28 October 2024
CASTILLO COPPER
LIMITED
("Castillo", "CCZ" or the
"Company")
Castillo completes
acquisition of Harts Range Project & Expands
Footprint
Further to the announcement on 25
October 2024, Castillo Copper Limited (LSE and ASX: CCZ), a base
metal explorer primarily focused on copper across Australia and
Zambia, is delighted to confirm it is moving forward with acquiring
85% of the highly prospective Harts Range Niobium, Uranium and
Heavy Rare Earths Project via an earn-in arrangement.
Highlights:
·
CCZ has met all conditions precedent necessary to
progress acquiring 85% of the highly prospective Harts Range
Niobium, Uranium and Heavy Rare Earths Project1, circa
120km north-east from Alice Springs in the Northern Territory
(NT)
·
Historical assays from 28 rock chip samples,
sourced from outcropping pegmatites within the granted tenure,
reported grades up to 23.2% Nb, 12.7% U and 12.7% Heavy Rare Earth
Elements (including 2.85% Dy, 0.32% Tb, 14.9%
Ta)1,2
·
With the recent field trip by CCZ's geology
team1 validating the Harts Range Project's significant
exploration potential, the Board is now mapping out forward plans
to expedite development work commencing with the Cusp
Prospect1:
o The
exploration campaign will comprise comprehensive surface sampling
and geophysical surveys to generate priority targets to test-drill
as well as collecting bulk samples for metallurgical
test-work
·
Reflecting its high confidence in the region, CCZ
has increased its footprint by ~25% with a proximal exploration
license application3 - "Harts Range East Project" - that
has comparable underlying geology to the granted tenure (15km
west):
o The
initial focus will comprise undertaking a desktop review to
generate key insights for the inaugural post-grant exploratory
field trip
·
The Board's strategy to advance the NWQ Copper
Project, possibly with a development partner, and divest the two
remaining assets - BHA West Project (NSW) and Mkushi Project
(Zambia) - remains on track
·
CCZ has enjoyed recent
inflows of ~$730k, including proceeds from exiting the
RIM4 position (lifting current liquid funds to ~$1.65m);
pleasingly, the next value creating event for the Board is closing
the sale of Cangai Copper Mine to IMI - currently valued at
~$1.6m5
Ged
Hall, Chairman, commented:
"Recognising the
excellent exploration potential the Harts Range Niobium, Uranium
and Heavy Rare Earths Project delivers, the Board has moved swiftly
to close out this transformational transaction and increase the
footprint within the region. The Board is now working closely with
the geology team to expedite ramping up the development campaign.
Concurrently, the Board's strategy to create value from non-core
asset disposals is making solid progress: CCZ has exited its
Rimfire Pacific Mining equity position and is working on closing
the Cangai Copper Mine sale to ASX listed Infinity
Mining."
A
NEW ERA COMMENCES
Harts Range Project
Within the granted tenure are five
prospects - Cusp, Bobs, Bobs West, Thorium Anomaly and Niobium
Anomaly - where 28 assayed historical rock chips from outcropping
pegmatites produced stellar grades up to 23.2% Nb, 12.7% U and
12.7% Heavy Rare Earth Elements (including 2.85% Dy, 0.32% Tb,
14.9% Ta)1,2.
CCZ's geology team recent field trip
to the Harts Range Project was highly encouraging as it validated
the tenure's significant exploration potential. As a result, the
Board is now working closely with the geology team to fast-track
development work, initially focusing on the Cusp Project which
shows consistently high Niobium, Heavy Rare Earths and Uranium
grades1 (Figure 1).
