TIDMCCZ
RNS Number : 9326P
Castillo Copper Limited
15 February 2023
15 February 2023
CASTILLO COPPER LIMITED
("Castillo", or the "Company")
Diamond core TREO assay boosts confidence; exceptional 38.9%
MREO
Castillo Copper Limited (LSE and ASX: CCZ), a base metal
explorer primarily focused on copper across Australia and Zambia,
is delighted with the latest assays results for the Tors Tank and
Fence Gossan Prospects, as collectively they materially increase
confidence in the shallow, clay-hosted, Rare Earth Element ("REE")
discovery across the central part of the BHA Project's East Zone
(Appendix A).
HIGHLIGHTS:
-- The assay results for diamond core from TT_005DD - undertaken
at the Tors Tank Prospect (refer Appendix A) - significantly boosts
confidence in the shallow, clay-hosted, rare-earth element
discovery(1) , with the best intercept:
o 13m @ 1,550ppm Total Rare Earth Oxides ("TREO") from 5m
o Notably, high value Magnetic REO (Nd+Pr+Dy+Tb) represented an
exceptional 38.9% of the TREO grade vs 25% peer average(2)
-- Re-assays of 4m composite samples at Tors Tank and Fence
Gossan to 1m provided greater clarity on the underlying geology,
whilst delivering further evidence of an extensive, shallow REE
mineralisation system - the best intercepts comprise:
o 17m @ 1,605ppm TREO from 2m and 1m @ 3,236 TREO from 19m
(FG_003RC)
o 10m @ 1,013ppm TREO from 49m (FG_001RC)
o 6m @ 1,480ppm TREO from 7m (FG_004RC)
o 5m @ 1,598ppm TREO from 14m (TT_002RC)
o 4m @ 1,342ppm TREO from 28m (FG_004RC)
o 2m @ 3,491ppm TREO from 7m (TT_003RC)
-- Assays for circa 70% of the recent hand auger surface
sampling campaign across Fence Gossan delineated a sizeable
4.5km(2) anomalous area for REE mineralisation:
o A preliminary interpretation suggests there are several more
prime targets to test-drill that could potentially extend known
mineralisation between the Fence Gossan and Tors Tank Prospects
-- A fuller interpretation will be released once all the assay
results for the auger sampling campaign and drill-holes
RT_002-004RC are received from the laboratory
Dr Dennis Jensen, Managing Director of Castillo Copper, said:
"The Board is delighted with the latest results, especially the
diamond core assay at Tors Tank and exceptional MREO value, as it
increases confidence in the underlying REE system. In addition, the
hand auger surface sampling campaign is proving to be a treasure
trove of insights, with several new targets now on the radar. The
Board looks forward to receiving the remaining assays and charting
the next phase of the exploration campaign."
ASSAYS BOOST REE CONFIDENCE AT BROKEN HILL
Diamond core
Drill-hole TT_005DD, which produced diamond core from the Tors
Tank Prospect (refer Figure 1), returned an excellent assay result,
with the best intercept: 13m @ 1,550ppm TREO from 5m.
More significantly, the high value Magnetic REO, which comprises
in-demand REEs (Nd+Pr+Dy+Tb), represented an exceptional 38.9% of
the TREO grade which is well above the 25% average among the peer
group(2) .
FIGURE 1 : TORS TANK DIAMOND CORE FROM 5.3-11.8M (TT_OO5DD)
Source: CCZ geology team
Re-assays: Tors Tank and Fence Gossan
To gain greater insights of the underlying geology at Tors Tank
and Fence Gossan, the 4m composite samples were re-assayed to 1m -
with the best results highlighted in Figure 2, with up to 3,491ppm
TREO recorded. Interpreting the re-assays provides clearer evidence
that there is an extensive, shallow REE mineralisation system
across the centre of the BHA Project's East Zone (refer Appendix
A).
FIGURE 2: BEST "RC" INTERCEPTS TORS TANK / FENCE GOSSAN
Hole From (m) To (m) Width (m) TREO (ppm) MREO (%)
========= ======= ========== ===========
TT_001RC 25 27 2 1,048 27.1%
========= ======= ========== =========== =========
TT_002RC 14 19 5 1,598 29.1%
========= ======= ========== =========== =========
TT_003RC 4 11 7 890 34.6%
========= ======= ========== =========== =========
12 13 1 1,103 28.4%
========= ======= ========== =========== =========
15 17 2 3,491 24.6%
========= ======= ========== =========== =========
FG_001RC 8 20 12 907 31.0%
========= ======= ========== =========== =========
49 59 10 1,013 24.7%
========= ======= ========== =========== =========
FG_002RC 11 16 5 1,065 28.9%
========= ======= ========== =========== =========
FG_003RC 2 19 17 1,605 28.6%
========= ======= ========== =========== =========
19 20 1 3,236 28.9%
========= ======= ========== =========== =========
FG_004RC 7 13 6 1,480 28.9%
========= ======= ========== =========== =========
28 32 4 1,342 22.9%
========= ======= ========== =========== =========
Source: CCZ geology team
Surface sampling: Fence Gossan
Around 70% of the hand auger surface sampling assays for the
Fence Gossan Prospect have been returned. Pleasingly, the assays
delineate a sizeable (circa 4.5km(2) ) anomalous REE zone - refer
to Figure 3 below.
Surface readings indicate anomalous areas to the south,
south-west and north-west of the four recent cobalt-focussed Fence
Gossan drill-holes which suggest possible higher mineralisation in
these zones than identified in the drill-holes (Figure 3) .
Having reconciled these findings and performed a statistical
analysis, the geology team believe surface sample readings with Ce
> 100ppm is a likely indicator of higher grade REE
mineralisation at depth. As such, these are interpreted to be prime
targets for test-drilling that could extend known mineralisation
between the Tors Tank and Fence Gossan Prospects.
FIGURE 3: SURFACE MAPPED LITHOLOGY VS CERIUM CONTOURS (PPM)
Note: Coordinates in MGA94 - Z54; scale range cerium contours
20-230ppm.
