Castillo Copper raises AU $ 11.7 million for copper projects in Australia and Zambia
Castillo Copper (ASX: CCZ; LSE: CCZ) plans to drill its flagship Mt. Oxide project in the Australian mountain. Isa’s Copper Belt and its Luanshya and Mkushi projects in Zambia with the proceeds of A $ 11.7 million ($ 10.9 million) financing.
The funds will be used to test copper targets at the Big One deposit, the Arya and Sansa prospects at Mt. Oxide and for exploration programs for its copper projects across Zambia’s copper belt, the company says.
“Due to strong demand from current and new institutional investors in Australia and the UK, we now have sufficient funds to scale up our exploration efforts,” said Simon Paull, Managing Director of Castillo, in a statement from hurry. “The Board of Directors now has significantly higher confidence that 2021 will be a year of transformation for Castillo Copper.”
The company noted that “there has been a significant revival of interest” in Mount Australia. Isa’s Copper Belt – not only because of the higher copper prices, but also because of the upcoming initial public offering on the 29Metals Australian Stock Exchange, which owns the Capricorn Copper Mine, about 7 km au southwest of Mount Castillo. Oxide project.
As part of the financing, Castillo issued 278.4 million new shares at 4.2 A each, i.e. a discount of 11% compared to the volume-weighted average price (VWAP) of the junior over 15 days, as well as an option for two new shares subscribed that can be exercised at A8 ¢ until July 12, 2024.
The drilling program at Mt. Oxide in northwest Queensland will focus on three prospects: the Big One deposit, with a campaign of 26 holes (2,828 meters) to extend known mineralization; and test leads Arya and Sansa.
Castillo acquired Mt. Oxide in 2017 and identified 21 targets in the project area based on archived exploration data. He then focused on nine priority targets, including Arya.
Last October, the company launched a 36-hole drill program focused on the Big One deposit, which it claims contains shallow, high-grade supergene ore, and the Arya prospect, which exhibits a “massive sulphide anomaly. considerable with IOCG potential ”.
Drilling highlights at Big One included 40 meters of 1.64% copper from surface in drillhole 303RC, including 11 meters at 4.40% copper at 24 meters, 5 meters at 7.34 % copper at 28 meters; and 1 meter of 16.65% copper from 29 meters. Drill hole 301RC returned 44 meters of 1.19% copper from surface, including 14 meters at 3.55% copper at 27 meters, 3 meters at 10.88% copper at 37 meters and 1 meter at 12.6% copper at 37 meters. Other notable interceptions were 34 meters of 1.51% surface area copper in drill hole B0017; 3 meters of 12.25% copper from 42 meters in borehole B07; and 8 meters of 2.33% copper of 44 meters in hole B05.
About 4,000 tonnes of supergene ore has been mined historically at Big One with an average grade of about 3.5% copper, and any potential copper mined from the deposit could be sent to third party processors in Mt. Isa region, says the company.
On his prospect of Arya, where copper outcrops were found, Castillo said an aerial electromagnetic survey in early 2019 found a “bedrock conductor” 130 meters thick and 1,500 meters over 450 meters at a depth of 450 meters. (BHP originally discovered it in 1997, but did not follow through, says Castillo.) The junior’s plan is to drill three deep holes 201 meters apart and to depths of between 590 and 680 meters, as well as 11 shallower holes. The goal, he says, is to “prove a clear link between supergene copper mineralization interpreted at surface and massive sulphides at depth.”
The company also owns the historic Cangai copper mine in New South Wales, where it is seeking a strategic development partner. Cangai has a completed August 2017 JORC Compliant Inferred Resource of 3.2 million tonnes grading 3.35% copper. The resource used a cut-off grade of 1% copper. The highlights of the Cangai diamond drilling include 4.4 meters of 5.06% copper, 2.56% zinc and 20.1 grams of silver per tonne at a depth of 50 meters, and the highlights of RC drilling include 11 meters of 5.94% copper, 2.45% zinc, 19.13 grams of silver 40 meters downhole.
In Zambia, Castillo has four projects, Mkushi, Luanshya, North and South Lumwana and Mwansa, which together cover approximately 1,100 km2 in the country’s copper belt.
The company claims that Mkushi and Luanysha have well-defined soil anomalies.
At Luanysha, which is about 10 km south of three operating mines owned by China Nonferrous Mining, samples of copper anomalies in the soil yielded up to 2,600 parts per million copper.