Results deliver upgrades at Broken Hill

RNS Number : 5335U
Castillo Copper Limited
02 August 2022
 

 

 

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

 

Metallurgical results deliver solid upgrades at Broken Hill with resource drilling planned

Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily focused on copper across Australia and Zambia, is pleased to announce that several rounds of preliminary metallurgical test-work on BH1 drill-core (The Sisters Prospect; East Zone) produced excellent beneficiation results for cobalt-copper-gold.

HIGHLIGHTS

· Metallurgical test-work on BH1 drill-core extracted from The Sisters Prospect1 - BHA Project's East Zone (Appendix A) - delivered excellent beneficiation results for cobalt and, surprisingly, copper-gold (Appendix B) - with the best outcomes:

o Cobalt: 200ppm head-grade up to 2,500ppm post-test-work; 12x upgrade

o Copper: 520ppm head-grade up to 16,000ppm (1.6%) post-test-work; 30x upgrade

o Gold: 0.02g/t Au head-grade up to 3.87g/t Au post-test-work; >190x upgrade

· The original BH1 drill-core the samples were extracted from comprised:

o 24m @ 424ppm Co from 103m including 2m @ 1,120ppm Co from 107m; 1m @ 873ppm Co from 120m; and 2m @ 486ppm Co from 125m (BH1)1

· The metallurgical test-work showed that cobalt-copper-gold liberated easily from BH1 drill-core samples to produce a potentially viable concentrate (Figure 1)

· Moving forward, the Board's primary focus for the East Zone is to increase the confidence in the current inferred Mineral Resource Estimate (MRE) which stands at 21,556t cobalt (64Mt @ 318 ppm Co) and 44,260t copper (63Mt @ 0.07% Cu)2

· As such, the geology team are close to finalising optimal cobalt targets across several prospects for the inaugural drilling campaign, which will be implemented once regulatory approvals are secured:

o To date, land-holder approval has been secured and access routes mapped out

 

Dr Dennis Jensen, Managing Director of Castillo Copper, commented: "The Board was pleasantly surprised upon learning of the exceptional metallurgical results, especially nearly 4 g/t gold and 1.6% copper which provide new dynamics to follow up. However, the Board's current prime focus is to increase the confidence in the inferred cobalt resource with a highly targeted drilling campaign across several prospects, with planning to be finalised shortly." 

 

 

 

FIGURE 1: METALLURGICAL TESTING - CONCENTRATE EXAMPLE 

A picture containing indoor, kitchen, counter, sink Description automatically generated

Source: ALS Metallurgy, Perth, Western Australia

 

Drilling campaign to increase MRE confidence

To improve confidence in the current global MRE - 21,556t cobalt (64Mt @ 318 ppm Co) and 44,260t copper (63Mt @ 0.07% Cu)2 - and potentially extend known mineralisation, Castillo will soon undertake an inaugural drilling campaign across several prospects within the BHA Project's East Zone.

The geology team are close to finalising optimal cobalt targets and subject to Board approval, will then file an application with the NSW Resources Regulator to implement the drilling campaign.

Previous field trips and land-holder meetings have already formalised approvals and enabled access routes to be mapped out. 

 

 

 

For further information, please contact:

 

Castillo Copper Limited  

+61 8 6558 0886

Dr Dennis Jensen (Australia), Managing Director 

Gerrard Hall (UK), Chairman 




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 and platinoids.  

· 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." 

 

Competent Person's Statement

The information in this report that relates to Exploration Results and Mineral Resource Estimates for "BHA Project, East Zone" is based on information compiled or reviewed by Mr Mark Biggs.  Mr Biggs is a 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.

References

 

1)  CCZ ASX Release - 5 May 2022

2)  CCZ ASX Release - 1 June 2022

 

 

 

 

 

APPENDIX A: PROSPECT'S IN BHA PROJECT'S EAST ZONE

Diagram, schematic Description automatically generated

Source: CCZ geology team

 

APPENDIX B: METHODOLOGY AND TEST-WORK

Castillo contracted ALS Metallurgy, Perth, Western Australia to undertake the preliminary rougher test-work on the BH1 drill-core sample.

The core for metallurgical testing is from EL8435 in NSW, near Broken Hill, from a historic mine called "The Sisters" and from a NQ diamond core hole BH1, drilled by Falconbridge in 1970.  The cored hole comes courtesy of the GSNSW E.C. Andrews core library in Broken Hill.

This composite of about 14m goes around 494ppm cobalt (inc. a 1m sample as high as 1,120ppm), with some copper (0.1%) and a little bit of silver and maybe some TREO present.  The main target is cobalt which is probably interspersed and locked within pyrite.

As part of this strategy and to further test the economic potential of BHA Project's East Zone, cobalt preliminary rougher testing was recently completed by ALS Metallurgy's laboratory using an approximately 16kg composite derived from drill-hole (BH1) as shown in Figure B1 below:

FIGURE B1: THE SISTERS SAMPLE FOR METALLURGICAL TESTING

Drillhole

XRF Samp

SampleID

From

To

Length (m)

Weight (kg)

