Full assay results for second campaign at Big One

RNS Number : 9789N
Castillo Copper Limited
05 October 2021
 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED.  ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

5 October 2021

 

CASTILLO COPPER LIMITED
("Castillo", "CCZ" or the "Company")

 

Full assay results for second campaign at Big One  

 

Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily focused on copper across Australia and Zambia, is pleased to announce that the full assay results for the second campaign at the Big One Deposit have been returned, delivering findings consistent with the geology team's expectations. 

 

The campaign comprised 20 reverse circulation drill-holes for a total of 2,632m and one with a HQ diameter diamond-cored tail for a total of 32m (BO_334DD).  Refer to Appendix A for full details of the drilling and sampling programmes.

 

Highlights

 

· Interpreting the full assay results holistically from the second drilling campaign (out of three planned), which was designed to extend known mineralisation and test the halo south of the dacite dyke, highlighted the following:

The first four drill-holes extended known mineralisation, as they were proximal to the dacite dyke, with the best intercepts comprising - 

§ 9m @ 1.42% Cu fm 88m incl: 4m @ 3.06% Cu fm 92m & 1m @ 9.19% Cu fm 92m (BO_317RC)1

§ 5m @ 1.06% Cu fm 141m (BO_316RC)1

§ 16m @ 0.59% Cu fm 166m incl: 3m @ 1.76% Cu fm 176m (BO_318RC)

§ 3m @ 1.22% Cu fm 65m (BO_315RC)1

These intercepts are in-line with results from the first drilling campaign completed in late 2020 which comprised -

§ 40m @ 1.64% Cu fm surface incl: 11m @ 4.40% Cu fm 24m, 5m @ 7.34% Cu fm 28m & 1m @ 16.65% Cu fm 29m (BO_303RC) 2

§ 44m @ 1.19% Cu fm surface incl:  14m @ 3.55% Cu fm 27m, 3m @ 10.88% Cu fm 37m & 1m @ 12.6% Cu fm 37m (BO_301RC) 2

 

· The drill-holes that targeted the halo, south of the dacite dyke, verified the known system runs for only circa 400m along the strike extent then intersects at a sharp angle with a major regional fault

 

· The third drilling campaign, comprising at least 22 drill-holes, will target several prime areas including the sizeable bedrock conductor on the north side of the dacite dyke2:

Significantly, the geophysical characteristics of the northern bedrock conductor are identical to the known system prevalent along the line of lode3

 

· In addition, across the Big One Deposit are 12 separate legacy stockpiles from mid-1990 mining operations, which were assessed to comprise - 7,407t @ 1.17% Cu, while assayed rock-chip samples returned up to 3.32% Cu (Appendix A)

 

· At the Arya Prospect, the logistics team are on site, preparing the helipad / drill-pads in readiness for the equipment to arrive 

 

· Further, due diligence is progressing on the Litchfield & Picasso Lithium Projects

 

Simon Paull, Managing Director of Castillo Copper, commented:   "With results in from the second drilling campaign, it's encouraging that high-grade mineralisation was extended. Moving forward, the third drilling campaign at Big One Deposit will hit priority targets north of the line of lode, which includes a sizeable bedrock conductor. In the interim, however, the Board is looking forward to work finally commencing at the Arya Prospect and results of the due diligence programme which is continuing on the Litchfield & Picasso Lithium Projects."

 

SECOND CAMPAIGN REVIEW

 

Interpreting the assays results from the second drilling campaign holistically has significantly aided the geology team's understanding of the underlying system. The first four drill-holes (BO_315-318RC), which were designed to extend known mineralisation, clearly met this objective.

 

The best intercepts include the following:

· 9m @ 1.42% Cu fm 88m incl: 4m @ 3.06% Cu fm 92m & 1m @ 9.19% Cu fm 92m (BO_317RC)1

· 5m @ 1.06% Cu fm 141m (BO_316RC)1

· 16m @ 0.59% Cu fm 166m incl: 3m @ 1.76% Cu fm 176m (BO_318RC)

· 3m @ 1.22% Cu fm 65m (BO_315RC)1

 

These intercepts are broadly in line with results achieved from the inaugural drilling campaign undertaken in late 2020, which comprised:

· 40m @ Cu 1.64% fm surface incl: 11m @ 4.40% Cu fm 24m, 5m @ 7.34% Cu fm 28m & 1m @ 16.65% Cu fm 29m (BO_303RC) 2

· 44m @ 1.19% Cu fm surface incl:  14m @ 3.55% Cu fm 27m, 3m @ 10.88% Cu fm 37m & 1m @ 12.6% Cu fm 37m (BO_301RC) 2

 

Moreover, the drill-holes are mostly proximal to the open pits which were mined during the mid-to-late 1990s2.

 

Halo zone

 

The drill-holes which tested the halo to the south of the dacite dyke largely confirmed the system runs for only circa 400m along the line of lode. At a certain juncture toward the eastern end it intersects, at a sharp angle, with a major regional fault. Consequently, the mineralisation in this region extends beyond the confines of the 6m-wide dacite dyke into a mix of fractured quartzites and siltstones.

 

The best intercepts from the halo zone to the south and west of that intersection are as follows:

· 4m @ 0.56% Cu fm 100m incl: 1m @ 1.58% Cu fm 100m (BO_326RC)

· 5m @ 0.77% Cu fm 93m incl: 2m @ 1.57% (BO_327RC)

Third drilling campaign

 

Reflecting the fact there is still considerable exploration potential apparent at the Big One Deposit, a third drilling campaign, comprising at least 22 drill-holes has been formulated. This will target several areas on the northern side of the dacite dyke, including the sizeable bedrock conductor identified during the induced polarisation campaign2

 

It is important to note, the geophysical characteristics of the northern bedrock conductor are identical to the anomaly along the line of lode where known mineralisation has been discovered.

 

 

HIGH GRADE STOCKPILES

 

As part of the exploration program across the Big One Deposit, sampling occurred at 12 separate legacy stockpiles from mid-1990 mining operations. Accurate volumes were calculated from a drone survey, which assessed the stockpiles to comprise 7,407t @ 1.17% Cu. Based on sample rock-chips taken from the stockpiles, the assays returned up to 3.32% Cu reconfirming the high-grade nature of the underlying system. However, there will need to be further metallurgical testing and a mining lease secured to process the stockpiles.

 

TRACK RECORD

 

Factoring in two historical drilling campaigns, coupled with CCZ's 2020-21 programs, the table below highlights the best intercepts recorded at the Big One Deposit2. The major takeaways from the work completed to date highlight an underlying copper system that is relatively shallow. However, the full picture will not be apparent until the northern bedrock conductor is test-drilled, and some deeper drill-holes test the eastern and downdip extents of the deposit.

 

FIGURE 3A: BEST INTERCEPTS - FINAL ASSAYS FOR 200/300 SERIES2

303RC: 40m @ 1.64%  Cu fm surface incl: 11m @ 4.40%  Cu  fm 24m, 5m @ 7.34% Cu  fm 28m & 1m @ 16.65%  Cu  fm 29m

301RC: 44m @ 1.19% Cu fm surface incl:  14m @ 3.55% Cu  fm 27m, 3m @ 10.88%  Cu fm 37m & 1m @ 12.6%  Cu fm 37m

318RC: 16m @ 0.59%  Cu fm 166m incl: 3m @ 1.76%  Cu fm 176m

213RC: 12m @ 0.79% Cu fm 52m incl: 8m @ 1.06% Cu fm 57m, 3m @ 2.03% Cu fm 58m, 1m @ 4.27% Cu fm 59m & 1m @ 1.46% Cu fm 62m

317RC: 9m @ 1.42% Cu fm 88m incl: 4m @ 3.06% Cu fm 92m & 1m @ 9.19% Cu fm 92m

207RC: 8m @ 0.47%  Cu fm 84m incl: 2m @ 1.10% Cu fm 85m & 1m @ 1.49% Cu  fm 86m

306RC: 8m @ 0.41% Cu fm 16m and 4m @ 0.97%  Cu  fm 96m incl:  2m @ 1.30%  Cu fm 96m

