Delivering on our strategy
The Board has undertaken a comprehensive strategic review on how to create optimal value for shareholders from our existing copper-cobalt assets. The Board is cognizant of the importance to factor in external factors given these can significantly influence global commodity markets, particularly the conflict in Europe and prospect of tighter monetary policy to reign in inflationary pressures.
As such, the Board determined the necessity, where practical, to align with partners that could either aid project advancement or facilitate a path to market. Pleasingly, UK-based Hyperion Copper’s offer to acquire and develop the Zambia assets, subject to due diligence, is an excellent outcome for both parties.
Our three assets in Australia – Cangai Copper Mine, BHA and NWQ Copper Projects – have either cobalt or copper inferred mineral resource estimates which delivers a significant point of difference over peers. The Board’s objective is to increase the confidence in the current MREs and, if achievable, extend known mineralisation as this is a direct conduit to creating incremental value.
Whilst we have decided to progress developing the BHA Project on our own, the Board is in discussions with a number of parties that could aid delivering paths to market for Cangai Copper Mine and NWQ Copper Project.
Overall, the Board believes it has the strategy in place to maximise the valuation potential for shareholders in fiscal 2023 and beyond.
Key Numbers in 2020
0
prospective targets at NWQ Copper Project
0
(£5 million) raised
0
cash
Director comments
Since becoming Chairman earlier in the year, the Board has undertaken a comprehensive strategic review on how to create optimal value for shareholders from our existing copper-cobalt assets.
The Board’s objective is to increase the confidence in the current MREs and, if achievable, extend known mineralisation as this is a direct conduit to creating incremental value.
Ged Hall
As outlined by the Chairman, Castillo Copper has re-set its high-level strategic intent, which the Board is now determined to effectively implement.
Overall, the Board believes it has the strategy in place to maximise the valuation potential for shareholders in fiscal 2023 and beyond.
Dr Dennis Jensen
Highlights
ZAMBIA PROJECTS
- Our geology team in Zambia has undertaken soil sampling campaigns across the prime Luanshya and Mkushi Projects which delineated significant surface anomalies. Follow up Induced Polarisation (IP) campaigns generated a plethora of viable targets to test drill.
- Consequently, the Board was delighted to have entered into an option agreement with Hyperion Copper (UK) to sell these high-quality copper assets for circa A$4m plus milestones.
- If the option is exercised and Hyperion Copper lists on AIM in late 2022 or early 2023, then Castillo Copper has the right to appoint one Board director.
BHA Project – East Zone, New South Wales
- Having defined an inferred cobalt resource – 64Mt @ 318 ppm Co for 21,556t contained metal – leveraging historical drilling data, the Board has approved a drilling campaign to focus on enhancing the confidence and grade across a larger footprint.
- The campaign will comprise one diamond core and 17 RC drill-holes for 2,100m across four prospects including The Sisters, Fence Gossan, Reefs Tank & Tors Tank.
- A key area of interest will be drill-testing two lower cobalt-rich zones (excluding The Sisters Prospect) the geology team interpret to host higher grading cobalt mineralisation than has been modelled to date.
NWQ Copper Project, Queensland
- Within the NWQ Copper Project are circa 20 prospects which all have potential to host copper mineralisation. As part of the new strategic intent, the Board has now formulated plans to systematically visit these prospects to ascertain if there are viable targets for drill-testing.
- To date, development work at Big One Deposit has produced an inferred copper resource – 2.1Mt @ 1.1% Cu for 21,886t contained metal – with positive metallurgical test-work.
- Reconciling the exploration potential the NWQ Copper Project delivers, coupled with ongoing demand across the Mt Isa region, the Board is targeting to align with a processing partner to expedite development work.
Cangai Copper Mine
- Previous work in 2017 delineated an inferred resource at 3.3Mt @ 3.35% Cu for 107,589t contained metal at Cangai Copper Mine, which is one of Australia’s highest grading historic copper mines.
- More recently, Castillo Copper’s geology team have reaffirmed there are several priority massive sulphide targets that could potentially extend known copper mineralisation and enhance confidence in the current inferred resource.
- As a starting point to resuming development work at Cangai Copper Mine, the Board has asked the geology team to update the inferred resource and factor the historic stockpiles into the mix.