FIGURE 1: HISTORICAL ROCK CHIP RESULTS - CUSP PROSPECT
(PCT)
|
Sample ID
|
HR419
|
HR420
|
HR421
|
HR480
|
HR481
|
HR482
|
HR483
|
HR484
|
HR485
|
HR486
|
HR487
|
HR488
|
HR490
|
Niobium (%)
|
17.5
|
1.1
|
22.7
|
21.0
|
16.3
|
23.2
|
23.0
|
1.0
|
24.0
|
20.6
|
20.0
|
19.4
|
18.0
|
Uranium (%)
|
10.1
|
2.0
|
11.0
|
11.4
|
10.4
|
12.1
|
12.2
|
0.0
|
11.6
|
11.2
|
11.2
|
11.3
|
11.3
|
Yttrium (%)
|
5.6
|
16.0
|
6.9
|
8.0
|
3.3
|
8.6
|
8.1
|
0.0
|
7.9
|
7.4
|
8.3
|
7.8
|
7.3
|
Tantalum (%)
|
9.3
|
0.9
|
5.5
|
7.0
|
11.0
|
5.9
|
6.6
|
0.1
|
5.9
|
4.1
|
5.2
|
4.7
|
6.3
|
Dysprosium (%)
|
1.1
|
0.0
|
1.6
|
1.7
|
0.7
|
1.9
|
1.7
|
0.0
|
1.8
|
1.6
|
1.8
|
1.7
|
1.5
|
Terbium (%)
|
0.18
|
0.05
|
0.24
|
0.27
|
0.10
|
0.29
|
0.27
|
<0.01
|
0.27
|
0.25
|
0.27
|
0.26
|
0.24
|
Note: Niobium is typically
coincident with Heavy Rare Earths mineralisation, Tantalum and
Uranium
Source: CCZ ASX Release - 21 October
2024
The
objective of the exploration campaign is to undertake comprehensive
surface sampling and geophysical surveys to generate priority
targets to test-drill. Complementing this effort will be collecting
bulk samples to simultaneously progress metallurgical test-work to
ascertain if mineralisation will liberate easily.
Harts
Range East
Project
Following
the geology team's positive visit to the region, the Board decided
to further expand the footprint given the encouraging prospectivity
for Niobium, Heavy Rare Earths and Uranium mineralisation. As a
result, CCZ has applied for incremental ground circa 15km east of
the granted tenure - "Harts Range East Project" - which increases
the footprint by circa 25% (~135km2).
As shown in Figure 2, the Harts
Range East Project (~25km2) is in the central portion of
the Enita Dome, with arguably comparable underlying geology to the
granted tenure 15km west.
Notably, the Entia Dome is underlain
by the Harts Range Group (Harts Range Meta-igneous Complex), which
predominantly consists of feldspar-biotite-amphibole-garnet
gneisses. Moreover, the Harts Range region has undergone repeated
and substantial crustal re-working between Proterozoic and
Palaeozoic times. As a result, it is now believed to represent an
ancient and strongly altered/metamorphosed version of a continental
collision zone6.
Magnetotelluric data interpreted by a team consisting of
Adelaide University and NTGS geologists (Selway et al,
2006)7 suggests the Entia Dome system is a deep-crustal
feature that can be shown extending to the mantle.
FIGURE 2: HARTS RANGE / (EAST) PROJECTS RELATIVE TO ENTIA
DOME
Source: Scrimgeour 2013 (Reference
6)
Similar to the granted tenure, the
Harts Range East Project is readily accessible via a sealed highway
and well-maintained tracks. Furthermore, given the close proximity
of ASX-listed Independence Group's (ASX: IGO) sizeable Irindina
Project8, the mining infrastructure and access to a
talented labour pool is first rate (Figure 3).
The initial
focus for the Harts Range East Project will comprise undertaking a
desktop review to garner key insights for the maiden post-grant
exploratory field trip.
FIGURE 3: HARTS RANGE EAST PROJECT RELATIVE TO MINING
INFRASTRUCTURE
Source: CCZ geology team (Reference
1 & 8)
NEXT STEPS
To recap, the geology team intends
to fully unpack the potential of the Harts Range Niobium, Uranium
and Heavy Rare Earths Project through undertaking a systematic and
rigorous exploration strategy that will encompass the following
steps in subsequent visits:
·
Full historic and spatial database
compilation;
·
Reconnaissance mapping programs;
·
Close spaced geophysical survey;
·
Detailed mapping and rock chip sampling across
prospects;
·
Regional soil sampling campaigns as
required;
·
Mineral characterisation studies and petrological
analysis;
·
Trenching and bulk sample test work;
·
Target generation and prioritisation;
and
·
Drill-testing.
In accordance with ASX Listing Rule
5.23.2 and in relation to exploration results reported in the
Announcement, Castillo is not aware of any new information or data
that materially affects the exploration results included in
previous market announcements.