206RC: 8m @ 0.42% Cu fm 54m incl: 3m @ 1.02% Cu fm 59m & 1m @ 1.75% Cu fm 60m

316RC: 5m @ 1.06% Cu fm 141m

302RC: 5m @ 0.66% Cu fm 35m incl: 1m @ 1.30%  Cu fm 37m

305RC: 5m @ 0.53% Cu fm 34m incl: 1m @ 1.19% Cu fm 38m

FIGURE 3B:  HIGH-GRADE HISTORIC INTERCEPTS2

BO017: 34m @ 1.51% Cu from surface incl: 21m @ 2.25% Cu fm surface, 12m @ 3.44% Cu fm 3m, 6m @ 4.79% Cu fm 3m and 1m @ 9.4%  Cu fm 9m

B07: 3m @ 12.25% Cu from 42m incl: 2m @ 17.87% Cu from 43m; and 1m @ 28.4% Cu from 44m

B05: 8m @ 2.33% Cu from 44m incl: 6m @ 3.00% Cu from 45m; and 5m @ 3.28% Cu from 45m

B06: 4m @ 2.20% Cu from 44m incl: 2m @ 3.19% Cu from 46m and 1m @ 3.63% Cu from 47m

B25: 6m @ 1.55% Cu from 66m incl: 5m @ 1.79% Cu from 66m and 2m @ 2.08% Cu from 66m

B02: 4m @ 1.45% Cu from 36m incl: 1m @ 2.48% Cu from 37m

B26: 3m @ 1.36% Cu from 73m incl: 2m @ 2.29% Cu from 73m and 1m @ 1.02% Cu from 74m

BO015: 18m @ 0.86% Cu fm 11m incl: 6m @ 1.85% Cu fm 20m, 3m @ 2.98% Cu fm 20m and 1m @ 8% fm 20m

B07: 9m @ 0.84% Cu from 32m incl: 3m @ 1.69% Cu from 36m; and 1m @ 2.37% Cu from 36m

B08: 3m @ 0.80% Cu from 48m incl: 1m @ 1.18% Cu from 49m

  Source: CCZ geology team

 

Next steps

 

In Queensland, the following is set to take place over the coming weeks:

Commencement of drilling at the Arya Prospect.

 

For the lithium projects, the initial focus will be on the following areas:

Continuation of due diligence on the Litchfield and Picasso Lithium Projects.

 

There are several ongoing steps for the Zambia operations, including:

Complete the IP survey at the Luanshya & Mkushi Projects then analyse the results for incremental targets for test-drilling; and

Commence work on the inaugural drilling campaign for the Luanshya Project.

 

In addition to this release, a PDF version with supplementary information and images can be found on the Company's website:   https://castillocopper.com/investors/announcements/  

 

 

For further information, please contact:

 

Castillo Copper Limited

+61 8 6558 0886

Simon Paull (Australia), Managing Director

Gerrard Hall (UK), Director




SI Capital Limited (Financial Adviser and Corporate Broker)

+44 (0)1483 413500

Nick Emerson




Luther Pendragon (Financial PR)

+44 (0)20 7618 9100 

Harry Chathli, Alexis Gore


 

About Castillo Copper

 

Castillo Copper Limited is an Australian-based explorer primarily focused on copper across Australia and Zambia. The group is embarking on a strategic transformation to morph into a mid-tier copper group underpinned by its core projects:

 

· A large footprint in the Mt Isa copper-belt district, north-west Queensland, which delivers significant exploration upside through having several high-grade targets and a sizeable untested anomaly within its boundaries in a copper-rich region.

· Four high-quality prospective assets across Zambia's copper-belt which is the second largest copper producer in Africa.

· A large tenure footprint proximal to Broken Hill's world-class deposit that is prospective for zinc-silver-lead-copper-gold.

· Cangai Copper Mine in northern New South Wales, which is one of Australia's highest grading historic copper mines.

 

The group is listed on the LSE and ASX under the ticker "CCZ."

 

References

1.  CCZ ASX Release - 26 July 2021

2.  CCZ ASX Release - 14 January 2020, 11 January 2021 & 10 February 2021

3.  CCZ ASX Release - 20 May 2021

Competent Person Statement

The information in this report that relates to Exploration Results for "Big One Deposit" is based on information compiled or reviewed by Mr Mark Biggs.  Mr Biggs is both a shareholder and director of ROM Resources, a company which is a shareholder of Castillo Copper Limited.  ROM Resources provides ad hoc geological consultancy services to Castillo Copper Limited.  Mr Biggs is a member of the Australian Institute of Mining and Metallurgy (member #107188) and has sufficient experience of relevance to the styles of mineralisation and types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, and Mineral Resources. Mr Biggs holds an AusIMM Online Course Certificate in 2012 JORC Code Reporting.  Mr Biggs also consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

 


APPENDIX: JORC CODE, 2012 EDITION - TABLE 1

Section 1 Sampling Techniques and Data

The following JORC Code (2012 Edition) Table 1 is primarily supplied for the provision of the final release of data for the 2021 Drilling Program at the Big One Deposit. There is additional commentary provided at the end of Section 2.

 

Section 1 Sampling Techniques and Data

 

Criteria

JORC Code explanation

Commentary

Sampling techniques

· Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

· Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

· Aspects of the determination of mineralisation that are Material to the Public Report.

· In cases where 'industry standard' work has been done this would be relatively simple (e.g., 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g., submarine nodules) may warrant disclosure of detailed information.

· For the 2021 program, samples are taken off a cyclone for every metre drilled, put through a three tier, 87.5/12.5 splitter where approximately 2.5 kg of RC chip samples were collected for every metre drilled.  The remainder was bagged separately and stored in case additional sub sampling is required before the end of the program.

· Weights recovered from riffle splitting varied between 1-2kg for both the 1970 and 1993 drilling programs.

· For the 2021 program, samples were also composited every four metres where visual inspection did not initially indicate copper mineralisation.  All samples were collected to maximise optimal representation for each sample.

· Each metre sample had an amount removed for washing and cleaning and sieving then place into metre allocated chip trays (see Figure A1-1). These chips were logged on site by the rig geologists and those logs have been saved into a spreadsheet and stored on the Company server. Any visible mineralisation, alteration or other salient features were recorded in the logs. Industry-wide, acceptable, standard practices were adhered to for the drilling and sampling of each metre as per the drilling and sampling Procedures set out before commencement of the drilling programme.

Drilling techniques

· Drill type (e.g., core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g., core diameter, triple or standard tube, depth of diamond tails, face-sampling bit, or other type, whether core is oriented and if so, by what method, etc).

· Reverse Circulation, RC, and HQ-sized diamond wireline drilling techniques were utilised for all holes drilled at the Big One Deposit.

Drill sample recovery

· Method of recording and assessing core and chip sample recoveries and results assessed.

· Measures taken to maximise sample recovery and ensure representative nature of the samples.

· Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

· For the 2021 program, within acceptable industry standard limits, all samples collected were of near equal mass and recoveries were also within acceptable limits for RC drilling and all recorded in the daily logs.  Every effort was made on site to maximise recovery including cleaning out the sample trays, splitter and cyclone and ensuring that the drillers progressed at a steady constant rate for the rig to easily complete each metre effectively.

Logging

· Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

· Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

· The total length and percentage of the relevant intersections logged.

· For all drilling programs, every metre drilled and sampled was logged geologically in accordance with industry-wide acceptable standard for RC logging and the logging was qualitative in nature with every metre logged. Unfortunately, lithology dictionaries and descriptions varied between programs.  The 2021 programs also recorded visible sulphide and carbonate concentrations and alteration minerals, such as orthoclase, epidote, chlorite, and sericite.

Sub-sampling techniques and sample preparation

· If core, whether cut or sawn and whether quarter, half or all core taken.

· If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

· For all sample types, the nature, quality, and appropriateness of the sample preparation technique.

· Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

· Measures taken to ensure that the sampling is representative of the in-situ material collected, including for instance results for field duplicate/second-half sampling.

· Whether sample sizes are appropriate to the grain size of the material being sampled.

· For the 2021 program, samples with pXRF copper <200ppm will be composited every four metres and all samples were collected to maximise optimal representation for each sample.  If XRF is not available, then all samples with no visible mineralisation will be sampled as above.