Source: CCZ geology team / ALS Laboratory
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
Gracechurch Group (Financial PR) +44 (0)20 4582 3500
Harry Chathli, Alexis Gore, Henry Gamble
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 - 23 November 2022
2) Nelson, S. "Rare earths rush showed no signs of abating in Q4
2022" 6 February 2023. Available at:
https://www.proactiveinvestors.com.au/companies/news/1005217/rare-earths-rush-showed-no-signs-of-abating-in-q4-2022-1005217.html
APPIX A: BHA PROJECT'S EAST ZONE
FIGURE A1: BHA PROJECT's EAST ZONE - REE EXPLORATION
FOOTPRINT
Source: CCZ geology team
FIGURE A2: BHA PROJECT
Source: CCZ geology team
APPIX B: REE RESULTS / TREO CONVERSION FACTOR
FIGURE B1: TORS TANK / FENCE GOSSAN - 1M INTERSECTIONS
>500PPM TREO
Hole From Apparent Ag Th U TREO TREO-Ce LREO HREO CREO MREO
(m) To Width (g/t) (ppm) (ppm) (ppm)1 (ppm) (ppm) (ppm) (%) (%)
(m) (m)
FG_001RC 3 4 1 0.05 20.2 7.1 864 511.78 751.75 112.58 26.5% 30.1%
===== ===== ========= ======= ======= ======= ======== ======== ======== ======== ====== ======
8 20 12 0.07 7.7 13.0 907 539.26 788.62 118.24 26.3% 31.0%
===== ===== ========= ======= ======= ======= ======== ======== ======== ======== ====== ======
49 59 10 0.03 11.1 17.0 1,013 595.88 860.49 152.98 24.9% 24.7%
===== ===== ========= ======= ======= ======= ======== ======== ======== ======== ====== ======
FG_002RC 3 5 2 0.11 8.2 10.7 637 363.49 554.22 83.20 24.5% 26.3%
===== ===== ========= ======= ======= ======= ======== ======== ======== ======== ====== ======
6 10 4 0.07 15.6 7.1 711 411.55 622.39 88.89 24.2% 27.2%
===== ===== ========= ======= ======= ======= ======== ======== ======== ======== ====== ======
11 16 5 0.02 8.8 17.6 1,065 643.95 910.78 154.51 26.7% 28.9%
===== ===== ========= ======= ======= ======= ======== ======== ======== ======== ====== ======
FG_003RC 2 19 17 0.08 14.3 19.6 1,605 1011.78 1378.22 226.81 26.7% 28.6%
===== ===== ========= ======= ======= ======= ======== ======== ======== ======== ====== ======
19 20 1 0.11 1.8 47.6 3,236 2441.30 2079.08 1156.99 40.3% 28.9%
===== ===== ========= ======= ======= ======= ======== ======== ======== ======== ====== ======
59 60 1 0.04 8.7 25.1 808 546.46 632.71 175.40 31.3% 26.0%
===== ===== ========= ======= ======= ======= ======== ======== ======== ======== ====== ======
FG_004RC 7 13 6 0.21 18.4 10.4 1,480 863.25 1299.89 179.81 25.2% 28.9%
===== ===== ========= ======= ======= ======= ======== ======== ======== ======== ====== ======
28 32 4 0.13 19.4 28.2 1,342 762.43 1185.14 156.78 21.9% 22.9%
===== ===== ========= ======= ======= ======= ======== ======== ======== ======== ====== ======
48 57 9 0.08 9.7 24.1 848 477.63 736.43 111.69 23.2% 24.3%
===== ===== ========= ======= ======= ======= ======== ======== ======== ======== ====== ======
61 63 2 0.07 17.3 7.8 782 432.64 689.41 92.71 22.0% 23.4%
===== ===== ========= ======= ======= ======= ======== ======== ======== ======== ====== ======
TT_001RC 25 27 2 0.17 4.3 15.7 1,048 755.07 668.01 380.03 41.0% 27.1%
===== ===== ========= ======= ======= ======= ======== ======== ======== ======== ====== ======
39 40 1 0.05 19.2 1.7 752 396.02 705.28 46.97 20.1% 25.8%
===== ===== ========= ======= ======= ======= ======== ======== ======== ======== ====== ======
41 42 1 0.04 22.0 1.9 624 310.71 583.08 40.87 19.6% 24.7%
===== ===== ========= ======= ======= ======= ======== ======== ======== ======== ====== ======
43 44 1 0.04 9.0 3.8 747 437.58 677.48 69.66 23.7% 29.0%
===== ===== ========= ======= ======= ======= ======== ======== ======== ======== ====== ======
47 48 1 0.09 19.6 3.2 684 374.60 627.57 56.59 18.2% 20.3%
===== ===== ========= ======= ======= ======= ======== ======== ======== ======== ====== ======
49 51 2 0.07 32.5 3.6 676 379.43 595.53 80.57 22.5% 23.6%
===== ===== ========= ======= ======= ======= ======== ======== ======== ======== ====== ======
TT_002RC 14 19 5 0.72 0.9 7.4 1,598 959.58 1235.37 363.60 31.5% 29.1%
===== ===== ========= ======= ======= ======= ======== ======== ======== ======== ====== ======
TT_003RC 4 11 7 0.23 1.2 8.6 890 586.78 708.95 181.16 32.8% 34.6%
===== ===== ========= ======= ======= ======= ======== ======== ======== ======== ====== ======
12 13 1 0.08 1.8 14.0 1,103 676.16 805.70 297.95 34.6% 28.4%
===== ===== ========= ======= ======= ======= ======== ======== ======== ======== ====== ======
15 17 1 0.14 1.8 15.0 3,491 3072.18 1281.72 2209.34 59.3% 24.6%
===== ===== ========= ======= ======= ======= ======== ======== ======== ======== ====== ======
TT_005DD 5 18 13 0.38 3.0 12.4 1,550 1150.56 1123.35 427.05 40.1% 38.9%
===== ===== ========= ======= ======= ======= ======== ======== ======== ======== ====== ======
67 68 1 0.12 6.8 8.2 722 443.76 599.73 122.88 30.5% 31.2%
===== ===== ========= ======= ======= ======= ======== ======== ======== ======== ====== ======
TT_004RC n/a n/a
===== ===== ========= ======= ======= ======= ======== ======== ======== ======== ====== ======
Notes:
1. TT_001RC 39-52m composite also reports 6,388 ppm Ba (Barium); TT_003RC 1,140 ppm Ba.
2. Two of the Lanthanum (La) assay from FG_003R returned
>500ppm were re-analysed (514 and 527ppm, respectively).
3. Verification has been undertaken by ROM Resources personnel.
4. Sample results from ALS method ME-ICP81.
Source: ALS Adelaide
TREO conversion factor
Conversion of elemental analysis (REE parts per million) to
stoichiometric oxide (REO parts per million) was undertaken by ROM
geological staff using the below (Figure B2) element to
stoichiometric oxide conversion factors.
