Test-work confirms 5-10x upgrade for Cu at Big One

RNS Number : 8903S

Castillo Copper Limited

19 July 2022

 

19 July 2022  

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

Metallurgical test-work confirms ~10x upgrade for copper at Big One Deposit

Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily focused on copper across Australia and Zambia, is pleased to announce that preliminary metallurgical test-work on samples from drill-hole BO_318RC at the Big One Deposit¹ (NWQ Copper Project, Mt Isa copper-belt) delivered encouraging initial results.

HIGHLIGHTS

· Preliminary metallurgical test-work on samples extracted from drill-hole BO_318RC¹ at the Big One Deposit produced a concentrate with confirmed upgrades ranging from 5x to 10x for copper metal (Appendix A & B), with the best result:

o  Copper: 0.72% head-grade to 7.2% post-test-work

· Further test-work is underway on samples from the Big One Deposit to determine the final optimal results, since this is an important proof of concept and de-risking exercise as part of the Board's strategic intent to secure a processing agreement

· The Big One Deposit has already been significantly de-risked as the current global inferred Mineral Resource Estimate ("MRE") stands at 21,886t contained copper metal (2.1Mt @ 1.1% Cu²): 

o  Current forward plans include undertaking a third drilling campaign to extend known mineralisation via focusing on a sizeable known bedrock conductor north of the line of lode and incremental geophysical surveys to identify fresh targets²

· Metallurgical test-work is being undertaken for cobalt on drill-core samples from The Sisters Prospect in Broken Hill - results are due shortly 

Dr Dennis Jensen, Managing Director of Castillo Copper, commented: "The Board is delighted with the preliminary metallurgical test-work results, especially with the beneficiation potentially transforming the ore from the Big One Deposit into a viable copper concentrate. Moreover, receiving these initial results now is timely as the Board is now ramping up efforts to secure a processing agreement and clear path to market."

FIGURE 1: METALLURGICAL TEST-WORK COPPER HEAD GRADE IMPROVEMENT

Assay Head	Weight%	Cu %	Improve %	Distribution %
Ro Con 1	1.76	6.86	958.1	14.03
Ro Con 1-2	5.50	7.24	1011.3	46.29
Ro Con 1-3	11.66	5.31	741.2	71.91
Ro Con 1-4	22.69	3.38	472.5	89.22

Note: Using Danafloat.  Source: ALS Metallurgy, Perth, Western Australia

FIGURE 2: METALLURGICAL TESTING - FROTHER PRODUCT EXAMPLE

Source: ALS Metallurgy, Perth, Western Australia

De-risking Big One Deposit

Although the preliminary metallurgical results deliver an encouraging start, further test-work is underway to optimise the outcome. This is critical to move beyond the proof-of-concept stage and boost the prospect of securing a processing agreement with a blue-chip partner in the Mt Isa copper-belt.

To date, the Big One Deposit has already been significantly de-risked given the current global inferred MRE is 21,886t contained copper metal (2.1Mt @ 1.1% Cu²).

The Board has been revising plans for the Big One Deposit and plans to do the following:

· Conducting a third drilling campaign to extend known mineralisation through focusing on the sizeable known bedrock conductor that is north of the line of lode; and

· Undertaking additional geophysical surveys to identify new targets for test-drilling. 

Methodology

Castillo contracted ALS Metallurgy, Perth, Western Australia, to undertake test-work on a circa 33kg composite derived from drill-hole BO_318RC from the Big One Deposit¹ (Figure 3). The material was fresh and taken wholly from within the mineralised dacite/porphyritic syenite dyke intersected by most of the drilling at the Big One Deposit.