· Each metre sample had an amount removed for washing and cleaning and sieving then place into metre allocated chip trays. These chips were logged on site by the rig geologists and those logs have been saved into a spreadsheet and stored on the Company server. Any visible mineralisation, alteration or other salient features were recorded in the logs. Industry wide, acceptable, standard practices were adhered to for the drilling and sampling of each metre as per the Drilling and Sampling Procedures set out before commencement of the drilling programme.

· Any reporting of significant mineralised intervals was on a received apparent thickness x interval calculation (i.e., thickness averaged).

Quality of assay data and laboratory tests

· The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

· For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

· Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

· CCZ's DDH and RC holes will be assayed by an independent laboratory, ALS at Mt Isa, Townsville, or Brisbane Australia. Methods used were as follows:

· Gold - by method Au-AA25 30g charge (fire Assay with AAS finish);

· High gold values within oxide zone/supergene zone may need further testing by method Au-SCR21.

· Copper and 32 other - by method ME-ICP41 (HF-HN03-HCL04 acid digest, HCL leach and ICP-AES finish).

· Over-limit copper (>10,000 ppm [0.01%]) to be re assayed for copper by method Cu-OC62 (HF-HN03-HCL04 acid digest, HCL leach and ICP-AES finish).

· These analytical methods are considered as suitable and appropriate for this type of mineralisation.

· For the current drilling program ALS Brisbane will analyse all samples. All elements except for gold were analysed by method ME-MS61 (41 element testing via Aqua Regia digest then ICP-AES) and with any copper assays >1%, the copper will be redone using method Cu-OG46 with ICP-AES. The gold was done by method AA25.  All methods used were both suitable and appropriate for the styles of mineralisation present in the Big One Deposit at the time of sampling.

Verification of sampling and assaying

· The verification of significant intersections by either independent or alternative company personnel.

· The use of twinned holes.

· Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

· Discuss any adjustment to assay data.

· All CCZ's DDH and RC hole assay results from ALS have been reviewed by two independent consultant geologists. Assays from the BO_334DD have recently been resolved.

· For current the rock chip sampling, Independent Laboratory assaying by ALS has confirmed, within acceptable limits, the occurrences of high-grade copper inferred from the initial XRF readings.  Laboratory standards and duplicates were used in accordance with standard procedures for geochemical assaying.

Location of data points

· Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

· Specification of the grid system used.

· Quality and adequacy of topographic control.

· All twenty holes done by CCZ in 2021 have had their location surveyed by GPS and will, at then, at the completion of drilling, were surveyed by differential GPS by independent licensed surveyors (GMC Surveys).

· The spatial location for these holes has been differentially surveyed into MGA94 - Zone 54. Collar heights are to the Australian Height Datum.

· The locations of the 1970 drillholes and 1993 drillholes have been determined from georeferencing several plans and utilizing tables in historical reports.  Location errors for the 1970 drilling is ±20m whereas it is about ±12m that for the 1993 holes.

Data spacing and distribution

· Data spacing for reporting of Exploration Results.

· Whether the data spacing, and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

· Whether sample compositing has been applied.

· The final 20 RC holes were part of a 35-hole program that was set out on a nominal 100m pattern or to redrill 2020 holes that were found to be too short.  The 1970 drilling was set at a 30m spacing and the 1993 drilling also at a 50m spacing.  At the completion of all the planned holes, the drillhole collars were differentially surveyed by an independent, licensed surveyor and the grid pattern verified.  A drone survey over a 2.3Ha area was flown over the exploration area and covered the outcrop length of the dyke.  Data was supplied as spot height clouds, orthophoto and topographic contours in DXF / DWG format.

Orientation of data in relation to geological structure

· Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

· If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

· The current CCZ RC drilling programme (Figures B1-1, B1-2) has had all holes oriented to intersect the mineralised structure/zone subsurface perpendicularlyand therefore does not constitute any perceived bias.  The typical dip direction of the new drillholes is 335-350 deg (Grid North).

· Rock chip samples have also been taken at areas of interest from observed mineralisation along the line of lode of the mineralised dyke, secondary structures, and surrounding spoil heaps.

Sample security

· The measures taken to ensure sample security.

· Each day's RC samples were removed from site and stored in a secure location off site.

· The RC chip samples taken were securely locked within the vehicle on site until delivered to Mt Isa for despatch to the laboratory in person by the field personnel.

Audits or reviews

· The results of any audits or reviews of sampling techniques and data.

· This will be done once all 28 holes in CCZ's Stage 2021 program, and their assay results have been verified.

· For the historical drilling, the sampling techniques and the data generated from the Laboratory Assay results have been peer reviewed by consultant geologists familiar with the overall Mt Oxide Project and deemed to be acceptable. To facilitate this, six (6) sites have twinned drillholes, with the current drilling spudded immediately adjacent to the historical 1970, 1993 and 2020 drilling programs.

 

FIGURE A1-1:  DRILLHOLE LOCATION MAP (Available to view on ASX announcement)

 

FIGURE A1-2:  3D VIEW OF IP ANOMALIES AND DRILLHOLES COPPER ASSAY >250PPM, LOOKING SOUTH-SOUTHWEST (Available to view on ASX announcement)

 

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

 

Criteria

JORC Code explanation

Commentary

Mineral tenement and land tenure status

· Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

· The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

· The following mineral tenures are held 100% by subsidiaries of Castillo Copper Limited, totalling an area of 736.8 km2 in the "Mt Oxide North Project":

EPM 26574 (Valparaisa North) - encompasses the Big One historical mineral resource, Holder Total Minerals Pty Ltd, granted 12-June-2018 for a 5-year period over 100 sub-blocks (323.3Km2), Expires 11-June-2023.

EPM 26462 (Big Oxide North) - encompasses the 'Boomerang' historical mine and the 'Big One' historical mine, Holder: QLD Commodities Pty Ltd, granted: 29-Aug-2017 for a 5-year period over 67 sub-blocks (216.5 Km2), Expires: 28-Aug-2022.

EPM 26525 (Hill of Grace) - encompasses the Ayra (previously Myally Gap) significant airborne EM anomaly, Holder: Total Minerals Pty Ltd for a 5-year period over 38 sub-blocks (128.8Km2), Granted: 12-June-2018, Expires: 11-June-2023.

EPM 26513 (Torpedo Creek/Alpha Project) - Granted 13-Aug-2018 for a 5-year period over 23 sub-blocks (74.2 Km2), Expires 12-Aug-2023; and

EPMA 27440 (The Wall) - An application lodged on the 12-Dec-2019 over 70 sub-blocks (~215 Km2) by Castillo Copper Limited. The tenure was granted on the 18th of March 2021.

· A check on the tenures in 'application-status' was completed in 'GeoResGlobe' on the 2ND July 2021. 

Exploration done by other parties

· Acknowledgment and appraisal of exploration by other parties.

· Historical QDEX / mineral exploration reports have been reviewed for historical tenures that cover or partially cover the Project Area in this announcement. Federal and State Government reports supplement the historical mineral exploration reporting (QDEX open file exploration records).

· Most explorers were searching for Cu-Au-U, and, proving satellite deposit style extensions to the several small sub-economic copper deposits (e.g., Big Oxide and Josephine).

· With the Mt Oxide North Project in regional proximity to Mt Isa and numerous historical and active mines, the Project area has seen portions of the historical mineral tenure subject to various styles of surface sampling, with selected locations typically targeted by shallow drilling (Total hole depth is characteristically less than 50m).

· The Mt Oxide North project tenure package has a significant opportunity to be reviewed and explored by modern exploration methods in a coherent package of EPM's, with three of these forming a contiguous tenure package.

· Various Holders and related parties of the 'Big One' historical mining tenure (ML8451) completed a range of mining activities and exploration activities on what is now the 'Big One' prospect for EPM 26574.  The following unpublished work is acknowledged (and previously shown in the reference list):

· Katz, E., 1970, Report on the Big One, Mt Devine, and Mt Martin Mining Lease Prospects, Forsayth Mineral Exploration NL, report to the Department of Mines, CR5353, 63pp

· West Australian Metals NL, 1994. Drill Programme at the "Big One" Copper Deposit, North Queensland for West Australian Metals NL.

· Wilson, D., 2011. 'Big One' Copper Mine Lease 5481 Memorandum - dated 7 May 2011.