FIGURE B2: ELEMENT - CONVERSION FACTOR - OXIDE FORM
Rare Earth Factor for Conversion Rare Earth Oxide
Element Common Form
Ce 1.2284 CeO(2)
====================== =================
Dy 1.1477 Dy(2) O(3)
====================== =================
Er 1.1435 Er(2) O(3)
====================== =================
Eu 1.1579 Eu(2) O(3)
====================== =================
Gd 1.1526 Gd(2) O(3)
====================== =================
Ho 1.1455 Ho(2) O(3)
====================== =================
La 1.1728 La(2) O(3)
====================== =================
Lu 1.1371 Lu(2) O(3)
====================== =================
Nd 1.1664 Nd(2) O(3)
====================== =================
Pr 1.2083 Pr(6) O(11)
====================== =================
Sm 1.1596 Sm(2) O(3)
====================== =================
Tb 1.1762 Tb(4) O(7)
====================== =================
Tm 1.1421 Tm(2) O(3)
====================== =================
Y 1.2699 Y(2) O(3)
====================== =================
Yb 1.1387 Yb(2) O(3)
====================== =================
Source: CCZ geology team
Rare earth oxide is the industry accepted form for reporting
rare earths. The following calculations are used for compiling REO
into their reporting and evaluation groups:
-- TREO (Total Rare Earth Oxide) = La(2) O(3) + CeO(2) + Pr(6)
O(11) + Nd(2) O(3) + Sm(2) O(3) + Eu(2) O(3) + Gd(2) O(3) + Tb(4)
O(7) + Dy(2) O(3) + Ho(2) O(3) + Er(2) O(3) + Tm(2) O(3) + Yb(2)
O(3) + Y(2) O3 + Lu(2) O(3) .
-- TREO-Ce = TREO - CeO(2)
-- LREO (Light Rare Earth Oxide) = La(2) O(3) + CeO(2) + Pr(6) O(11) + Nd(2) O(3) + Sm(2) O(3)
-- HREO (Heavy Rare Earth Oxide) = Eu(2) O(3) + Gd(2) O(3) +
Tb(4) O(7) + Dy(2) O(3) + Ho(2) O(3) + Er(2) O(3) + Tm(2) O(3) +
Yb(2) O(3) + Y(2) O(3) + Lu(2) O(3)
-- CREO (Critical Rare Earth Oxide) = Nd(2) O(3) + Eu(2) O(3) +
Tb(4) O(7) + Dy(2) O(3) + Y(2) O(3)
-- MREO (Magnetic Rare Earth Oxide) = Pr(6) O(11) + Nd(2) O(3) +
Sm(2) O(3) + Gd(2) O(3) + Tb(4) O(7) + Dy(2) O(3) .
Total Rare Earth Oxides (TREO):
To calculate TREO an oxide conversion "factor" is applied to
each rare-earth element assay.
The "factor" equates an elemental assay to an oxide
concentration for each element. Below is an example of the factor
calculation for Lanthanum (La).
Relative Atomic Mass (La) = 138.9055
Relative Atomic Mass (O) = 15.9994
Oxide Formula = La(2) O(3)
Oxide Conversion Factor = 1/ ((2x 138.9055)/(2x 138.9055 + 3x
15.9994)) Oxide Conversion Factor = 1.173 (3 decimal places)
APPIX C: DRILLHOLE COORDINATES AFTER SURVEY
All drill-holes have now been surveyed, with coordinates showing
only 0.5-4m errors in X and Y compared to the initial GPS readings
(Figures C1-3). The total program consisted of 1,568m of RC and
137.7m of HQ diamond core.
FIGURE C1: TORS TANK SURVEYED DRILL COLLARS
HoleID Easting Northing AHD TDepth Grid Dip Hole Start End
(GDA94) (GDA94) (m) (m) Azimuth Horizontal Type
TT_001RC 571356 6451399 191.2 120 193.1 -63.1 RC 30-Sep-22 1-Oct-22
========== ========= ====== ======= ========= ============ ====== ========== ==========
TT_002RC 571473 6451248 191.4 108 188.6 -63.0 RC 1-Oct-22 2-Oct-22
========== ========= ====== ======= ========= ============ ====== ========== ==========
TT_003RC 571421 6451278 193.1 140 192.1 -62.5 RC 2-Oct-22 3-Oct-22
========== ========= ====== ======= ========= ============ ====== ========== ==========
TT_004RC 571230 6451498 189.9 120 186.8 -66.1 RC 3-Oct-22 4-Oct-22
========== ========= ====== ======= ========= ============ ====== ========== ==========
TT_005DD 571427 6451276 193.0 137.7 187.2 -60.8 DDH 11-Oct-22 17-Oct-22
========== ========= ====== ======= ========= ============ ====== ========== ==========
625.7
========== ========= ====== ======= ========= ============ ====== ========== ==========
Source: CCZ geology team
FIGURE C2: FENCE GOSSAN SURVEYED DRILL COLLARS
HoleID Easting Northing AHD Tdepth Grid DipH Hole Start End
(GDA94) (GDA94) (m) (m) Azimuth Type
FG_001RC 576347 6453786 171.2 126 191.8 -64.9 RC 4-Oct-22 7-Oct-22
========= ========= ====== ======= ========= ====== ====== ========= ==========
FG_002RC 576547 6453751 169.1 110 195.2 -65.2 RC 7-Oct-22 8-Oct-22
========= ========= ====== ======= ========= ====== ====== ========= ==========
FG_003RC 576696 6453833 167.7 160 193.7 -67.9 RC 8-Oct-22 9-Oct-22
========= ========= ====== ======= ========= ====== ====== ========= ==========
FG_004RC 575998 6453831 173.7 120 188.2 -64.2 RC 9-Oct-22 10-Oct-22
========= ========= ====== ======= ========= ====== ====== ========= ==========
516
========= ========= ====== ======= ========= ====== ====== ========= ==========
Source: CCZ geology team
FIGURE C3: REEFS TANK SURVEYED DRILL COLLARS
HoleID Easting Northing AHD TD Azimuth DipH Type Start Finish
(m)
RT_001RC 574106.703 6456242.501 179.7 120 188.0 -62.1 RC 10/10/2022 11/10/2022
=========== ============ ====== ==== ======== ====== ===== =========== ===========
RT_002RC 574120.601 6455468.441 188.1 204 189.2 -65.3 RC 9/11/2022 10/11/2022
=========== ============ ====== ==== ======== ====== ===== =========== ===========
RT_003RC 573418.409 6455244.784 191.7 120 186.4 -63.7 RC 10/11/2022 14/11/2022
=========== ============ ====== ==== ======== ====== ===== =========== ===========
RT_004RC 573726.282 6454924.984 186.6 120 190.2 -61.5 RC 14/11/2022 15/11/2022
=========== ============ ====== ==== ======== ====== ===== =========== ===========
564
=========== ============ ====== ==== ======== ====== ===== =========== ===========
Source: CCZ geology team
Figures C4 and C5 show a cross-section of the extent of downhole
distribution of cobalt and cerium at Tors Tank. Most of the major
occurrences are at <50m depth.
FIGURE C4: TORS TANK - COBALT (PPM)
Notes:
1. View looking north-west.
2. Vertical exaggeration 2:1
Source: CCZ geology team
FIGURE C5: TORS TANK CERIUM (PPM)
Source: CCZ geology team
At Fence Gossan, a downhole cross-section shows the distribution
of the rare earth element cerium (ppm), especially highlighting the
anomalous zones near surface and a second zone at about 50m depth.