FIGURE 3: BIG ONE DEPOSIT SAMPLE FOR METALLURGICAL TESTING

Borehole	Sample #	From (m)	To (m)	Thick-ness (m)	ORIGINAL  Weight (kg)	COARSE REJECT  Weight (kg)	Au	Ag	Cr	Co	Cu	Rb	Rock type
BO_318RC	CCZ01169	167	168	1.00	2.71	2.21	0.03	0.59	332	184	6553	157	Dacite
BO_318RC	CCZ01170	168	169	1.00	2.86	2.36	0.03	0.59	332	184	6553	157	Dacite
BO_318RC	CCZ01171	169	170	1.00	3.01	2.51	0.03	0.59	332	184	6553	157	Dacite
BO_318RC	CCZ01172	170	171	1.00	3.29	2.79	0.03	0.59	332	184	6553	157	Dacite
BO_318RC	CCZ01173	171	172	1.00	2.23	1.73	0.03	0.59	332	184	6553	157	Dacite
BO_318RC	CCZ01174	172	173	1.00	2.50	2.00	0.03	0.59	332	184	6553	157	Dacite
BO_318RC	CCZ01175	173	174	1.00	2.93	2.43	0.03	0.59	332	184	6553	157	Dacite
BO_318RC	CCZ01176	174	175	1.00	3.26	2.76	0.03	0.59	332	184	6553	157	Dacite
BO_318RC	CCZ01177	175	176	1.00	3.01	2.51	0.03	0.59	332	184	6553	157	Dacite
BO_318RC	CCZ01178	176	177	1.00	3.90	3.40	0.03	0.59	332	184	6553	157	Dacite
BO_318RC	CCZ01179	177	178	1.00	2.12	1.62	0.03	0.59	332	184	6553	157	Dacite
BO_318RC	CCZ01180	178	179	1.00	2.70	2.20	0.03	0.59	332	184	6553	157	Dacite
BO_318RC	CCZ01181	179	180	1.00	2.73	2.23	0.03	0.59	332	184	6553	157	Dacite
BO_318RC	CCZ01182	180	181	1.00	3.00	2.50	0.03	0.59	332	184	6553	157	Dacite
				14	40.25	33.25

Source: ALS Metallurgy, Perth, Western Australia

Further work at the laboratory determined the head grade of the composite sample was slightly better (Figure 4) than the calculated arithmetic average shown selectively in Figure 3.

FIGURE 4: 14M BO_318RC BIG ONE DEPOSIT - TESTING HEAD GRADE

Analyte	Grade	Analyte	Grade
Ag (ppm)	0.9	Mg (%)	1.84
Al (%)	8.20	Mn (ppm)	1,600
Au (g/t)	<0.02	Mo (ppm)	<5
Ba (ppm)	200	Na (ppm)	760
Be (ppm)	5	Ni (ppm)	105
Bi (ppm)	20	P (ppm)	600
Ca (%)	2.80	Pb (ppm)	20
Cd (ppm)	<5	SiO2 (%)	38.0
Co (ppm)	275	Sr (ppm)	18
Cr (ppm)	260	Ti (ppm)	5,400
Cu (ppm)	7,160	V (ppm)	258
Fe (%)	3.94	Y (ppm)	<10
K (%)	6.40	Zn (ppm)	32
Li (ppm)	15

Source: ALS Metallurgy, Perth, Western Australia

The testing process comprised a series of rougher tests with the following sequences:

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 (Ag, Au, Co, Cu, 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 (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)

Two runs were established comparing two common froth reagents (Aerofloat and Danafloat - refer Appendix B). The batch froth flotation results were partially affected by remanent drilling foam imbedded in the reverse circulation chips (refer Figure 2 above).

However, when comparing the frother product concentrates, Danafloat produced the best concentration of copper relative to Aerofloat (refer Figure 1 and 5).

FIGURE 5: COMPARING AEROFLOAT & DANAFLOAT CONCENTRATES

Source: ALS Metallurgy, Perth, Western Australia

Note, at this stage of the process, preliminary rougher testing is potentially biased towards establishing a viable process configuration and recovery rather than grade.  However, when assessing other metals (Ag, Au & Co) using the Danafloat for various concentrate runs, there were a range of material improvements (refer Figure 6). 

FIGURE 6: DANAFLOAT HEAD GRADE IMPROVEMENT FOR SILVER-GOLD-COBALT

Assay Head	Weight%	Ag (g/t)	Improve %	Distribution %	Au g/t	Improve %	Distribution %	Co ppm	Improve %	Distribution %
Ro Con 1	1.76	5.00	555.6	13.65	0.05	500.0	1.66	760	276.4	5.17
Ro Con 1-2	5.50	6.36	706.7	54.25	0.05	500.0	5.18	848	308.4	18.04
Ro Con 1-3	11.66	4.59	509.5	82.89	0.08	764.1	16.78	770	280.0	34.70
Ro Con 1-4	22.69	2.84	315.8	100.00	0.06	635.7	27.18	697	253.5	61.15

To build on this preliminary work a larger sample - circa 50Kg ideally from diamond core - would enable further beneficiation streams and trialling finer crushed material.