· Wilson, D., 2015. 'Big One' Mining Lease Memorandum - dated 25 May 2015: and

· Csar, M, 1996. Big One & Mt Storm Copper Deposits. Unpublished field report.

· The reader of the current ASX Release is referred to the CCZ's first publication of the 1993 historical reverse circulation drilling results for additional diagrams and drilling information ("Historic drill data verifies grades up to 28.40% Cu from <50m in supergene ore at Mt Oxide Pillar") released on the ASX by CCZ on the 14-January-2020.

· The SRK Independent Geologists Report released by CCZ on the ASX on 28-July-2020 contains further details on the 'Exploration done by other parties - Acknowledgment and appraisal of exploration by other parties' this report is formally titled "A Competent Persons Report on the Mineral Assets of Castillo Copper Limited" Prepared as part of the Castillo Copper Limited (ASX: CCZ, LSE: CCZ) LSE Prospectus, with the effective date of the 17-July-2020.

Geology

· Deposit type, geological setting, and style of mineralisation.

· The Mt Oxide North project is located within the Mt Isa Inlier of western Queensland, a large, exposed section of Proterozoic (2.5 billion- to 540-million-year-old) crustal rocks. The inlier records a long history of tectonic evolution, now thought to be like that of the Broken Hill Block in western New South Wales.

· The Mt Oxide North project lies within the Mt Oxide Domain, straddling the Lawn Hill Platform and Leichhardt River Fault Trough. The geology of the tenement is principally comprised of rocks of the Surprise Creek and Quilalar Formations which include feldspathic quartzites, conglomerates, arkosic grits, shales, siltstones and minor dolomites and limestones.

· The Project area is cut by a major fault zone, trending north- northeast - south- southwest across the permits. This fault is associated with major folding, forming several tight synclines- anticline structures along its length.

· The Desktop studies commissioned by CCZ on the granted mineral tenures described four main styles of mineralisation account for most mineral resources within the rocks of the Mt Isa Province (after Withnall & Cranfield, 2013).

· Sediment hosted silver-lead-zinc - occurs mainly within fine-grained sedimentary rocks of the Isa Super basin within the Western Fold Belt. Deposits include Black Star (Mount Isa Pb-Zn), Century, George Fisher North, George Fisher South (Hilton) and Lady Loretta deposits.

· Brecciated sediment hosted copper - occurs dominantly within the Leichhardt, Calvert, and Isa Super basin of the Western Fold Belt, hosted in brecciated dolomitic, carbonaceous, and pyritic sediments or brecciated rocks proximal to major fault/shear zones. Includes the Mount Isa copper orebodies and the Esperanza/Mammoth mineralisation.

· Iron-oxide-copper-gold ("IOCG") - predominantly chalcopyrite-pyrite magnetite/hematite mineralisation within high grade metamorphic rocks of the Eastern Fold Belt. Deposits of this style include Ernest Henry, Osborne, and Selwyn; and

· Broken Hill type silver-lead-zinc - occur within the high-grade metamorphic rocks of the Eastern Fold Belt. Cannington is the major example, but several smaller currently sub-economic deposits are known.

· Gold is primarily found associated with copper within the IOCG deposits of the Eastern Fold Belt. However, a significant exception is noted at Tick Hill where high grade gold mineralisation was produced, between 1991 and 1995 by Carpentaria Gold Pty Ltd, some 700 000 tonnes of ore was mined at an average grade of 22.5 g/t Au, producing 15 900 kg Au. The Tick Hill deposit style is poorly understood (Withnall & Cranfield, 2013).

· ROM Resources had noted in a series of recent reports for CCZ on the granted tenures, that cover the known mineralisation styles including:

· Stratabound copper mineralisation within ferruginous sandstones and siltstones of the Surprise Creek Formation.

· Disseminated copper associated with trachyte dykes.

· Copper-rich iron stones (possible IOCG) in E-W fault zones; and

· possible Mississippi Valley Type ("MVT") stockwork sulphide mineralisation carrying anomalous copper-lead-zinc and silver.

· The Mt Oxide and Mt Gordon occurrences are thought to be breccia and replacement zones with interconnecting faults. The Mt Gordon/Mammoth deposit is hosted by brittle quartzites, and Esperanza by carbonaceous shales. Mineralisation has been related to the Isan Orogeny (1,590 - 1,500 Ma).

· Mineralisation at all deposits is primarily chalcopyrite-pyrite-chalcocite, typically as massive sulphide within breccias.

· At the Big One prospect, West Australian Metals NL described the mineralisation as (as sourced from the document "West Australian Metals NL, 1994. Drill Programme at the "Big One" Copper Deposit, North Queensland for West Australian Metals NL."):

· The targeted lode / mineralised dyke is observable on the surface. The mineralisation targeted in the 1993 drilling programmed is a supergene copper mineralisation that includes malachite, azurite, cuprite, and tenorite, all associated with a NE trending fault (062o to 242o) that is intruded by a porphyry dyke.

· The mineralised porphyry dyke is vertical to near vertical (85o), with the 'true width' dimensions reaching up to 7m at surface.

· At least 600m in strike length, with strong Malachite staining observed along the entire strike length, with historical open pits having targeted approximately 200m of this strike. Exact depth of mining below the original ground surface is not clear in the historical documents, given the pits are not battered it is anticipated that excavations have reached 5m to 10m beneath the original ground surface.

· Associated with the porphyry dyke are zones of fractured and/or sheared rock, the siltstones are described as brecciated, and sandstones around the shear as carbonaceous.

· The known mineralisation from the exploration activities to date had identified shallow supergene mineralisation, with a few drillholes targeting deeper mineralisation in and around the 200m of strike historical open cut pits.

· A strongly altered hanging wall that contained malachite and cuprite nodules. Chalcocite mineralization has been identified but it is unclear on the prevalence of the Chalcocite; and

· The mineralisation was amenable to high grade open pit mining methods of the oxide mineralization (as indicated by numerous historical open pit shallow workings into the shear zone).

· Desktop studies commissioned by CCZ and completed by ROM Resources and SRK Exploration have determined that the Big One prospect is prospective for Cu, Co, and Ag.

· Desktop studies commissioned by CCZ have determined the Boomerang prospect contains:

Secondary copper staining over ~800m of strike length.

Associated with a major east-west trending fault that juxtaposes the upper Surprise Creek Formation sediments against both the underlying Bigie Formation and the upper Quilalar Formation units.

· At the 'Flapjack' prospect there is the additional potential for:

Skarn mineralisation for Cu-Au and/or Zn-Pb-Cu from replacement carbonate mineralisation, particularly the Quilalar Formation.

Thermal Gold Auroele mineralisation is a potential model due to the high silica alteration in thermal aureole with contact of A-Type Weberra Granite - related to the Au mineralisation; and/or

IOCG mineralisation related to chloride rich fluids.

· At the 'Crescent' prospect there is the additional potential for:

Skarn mineralisation for Cu-Au and/or Zn-Pb-Cu from replacement carbonate mineralisation, particularly the Quilalar Formation; and/or

Thermal Gold Auroele mineralisation is a potential model due to the high silica alteration in thermal aureole with contact of A-Type Weberra Granite - related to the Au mineralisation; and

IOCG mineralisation related to potassic rich fluids.

· At the 'Arya' prospect there is the additional potential for:

Supergene mineralisation forming at the surface along the fault, fault breccia, and the Surprise Creek Formation 'PLrd' rock unit ('Prd' historical).

Epigenetic replacement mineralisation for Cu (with minor components of other base metals and gold) from replacement carbonate mineralisation, particularly the Surprise Creek Formation.

Skarn mineralisation for Cu-Au and/or Zn-Pb-Cu from replacement carbonate mineralisation, particularly the Surprised Creek Formation.

Sulphide mineralisation within breccia zones, along stress dilation fractures, emplaced within pore spaces, voids, or in other rock fractures; and/or

· IOCG mineralisation related to chloride rich fluids.

· A selection of publicly available QDEX documents / historical exploration reports have been reviewed, refer to Section 2, sub-section "Further Work" for both actions in progress and proposed future actions.