Ag_ppm

Co_ppm

Cu_ppm

Ag Mass

Co Mass

Cu Mass

BH1

BH1.18

CCZ03785

103.07

104.73

1.66

0.65

0.32

712

483

0.01

28.44

19.30

BH1

BH1.19

CCZ03786

104.73

106.62

1.89

0.84

0.2

450

773

0.01

23.23

39.91

BH1

BH1.20

CCZ03787

106.62

108.51

1.89

0.94

0.29

1120

1260

0.02

64.71

72.80

BH1

BH1.21

CCZ03788

108.51

110.46

1.95

1.54

0.04

93.5

90.1

0.00

8.85

8.53

BH1

BH1.22

CCZ03789

110.46

112.41

1.95

1.75

0.05

23.3

167

0.01

2.51

17.96

BH1

BH1.23

CCZ03790

112.41

114.36

1.95

2.08

0.04

112.5

23.9

0.01

14.38

3.06

BH1

BH1.24

CCZ03791

114.36

116.31

1.95

1.66

0.15

62.6

33.5

0.02

6.39

3.42

BH1

BH1.25

CCZ03792

116.31

118.26

1.95

0.81

0.15

409

235.0

0.01

20.36

11.70

BH1

BH1.26

CCZ03793

118.26

119.29

1.03

0.71

0.13

419

233.0

0.01

18.28

10.17

BH1

BH1.27

CCZ03794

119.29

120.32

1.03

0.72

0.08

759

56.8

0.00

33.59

2.51

BH1

BH1.28

CCZ03795

120.32

121.35

1.03

0.7

0.33

873

196.5

0.01

37.56

8.45

BH1

BH1.29

CCZ03796

121.35

122.38

1.03

0.84

0.04

111

72.7

0.00

5.73

3.75

BH1

BH1.30

CCZ03797

122.38

123.44

1.06

0.72

0.77

193

73.6

0.03

8.54

3.26

BH1

BH1.31

CCZ03798

123.44

124.66

1.22

0.69

0.46

477

385

0.02

20.23

16.33

BH1

BH1.32

CCZ03799

124.66

125.88

1.22

0.7

1.18

727

10650

0.05

31.28

458.21

BH1

BH1.33

CCZ03800

125.88

127.10

1.22

0.92

0.49

245

4280

0.03

13.85

242.02

 





24.03

16.27




0.23

338

921

Source: ALS Metallurgy, Perth, Western Australia

 

 

 

 

 

 

 

 

 

 

 

Once at ALS Metallurgy's Perth laboratory, the head grade of the composite sample was determined to be variable compared to the calculated arithmetic average above, as shown in Figure B2 below.

FIGURE B2: THE SISTERS - TESTING HEAD GRADE

 

Analyte

 

BH1 Composite

 

Analyte

 

BH1 Composite



Ag (ppm)

<2

Mg (ppm)

6400


Al (%)

1.68

Mn (ppm)

100


Au (g/t)

0.02 / <0.02

Mo (ppm)

<5


Ba (ppm)

60

Na (ppm)

1860


Be (ppm)

<5

Ni (ppm)

45


Bi (ppm)

<10

P (ppm)

9000


Ca (%)

1.70

Pb (ppm)

110


Cd (ppm)

<5

SiO2 (%)

46.6


Co (ppm)

200

Sr (ppm)

160


Cr (ppm)

150

Ti (ppm)

800


Cu (ppm)

520

V (ppm)

258


Fe (%)

28.0

Y (ppm)

<100


K (ppm)

1800

Zn (ppm)

230


Li (ppm)

<5




 

Source: ALS Metallurgy, Perth, Western Australia

The laboratory considered several rougher options for targeting a bulk concentrate (Cu/Co), with future programs looking to refine this and separate more target material.

However, with a bulk concentrate methodology the focus, recovery takes priority over grade at this stage. Initially, two different reagent schemes for the bulk concentrate generation:

· Natural pH, PAX, Danafloat 245; (PAX may cause high iron collection)

· Cytec aero float, Aero 3894 with an Aero 208 promoter

The final recommendation was to try initially 10g/t of the Danafloat / Aero 208, with 5g/t of the PAX or Aero 3894. Further, consideration was given to add additional dosage at the end of the first three concentrates (assumed 2-minute Ro concentrate), and then see if more product reports into Ro Con 4.  Eventually, a series of rougher tests were carried out based on the following methodology:

A) Sample preparation and screening analysis

· Receive samples and inventory

· Control crush P100 3.35mm (assumed no compositing)

· Rotary blending & splitting 1kg charges (12 x 1kg)

· PPS - Head assay submission

· Assay - Head sample (Au, Co, Cu, S and SiO2, ICP Scan)

 

B) Flotation and gravity testing

· 1 kg grind establishment single grind target

· Rougher flotation (4 con 1 tail) (5 test allowance)

· PPS - Flotation product assay submission

· Assay - Flotation products (Au, Co, Cu, Zn, S, and SiO2)

· Gravity separation - Wilfley table - Batch test

· PPS - Table product assay submission

· Assay - Table products (Au, Co, Cu, Zn, S, and SiO2)

Four runs were established comparing two common froth reagents (Aerofloat and Danafloat; Figure B3) below.

New instructions for the float were based on the Danafloat reagent trialled previously.  The new float targeted an elevated pH (11) to depress the S to give an indication if the Co / Cu are encapsulated in this material or not, based on recovery changes.

FIGURE B3: The Sisters Metallurgical Testing Parameters

COMPOSITE

The Sisters BH1

The Sisters BH1

The Sisters BH1

The Sisters BH1

TEST #

BF2270

BF2271

BF2291

BF2293

WATER TYPE

Perth Tap Water

Perth Tap Water

Perth Tap Water

Perth Tap Water

REAGENT

Danafloat

AeroFloat

Danafloat

Danafloat

GRIND SIZE

P80 75µm

P80 75µm

P80 75µm

P80 25µm

PULP DENSITY

35%

35%

35%

35%

pH

5.9

5.7

11.0

11.0

Source: ALS Metallurgy, Perth, Western Australia

Figures B4 and B5 show the frother product comparison between Aerofloat and Danfloat concentrates for Co, S, Au, and Cu; the latter at 25µm. Danafloat products showed the best concentration of cobalt, with Ro Con 1 giving 12 times increase from a starting point of 200ppm to 2,500ppm.

