Castillo Copper (ASX:CCZ) has once again bolstered the inventory of its namesake metal, having delivered a significant upgrade to the mineral resource estimate at its Cangai Copper Mine which now stands at 4.6Mt @ 2.45% Cu.
Concentrating on Copper
Cangai is now estimated to hold approximately ~114kt of copper, a compelling upgrade from the Project’s previous estimate of 3.3Mt @ 3.35% Cu for 108,000t, with the Company noting that the new resource estimate is boosted moderately by the Project’s considerable gold (15.3g/t Ag), silver (0.29g/t Au) and zinc (0.57% Zn) credits.
The delivery of this MRE update has been long anticipated for the Company since the decision to double down on its copper holdings at both Cangai and the Big One Deposit, with the MRE upgrade process beginning in March after a visit to the Project by the Company’s Geologist and Director David Drakely.
The MRE upgrade took into account an extensive amount of exploration work completed since the previous MRE was delivered in 2017, which included a wide range of data from reverse circulation drilling, diamond core drilling and surface channel sampling, also taking into account the Project’s historical stockpile which was mapped through drone surveys and channel sampling.
Room to Grow
Despite this significant increase in the Project’s resources, Castillo remains confident that Cangai still has room to grow, hosting several significant exploration avenues that could deliver further resource growth.
Castillo’s field team has revealed that the Mine underlying orebody has yet to be completely defined as mineralisation remains open to the east, south-east and down-dip, with several sizeable DHEM conductors located to the Project’s north and south, offering the explorer the opportunity to extend mineralisation even further.
The Company said that with the new MRE in hand, it is confident that it can align Cangai with a strategic partner to fully develop the Project’s copper potential and map out a path to market.
“Having a high-grade MRE for circa 114kt copper metal plus significant exploration potential is an excellent value add outcome.” Managing Director Dr Dennis Jensen said.
“Moreover, when reconciling Cangai Copper Mine’s favourable fundamentals with long-term global demand trends for copper, the Board believes it has a compelling business case to leverage and align with a strategic development partner.”
CCZ’s Australian Stock Exchange-listed share price is currently trading at at 0.9c (10:01 am UTC+ 8 hours).