· The SRK Independent Geologists Report released by CCZ on the ASX on 28-July-2020 contains further details on the 'Geology - Deposit type, geological setting and style of mineralisation': this report is formally titled "A Competent Persons Report on the Mineral Assets of Castillo Copper Limited" Prepared as part of the Castillo Copper Limited (ASX: CCZ, LSE: CCZ) LSE Prospectus, with the effective date of the 17-July-2020.

Drill hole Information

· A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

easting and northing of the drill hole collar

elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

dip and azimuth of the hole

down hole length and interception depth

hole length.

· If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

· For the current program, all drillhole information was coded to the same formatted spreadsheets used by CCZ, being hand-encoded from hard-copy reports, plans, and cross-sections.

· For CCZ's current drilling program, this information has been recorded in formatted spreadsheets during the drilling and will be checked and verified at the conclusion of the current program. The current reported holes (315-317RC) are listed in Appendix 2, with previous drilling collars listed in the 11TH and 26th July ASX release and in Tables B2-2 and B2-3.

· A summary of the holes drilled are given at the end of section B2.

Data aggregation methods

· In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g., cutting of high grades) and cut-off grades are usually Material and should be stated.

· Where aggregate intercepts incorporate short lengths of high-grade results and longer lengths of low-grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

· The assumptions used for any reporting of metal equivalent values should be clearly stated.

· Queries on some assays are currently pending on CCZ's current drilling program.

· For historical surface sampling, Independent Laboratory Assay results for soil and rock chip samples from the Big One Deposit were averaged if more than one reading or determination was given.

· Copper grades were reported in this ASX release as per the received laboratory report, i.e., there was no cutting of high-grade copper results as they are directly relatable to high grade mineralisation styles readily visible in the relevant samples and modelling has yet not commenced.

· There were no cut-off grades factored into any assay results reported, however once modelling commences a high cut-off grade of 10,000ppm or 10% copper will be used.

Relationship between mineralisation widths and intercept lengths

· These relationships are particularly important in the reporting of Exploration Results.

· If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

· If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').

· When available, all mineralised intervals (i.e., >500ppm) have been reported in this and previous ASX releases as the "as-intersected" apparent thickness (in metres) and given that most drillholes dip at -60 to -70 degrees from the horizontal, true intersection widths will be calculated during the block modelling process.

Diagrams

· Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

· This part will be done once CCZ's current drilling program is completed, and all samples have been assayed and verified.

· Appropriate diagrams are presented in the body and the Appendices of the current ASX Release. Where scales are absent from the diagram, grids have been included and clearly labelled to act as a scale for distance.

· Maps and Plans presented in the current ASX Release are in MGA94 Zone 54, Eastings (mE), and Northing (mN), unless clearly labelled otherwise.

· A series of cross-sections have been generated at Big One displaying copper analyses in ppm to aid interpretation and exploration planning (in previous ASX releases in July and August 2021)

Balanced reporting

· Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced avoiding misleading reporting of Exploration Results.

· Comprehensive reporting is planned once CCZ's current drilling program has all sample queries returned and have been verified.

· Appropriate diagrams are presented in the body and the Appendices of the current ASX Release.  Where scales are absent from the diagram, grids have been included and clearly labelled to act as a scale for distance.

· A complete comparison of visual mineralisation estimated by the site geologist is given in Tables B2-6 through to B2-8 at the end of the next section.  All intersected intervals are apparent thicknesses in metres.

Other substantive exploration data

· Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

· Several airborne EM and magnetic surveys have been conducted nearby by historical explorers and Castillo Copper has conducted its own surface sampling program prior to drilling commencing as noted above. A major IP survey was completed during May 2021 across five (5) north-east trending survey lines (dipole-dipole array). Historical work has focussed on drilling and geochemical sampling, with no detailed geophysical data collection. The copper intersected to date appears to be associated with a NE-SW trending dyke. It occurs in two zones - oxidised (malachite, azurite, tenorite, cuprite) and chalcocite. The aim of the IP survey was to ascertain if the copper mineralisation intersected to date has a discernible electrical response (chargeable and / or conductive). If so, it is hoped that other zones of similar electrical response can be highlighted to better focus the upcoming drill program.

As a result of the evaluation of data from the IP surveys carried out, the following recommendations are made:

· The 2D section models are likely to give the most accurate representation of the earth's conductivity and chargeability variations and should be used when drill targeting. The 3D model output allows trends and structures to be mapped and may give some indications of off-line anomalies.

· Treat anomalies on the edge of lines (and at depth) with caution. Although care was taken to remove spurious data, some edge effects may persist in the data. Before testing any anomalies, GeoDiscovery can check the raw data to verify if a particular anomaly likely to be real.

· 50m DP-DP is shown to be a cost-effective method to cover ground relatively quickly and map the electrical properties of the top 150m or so. If drill testing the regions of elevated chargeability proves successful, a larger 100m DP-DP or P-DP campaign may be considered to cover more ground and to greater depth.

· Incorporate the 3D and 2D IP models into the available geological database to determine the extent to which the chargeable zones may or may not have been tested, as well as their geological / stratigraphic significance.

· It is recommended that where IP anomalies occur near surface, a field visit is undertaken to see if anomaly can be explained by surficial clays / lithology.

Further work

· The nature and scale of planned further work (e.g., tests for lateral extensions or depth extensions or large-scale step-out drilling).

· Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

· Future potential work is described within the body of the ASX Release, and will include:

· Detailed mapping and rock chip sampling.

· Surface gravity and magnetic surveys, and potentially downhole EM surveys.

· Diamond Coring.

· Block modelling and wireframing.

· Resource Estimation.

 

 


GEOLOGICAL AND ASSAY SAMPLING OVERVIEW (SECTION 2 CONTINUED)

Drilling program

The 2021 drilling program concluded in late August 2021 comprised 20 RC drill-holes (including one pre-collar) for 2,632m and one partial HQ diameter diamond-cored for 32m. Most drill-holes were downhole geophysically logged with deviation, caliper, natural gamma - several had acoustic scanner tools run.  Notably, around 25% of the drill-holes collapsed resulting in variable down-hole, while the ground around the dyke is quite fractured and jointed.

Drill-holes 315-318RC, 326RC, 327RC, 333RC, and 334DD had significant mineralisation (see Figure A2-1) and extended the underlying system. The best, deepest, mineralisation was BO_318RC with 16m (apparent) from 166 to 182m @0.59% Cu, including 3m from 176-179m @ 1.76% Cu.

However, for the drill-holes designed to test the halo on the southern part of the strike extent, which did not intersect the dyke, the results were moderate with under 500ppm Cu recorded.

FIGURE A2-1: 3D VIEW OF IP ANOMALIES / COPPER ASSAY >250PPM, LOOKING NORTHEAST (Available to view on ASX announcement)

 

Ground & drone survey

The surveyor (GMC Surveys) completed surveying all forty 2020 and 2021 drill-hole collars (Tables A2-1 and A2-2). Average errors compared to the handheld GPS readings taken whilst each hole was drilled were negligible at ±0.7m in X and Y.

In addition, the surveyor picked up six of the 1993 drill-hole collars where there was still casing evident: these needing rehabilitation. The average error compared to the geo-referenced 1993 coordinates (from a hard copy plan) were about ±12m in X and Y. The detailed drone and ground survey, including building a PSM at Big One Deposit, established the QLD 1 Sec DEM topography model was on average 3.40m too high at the drillhole collars. Further, co-ordinates of unrehabilitated historical drill-holes were taken.