 

 

 

FIGURE B4: METALLURGICAL TESTING - ROUGHER FROTHER PRODUCT EXAMPLE CO, S

Source: ALS Metallurgy, Perth, Western Australia

 

FIGURE B5: METALLURGICAL TESTING - ROUGHER FROTHER PRODUCT EXAMPLE AU, CU

 



Source: ALS Metallurgy, Perth, Western Australia


It should be noted the preliminary rougher testing was biased toward establishing a viable process configuration and recovery rather than grade.  Figure B64 provides a range of improvements in grade for Au, Co, Cu and S using the Danafloat for various concentrate runs.  Note, cumulative copper for Ro Con 1-3 gives 1.2% Cu at 72.1% recovery.  Further, the high S grade of 46.9% at 92% recovery is of note.

 

 

FIGURE B6: Metallurgical Testing Danafloat Head Grade Improvement for several elements

(a) Original Crush at 75µm

PRODUCT

WEIGHT

 

Au

 

Co

 

Cu

 

SiO2

 

S

 

Zn

 

 

Gram

%

%

%dist

%

%dist

%

%dist

%

%dist

%

%dist

%

%dist

Ro Con 1

38.37

3.85

0.32

6.56

0.25

44.46

0.58

38.16

3.25

0.27

49.30

53.82

0.01

0.96

Ro Con 2

24.20

2.43

0.24

3.10

0.22

24.68

0.55

22.82

5.30

0.28

47.20

32.50

0.02

2.43

Ro Con 3

6.41

0.64

0.30

1.03

0.14

4.16

0.50

5.50

23.10

0.32

30.90

5.64

0.06

1.93

Ro Con 4

4.67

0.47

0.17

0.42

0.05

1.02

0.23

1.84

46.40

0.47

9.08

1.21

0.08

1.88

Ro Tail

923.70

92.62

0.18

88.88

0.01

25.69

0.02

31.68

49.60

98.67

0.26

6.83

0.02

92.80

 















Calc'd Head

997.35

100.00

0.19

100.00

0.02

100.00

0.06

100.00

46.56

100.00

3.52

100.00

0.02

100.00

 















Assay Head


0.02


0.02


0.05


46.60




0.02


Ro Con 1


3.85

0.32

6.56

0.25

44.46

0.58

38.16

3.25

0.27

49.30

53.82

0.01

0.96

Ro Con 1-2

6.27

0.29

9.67

0.24

69.14

0.57

60.98

4.04

0.54

48.49

86.32

0.01

3.39

Ro Con 1-3

6.92

0.29

10.70

0.23

73.30

0.56

66.48

5.81

0.86

46.85

91.96

0.02

5.33

Ro Con 1-4

7.38

0.28

11.12

0.22

74.31

0.54

68.32

8.39

1.33

44.46

93.17

0.02

7.20

Source: ALS Metallurgy, Perth, Western Australia

(b) Regrind at 25µm


Au

 

Co

 

Cu

 

 

g/t

%dist

%

%dist

%

%dist

Clnr Con 1

4.84

21.13

0.17

5.61

1.60

22.53

Clnr Con 2

3.80

38.37

0.18

13.74

1.14

37.10

Clnr Con 3

2.98

12.23

0.17

5.28

1.02

13.51

Clnr Con 4

0.01

0.01

0.18

1.77

1.07

4.48

Clnr Tail

0.635

25.34

0.17

51.32

0.10

12.87

Ro Tail

0.005

2.95

0.005

22.29

0.005

9.50

Source: ALS Metallurgy, Perth, Western Australia

 

 

 

 

 

 

 

 

 

 

 

Results undertaken on drill-hole BH1 from The Sisters Prospect summarised below:

Source: ALS Metallurgy, Perth, Western Australia

 

 

 

 

 

 

 

 

Source: ALS Metallurgy, Perth, Western Australia

 

 

 

 

 

 

 

 

 

 

Source: ALS Metallurgy, Perth, Western Australia

 

 

 

 

 

 

 

 

 

 

 

 

Source: ALS Metallurgy, Perth, Western Australia

 

 


APPENDIX C: JORC CODE, 2012 EDITION - TABLE 1

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria

JORC Code explanation

Commentary

 

 

 

Sampling techniques

· Nature and quality of sampling (e.g., 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 30g 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 (eg submarine nodules) may warrant disclosure of detailed information.

· Regarding historical cores from holes held by the NSW Geological Survey across EL 8434 and 8435, selected sections that were reanalyzed using pXRF have been cut by diamond saw for laboratory analysis. This work recovered one hundred and eighty-four (184) samples, each about 1m in length (of HQ, BQ, and NQ drill core) which were retested by ALS Brisbane, using ME-MS61R and PGM-ICP27 methods.

 

· Quarter core was submitted to ALS for chemical analysis using industry standard sample preparation and analytical techniques.

 

· Coarse rejects of the half core were also collected for metallurgical testwork from BH1.

 

· The location and sample interval details and grades quoted for cored intervals described in Figure 1 in the main section are given in Table AC1-1 and Figure AC1-1 at the end of this section.

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.).

· In and around The Sisters model area are twelve (12) drillholes, however it should be noted that the majority of these are <50m in depth, but only four (4) holes >100m.  Two of these are in the core library as shown below:

HOLE_NAME

E_GDA94

N_GDA94

END_DEPTH

AZIMUTH

DIP

DRILL TYPE

BH1

566841.77

6480228.70

152.4

263.5

-45

BQ

BH2

566721.77

6480418.70

198.8

278.5

-50

BQ

DD80RW4

559571.82

6459448.72

198.0

118.5

-60

NQ

DD80RW4_1

559571.82

6459448.72

385.0

118.5

-60

NQ

DD90_IB3

560223.79

6473890.70

383.0

90

-63

NQ

RH3

562961.79

6474868.70

52.3

294

-55

NQ


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.