For
further information, please
contact:
Castillo Copper Limited
|
+61 8 6558 0886
|
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
|
|
REFERENCES
1) CCZ ASX Release - 21
October 2024
2) Barfuss, R. (Barfuss
Corporation Pty Ltd) 19 November 2007: "A Brief report on
Samarskite Mineralisation in the Harts Range Project" (unpublished
report) and Barfuss, R. (Barfuss Corporation) 2014: The Harts Range
Project Exploration Licence (EL 24552) - inclusive of the following
references:
a. Caughey, A.R.
(Flagstaff Geo Consultants Pty Ltd.), November 2007: Annual Report
for Exploration Licence EL24552 for the period ending
25th August 2007 (for Barfuss Corporation Pty.
Ltd.)
b. Caughey, R.
(Flagstaff Geo Consultants Pty Ltd.) 2002 to 2006: various
unpublished reports for Barfuss Corporation Pty. Ltd.
c. PNC Exploration
(Australia): various open-file tenement annual, final and partial
relinquishment reports,1994 to 1997; Report Numbers CR1994-0325,
CR995-0298, CR1995-0525, CR1995-0697, CR-1996-0285, CR1996-0286,
CR-1997-0611. *
d. Rutter, H. (Flagstaff
Geo Consultants Pty Ltd.) 2006. 'An analysis of airborne
radiometric data from the Harts Range, N.T.' (unpublished
report)
e. Shaw, R.D., Senior,
B.R., Offe, L.A., Stirzaker, J.F., Walton, D.G., Apps, H.E.,
Freeman, M.J.1:250,000 Geological Map Series Explanatory Notes
Illogwa Creek SF53-15. Bureau of Mineral Resources Australia &
Northern Territory Geological Survey,1985.
Note: * Open file company reports
sourced from the Northern Territory Mineral Industry Reports
Management System (IRMS). Available at:
https://geoscience.nt.gov.au/gemis/ntgsjspui/handle/1/3
3) Spatial Territory
Resource Information Kit for Exploration (STRIKE); NT Government -
Department of Industry, Tourism and Trade. Available at:
http://strike.nt.gov.au/wss.html
4) RIM ASX Release - 11
January 2024
5) CCZ ASX Release - 3
October 2024. Note: Estimated value of ~$1.6m based on
consideration of 40m IMI shares at a price of $0.03 per shares as
at 23 October 2024 (i.e. 40m x $0.03 = $1.2m) and 20m 5 year
options exercisable at $0.07 cents using the Black-Scholes Option
Model (below).
BLACK SCHOLES OPTION MODEL
|
Assumed grant date
|
1 November
2024
|
Assumed expiry date
|
31 October
2029
|
Share price at assumed grant date
|
$0.030
|
Exercise price
|
$0.070
|
Risk-free rate
|
3.84%
|
Volatility
|
100%
|
Fair value per Option
|
$0.019
|
Total number
|
20,000,000
|
Total fair value
|
$386,000
|
6) Scrimgeour IR, 2013.
Chapter 29: Irindina Province: in Ahmad M and Munson TJ
(compilers). 'Geology and mineral resources of the Northern
Territory'. Northern Territory Geological Survey, Special
Publication5.
7) Selway K, Heinson G
and Hand M, 2006: Electrical evidence of continental accretion:
Steeply dipping crustal-scale conductivity contrast. Geophysical
Research Letters 33, L06305, doi:10.1029/2005GL025328.
8) IGO Exploration
Activities in Northern Territory. 2024 Annual Report (p.6) IGO ASX
Release - 29 August 2024. Available at:
https://www.igo.com.au/site/investor-center/annual-reports
About Castillo Copper
Castillo Copper Limited is an
Australian-based, Australian-focussed copper exploration Company
with a strategy to develop multi-commodity assets that demonstrate
future potential as an economic mining operation.
Through the application of
disciplined and structured exploration and analysis, Castillo
Copper has identified assets deemed core to the Company's sustained
growth and is actively progressing these interests up the value
curve.
Current focus will be on advancing
exploration activity at the Company's wholly owned NWQ Project,
situated in the copper-belt district approximately 150km north of
Mt Isa in north-west Queensland.
Other interests include the Broken
Hill Project in western New South Wales and the Cangai Copper Mine
in north-east New South Wales, as well as exploration targets in
Zambia.
Castillo Copper is listed on the LSE
and ASX under the ticker "CCZ".