on the initial testwork conducted.
The company is getting closer to a binding deal to supply major Hong Kong-based commodities trader Noble Group copper from the stockpiles.
Castillo and Noble have already signed a memorandum of understanding to work quickly towards a formal deal that would see Noble exclusively sell up to 200,000 tonnes of copper concentrate from the existing stockpiles at Cangai.
Once the metallurgical results for the various stockpiles are returned, Castillo can finalise its agreement with Noble.