· Not applicable in this study, no new holes completed.  Historical drillholes, including BH1 used for this study were documented to have >90% core recovery.

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.

· The drilling that did occur was generally completed to modern-day standards.  The preferred exploration strategy in the eighties and early nineties was to drill shallow auger holes to negate the influence of any Quaternary and Tertiary thin cover.

 

· No downhole geophysical logging took place; however, measurements of magnetic susceptibility were taken on the six-library core relogged over the same intervals as the PXRF readings were taken.

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.

· The preliminary rougher testwork methodology employed is listed as follows:

Given the bulk concentrate methodology requested, recovery would take priority over the grade at this stage. Initially, two different reagent schemes for the bulk con generation:

• Natural pH, PAX, Danafloat 245; (PAX may cause high iron collection)

• Cytec aero float, Aero 3894 with an Aero 208 promoter

The final recommendation was to try initially 10g/t of the danafloat / aero 208, with 5g/t of the PAX or Aero 3894.  Consideration was also given to add additional dosage at the end of the first 3 concentrates (assumed 2-minute Ro concentrate), and then see if more product reports into Ro Con 4.  Eventually, a series of rougher tests (refer to Table AC1-1) were carried out based on the following methodology:

 

Sample Preparation and Screening Analysis

• Receive Samples and Inventory

• Control Crush P100 3.35mm (assumed no compositing)

• Rotary Blending & Splitting 1kg charges (12 x 1kg)

• PPS - Head Assay Submission

• Assay - Head Sample (Ag, Au, Co, Cu, SiO2, S, ICP Scan)

Flotation and Gravity Testing

• 1 kg Grind Establishment Single grind target

• Rougher Flotation (4 con 1 tail) (5 test allowance)

• PPS - Flotation Product Assay Submission

• Assay - Flotation Products (Ag, Au, Co, Cu, Zn, SiO2)

• Gravity Separation - Wilfley Table - Batch Test

• PPS - Table Product Assay Submission

• Assay - Table Products (Ag, Au, Co, Cu, Zn, SiO2, S)

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.

· The samples in the composite were originally analysed at the ALS Brisbane Laboratory using the ME-MS61R technique, as summarised below:

Inductively Coupled Plasma - Atomic Emission Spectroscopy (ICP - AES) Inductively Coupled Plasma - Mass Spectrometry (ICP-MS)

Sample Decomposition is by HF-HNO3-HClO4 acid digestion, HCl leach (GEO-4A01).

A prepared sample (0.25 g) is digested with perchloric, nitric, hydrofluoric, and hydrochloric acids. The residue is topped up with dilute hydrochloric acid and analyzed by inductively coupled plasma atomic emission spectrometry. Following this analysis, the results are reviewed for high concentrations of bismuth, mercury, molybdenum, silver, and tungsten and diluted accordingly.

Samples meeting this criterion are then analyzed by inductively coupled plasma-mass spectrometry.  Results are corrected for spectral interelement interferences.

NOTE: Four acid digestions can dissolve most minerals; however, although the term "near total" is used, depending on the sample matrix, not all elements are quantitatively extracted. 

Results for the additional rare earth elements will represent the acid leachable portion of the rare earth elements and as such, cannot be used, for instance to do a chondrite plot.

 

· Laboratory inserted standards, blanks and duplicates were analysed per industry standard practice. There was no evidence of bias from these results .

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.

· None of the library drillholes (including BH1) have been twinned, as they are historical holes

.

· The four preliminary rougher tests results have been reproduced in full in Appendix 1 of this ASX release.

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.

· In general, locational accuracy does vary, depending upon whether the samples were digitised off plans or had their coordinated tabulated.  Many samples were reported to AGD66 or AMG84 and have been converted to MGA94.Zone 54

 

· It is estimated that locational accuracy of BH1 therefore varies between 2-50m

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 average sample spacing across the tenure varies per prospect, and sample type, as listed in Table AB1-2, below:

Table AB-2:  EL 8434 and EL 8435 Drillhole Spacing

Prospect

Drillholes in Model

RMS Drillhole Spacing (m)

The Sisters

12

242

Rothwell

1

N/A

Round Hill

1

N/A

Iron Blow

8

315

Avondale East

24

134.2

Tors Tank

342

27.4

Fence Gossan

549

25.5

Ziggy's Hill

245

37.0

Reefs Tank

1,375

22.1

 

· No sample compositing has been applied to any results in this release..

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 database does not contain any sub-surface geological logging for Avondale East , which is being compiled (75% complete)

 

· Geological mapping by various companies has reinforced that the strata is tightly folded, dips variously between 45 and 80 degrees, and dips mostly to the north and northwest.

Sample security

· The measures taken to ensure sample security.

· The sample security measures, except for the Squadron Resources work programs is not known.  Squadron took samples to their Broken Hill office and transported samples for analysis to ALS Broken Hill.  Castillo Copper contractors relogged BH1 and used a diamond saw to sample and bag prospective intervals within the hole including that interval listed in Table AC-2.  Samples were driven personally to the ALS Laboratory in Brisbane, QLD who composited the core samples for metallurgical testing.  The composite was air-freighted from Brisbane to ALS Perth laboratory.

Audits or reviews

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

· No external audits or reviews have yet been undertaken.