The high REE zones appear in extremely weathered clays derived from
mostly pegmatite.
FIGURE C6: FENCE GOSSAN CERIUM (PPM)
Source: CCZ geology team
APPIX D: JORC CODE, 2012 EDITION - TABLE 1
Section 1: Sampling Techniques and Data
Criteria JORC Code explanation Commentary
Sampling Nature and quality of Diamond Drilling (DDH)
techniques sampling (e.g., cut Diamond drilling of HQ diameter (TT_005DD)
channels, random was completed to 137.7m recently in the completed
chips, or specific program and was located 5m away from a RC hole
specialised already drilled (TT_003RC).
industry standard Reverse Circulation ('RC') Drilling
measurement tools RC drilling at Fence Gossan was used to obtain
appropriate a representative sample by means of riffle
to the minerals under splitting with samples submitted for analysis
investigation, such using the above-mentioned methodologies.
as Four (4) reverse circulation (RC) holes for
down hole gamma a total of 516m have been completed at the
sondes, or handheld Fence Gossan Prospect.
XRF instruments, Four (4) RC holes were completed at Reefs Tank
etc.). These examples for a total of 564m.
should not be taken At Tors Tank, four (4) RC holes for a total
as of 625.7m (including the cored hole) were completed.
limiting the broad The RC drilling technique was used to obtain
meaning of sampling. a representative sample by means of a cone
Include reference to or riffle splitter with samples submitted for
measures taken to assay by mixed acid digestion and analysis
ensure via ICP-MS + ICP-AES with anticipated reporting
sample representivity a suite of 48 elements (sulphur >10% by LECO).
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.
================================= =========================================================================================================
Drilling Drill type (e.g., Historical drilling consisted of auger, rotary
techniques core, reverse air blast, reverse circulation, and NQ, BQ,
circulation, and HQ diamond coring. One cored hole of HQ
open-hole hammer, (61mm) diameter was completed at Tors Tank
rotary air blast, after all the RC holes had been completed.
auger, Diamond drilling will be completed with standard
Bangka, sonic, etc.) diameter, conventional HQ and NQ with historical
and details (e.g. holes typically utilizing RC and percussion
core pre-collars to an average 30 metres (see Drillhole
diameter, triple or Information for further details).
standard tube, depth
of
diamond tails,
face-sampling bit or
other type,
whether core is
oriented and if so,
by what
method, etc.).
================================= =========================================================================================================
Drill sample Method of recording Reverse Circulation ('RC') Drilling - Reverse
recovery and assessing core circulation sample recoveries were visually
and estimated during drilling programs. Where the
chip sample estimated sample recovery was below 100% this
recoveries and was recorded in field logs by means of qualitative
results assessed. observation.
Measures taken to Reverse circulation drilling employed sufficient
maximise sample air (using a compressor and booster) to maximise
recovery sample recovery.
and ensure Historical cored drillholes by North Broken
representative nature Hill, CRA , and Pasminco were well documented
of the samples. and generally have >90% core recovery.
Whether a No relationship between sample recovery and
relationship exists grade has been observed.
between sample
recovery and grade
and whether sample
bias
may have occurred due
to preferential
loss/gain
of fine/coarse
material.
================================= =========================================================================================================
Logging Whether core and chip The drilling that did occur was completed to
samples have been modern-day standards. The preferred exploration
geologically strategy in the eighties and early nineties
and geotechnically was to drill shallow auger holes to negate
logged to a level of the influence of any Quaternary and Tertiary
detail sedimentary cover, and then return to sites
to support where anomalous Cu or Zn were assayed. In this
appropriate Mineral program at all three areas holes were completed
Resource estimation, to varying depths ranging from 100-160m.
mining studies and No downhole geophysical logging took place;
metallurgical however, measurements of magnetic susceptibility
studies. were taken at the same 1m intervals as the
Whether logging is PXRF readings were taken.
qualitative or
quantitative
in nature. Core (or
costean, channel,
etc)
photography.
The total length and
percentage of the
relevant
intersections logged.
================================= =========================================================================================================
Sub-sampling If core, whether cut Core samples will be hand-split or sawn with
techniques or sawn and whether re-logging of available historical core indicating
and sample quarter, a 70:30 (retained: assayed) split was typical.
preparation half or all core The variation of sample ratios noted are considered
taken. consistent with the sub-sampling technique
If non-core, whether (hand-splitting).
riffled, tube No second half samples will be submitted for
sampled, analysis, but duplicates have been taken at
rotary split, etc and a frequency of 1:20 in samples collected.
whether sampled wet It is considered water planned to be used for
or core cutting is unprocessed and unlikely to
dry. have introduced sample contamination.
For all sample types, Procedures relating to the definition of the
the nature, quality, line of cutting or splitting are not available.
and appropriateness It is expected that 'standard industry practice'
of the sample for the period was applied to maximize sample
preparation representivity.
technique. Quarter core will be submitted to ALS for chemical
Quality control analysis using industry standard sample preparation
procedures adopted and analytical techniques.
for all The sample interval details and grades quoted
sub-sampling stages for cored intervals described in various maps
to maximise in the main section are given in previous ASX
representivity releases (Castillo Copper 2022a, b, c, d, e,
of samples. f).
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.
================================= =========================================================================================================
Quality The nature, quality and The following rare earth elements were analysed using ME-MS61R Sample
of assay appropriateness of Decomposition is by HF-HNO(3) -HClO(4) acid digestion, HCl leach (GEO-4A01).
data and the assaying and laboratory The Analytical Method for
laboratory procedures used
tests and whether the technique Silver is shown below: Element Symbol Units Lower Upper
is considered partial Limit Limit
or total. Silver Ag ppm 0.01 100
For geophysical tools, ======== ======= ======= =======
spectrometers, handheld
XRF instruments, etc, the Inductively Coupled Plasma - Atomic Emission Spectroscopy (ICP -
parameters used in AES) Inductively Coupled Plasma - Mass Spectrometry (ICP-MS)
determining the analysis A prepared sample (0.25 g) is digested with perchloric, nitric, hydrofluoric,
including instrument and hydrochloric acids. The residue is topped up with dilute hydrochloric
make and model, reading acid and analysed by inductively coupled plasma atomic emission spectrometry.
times, calibrations Following this analysis, the results are reviewed for high concentrations
factors applied and their of bismuth, mercury, molybdenum, silver, and tungsten and diluted
derivation, etc. accordingly.