TABLE A2-1:  LOCATION OF ALL COMPLETED 2021 DRILLHOLES - GMC SURVEY

SiteID

Easting (GDA94)

Northing (GDA94)

Collar RL (m)

Total Depth (m)

Azimuth

Dip

Note

Comments

BO_315RC

335416.54

7880310.99

156.13

80.00

320.8

-57.6

Redrill 201RC

Breakdowns

BO_316RC

335426.88

7880296.19

156.04

155.00

349.6

-71.9

Redrill 202RC


BO_317RC

335392.82

7880285.23

154.67

125.00

347.6

-59.6

Redrill 306RC


BO_318RC

335431.00

7880282.63

155.58

203.00

344.2

-74.6

Redrill 203RC


BO_319RC

335288.27

7880265.10

152.63

149.00

331.9

-72.7

Redrill 312RC


BO_320RC

335309.56

7880203.56

155.53

83.00

329.3

-60.0

New hole

Abandoned due to high water flow

BO_321RC

335224.68

7880234.68

154.47

137.00

321.6

-66.0



BO_322RC

335191.11

7880219.79

154.75

131.00

324.2

-65.4



BO_323RC

335158.35

7880188.76

155.04

131.00

331.6

-61.9

Matched to 325RC


BO_324RC

335118.00

7880203.00

157.00

76.00

328.2

-61.8


Abandoned due to faulted ground

BO_325RC

335113.69

7880291.66

151.26

130.00

164.4

-64.5

Oriented south


BO_326RC

335175.53

7880306.22

151.81

191.00

160.4

-57.1

Oriented south

Abandoned due to high water flow

BO_327RC

335333.50

7880264.58

153.26

173.00

324.4

-61.6



BO_328RC

335376.95

7880295.83

154.36

131.00

332.6

-62.4



BO_329RC

335402.88

7880254.32

155.84

120.00

320.4

-60.0



BO_330RC

335412.00

7880211.00

163.00

130.00

333.2

-60.4



BO_331RC

335275.45

7880249.48

152.89

161.00

322.6

-56.0



BO_332RC

335294.48

7880240.07

153.76

132.00

330.8

-58.0


Redrill of 320RC

BO_333RC

335110.60

7880194.01

154.21

125.00

330.2

-60.3


Redrill of 324RC

BO_334DD

335458.29

7880313.59

157.59

104.98

335.0

-61.2

Between 207RC and 304RC

HQ cored fm 68.85m; 32.31m HQ core





2,667.98





Notes:

1.  All drillholes except BO_334DD downhole geophysically logged the entire hole

2.  Azimuths and dips are averaged readings from downhole deviation tool over the length of the hole

Source: CCZ geology team

TABLE A2-2:  LOCATION ALL COMPLETED 2020 DRILLHOLES - GMC SURVEY

SiteID

Easting (GDA94)

Northing (GDA94)

Collar RL (m)

Total Depth (m)

Azimuth

Dip

Comments

BO_201RC

335414.80

7880310.43

156.04

50.0

306.5

-51.6


BO_202RC

335428.03

7880299.12

156.29

82.0

342.0

-62.2


BO_203RC

335432.18

7880283.98

155.60

107.0

330.5

-70.5


BO_206RC

335468.16

7880333.15

158.40

71.0

340.1

-65.5


BO_207RC

335476.25

7880316.80

158.42

95.0

332.1

-61.4


BO_211RC

335443.87

7880324.68

157.30

107.0

345.0

-67.9


BO_213RC

335389.02

7880302.33

155.35

107.0

338.4

-69.3


BO_301RC

335405.00

7880325.87

156.98

53.0

339.0

-66.7

Mineralised entire length

BO_302RC

335382.75

7880316.70

156.11

59.0

342.3

-68.1


BO_303RC

335425.16

7880339.52

158.31

53.0

342.6

-60.8

Mineralised entire length

BO_304RC

335448.96

7880312.64

157.18

107.0

340.8

-65.3


BO_305RC

335461.65

7880346.92

159.13

53.0

340.5

-69.0


BO_306RC

335391.40

7880285.01

154.58

107.00

337.4

-70.1


BO_307RC

335481.53

7880361.85

160.40

91.00

336.4

-69.2


BO_308RC

335339.75

7880305.93

153.40

53.0

335.8

-65.3


BO_309RC

335350.03

7880291.61

153.31

77.0

346.5

-68.5


BO_310RC

335347.89

7880277.61

153.62

107.0

336.1

-66.9


BO_311RC

335281.18

7880275.09

152.02

59.0

336.8

-66.7


BO_312RC

335286.17

7880264.98

152.23

83.0

344.0

-65.3


BO_313RC

335209.65

7880258.84

153.98

59.0

344.8

-66.8


335221.14

7880250.74

153.92

71.0

330.2

-63.2






1,651




Notes:

1.  All drillholes except BO_314RC downhole geophysically logged.

2.  Azimuths and dips are averaged readings from downhole deviation tool over the length of the hole.

 

Source: CCZ geology team

Stockpile sampling

 

Twelve separate stockpile samples, covered by the drone survey, were mapped and sampled (Figure A2-2) enabling accurate volumes to be estimated.  All historical stockpiles originated from Pits 1-3 and were mostly comprised of mineralised reject material (cupriferous dyke and quartzite) from the 1990's mining operations. 

 

Initial XRF readings on some indicated high copper (highest 3.84%).  All twelve separate stockpiles were grab sampled at regular spacings across the base of each stockpile, with multiple samples collected across each stockpile.  Samples were dispatched to the laboratory late August, with some of the resultant assay results returning high-grade values exceeding 3% Cu (Figure A2-3). In addition, e levated results for silver, cobalt and chromium were returned. 

 

FIGURE A2-2:  STOCKPILE PHOTOS AND TONNAGE CALCULATIONS ( Available to view on ASX announcement)

FIGURE A2-3: STOCKPILE ASSAY RESULTS FOR COPPER (PPM) ( Available to view on ASX announcement)

 

Next drillhole sites pegged and surface sampled

 

Another twenty-two sites have been identified for drilling (focused on the northern portion of the strike extent) and will require key approvals, track, and pad clearing. The geology team took rock-chips samples (see Figure A2-4 and Table A2-4) which comprised elevated copper readings.

 

Additional mapping areas defined

 

Based on the rock chip database which includes historic sampling, IP lines, proposed borehole sites, and stockpiles, four areas for a detailed sampling grid have been identified (see Figure A2-5).

 

FIGURE A2-4:  LOCATION OF PROPOSED MAPPING GRIDS AND 2022 DRILLHOLE LOCATIONS ( Available to view on ASX announcement)

FIGURE A2-5: LOCATION OF PROPOSED MAPPING GRIDS AND 2022 DRILLHOLE LOCATIONS ( Available to view on ASX announcement)

 

 


IP survey line sampling

These have been completed, with XRF results available for all lines and laboratory assays for three lines.  Samples were taken at every 25m survey peg, and whilst most pXRF results were <30ppm Cu, several copper anomalies were found along some lines.  Selected samples were sent for laboratory assay, with the results below in Table A2-3.

TABLE A2-3:  IP SURVEY TRAVERSE LINES (>100PPM CU)

Line_SiteID

X

Y

Z

Cu_Pxrf_

ppm

Lab_Au_

ppm

Lab_Ag_

ppm

Lab_Co_

ppm

Lab_Cu_

ppm

Rock Description

300_02

335244.6

7880365.7

155.7

55.5

0.01

0.05

9

180

Weathered light grey, brown quartzite

300_03

335254.3

7880342.6

155.0

49.5

<0.01

0.01

9

144

Strongly weathered fine grained siltstone with secondary haematite

300_12

335341.3

7880135.1

160.2

62

<0.01

0.07

16

135

Weathered pink partly albite altered sandstone with manganese 

400_16

335356.0

7880358.0

157.0

146

<0.01

0.09

8

165

Strongly weathered fine grained ferruginous sandstone with some secondary haematite veins

400_17

335366.0

7880335.0

156.0

615

<0.01

0.74

31

8,260

Weathered locally spherulitic? dacite, part sericite altered and sericite-epidote alteration of spherules. Some dark grey haematite after sulphide veins

400_18

335376.0

7880312.0

156.0

101

<0.01

0.03

4

117

Medium grained white quartzite (all quartz)

400_19

335385.0

7880289.0

156.0

738

<0.01

0.06

17

164

Medium grained pink ferruginous sandstone

500_05

335458.1

7880373.9

165.2

222

0.01

0.01

21

405

Weathered ferruginous siltstone

500_06

335467.7

7880350.8

162.7

2,422

<0.01

0.49

46

3,180

Chrysocolla-stained strong albite-K-feldspar altered siltstone with relict haematite after oxidised chalcopyrite?