 

Table AC1-1: The Sisters Metallurgical Testing Parameters

COMPOSITE

The Sisters BH1

The Sisters BH1

The Sisters BH1

The Sisters BH1

TEST #

BF2270

BF2271

BF2291

BF2293

WATER TYPE

Perth Tap Water

Perth Tap Water

Perth Tap Water

Perth Tap Water

REAGENT

Danafloat

AeroFloat

Danafloat

Danafloat

GRIND SIZE

P80 75µm

P80 75µm

P80 75µm

P80 25µm

PULP DENSITY

35%

35%

35%

35%

pH

5.9

5.7

11.0

11.0

 

 

 

 

Figure AC1-1: The Sisters Sample and Drillhole location, and Cobalt Histogram

Map Description automatically generated

A screenshot of a computer Description automatically generated with low confidence

Table AC1-2: The Sisters Sample for Metallurgical Testing

Drillhole

XRF Samp

SampleID

From

To

Length (m)

Weight (kg)

Ag_ppm

Co_ppm

Cu_ppm

Ag Mass

Co Mass

Cu Mass

BH1

BH1.18

CCZ03785

103.07

104.73

1.66

0.65

0.32

712

483

0.01

28.44

19.30

BH1

BH1.19

CCZ03786

104.73

106.62

1.89

0.84

0.2

450

773

0.01

23.23

39.91

BH1

BH1.20

CCZ03787

106.62

108.51

1.89

0.94

0.29

1120

1260

0.02

64.71

72.80

BH1

BH1.21

CCZ03788

108.51

110.46

1.95

1.54

0.04

93.5

90.1

0.00

8.85

8.53

BH1

BH1.22

CCZ03789

110.46

112.41

1.95

1.75

0.05

23.3

167

0.01

2.51

17.96

BH1

BH1.23

CCZ03790

112.41

114.36

1.95

2.08

0.04

112.5

23.9

0.01

14.38

3.06

BH1

BH1.24

CCZ03791

114.36

116.31

1.95

1.66

0.15

62.6

33.5

0.02

6.39

3.42

BH1

BH1.25

CCZ03792

116.31

118.26

1.95

0.81

0.15

409

235.0

0.01

20.36

11.70

BH1

BH1.26

CCZ03793

118.26

119.29

1.03

0.71

0.13

419

233.0

0.01

18.28

10.17

BH1

BH1.27

CCZ03794

119.29

120.32

1.03

0.72

0.08

759

56.8

0.00

33.59

2.51

BH1

BH1.28

CCZ03795

120.32

121.35

1.03

0.7

0.33

873

196.5

0.01

37.56

8.45

BH1

BH1.29

CCZ03796

121.35

122.38

1.03

0.84

0.04

111

72.7

0.00

5.73

3.75

BH1

BH1.30

CCZ03797

122.38

123.44

1.06

0.72

0.77

193

73.6

0.03

8.54

3.26

BH1

BH1.31

CCZ03798

123.44

124.66

1.22

0.69

0.46

477

385

0.02

20.23

16.33

BH1

BH1.32

CCZ03799

124.66

125.88

1.22

0.7

1.18

727

10650

0.05

31.28

458.21

BH1

BH1.33

CCZ03800

125.88

127.10

1.22

0.92

0.49

245

4280

0.03

13.85

242.02

 





24.03

16.27




0.23

338

921

 

 



 

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.

EL 8434 is located about 28km east of Broken Hill whilst EL 8435 is 16km east of Broken Hill.  Both tenures are approximately 900km northwest of Sydney in far western New South Wales (Figure A1-2-1). 

EL 8434 and EL 8435 were both granted on the 2nd of June 2016 to Squadron Resources for a term of five (5) years for Group One Minerals.  On the 25th of May 2020, Squadron Resources changed its name to Wyloo Metals Pty Ltd (Wyloo).  In December 2020 the tenure was transferred from Wyloo Metals to Broken Hill Alliance Pty Ltd a 100% subsidiary company of Castillo Copper Limited.  Both tenures were renewed on the 12th of August 2021 for a further six (6) years and are due to expire on the 2nd of June 2027.

EL 8434 lies across two (2) 1:100,000 geology map sheets Redan 7233 and Taltingan 7234, and two (2) 1:250,000 geology map sheets, SI54-3 Menindee, and SH54-15 Broken Hill in the county of Yancowinna.  EL 8434 consists of one hundred and eighty-six (186) units) in the Adelaide and Broken Hill 1:1,000,000 Blocks covering an area of approximately 580km2.

EL 8435 is located on the 1:100,000 geology map sheet Taltingan 7234, and the 1:250,000 geology map sheet SH/54-15 Broken Hill in the county of Yancowinna.  EL 8435 consists of twenty-two (22) units (Table 1) in the Broken Hill 1:1,000,000 Blocks covering an area of approximately 68km2.

Access to the tenures from Broken Hill is via the sealed Barrier Highway.  This road runs north-east to south-west through the northern portion of the EL 8434, passes the southern tip of EL 8435 eastern section and through the middle of the western section of EL 8435.  Access is also available via the Menindee Road which runs north-west to south-east through the southern section of the EL 8434.  The Orange to Broken Hill Rail line also dissects EL 8435 western section the middle and then travels north-west to south-east slicing through the eastern arm of EL 8434 (Figure AC-2-1).

 

 

 

 

 

 

 

 

 

Figure AC2-1:  EL 8434 and EL 8434 General Location Map

Exploration done by other parties

· Acknowledgment and appraisal of exploration by other parties.

Explorers who were actively involved over longer historical periods in various parts of EL8434 were: - North Broken Hill Ltd, CRAE Exploration, Major Mining Ltd and Broken Hill Metals NL, Pasminco Exploration Ltd, Normandy Exploration Ltd, PlatSearch NL/Inco Ltd/ EGC Pty Ltd JV and the Western Plains Gold Ltd/PlatSearch/EGC Pty Ltd JV.