Nature of quality control Samples meeting this criterion are then analysed by inductively coupled
procedures adopted plasma-mass spectrometry. Results are corrected for spectral interelement
(eg standards, blanks, interferences.
duplicates, external Four acid digestions can dissolve most minerals: however, although
laboratory checks) and the term "near total" is used, depending on the sample matrix, not
whether acceptable levels all elements are quantitatively extracted.
of accuracy (i.e. lack of Results for the additional rare earth elements will represent the
bias) and precision acid leachable portion of the rare earth elements and as such, cannot
have been established. be used, for instance to do a chondrite plot.
Geochemical Procedure
Element geochemical procedure reporting units and limits are listed
below: Element Symbol Units Lower Upper Limit
Limit
Molybdenum Mo ppm 0.05 10 000
======== ======= ======= ============
Sodium Na % 0.01 10
======== ======= ======= ============
Niobium Nb ppm 0.1 500
======== ======= ======= ============
Nickel Ni ppm 0.2 10 000
======== ======= ======= ============
Phosphorous P ppm 10 10 000
======== ======= ======= ============
Lead Pb ppm 0.5 10 000
======== ======= ======= ============
Rubidium Rb ppm 0.1 10 000
======== ======= ======= ============
Rhenium Re ppm 0.002 50
======== ======= ======= ============
Sulphur S % 0.01 10
======== ======= ======= ============
Antimony Sb ppm 0.05 10 000
======== ======= ======= ============
Scandium Sc ppm 0.1 10 000
======== ======= ======= ============
Selenium Se ppm 1 1 000
======== ======= ======= ============
Tin Sn ppm 0.2 500
======== ======= ======= ============
Strontium Sr ppm 0.2 10 000
======== ======= ======= ============
Tantalum Ta ppm 0.05 100
======== ======= ======= ============
Tellurium Te ppm 0.05 500
======== ======= ======= ============
Thorium Th ppm 0.2 10 000
======== ======= ======= ============
Titanium Ti % 0.005 10
======== ======= ======= ============
Thallium Tl ppm 0.02 10 000
======== ======= ======= ============
Uranium U ppm 0.1 10 000
======== ======= ======= ============
Vanadium V ppm 1 10 000
======== ======= ======= ============
Tungsten W ppm 0.1 10 000
======== ======= ======= ============
Element Symbol Units Lower Upper
Limit Limit
Yttrium Y ppm 0.1 500
======== ======= ======= =======
Zinc Zn ppm 2 10 000
======== ======= ======= =======
Zirconium Zr ppm 0.5 500
======== ======= ======= =======
Dysprosium Dy ppm 0.05 1 000
======== ======= ======= =======
Erbium Er ppm 0.03 1 000
======== ======= ======= =======
Europium Eu ppm 0.03 1 000
======== ======= ======= =======
Gadolinium Gd ppm 0.05 1 000
======== ======= ======= =======
Holmium Ho ppm 0.01 1 000
======== ======= ======= =======
Lutetium Lu ppm 0.01 1 000
======== ======= ======= =======
Neodymium Nd ppm 0.1 1 000
======== ======= ======= =======
Praseodymium Pr ppm 0.03 1 000
======== ======= ======= =======
Samarium Sm ppm 0.03 1 000
======== ======= ======= =======
Terbium Tb ppm 0.01 1 000
======== ======= ======= =======
Thulium Tm ppm 0.01 1 000
======== ======= ======= =======
Ytterbium Yb ppm 0.03 1 000
======== ======= ======= =======
Element Symbol Units Lower Upper
Limit Limit
Aluminum Al % 0.01 50
======== ======= ======= ========
Arsenic As ppm 0.2 10 000
======== ======= ======= ========
Barium Ba ppm 10 10 000
======== ======= ======= ========
Beryllium Be ppm 0.05 1 000
======== ======= ======= ========
Bismuth Bi ppm 0.01 10 000
======== ======= ======= ========
Calcium Ca % 0.01 50
======== ======= ======= ========
Cadmium Cd ppm 0.02 1 000
======== ======= ======= ========
Cerium Ce ppm 0.01 500
======== ======= ======= ========
Cobalt Co ppm 0.1 10 000
======== ======= ======= ========
Chromium Cr ppm 1 10 000
======== ======= ======= ========
Cesium Cs ppm 0.05 500
======== ======= ======= ========
Copper Cu ppm 0.2 10 000
======== ======= ======= ========
Iron Fe % 0.01 50
======== ======= ======= ========
Gallium Ga ppm 0.05 10 000
======== ======= ======= ========
Germanium Ge ppm 0.05 500
======== ======= ======= ========
Hafnium Hf ppm 0.1 500
======== ======= ======= ========
Indium In ppm 0.005 500
======== ======= ======= ========
Potassium K % 0.01 10
======== ======= ======= ========
Lanthanum La ppm 0.5 10 000
======== ======= ======= ========
Lithium Li ppm 0.2 10 000
======== ======= ======= ========
Magnesium Mg % 0.01 50
======== ======= ======= ========
Manganese Mn ppm 5 100 000
======== ======= ======= ========
Laboratory inserted standards, blanks and duplicates
were analysed per industry standard practice.
There was no evidence of bias from these results.
================================= =========================================================================================================
Verification The verification of
of sampling significant * None of the drillholes have been twinned, as they are
and assaying intersections historical holes.
by either independent
or alternative
company * Conversion of elemental analysis (REE parts per
personnel. million) to stoichiometric oxide (REO parts per
The use of twinned million) was undertaken by ROM geological staff using
holes. the below (Table D1-1) element to stoichiometric
Documentation of oxide conversion factors (
primary data, data https://www.jcu.edu.au/news/releases/2020/march/rare-earth-metals-an-untapped-resource
entry )
procedures, data
verification, data
storage
(physical and Table D1-1: Element -Conversion Factor -Oxide
electronic) Form CeO2
protocols. Ce 1.2284
Discuss any 1.1477 Dy2O3
adjustment to assay Dy
data. ============= ============
Er 1.1435 Er2O3
============= ============
1.1579 Eu2O3
Eu
============= ============
Gd 1.1526 Gd2O3
============= ============
1.1455 Ho2O3
Ho
============= ============
La 1.1728 La2O3
============= ============
1.1371 Lu2O3
Lu
============= ============
Nd 1.1664 Nd2O3
============= ============
1.2083 Pr6O11
Pr
============= ============
Sm 1.1596 Sm2O3
============= ============
1.1762 Tb4O7
Tb
============= ============
Tm 1.1421 Tm2O3
============= ============
1.2699 Y2O3
Y
============= ============
Yb 1.1387 Yb2O3
============= ============
Rare earth oxide is the industry accepted form
for reporting rare earths. The following calculations
are used for compiling REO into their reporting
and evaluation groups:
TREO (Total Rare Earth Oxide) = La2O3 + CeO2
+ Pr6O11 + Nd2O3 + Sm2O3 + Eu2O3 + Gd2O3 +
Tb4O7 + Dy2O3 + Ho2O3 + Er2O3 + Tm2O3 + Yb2O3
+ Y2O3 + Lu2O3.