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	[phone]
Dr Dennis Jensen (Australia), Managing Director  Gerrard Hall (UK), Chairman
SI Capital Limited (Financial Adviser and Corporate Broker)	[phone]
Nick Emerson
Luther Pendragon (Financial PR)	[phone]
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- 30 November 2021

2)  CCZ ASX Release - 28 February 2022

APPENDIX A: FULL METALLURGICAL TESTWORK RESULTS

 Source: ALS Metallurgy, Perth, Western Australia

Source: ALS Metallurgy, Perth, Western Australia

APPENDIX B: JORC CODE, 2012 EDITION - TABLE 1

The following JORC Code (2012 Edition) Table 1 is primarily supplied for the provision of metallurgy results 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 2022 Met Testing program, BO_318RC reverse circulation samples were 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 for each 1m sample 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. 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 were 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. · For BO_318RC the mineralised intervals were composited on a received apparent thickness x interval calculation (i.e., thickness averaged). See Table B1-1.
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.	· Castillo's's DDH and RC holes have been assayed by an independent laboratory, ALS at Mt Isa, Townsville, or Brisbane Australia. Methods used were as follows: o  Gold - by method Au-AA25 30g charge (fire Assay with AAS finish). o  High gold values within oxide zone/supergene zone may need further testing by method Au-SCR21. o  Copper and 32 other - by method ME-ICP41 (HF-HN03-HCL04 acid digest, HCL leach and ICP-AES finish). o  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 2021 drilling program ALS Mt Isa analysed 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. Regarding the metallurgical testing, a series of rougher tests 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, 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) · Two runs were established comparing two common froth reagents (Aerofloat and Danafloat; see main text).  Batch froth flotation results were somewhat affected by remanent drilling foam imbedded in the reverse circulation chips, as illustrated by the Figure in the previous main text. · Testing parameters were as noted below: COMPOSITE Big One BO_318RC TEST # BF2865, 66 WATER TYPE Perth Tap Water GRIND SIZE P80 75µm PULP DENSITY 35% pH 8.3
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.  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 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 2021 CCZ RC drilling programme (Figure A2-1) has had all holes oriented to intersect the mineralised structure/zone subsurface perpendicularly and 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 dispatch 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 was completed once all 20 holes in CCZ's Stage 2021 program, and their assay results have been verified.  Additional hyperspectral and XRD analyses were returned in Feb 2022. · 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.

Table B2-1: Big One Sample for Metallurgical Testing

Borehole	Sample #	From (m)	To (m)	Thickness (m)	ORIGINAL  Weight (kg)	COARSE REJECT  Weight (kg)	Au	Ag	Cr	Co	Cu	Rb	Rock type
BO_318RC	CCZ01169	167	168	1.00	2.71	2.21	0.03	0.59	332	184	6553	157	Dacite
BO_318RC	CCZ01170	168	169	1.00	2.86	2.36	0.03	0.59	332	184	6553	157	Dacite
BO_318RC	CCZ01171	169	170	1.00	3.01	2.51	0.03	0.59	332	184	6553	157	Dacite
BO_318RC	CCZ01172	170	171	1.00	3.29	2.79	0.03	0.59	332	184	6553	157	Dacite
BO_318RC	CCZ01173	171	172	1.00	2.23	1.73	0.03	0.59	332	184	6553	157	Dacite
BO_318RC	CCZ01174	172	173	1.00	2.50	2.00	0.03	0.59	332	184	6553	157	Dacite
BO_318RC	CCZ01175	173	174	1.00	2.93	2.43	0.03	0.59	332	184	6553	157	Dacite
BO_318RC	CCZ01176	174	175	1.00	3.26	2.76	0.03	0.59	332	184	6553	157	Dacite
BO_318RC	CCZ01177	175	176	1.00	3.01	2.51	0.03	0.59	332	184	6553	157	Dacite
BO_318RC	CCZ01178	176	177	1.00	3.90	3.40	0.03	0.59	332	184	6553	157	Dacite
BO_318RC	CCZ01179	177	178	1.00	2.12	1.62	0.03	0.59	332	184	6553	157	Dacite
BO_318RC	CCZ01180	178	179	1.00	2.70	2.20	0.03	0.59	332	184	6553	157	Dacite
BO_318RC	CCZ01181	179	180	1.00	2.73	2.23	0.03	0.59	332	184	6553	157	Dacite
BO_318RC	CCZ01182	180	181	1.00	3.00	2.50	0.03	0.59	332	184	6553	157	Dacite
				14	40.25	33.25