A comprehensive summary of work by previous explorers was presented in Leyh (2009).  However, more recently, follow-up field reconnaissance of areas of geological interest, including most of the prospective zones was carried out by EGC Pty Ltd over the various licenses. This work, in conjunction with a detailed interpretation of aeromagnetic, gravity plus RAB / RC drill hole logging originally led to the identification of at least sixteen higher priority prospect areas. All these prospects were summarized in considerable detail in Leyh (2008).  Future work programs were then also proposed for each area.  Since then, further compilation work plus detailed geological reconnaissance mapping and sampling of gossans and lode rocks has been carried out.

 

A total of 22 prospects were then recognised on the exploration licence with at least 12 occurring in and around the tenure.

 

With less than 15% outcropping Proterozoic terrain within the licence, this makes it very difficult to explore and is in the main very effectively screened from the easy application of more conventional exploration methodologies due to a predominance of extensive Cainozoic cover sequences.  These include recent to young Quaternary soils, sands, clays and older more resistant, only partially dissected, Tertiary duricrust regolith covered areas.  Depth of cover ranges from a few metres in the north to over 60 metres in some areas on the southern and central license.

 

Exploration by EGC Pty Ltd carried out in the field in the first instance has therefore been heavily reliant upon time consuming systematic geological reconnaissance mapping and relatable geochemical sampling. These involve a slow systematic search over low outcropping areas, poorly exposed subcrops and float areas as well as the progressive development of effective regolith mapping and sampling tools.  This work has been combined with a vast amount of intermittently acquired past exploration data.  The recent data compilation includes an insufficiently detailed NSWGS regional mapping scale given the problems involved, plus some regionally extensive, highly variable, low-level stream and soil BLEG geochemical data sets over much of the area. 

 

There are also a few useful local detailed mapping grids at the higher priority prospects, and many more numerous widespread regional augers, RAB, and percussion grid drilling data sets. Geophysical data sets including ground magnetics, IP and EM over some prospect areas have also been integrated into the exploration models.  These are located mainly in former areas of moderate interest and most of the electrical survey methods to date in this type of terrain continue to be of limited application due to the high degree of weathering and the often prevailing and complex regolith cover constraints.

 

Between 2007 and 2014 Eaglehawk Geological Consulting has carried out detailed research, plus compilation and interpretation of a very large volume of historic exploration data sourced from numerous previous explorers and dating back to the early 1970's. Most of this data is in non-digital scanned form. Many hard copy exploration reports (see references) plus several hundred plans have been acquired from various sources, hard copy printed as well as downloaded as scans from the Geological Survey of NSW DIGS system. They also conducted field mapping, costean mapping and sampling, and rock chip sampling and analysis.

 

Work Carried out by Squadron Resources and Whyloo Metals 2016-2020

 

Research during Year 1 by Squadron Resources revealed that the PGE-rich, sulphide-bearing ultramafic rocks in the Broken Hill region have a demonstrably alkaline affinity.  This indicates a poor prospectivity for economic accumulations of sulphide on an empirical basis (e.g., in comparison to all known economic magmatic nickel sulphide deposits, which have a dominantly tholeiitic affinity).  Squadron instead directed efforts toward detecting new Broken Hill-Type (BHT) deposits that are synchronous with basin formation.  Supporting this modified exploration rationale are the EL's stratigraphic position, proximity to the Broken Hill line of lode, abundant mapped alteration (e.g., gahnite and/or garnet bearing exhalative units) and known occurrences such as the "Sisters" and "Iron Blow" prospects.

 

The area overlies a potential magmatic Ni-Cu-PGE source region of metasomatised sub-continental lithospheric mantle (SCLM) identified from a regional targeting geophysical data base.  The exploration model at the time proposed involved remobilization of Ni-Cu-PGE in SCLM and incorporation into low degree mafic-ultramafic partial melts during a post-Paleoproterozoic plume event and emplacement higher in the crust as chonoliths/small intrusives - Voisey's Bay type model.  Programs were devised to use geophysics and geological mapping to locate secondary structures likely to control and localise emplacement of Ni-Cu-PGE bearing chonoliths.  Since EL8434 was granted, the following has been completed:

 

Airborne EM survey.

Soil and chip sampling.

Data compilation.

Geological and logistical reconnaissance.

Community consultations; and

Execution of land access agreements.

 

Airborne EM Survey

Geotech Airborne Limited was engaged to conduct an airborne EM survey using their proprietary VTEM system in 2017.  A total of 648.92-line kilometres were flown on a nominal 200m line spacing over a portion of the project area. Several areas were infilled to 100m line spacing.

The VTEM data was interpreted by Southern Geoscience Consultants Pty Ltd, who identified a series of anomalies, which were classified as high or low priority based on anomaly strength (i.e., does the anomaly persist into the latest channels).  Additionally, a cluster of VTEM anomalies at the "Sisters" prospect have been classified separate due to strong IP effects observed in the data.  Geotech Airborne have provided an IP corrected data and interpretation of the data has since been undertaken.

 

Soil and Chip sampling

 

The VTEM anomalies were followed up by a reconnaissance soil sampling programme.  Spatially clustered VTEM anomalies were grouped, and follow-up soil lines were designed.  Two (2) VTEM anomalies were found to be related to culture and consequently no soils were collected.  Two (2) other anomalies were sampled which were located above thick alluvium of Stephens Creek and were therefore not sampled.  A line of soil samples was collected over a relatively undisturbed section at Iron Blow workings and the Sisters Prospect.

 

One hundred and sixty-six (166) soil samples were collected at a nominal 20cm depth using a 2mm aluminum sieve.  Two (2) rock chips were also collected during this program.  The samples were collected at either 20m or 40m spacing over selected VTEM anomalies.  The samples were pulverised and analysed by portal XRF at ALS laboratories in Perth.