TREO-Ce = TREO - CeO2
LREO (Light Rare Earth Oxide) = La2O3 + CeO2
+ Pr6O11 + Nd2O3 + Sm2O3
HREO (Heavy Rare Earth Oxide) = Eu2O3 + Gd2O3
+ Tb4O7 + Dy2O3 + Ho2O3 + Er2O3 + Tm2O3 + Yb2O3
+ Y2O3 + Lu2O3
CREO (Critical Rare Earth Oxide) = Nd2O3 +
Eu2O3 + Tb4O7 + Dy2O3 + Y2O3
MREO (Magnetic Rare Earth Oxide) = Pr6O11 +
Nd2O3 + Sm2O3 + Gd2O3 + Tb4O7 + Dy2O3.
Total Rare Earth Oxides (TREO):
To calculate TREO an oxide conversion "factor"
is applied to each rare-earth element assay.
The "factor" equates an elemental assay to
an oxide concentration for each element. Below
is an example of the factor calculation for
Lanthanum (La):
o Relative Atomic Mass (La) = 138.9055
o Relative Atomic Mass (O) = 15.9994
o Oxide Formula = La(2) O(3)
o Oxide Conversion Factor = 1/ ((2x 138.9055)/(2x
138.9055 + 3x 15.9994)) Oxide Conversion Factor
= 1.173 (3dp)
None of the historical data has been adjusted.
================================= =========================================================================================================
Location Accuracy and quality In general, locational accuracy does vary,
of data of surveys used to depending upon whether the historical surface
points locate and drillhole samples were digitised off plans
drill holes (collar or had their coordinated tabulated. Many samples
and down-hole were originally reported to AGD66 or AMG84
surveys), and have been converted to MGA94 (Zone 54)
trenches, mine The holes are currently surveyed with handheld
workings and other GPS, awaiting more accurate DGPS survey. It
locations is thus estimated that locational accuracy
used in Mineral therefore varies between 2-4m until the more
Resource estimation. accurate surveying is completed. This assessment
Specification of the was confirmed once the holes were surveyed
grid system used. by DGPS from GMC Surveying.
Quality and adequacy The quality of topographic control (GSNSW 1
of topographic sec DEM) is deemed adequate for the purposes
control. of the exploration drilling program.
================================= =========================================================================================================
Data spacing Data spacing for The average sample spacing from the current
and reporting of drilling program across the tenure varies per
distribution Exploration prospect, and sample type, as listed in Table
Results. D1-2, below:
Whether the data Table D1-2: EL 8434 Drillhole Spacing Prospect Drillholes RMS Drillhole
spacing and Completed Spacing
distribution (m)
is sufficient to The Sisters Not yet
establish the degree =========== ==============
of geological Iron Blow Not Yet
and grade continuity =========== ==============
appropriate for the Tors Tank 4 127
Mineral =========== ==============
Resource and Ore Fence Gossan 4 208
Reserve estimation =========== ==============
procedure(s) Ziggy's n/a n/a
and classifications Hill
applied. =========== ==============
Whether sample Reefs Tank 1
compositing has been =========== ==============
applied.
The Datamine software allows creation of fixed
length samples from the original database given
a set of stringent rules.
================================= =========================================================================================================
Orientation Whether the Historical drill holes at the BHAE are typically
of data orientation of drilled vertically for auger and RAB types
in relation sampling achieves (drilled along section lines) and angled at
to unbiased sampling of -55Ëš or -60Ëš to the horizontal and
geological possible structures drilled perpendicular to the mineralised trend
structure and for RC and DDH (Figure D1-3 and D1-4).
the extent to which Drilling orientations are adjusted along strike
this is known, to accommodate folded geological sequences.
considering All Fence Gossan holes were designed to drill
the deposit type. toward grid south at an inclination of 60 degrees
If the relationship from horizontal.
between the drilling The drilling orientation is not considered
orientation to have introduced a sampling bias on assessment
and the orientation of the current geological interpretation.
of key mineralised Geological mapping by various companies has
structures reinforced that the strata dips variously between
is considered to have 5 and 65 degrees.
introduced a sampling
bias, this should be
assessed and reported
if material.
================================= =========================================================================================================
Sample The measures taken to Sample security procedures are considered 'industry
security ensure sample standard' for the current period.
security. Samples obtained during drilling completed
between 4/10/22 to the 10/10/22 were transported
by exploration employees or an independent
courier directly from Broken Hill to ALS Laboratory,
Adelaide.
The Company considers that risks associated
with sample security are limited given the
nature of the targeted mineralisation.
================================= =========================================================================================================
Audits The results of any No external audits or reviews have yet been
or reviews audits or reviews of undertaken.
sampling
techniques and data.
================================= =========================================================================================================
SECTION 2: REPORTING OF EXPLORATION RESULTS
Criteria JORC Code explanation Commentary
Mineral Type, reference EL 8434 is located about 28km east of Broken
tenement name/number, Hill whilst EL 8435 is 16km east of Broken
and land location and Hill. Both tenures are approximately 900km
tenure status ownership northwest of Sydney in far western New South
including Wales (Figures D2-1 and D2-2 in Appendix A
agreements or &B, above).
material EL 8434 and EL 8435 were both granted on the
issues with 2(nd of) June 2016 to Squadron Resources for
third parties a term of five (5) years for Group One Minerals.
such as joint On the 25(th of) May 2020, Squadron Resources
ventures, changed its name to Wyloo Metals Pty Ltd (Wyloo).
partnerships, In December 2020 the tenure was transferred
overriding from Wyloo Metals to Broken Hill Alliance Pty
royalties, Ltd a 100% subsidiary company of Castillo Copper
native Limited. Both tenures were renewed on the 12(th
title interests, of) August 2021 for a further six (6) years
historical and are due to expire on the 2(nd of) June
sites, 2027.
wilderness EL 8434 lies across two (2) 1:100,000 geology
or national park map sheets Redan 7233 and Taltingan 7234, and
and two (2) 1:250,000 geology map sheets, SI54-3
environmental Menindee, and SH54-15 Broken Hill in the county
settings. of Yancowinna. EL 8434 consists of one hundred
The security of and eighty-six (186) units) in the Adelaide
the tenure held and Broken Hill 1:1,000,000 Blocks covering
at the time an area of approximately 580km(2) .
of reporting EL 8435 is located on the 1:100,000 geology
along with any map sheet Taltingan 7234, and the 1:250,000
known geology map sheet SH/54-15 Broken Hill in the
impediments county of Yancowinna. EL 8435 consists of twenty-two
to obtaining a (22) units (Table 1) in the Broken Hill 1:1,000,000
licence to Blocks covering an area of approximately 68km(2)
operate in the .
area. 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 D2-1).