Figure B2-1: Big One Deposit - Location of BO_318RC and Sample for Metallurgical Testing

Notes:   (1) Big One View looking northwest.

(2) Purple bodies are IP anomalies

(3) Assay shown on drillholes is Cu >1,000ppm

Section 2 Reporting of Exploration Results

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": o  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. o  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. o  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. o  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 o  EPM 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. · This check on the tenures in 'granted' status was completed in 'GeoResGlobe' on the 12th of Feb 2022.
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): o  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 o  West Australian Metals NL, 1994. Drill Programme at the "Big One" Copper Deposit, North Queensland for West Australian Metals NL. o  Wilson, D., 2011. 'Big One' Copper Mine Lease 5481 Memorandum - dated 7 May 2011. o  Wilson, D., 2015. 'Big One' Mining Lease Memorandum - dated 25 May 2015: and o  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). o  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. o  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. o  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 o  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: o  Stratabound copper mineralisation within ferruginous sandstones and siltstones of the Surprise Creek Formation. o  Disseminated copper associated with trachyte dykes. o  Copper-rich iron stones (possible IOCG) in E-W fault zones; and o  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."): o  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. o  The mineralised porphyry dyke is vertical to near vertical (85o), with the 'true width' dimensions reaching up to 7m at surface. o  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. o  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. o  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. o  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 o  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: o  Secondary copper staining over ~800m of strike length. o  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: o  Skarn mineralisation for Cu-Au and/or Zn-Pb-Cu from replacement carbonate mineralisation, particularly the Quilalar Formation. o  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 o  IOCG mineralisation related to chloride rich fluids. · At the 'Crescent' prospect there is the additional potential for: o  Skarn mineralisation for Cu-Au and/or Zn-Pb-Cu from replacement carbonate mineralisation, particularly the Quilalar Formation; and/or o  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 o  IOCG mineralisation related to potassic rich fluids. · At the 'Arya' prospect there is the additional potential for: o  Supergene mineralisation forming at the surface along the fault, fault breccia, and the Surprise Creek Formation 'PLrd' rock unit ('Prd' historical). o  Epigenetic replacement mineralisation for Cu (with minor components of other base metals and gold) from replacement carbonate mineralisation, particularly the Surprise Creek Formation. o  Skarn mineralisation for Cu-Au and/or Zn-Pb-Cu from replacement carbonate mineralisation, particularly the Surprised Creek Formation. o  Sulphide mineralisation within breccia zones, along stress dilation fractures, emplaced within pore spaces, voids, or in other rock fractures; and/or o  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: o  easting and northing of the drill hole collar o  elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar o  dip and azimuth of the hole o  down hole length and interception depth o  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 2021 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 2021 reported holes (315-334DD) are listed in previous drilling collars listed in the 11TH and 26th July ASX release and (in Tables B2-2 and B2-3) and in the maiden ASX release on the 28th February 2022.
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 from CCZ's current drilling program were resolved in January 2022. · 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 methodologies employed used lower cut-off grades and suitable top-cuts. · 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 was undertaken for the EPM 26574 2020-2021 Annual Report and documentation associated with the mineral resource estimate. · 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.
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 by consultancy GeoDiscovery were 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. · 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: o  A third drilling campaign to extend known mineralisation via focusing on a sizeable known bedrock conductor north of the line of lode and incremental geophysical surveys to identify fresh targets. o  Detailed mapping and rock chip sampling. o  Detailed surface gravity and magnetic surveys. o  Diamond Coring.

 

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