500_07

335477.4

7880327.8

160.9

578

0.01

0.48

37

6,430

Pink, brown weathered siltstone

600_12

335540.6

7880435.6

190.8

103

<0.01

0.01

7

115

Strongly weathered light to medium brown, medium grained quartz-feldspar-clay-feldspar sandstone with haematite and goethite

600_13

335550.3

7880412.6

186.5

236

0.06

0.02

7

333

Strongly weathered pitted red brown to light brown quartzite with quartz and intergranular clay

600_14

335559.9

7880389.5

182.3

1,049

<0.01

0.21

168

4,000

Strongly albitised siltstone with traces of malachite on surface, part botryoidal fine-grained haematite after possible sulphide vein

Source: CCZ geology team

 

TABLE A2-4:  LAB ASSAY FOR 2022 DRILL-HOLE SITES

SiteID

X

Y

Z

Cu_Pxrf_ppm

Lab_Au_ppm

Lab_Ag_ppm

Lab_Co_ppm

Lab_Cu_ppm

Rock Description

2021_BO_03

335532

7880325

160

28

0.02

0.02

7.9

21.7

Pink fine grained finely bedded siltstone

2021_BO_11

335574

7880283

160

20

0.01

0.01

0.6

6

Quartz vein in white quartzite with some secondary haematite

2021_BO_15

335325

7880173

160

27

0.02

0.01

13.3

33.2

Weathered finely bedded pink haematitic siltstone

2021_BO_20

335470

7880108

160

26

0.01

0.01

1.5

5.7

Dark brown weathered spotted pink quartzite with spots after garnet?

2021_BO_21

335437

7880411

160

62

0.01

0.01

5.8

34.2

Dark brown strongly weathered goethitic sandstone

2021_BO_23

335625

7880553

160

18

0.01

0.01

1.1

6.3

Pink quartz-feldspar quartzite

2021_BO_24

335560

7880585

160

22

0.02

0.01

0.8

4.1

Coarse pink quartzite with secondary limonite-haematite

2021_BO_25

335297

7880695

160

17

0.02

0.01

1.1

4.3

Medium grained white quartzite

2021_BO_26

335173

7880308

160

22

0.01

0.02

0.7

9.4

Brown spotted fine grained quartz-feldspar sandstone with dark brown secondary limonite after garnet?

2021_BO_27

335054

7880242

160

30

0.01

0.04

8.5

155

Light brown strongly weathered fine grained limonitic sandstone

2021_BO_28

334943

7880188

160

28

0.01

0.01

2

14.3

Coarse to medium grained weathered white quartzite with secondary iron

2021_BO_29

335170

7880512

160

25

0.02

0.02

6.8

10.5

Weathered red brown ferruginous siltstone

2021_BO_30

335287

7880218

160

34

0.01

0.01

6.3

20.8

Weathered fine grained haematitic sandstone with some goethite

2021_BO_31

335268

7880500

160

34

0.02

0.01

3.4

6.8

Weathered pink, brown fine-grained sandstone

2021_BO_32

335055

7880054

160

37

0.01

0.02

21.3

17.3

Weathered medium brown fine gained siltstone

Notes:

1.  Locations for 2022 drilling sites listed in the Table A2-4 are shown on Figure A2-5

2.  All coordinates in MGA94-Zone 54

Source: CCZ geology team

 


Sample assay review

Drill-holes BO_315, 316, 317, 318, 326, 327 and 333RC have been the standout results for the second drilling campaign, with moderate mineralisation observed in BO_323RC, 324RC, 325RC, and 334DD.  Assay results from the cored section of BO_334DD only revealed 1m of copper mineralisation at the top of the dyke.

Analysing assay data has shown the porphyritic dacite dyke can be characterised by high chromium and lithium laboratory assay levels compared to background (up to six times for Cr and ten times for Li).

Results for major copper mineralisation of 20 holes completed have now been received from the laboratory, as summarised in Table A2-5.  

The major dyke and halo intersections are listed in Table A2-6 below, followed by Table A2-7, which documents the qualitative assessment of mineral ranges present for drill-holes from the geologist's logs.

 

TABLE A2-5:  BO_315-334DD LABORATORY ANALYSIS - COPPER ASSAY COMPARISON

Drillhole

From (m)

To (m)

Apparent Length (m)

Cu (%)

Notes

BO_315RC

61.0

69.0

8.0

0.50%

Visual mineralisation 62-69m

including

65.0

68.0

3.0

1.22%


BO_316RC

137.0

146.0

9.0

0.64%

Visual mineralisation 129-146m

including

141.0

146.0

5.0

1.06%


BO_317RC

88.0

97.0

9.0

1.42%

Visual mineralisation 90.5-103m

including

92.0

96.0

4.0

3.06%


including

92.0

93.0

1.0

9.19%

Also 3.4 g/t Ag

BO_318RC

166

182

16.0

0.59%


including

176

179

3.0

1.76%


BO_319RC

-

-

0

-

All samples <500ppm.

BO_320RC

-

-

0

-

Abandoned shallow; All samples <500ppm.

BO_321RC

-

-

0

-

All samples <500ppm.

BO_322RC

-

-

0

-

All samples <500ppm.

BO_323RC

64

65

1.0

0.06%


BO_323RC

94

96

2.0

0.11%


BO_324RC

46

49

3.0

0.05%

Abandoned shallow; All other samples <500ppm.

BO_325RC

88

89

1.0

0.05%

All other samples <500ppm.

BO_326RC

100

104

4.0

0.56%


including

100

101

1.0

1.58%


BO_326RC

102

103

1.0

-

0.15ppm Au

BO_326RC

141

144

3.0

-

0.16ppm Au

BO_327RC

93

98

5.0

0.77%


including

95

97

2.0

1.57%


BO_327RC

103

104

1.0

0.43%


BO_327RC

122

123

1.0

0.11%


BO_328RC

-

-

0

-

All samples <500ppm.

BO_329RC

-

-

0

-

No dyke; All samples <500ppm.

BO_330RC

-

-

0

-

No dyke; All samples <500ppm.

BO_331RC

75

76

1.0

0.05%


BO_332RC

110

111

1.0

0.05%


BO_333RC

42

45

3.0

0.15%


including

43

44

1.0

0.31%


BO_334DD

86.43

87.43

1.0

0.52%

In the RC section, all samples <500ppm.

including

86.93

87.43

0.50

1.02%


Source: CCZ geology team



 

TABLE A2-6:  MAJOR DYKE AND HALO INTERSECTIONS

Borehole

From (m)

To (m)

Apparent Thickness (m)

Comments

BO_315RC

58.0

61.0

2.0

Quartzite 

BO_315RC

61.0

69.0

8.0

Trachyte to porphyry dacite

BO_315RC

69.0

71.0

2.0

Quartzite

BO_316RC

113.0

120.0

7.0

Quartzite

BO_316RC

129.0

146.5

17.5

Trachyte to porphyry dacite

BO_317RC

11.0

13.0

2.0

Haematite-rich Shale

BO_317RC

20.0

24.0

1.0

Quartzite; Pyrolusite

BO_317RC

42.0

43.0

1.0

Quartzite; Pyrolusite

BO_317RC

65.0

66.0

1.0

Quartzite; Pyrolusite

BO_317RC

75.0

76.0

1.0

Siltstone; Potassic Alteration

BO_317RC

90.5

103.0

12.5

Andesite dyke, plus sericite and chrysocolla

BO_317RC

103.0

105.0

2.0

Quartzite

BO_318RC

89.0

100.0

11.0

Dacitic

 

BO_318RC

153.0

187.0

34.0

Dacitic, some orthoclase

 

BO_319RC

55.0

64.0

9.0

Dacitic, some orthoclase

 

BO_319RC

83.0

84.0

1.0

Quartzite

 

BO_319RC

87.0

91.0

4.0

Dacitic

 

BO_319RC

96.0

98.0

2.0

Dacitic

 

BO_320RC

79.0

80.0

1.0

Quartzite, some orthoclase

 

BO_321RC

63.0

72.0

9.0

Dacitic

 

BO_321RC

86.0

88.0

2.0

Quartzite

 

BO_321RC

97.0

100.0

3.0

Quartzite

 

BO_322RC

57

73.5

16.5

Dacitic

 

BO_323RC

8

9

1.0

Dacitic, pervasive orthoclase

 

BO_323RC

82

97

15.0

Dacitic, some orthoclase

 