Figure D2-1: EL 8434 and EL 8435 General Location
Map
============================ ================================================================
Exploration Acknowledgment Explorers who were actively involved over longer
done by other and appraisal of historical periods in various parts of EL8434
parties exploration were: - North Broken Hill Ltd, CRAE Exploration,
by other Major Mining Ltd and Broken Hill Metals NL,
parties. 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 45% 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, As the strata is tightly folded, the intersected
geological cobalt-rich layers are overstated in terms
setting, and of apparent thickness, however the modelling
style software calculates a true, vertical thickness.
of Cobalt mineralisation is commonly associated
mineralisation. with shears, faults, amphibolites, and a
quartz-magnetite
rock within the shears, or on or adjacent to
the boundaries of the Himalaya Formation. In
general, most of the cobalt and rare earth
element - rich layers have a north-northwest
to north strike.
REE enrichment generally occurs as a 5 to
10-metre-thick
zone between the completely weathered layer
and strongly weathered layer and it is targeted
for commercial mining (Figure D2-2). Compared
to other REE deposits, regolith-hosted rare
earth element deposits are substantially
low-moderate
grade (containing 0.05-0.3 wt.% extractable
REEs). Nevertheless, due to its easy extraction
method, low processing costs and large abundance,
the orebodies are generally economic to be
extracted ( Duuring, (2020); Kanazawa and Kamitani
(2006); and Murakami, H.; Ishihara (2008) ).
Figure D2-2: Weathering Profile over REE -
Rich Granite
https://en.wikipedia.org/wiki/Regolith-hosted_rare_e
arth_element_deposits
Weathering profile of regolith hosted REE deposits
shown above, the legend is: (A) Humic layer.
(B) Completely weathered layer. (C) Strongly
weathered layer. (D) Weathering front. (E)
Unweathered rock.
Most of the REE found in cerium monazite (Ce
(PO(4) )) which always contains major to minor
amounts of other REE (Nd, La, Pr, Sm etc) replacing
Ce. Also, the mineral often contains trace
amounts of U and Th (coupled with Ca). This
will be collaborated with XRD and or SEM analysis.
============================ ================================================================
Drill hole A summary of all Header information about all drillholes completed
Information information at Reefs Tank, Tors Tank and Fence Gossan have
material to been tabulated in this release in Appendix
the C.
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.
============================ ================================================================
Data aggregation In reporting No metal equivalents have been reported. Rare
methods Exploration earth element results have been converted to
Results, rare earth oxides as per standard industry
weighting practice (Castillo Copper 2022f).
averaging No compositing of assay results has taken place,
techniques, but rather menu options within the Datamine
maximum and/or GDB module have been used to create fixed length
minimum 1m assay intervals from the original sampling
grade lengths.
truncations The rules follow very similarly to those used
(e.g., cutting by the Leapfrog Geo software in creating fixed
of high length samples.
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.
============================ ================================================================
Relationship These A database of all the historical borehole sampling
between relationships has been compiled and validated. It is uncertain
mineralisation are particularly if there is a strong relationship between the
widths and important surface sample anomalies to any subsurface
intercept in the reporting anomalous intersections due to the possible
lengths of Exploration masking by variable Quaternary and Tertiary
Results. overburden that varies in depth from 0-15m.
If the geometry The mineralisation appears to be secondary
of the enrichment in the regolith clays and extremely
mineralisation weathered material derived from quartzo-feldspathic
with pegmatites.
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').
============================ ================================================================
Diagrams Appropriate maps Current surface anomalies are shown on maps
and sections released on the ASX (Castillo Copper 2022d,
(with scales) 2022e, 2022f and 2022g). All historical surface
and tabulations sampling has had their coordinates converted
of intercepts to MGA94, Zone 54.
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.
============================ ================================================================
Balanced Where All recent laboratory analytical results have
reporting comprehensive been recently reported (see Castillo Copper
reporting of all 2022a, b, c, d, e, f, and g) for assay results.
Exploration Regarding the surface and sampling, no results
Results is not other than duplicates, blanks or reference
practicable, standard assays have been omitted.
representative
reporting of
both low and
high grades
and/or
widths should be
practiced to
avoid misleading
reporting of
Exploration
Results.
============================ ================================================================
Other substantive Other Historical explorers have also conducted airborne
exploration exploration and ground gravity, magnetic, EM, and IP resistivity
data data, if surveys over parts of the tenure area but this
meaningful and is yet to be fully georeferenced (especially
material, should the ground IP surveys). Squadron Resources
be reported conducted an airborne EM survey in 2017 that
including (but covers Iron Blow and The Sisters, but not the
not limited to): southern cobalt and REE prospects.
geological REFERENCES
observations; Biggs, M. S., 2021a, Broken Hill Alliance,
geophysical NSW Tenure Package Background Geological
survey results; Information,
geochemical unpublished report to BH Alliance Pty Ltd,
survey Sep 21, 30pp.
results; bulk Biggs, M. S., 2021b, EL 8434 and EL 8435, Brief
samples - size Review of Surface Sample Anomalies Lithium,
and method of Rare Earth Elements and Cobalt, unpublished
treatment; report to BH Alliance Pty Ltd, Nov 21, 18pp.
metallurgical Biggs, M.S., 2022a, BHA Cobalt Modelling and
test results; Mineral Resource Estimate Update, unpublished
bulk memo for Castillo Copper by ROM Resources.
density, Biggs, M.S., 2022b, Broken Hill BHA Tenures
groundwater, Update, Castillo Copper, unpublished memo prepared
geotechnical and by ROM Resources, Mar 22, 5pp
rock Biggs M.S., 2022c, Geological Briefing Paper,
characteristics; Iron Blow Prospect, East Zone, BHA Project
potential (BHAE), Broken Hill, NSW, ROM Resources, prepared
deleterious or for Castillo Copper Limited, August 2022
contaminating Burkett R.D., 1975, Progress Report on Exploration
substances. Licenses 780, 781, 782 and 783, Broken Hill
Area, NSW for the six months to 23rd November
1975, North Broken Hill Limited for the NSW
Geological Survey, (GS1975-328)
Castillo Copper Limited, 2020, ASX Release
Acquisition enhances BHT (zinc-silver-lead)
and IOCG (gold-copper) prospectivity at Broken
Hill, 1st October 2020.
Castillo Copper Limited, 2022a, ASX Release
Battery metal drill-hole assays unlock BHA
East Zone potential / lithium update, 5th January
2022.
Castillo Copper Limited, 2022b, ASX Release
Strategic focus to develop significant cobalt
mineralisation potential at BHA Project, 9th
February 2022.
Castillo Copper Limited, 2022c, ASX Release
High grade platinum confirmed at BHA Project,
9th March 2022.
