Castillo takes a step towards NSW copper mine re-start with second drilling program
Mining & Resources
Mining & Resources
Special report: Castillo Copper has kick started its second drilling campaign at its flagship Cangai copper mine in New South Wales.
The goal of the phase two drilling program is to grow the current resource of 35 million tonnes at 3.35 per cent copper – which is already one of Australia’s highest grade JORC-compliant inferred resources for copper.
JORC refers to the mining industry’s official code for reporting exploration results, mineral resources and ore reserves, managed by the Australasian Joint Ore Reserves Committee.
Mineral resources are categorised in order of increasing geological confidence as inferred, indicated or measured.
“The board’s priority is to re-open the Cangai copper mine and the commencement of this second drilling campaign takes us one step closer to realising this strategic objective,” chairman Peter Meagher said.
Castillo (ASX:CCZ) plans to drill 39 holes targeting the supergene ore near legacy workings and the massive sulphide intersections returned from maiden drilling.
The supergene ore has returned grades of as high as 35 per cent copper and 10 per cent zinc, which is ideal feedstock for direct shipping ore (DSO).
DSO requires only simple crushing before it is exported, which keeps costs low.
The project also hosts five historic stock piles of high-grade ore located near the Cangai mine.
Results from 10 hand-picked rock specimens from around the Volkhardts stockpile returned up to 23.9 per cent copper, which Castillo says is consistent with the supergene ore grades and in a priority drill target area.
Results for samples collected from a recent trenching exercise at the Smelter Creek stockpile delivered grades of up to 5.58 per cent copper, 3.31 per cent zinc and 1350 parts per million cobalt.
The first four drill holes of the program are planned for the historic Smelter Creek stockpile.
Castillo plans to fast track metallurgical test work and the modelling of the resource for the stockpiles after receiving strong interest from customers interested in buying the discarded ore.
This special report is brought to you by Castillo Copper.
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