BO_324RC

3

6

3.0

Quartzite

 

BO_324RC

33

40

7.0

Fractured quartzite

 

BO_324RC

41

53

12.0

Dacite

 

BO_325RC

2

4

2.0

Dacite

 

BO_325RC

45

46

1.0

Dacitic

 

BO_326RC

5

9

4.0

Dacite

 

BO_326RC

27

28

1.0

Quartzite with abundant pyrite

 

BO_326RC

134

161

27.0

Dacite

 

BO_327RC

84

98

14.0

Dacite

 

BO_327RC

98

99

1.0

Quartzite

 

BO_328RC

62

73.5

11.5

Dacite

 

BO_328RC

101

102

1

Dacite

 

BO_329RC



0

No igneous intrusions

 

BO_330RC

70

75

5.0

No igneous intrusions; but skarn

 

BO_330RC

81

82

1.0

Skarn

 

BO_330RC

100

102

2.0

Skarn

 

BO_330RC

122

125

3.0

Skarn

 

BO_331RC

58

59

1.0

Dacite

 

BO_331RC

75.5

83.5

8.0

Dacite

 

BO_331RC

114.5

116

1.5

Dacite and skarn

 

BO_332RC

81.5

94.5

13.0

Dacite

 

BO_332RC

108.5

111

2.5

Dacite

 

BO_333RC

37

42

5.0

Dacite

 

BO_333RC

45

46

1.0

Dacite

 

BO_334DD

86.49

95.52

9.03

Dacite

 

Notes:

1.  Detailed visual mineralisation estimates given in Table B2-7 below

Source: CCZ geology team



 

TABLE A2-7:  QUALITATIVE ASSESSMENT - MINERALISATION DRILLHOLES 315RC-334DD

Borehole

From (m)

To (m)

Apparent Thick. (m)

Magnetite

(%)

Epidote (%)

Sericite (%)

Sulphides (%)

Comments

BO_315RC

58.0

61.0

2.0


0-1

1-3


Quartzite, partly mineralised

BO_315RC

61.0

69.0

8.0


1-2

1-8

1-4

Trachyte to porphyry dacite

BO_315RC

69.0

71.0

2.0



1-5

0-1

Quartzite, partly mineralised

BO_316RC

113.0

120.0

7.0



1-15

0-1

Quartzite, partly mineralised

BO_316RC

129.0

146.5

17.5


1-5

1-10

1-7

Trachyte to porphyry dacite

BO_317RC

11.0

13.0

2.0

1-3




Haematite-rich Shale

BO_317RC

20.0

24.0

1.0

0-1




Quartzite; 0-2% Pyrolusite

BO_317RC

42.0

43.0

1.0





Quartzite; 0-2% Pyrolusite

BO_317RC

65.0

66.0

1.0





Quartzite; 0-2% Pyrolusite

BO_317RC

75.0

76.0

1.0





Siltstone; 3-5% Potassic Alteration

BO_317RC

90.5

103.0

12.5

0-2

1-15

1-3

1-4

Andesite dyke, plus sericite and chrysocolla

BO_317RC

103.0

105.0

2.0


1-2



Quartzite, partly mineralised

BO_318RC

89

100

11

1-3

1-3

1-2

0-1

Drilled next to 203RC, Dacitic

BO_318RC

153

187

34

1-5

1-5


1-15

Dacitic, some orthoclase

BO_319RC

55

64

9

1-10

1-5

1-3

0-10

Dacitic, some orthoclase

BO_319RC

83

84

1

0



1-5

Quartzite

BO_319RC

87

91

4

1-5



1-5

Dacitic

BO_319RC

96

98

2

0

1-5


1-5

Dacitic

BO_320RC

79

80

1

5-10




Quartzite; new hole abandoned at 83m

BO_321RC

63

72

9

5-50

1-5



Dacitic

BO_321RC

86

88

2

5-10



1-3

Quartzite

BO_321RC

97

100

3

0-5

1-10


0-1

Quartzite

BO_322RC

57

73.5

16.5

1-10

0

1-2

0-5

Dacitic

BO_323RC

8

9

1.0

1-20

1-2

0

3-5

Dacitic, pervasive orthoclase

BO_323RC

82

97

15.0

1-10

1-5

0

0-3

Dacitic, some orthoclase

BO_324RC

3

6

3.0

1-5

0

1-3

1-5

Quartzite

BO_324RC

33

40

7.0

1-10

0

0

1-2

Fractured quartzite

BO_324RC

41

53

12.0

2-15

1-5

1-5

1-6

Dacite; abandoned at 76m

BO_325RC

2

4

2.0

5-10

0

0

1-5

Dacite

BO_325RC

45

46

1.0

1-5

1-5

1-5

1-3

Dacitic

BO_326RC

5

9

4.0

5-10

0

0

1-3

Dacite

BO_326RC

27

28

1.0

0-5

0

1-5

0-1

Quartzite, abundant pyrite

BO_326RC

96

100

4.0

0-5

0-2

1-5

1-3

Dacite

BO_326RC

134

160

26.0

0-25

1-5

0-10

1-6

Dacite

BO_327RC

60

68

8.0

0-10

1-3

0-2

1-5

Dacite

BO_327RC

81

90

8.0

0-15

1-5

0-3

1-5

Dacite

BO_327RC

90

99

9.0

0-20

1-3

0

5-10

Quartzite

BO_328RC

5

6

1.0

0

0

0

5-6

Azurite

BO_328RC

63

65

2.0

0

0

0

0-2

Dacite

BO_328RC

65

66

1.0

0

0

0

1-3

Dacite

BO_328RC

66

68

2.0

0

0

0

0-2

Also 2% chlorite

BO_329RC

29

32

3.0

0-5

0

0

0

Goethite

BO_329RC

116

117

1.0

0

2-10

0

0-1

Quartzite

BO_330RC

58

60

2.0

0

0

0

0-2

Chalcopyrite and Chalcocite

BO_330RC

60

61

1.0

0

0

0

0-1

Sphalerite

BO_330RC

70

75

5.0

0

0

0

0

Skarn 2-6% garnet

BO_330RC

110

111

1.0

0

0

0

0-2

Chalcopyrite

BO_330RC

127

128

1.0

0

0

0

0-2

Chalcopyrite

BO_330RC

131

132

1.0

0

0

0

0-2

Chalcopyrite

BO_330RC

133

134

1.0

0

0

0

0-2

Chalcopyrite

BO_331RC

58

59

1.0

0

0

0

0-1

Dacite

BO_331RC

75.5

83.5

8.0

0

0-1

1-5

0-3

Dacite

BO_331RC

104

105

1.0

0

0

0

0-1

Quartzite

BO_331RC

114.5

116

1.5

0

0

2-15

0

Skarn, Garnet 1-2%

BO_332RC

81.5

94.5

13.0

0-1

0-3

1-5

1-2

Dacite

BO_332RC

102

103

1.0

0

0

0-2

0-2

Quartzite

BO_332RC

108.5

111

2.5

0

1-10

1-5

0-2

Dacite

BO_332RC

120

122

2.0

0

0

0

0-1

Quartzite

BO_333RC

11

13

2.0

0

0

0

0-2

Siltstone

BO_333RC

19

21

2.0

0

0

0

0-2

Quartzite

BO_333RC

26

27

1.0

0

0

1.5

0-2

Quartzite

BO_333RC

37

42

6.0

0-1

1-5

1-10

0-3

Dacite

BO_333RC

45

46

1.0

0

0-5

1-3

0-3

Dacite

BO_333RC

104

108

4.0

0

0

0

0-1

Quartzite, 1-3% chlorite

BO_333RC

117

118

1.0

0

0

0

0-1

Quartzite

BO_334DD

71

78

6.0

0-1

0-2

0-2

0-1

Quartzite

BO_334DD

86.49

95.52

9.03

0-5

1-5

1-10

0-3

Dacite

Notes:

1.  Samples have been taken at 1m intervals (refer to Figure A2-10).

2.  Mineralisation estimated from field geologists rock chip estimates.

3.  True vertical depths will be calculated by Minescape block model procedures.

4.  A zone of limited mineralisation inferred to be associated with the dyke was intersected in each deepened drill hole.

Source: CCZ geology team

 

 

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