Castillo Copper Limited, 2022d ASX Release
Diamond core tests demonstrate high-grade
cobalt-zinc
potential at Broken Hill, 21 March 2022
Castillo Copper Limited, 2022e ASX Release,
Drilling hits targeted cobalt zones & wide
pegmatite intercepts at Broken Hill 12 October
2022
Castillo Copper Limited, 2022f ASX Release,
Drilling hits more wide pegmatite intercepts
at Broken Hill, 24 October 2022
Castillo Copper Limited, 2022g ASX Release,
Completed auger sampling campaign targets 6.5km(2)
REE mineralisation zone, 23 December 2022
Duuring, P 2020, Rare-element pegmatites: a
mineral systems analysis: Geological Survey
of Western Australia, Record 2020/7, 6p.
Kanazawa, Y.; Kamitani, M., 2006, "Rare earth
minerals and resources in the world". Journal
of Alloys and Compounds. 408: 1339-1343.
doi:10.1016/j.jallcom.2005.04.033
Lees, T.C., 1978, Progress Report on Farmcote
Exploration Licenses 780 and 782, Farmcote
Area, Broken Hill, NSW for the six months to
23RD November 1978, North Broken Hill Limited
for the NSW Geological Survey, (GS1978-043)
Leyh, W.R., 1976, Progress Report on Exploration
Licence, No. 846 Iron Blow -Yellowstone Area,
Broken Hill, New South Wales for the six months
period ended 29th June 1976, North Broken Hill
Limited, Report GS1976-198, Jul 76, 88pp
Leyh, W.R., 1977a, Progress Report on Exploration
Licence, No. 846 Iron Blow -Yellowstone Area,
Broken Hill, New South Wales for the six months
period ended 29th December 1976, North Broken
Hill Limited, Report GS1976-198, Feb 1977,
24pp
Leyh W.R., 1977b, Progress Report on Farmcote
Exploration Licenses 780 and 782, Farmcote
Area, Broken Hill, NSW for the three months
to 5th March 1977, North Broken Hill Limited
for the NSW Geological Survey, (GS1977-078)
Leyh W.R., 1977c, Progress Report on Farmcote
Exploration Licenses 780 and 782, Farmcote
Area, Broken Hill, NSW for the three months
to 23rd May 1977, North Broken Hill Limited
for the NSW Geological Survey, (GS1977-078)
Leyh W.R., 1978, Progress Report on Farmcote
Exploration Licenses 780 and 782, Farmcote
Area, Broken Hill, NSW for the three months
to 27 October 1978, North Broken Hill Limited
for the NSW Geological Survey, (GS1977-078)
Leyh W.R., 1978 Progress Report on Exploration
Licenses 1099 and 1100 for the six months to
27 October 1978, North Broken Hill Limited
for the NSW Geological Survey, (GS1978-407)
Leyh, W.R., 1990, Exploration Report for the
Third Six Monthly Period ended 12th June 1990
for EL 3238 (K Tank), Broken Hill District,
New South Wales for the six months period,
Pasminco Limited, Report GS1989-226, Jun 90,
22pp
Leyh, W.R., and Lees T.C., 1977, Progress Report
on Exploration Licence, No. 846 Iron Blow
-Yellowstone
Area, Broken Hill, New South Wales for the
six months period ended 29th June 1977, North
Broken Hill Limited, Report GS1976-198, Jul
77, 35pp
Leyh, W.R., and Larson P.D., 1981, Final Report
for the Third Six Monthly Period ended 12th
June 1990 for EL 3238 (K Tank), Broken Hill
District, New South Wales for the six months
period, Pasminco Limited, Report GS1989-226,
Jun 90, 22pp
McConachie, G.W., 1997, EL 4792 Redan, Annual
Report for the period ending 19/2/1997, Normandy
Exploration Limited, unpublished report to
the GSNSW, RIN 00002672
Main, J.V., and Tucker D.F., 1981, Exploration
Report for Six Month Period 8th November 1980
to 7th May 1981, EL 1106 Rockwell, Broken Hill,
NSW, CRA Exploration Pty Ltd, GS1980-080, Jul
1981, 40pp
Mohoney, M., 2018, BHA Broken Hill Project
Position Paper, Squadron Resources Pty Ltd.,
Unpublished report, Mar2018, 8pp
Mortimer R., 2017, Re-interpretation of VTEM
Profiles Broken Hill Area, unpublished report
by Southern Geoscience Consultants for Squadron
Resources Pty Ltd, Oct 17.
https://en.wikipedia.org/wiki/Regolith-hosted_rare_e
arth_element_deposits
Murakami, H.; Ishihara, S., 2008, REE mineralization
of weathered crust and clay sediment on granitic
rocks in the Sanyo Belt, SW Japan and the Southern
Jiangxi Province, China". Resource Geology.
58 (4): 373-401.
doi:10.1111/j.1751-3928.2008.00071.x.
Segnit, E.R. (1946) Barium-feldspars from Broken
Hill, New South Wales. Mineralogical Magazine,
27, 166-174.
Squadron Resources Pty Ltd, 2018, Broken Hill
Project Status, August 2018, unpublished
confidential
presentation by Squadron Resources,
Timms, P.D., and Groves A.J., 2003, Exploration
Licence 4846, The Sisters, Annual Report to
29th May 2003, Endeavour Minerals Pty Ltd.,
RIN
Willis, I.L., Brown, R.E., Stroud, W.J., Stevens,
B.P.J., 1983, The Early Proterozoic Willyama
Supergroup: stratigraphic subdivision and
interpretation
of high to low-grade metamorphic rocks in the
Broken Hill Block, New South Wales., Geological
Society of Australia Journal, 30(2), p195-2
============================ ================================================================
Further The nature and It is recommended that:
work scale of planned * The remaining non-sampled zones within the Core
further Library drillholes, BH1, BH2, and DD90-IB3 in the
work (e.g., north of the tenure group be relogged and sampled.
tests for DD90-IB3 had 21-87m retested recently and is a good
lateral candidate for hyperspectral logging.
extensions
or depth
extensions or * A program of field mapping and ground magnetic, IP o
large-scale r
step-out radiometric surveys be planned and executed at Fence
drilling). Gossan. Mapping of pegmatite outcrops is a high
Diagrams clearly priority.
highlighting the
areas
of possible * Complete rehabilitation of the 2022 BHAE drilling
extensions, campaign that comprised mostly RC drilling. An
including the application supporting an ESF2 lodgment is yet to be
main approved by the NSW Resource Regulator
geological
interpretations
and future * Depending upon the results of the proposed
drilling geophysical surveys above, the next drilling program
areas, provided will specifically target the air coring technique
this information over the known cobalt and REE mineralisation downdip
is not to at least 30m depth at all three prospects. That
commercially proposed drilling program is also designed to
sensitive. increase the resource confidence of the REE to an
Exploration target or Inferred Resources to the
standard of the 2012 JORC Code.
============================ ================================================================
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