 

Each site was annotated with a "Regolith Regime" such that samples from a depositional environment could be distinguished from those on exposed Proterozoic bedrock, which were classified as an erosional environment.  The Regolith Regime groups were used for statistical analysis and levelling of the results.  The levelled data reveals strong relative anomalies in zinc at VTEM anomaly clusters 10, 12 and 14 plus strong anomalous copper at VTEM 17.

Geology

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

Regional Geology

The Broken Hill polymetallic deposits are located within Curnamona Province (Willyama Super group) (Figure A3-2-2) that hosts several world-class deposits of lead, zinc, silver, and copper.  The Willyama Supergroup consists of highly deformed metasedimentary schists and gneisses with abundant quartz-feldspathic gneisses, lesser basic gneisses, and minor 'lode' rocks which are quartz-albite and calc-silicate rocks (Geoscience Australia, 2019).  Prograde metamorphism ranges from andalusite through sillimanite to granulite grade (Stevens, Barnes, Brown, Stroud, & Willis, 1988).

 

Regionally, the tenures are situated in Broken Hill spatial domain which extends from far western New South Wales into eastern South Australia.  The Broken Hill Domain hosts several major fault systems and shear zones, which were formed by various deformation events and widespread metamorphism which has affected the Willyama Supergroup (Figure A1-2-3).  Major faults in the region include the Mundi Mundi Fault to the west of Broken Hill, the Mulculca Fault to the east, and the Redan Fault to the south. Broken Hill is also surrounded by extensive shear zones including the Stephens Creek, Globe-Vauxhall, Rupee, Pine Creek, Albert, and Thackaringa-Pinnacles Shear Zones.

 

 

 

 

 

 

 

Figure B2:  Regional Stratigraphy

Timeline Description automatically generated

Modified after: (Stevens, Barnes, Brown, Stroud, & Willis, 1988)

 

 

Figure B3:  Regional Geological Map

Diagram Description automatically generated

Modified after (Peljo, 2003)

 

There are over twenty (20) rock formations mapped within the project area.  Parts of the project area are covered by Quaternary alluvium, sands, and by Tertiary laterite obscuring the basement geology.  Within the Lower to Middle Proterozoic Willyama Supergroup (previously Complex) there are two (2) groups, the Thackaringa Group, and the younger Broken Hill Group (Colquhoun, et al., 2019). 

Local Geology

A summary of the units that host or appear to host the various mineralisation styles within EL 8434 and EL 8435 is given below.

Broken Hill Group

The Hores Gneiss is mostly comprised of quartz-feldspar-biotite-garnet gneiss, interpreted as metadacite with some minor metasediments noted.  An age range from Zircon dating has been reported as 1682-1695Ma (Geoscience Australia, 2019).  The Allendale Metasediments unit contains mostly metasedimentary rocks, dominated by albitic, pelitic to psammitic composite gneiss, including garnet-bearing feldspathic composite gneiss, sporadic basic gneiss, and quartz-gahnite rock.  Calc-silicate bodies can be found at the base of the unit and the formation's average age is 1691 Ma (Geoscience Australia, 2019).

Thackaringa Group

The Thorndale Composite Gneiss is distinguished by mostly gneiss, but also migmatite, amphibolite, and minor magnetite.  The age of this unit is >1700Ma (Geoscience Australia, 2019) and is one of the oldest formations in the Group.  The Cues Formation is interpreted as a deformed sill-like granite, including Potosi-type gneiss.  Other rock-types include pelitic paragneiss, containing cordierite.  The average age: ca 1700-1730 Ma. (Stevens, Barnes, Brown, Stroud, & Willis, 1988).  Other rock types include mainly psammo-pelitic to psammitic composite gneisses or metasedimentary rocks, and intercalated bodies of basic gneiss.  This unit is characterised by stratiform horizons of granular garnet-quartz +/-magnetite rocks, quartz-iron oxide/sulphide rocks and quartz-magnetite rocks (Geoscience Australia, 2019).  This is a significant formation as it hosts the Pinnacles Ag-Pb-Zn massive sulphide deposit along with widespread Fe-rich stratiform horizons. 

 

The protolith was probably sandy marine shelf sedimentary rocks.  An intrusion under shallow cover was syn-depositional.  The contained leuco-gneisses and Potosi-type gneisses are believed to represent a felsic volcanic or volcaniclastic protolith.  Basic gneisses occur in a substantial continuous interval in the middle sections of the Formation, underlain by thinner, less continuous bodies.  They are moderately Fe-rich (abundant orthopyroxene or garnet) and finely layered, in places with pale feldspar-rich layers, and are associated with medium-grained quartz-feldspar-biotite-garnet gneiss or rock which occurs in thin bodies or pods ('Potosi-type' gneiss). 

 

A distinctive leucocratic quartz-microcline-albite(-garnet) gneiss (interpreted as meta-rhyolite) occurs as thin, continuous, and extensive horizons, in several areas.  The sulphide-bearing rocks may be lateral equivalents of, or associates of Broken Hill type stratiform mineralisation.  Minor layered garnet-epidote-quartz calc-silicate rocks occur locally within the middle to basal section.  The unit is overlain by the Himalaya Formation. 

 

 

Cues Formation

The Cues Formation is intruded by Alma Granite (Geoscience Australia, 2019).  The Himalaya Formation (Figure A3-2-4) consists of medium-grained saccharoidal leucocratic psammitic and albitic meta-sedimentary rocks (average age 1700Ma).  The unit comprises variably interbedded albite-quartz rich rocks, composite gneiss, basic gneiss, horizons of thinly bedded quartz-magnetite rock.  Pyrite-rich rocks occur at the base of the formation (Geoscience Australia, 2019).  It is overlain by the Allendale Metasediments (Broken Hill Group).  The Himalaya Formation hosts cobalt-rich pyritic horizons at Pyrite Hill and Big Hill.  The protolith is probably sandy marine shelf sedimentary rocks with variable evaporitic or hypersaline component.  Plagioclase-quartz rocks are well-bedded (beds 20 - 30mm thick), with rare scour-and-fill and cross-bedded structures. 

