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Castillo metallurgy makes the grade

28 February 2023 09:22
ASX: CCZ

Castillo Copper’s preliminary metallurgical test work on a composite sample from Fence Gossan has delivered, obtaining up to three times rare earth enrichment from the head grade at up to 70 per cent recovery from the prospect lying at the East Zone of its Broken Hill Project in outback New South Wales.

These findings confirm REEs can be readily separated from clay within the East Zone discovery area and potentially be treated to an even higher-grade concentrate.

And at the Reefs Tank prospect, re-assay of four drill holes further verified an extensive, shallow rare earth system lying across the central part of the East Zone, with a best intercept of 3m @ 2,587ppm TREO from 14m.

Castillo will now appoint a specialist consultancy to begin an in-depth metallurgy test-work program, with results key to securing interest from off-take partners — and securing its path to market.

The company said the board was delighted to receive results which collectively demonstrated the forward value-creation potential of the East Zone.

“In short, the underlying REE system is shallow, extends over at least 4.5 square kilometres, delivered results up to 3,491ppm TREO and produced up to 38.9% MREO in diamond core,” chairman Ged Hall said.

“Moreover, the metallurgy test-work proves REE mineralisation readily separates from clay and can potentially be beneficiated to a higher-grade concentrate. By all accounts, this is an excellent report card ahead of exploratory work ramping up.”

After reconciling all assays from campaigns across a trio of Broken Hill prospects, the geology team has identified zones of high total and magnetic rare earth oxides which will be subject to the next stage of exploration as the company looks to extend known mineralisation.

CCZ’s Australian Stock Exchange-listed share price has risen 7.69 per cent today, currently selling at 1.4c (9.13 am UTC+ 8 hours).

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