 

Thin to thick (0.5 - 10m) horizons of thinly bedded quartz-magnetite rock also occur with the plagioclase-quartz rocks.  In some areas the formation consists of thin interbeds of plagioclase-quartz rocks within meta-sedimentary rocks or metasedimentary composite gneiss (Geoscience Australia, 2019).  Lady Brassey Formation which is well-to-poorly-bedded leucocratic sodic plagioclase-quartz rock, as massive units or as thick to thin interbeds within psammitic to pelitic metasedimentary composite gneisses.  A substantial conformable basic gneiss.  It overlies both Mulculca Formation and Thorndale Composite Gneiss.  Part of the formation was formerly referred to as Farmcote Gneiss in the Redan geophysical zone of Broken Hill Domain - a zone in which the stratigraphy has been revised to create the new Rantyga Group (Redan and Ednas Gneisses, Mulculca Formation, and the now formalised Farmcote Gneiss).

Lady Louise Suite

This unit is approximately 1.69Ma in age comprising amphibolite, quartz-bearing, locally differentiated to hornblende granite, intrusive sills, and dykes, metamorphosed, and deformed; metabasalt with pillows (Geoscience Australia, 2019).  Annadale Metadolerite is basic gneisses, which includes intervening metasedimentary rocks possibly dolerite (Geoscience Australia, 2021).

Rantya Group

Farmcote Gneiss contains metasedimentary rocks and gneiss and is a new unit at the top of Rantyga Group.  It is overlain by the Cues Formation and Thackaringa Group, and it overlies the Mulculca Formation.  The age of the unit is between 1602 to 1710Ma.  Mulculca Formation is abundant metasedimentary composite gneiss, variable sodic plagioclase-quartz-magnetite rock, quartz-albite-magnetite gneiss, minor quartz-magnetite rock common, minor basic gneiss, albite-hornblende-quartz rock (Geoscience Australia, 2019).  Ednas Gneiss contains quartz-albite-magnetite gneiss, sodic plagioclase-quartz-magnetite rock, minor albite-hornblende-quartz rock, minor quartzo-feldspathic composite gneiss.  It is overlain by Mulculca Formation.

Silver City Suite

Formerly mapped in the Thackaringa Group this new grouping accommodates the metamorphosed and deformed granites.  A metagranite containing quartz-feldspar-biotite gneiss with variable garnet, sillimanite, and muscovite, even-grained to megacrystic, elongate parallel to enclosing stratigraphy. It occurs as sills and intrudes both the Thackeringa Group and the Broken Hill Group.  This unit is aged between 1680 to 1707Ma.

Torrowangee Group

Mulcatcha Formation comprises flaggy, quartzose sandstone with lenticular boulder and arkosic sandstone beds.  Yangalla Formation contains boulder beds, lenticular interbedded siltstone, and sandstone.  It overlies the Mulcatcha Formation (Geoscience Australia, 2020).

Sundown Group

The Sundown Group contains Interbedded pelite, psammopelitic and psammitic metasedimentary rocks and it overlies the Broken Hill Group.  The unit age is from 1665 to 1692Ma (Figure A1-2-4).

There is also an unnamed amphibolite in Willyama Supergroup, which present typically medium grained plagioclase and amphibole or pyroxene rich stratiform or discordant dykes.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure B4:  EL 8434 and EL 8435 Solid Geology

Diagram, map Description automatically generated

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.

· No new drillholes have been completed yet, but a small RC and diamond core drilling program across all the modelled prospects (The Sisters, Fence Gossan, Tors Tank, and Reefs Tank) is planned

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.

· No metal equivalents have been reported.  Where rare earth element results have been reported, they have been converted to rare earth oxides as per standard industry practice.

· No compositing of any of the metallurgical results has taken place

· No assay results have been withheld from the metallurgical test work.

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 (e.g., 'down hole length, true width not known').

· As a database of all the historical borehole sampling has not yet been completed and validated (in progress) it is uncertain if there is a relationship between the surface sample anomalies to any subsurface anomalous intersections.  Mineralisation is commonly associated with shears, faults, amphibolites, and pegmatitic intrusions within the shears, or on or adjacent to the boundaries of the Himalaya Formation.

 

· Geological 3D models - sufficient data was available to generate a small - moderate resource of cobalt with copper credits, which has been completed and reported in June 2022 in an ASX release.

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.

· Current surface anomalies are shown on maps in the report in previous ASX releases.  All historical surface sampling has had their coordinates converted to MGA94, Zone 54.

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 to avoid misleading reporting of Exploration Results.

· All results from the recent preliminary rougher flotation trials have been included as Appendix B in this release.

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.

· Historical explorers have also conducted airborne and ground gravity, magnetic, EM, and IP resistivity surveys over parts of the tenure area but these are yet to be fully georeferenced (especially the ground IP surveys).

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.

It is recommended that:

· The non-sampled zones within the Core Library drillholes, BH1, BH2, and DD90-IB3 in the north of the tenure group be recovered, sampled, and analysed.

· That a more detailed study of historical drillholes should be conducted to determine if enough data exists at Iron Blow and Avondale East to estimate a JORC resource.

· That a program of field mapping and ground magnetic or EM surveys be planned and executed; and

· A program of exploration RC drilling be planned across all the model areas, except for Ziggy's Hill.  Consideration should be given to coring at least one of the holes.

 

 

 

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