TIDMCCZ
RNS Number : 0055H
Castillo Copper Limited
25 July 2023
25 July 2023
CASTILLO COPPER LIMITED
("Castillo", or the "Company")
Cangai MRE: 4.6Mt @ 2.45% Cu for 114kt copper
Castillo Copper Limited (LSE and ASX: CCZ), a base metal
explorer primarily focused on copper across Australia and Zambia,
is pleased to report the updated JORC (2012) compliant total
Mineral Resource Estimate ("MRE") for Cangai Copper Mine which came
in at 4.6Mt @ 2.5% Cu for 114kt contained copper metal (Figure 1).
In addition, reflected in the overall MRE are zinc, gold and silver
credits that modestly boost the result (15.3g/t Ag; 0.29g/t Au and
0.57% Zn).
HIGHLIGHTS:
-- Castillo's geology team, working in conjunction with a
specialist geological consultancy, have produced an updated JORC
(2012) compliant Mineral Resource Estimate for Cangai Copper Mine
at:
o 4.4Mt @ 2.5% Cu inferred insitu and 0.2Mt @ 1.35% Cu indicated
from historic stockpiles for 114kt contained copper metal;
augmented further by zinc, gold, and silver credits
-- In calculating the updated MRE from the 2017 work (MRE: 3.3Mt
@ 3.35% Cu for 108,000t(1) ), the geology team factored in reverse
circulation and diamond core drilling campaigns undertaken across
2017-18 and used more conservative assumptions to boost the
confidence in the revised 2023 MRE
-- The geology team noted several encouraging observations that
underpins significant exploration potential for Cangai Copper Mine,
including:
o The underlying orebody - which commences from surface - is not
fully defined, as it remains open to the east, south-east and down
dip
o There are several sizeable downhole electromagnetic ("DHEM")
conductors, proximal to the line of lode, that can potentially
extend known mineralisation along strike
-- With the revised 2023 MRE enhancing Cangai Copper Mine's
fundamentals, the Board is highly optimistic Castillo can align
with a strategic partner to fully develop the copper potential and
map out a viable path to market
Ged Hall, Chairman of Castillo Copper, said: "Having a
high-grade MRE for circa 114kt copper metal plus significant
exploration potential is an excellent value add outcome. 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."
UPDATED MRE: 114,000T COPPER
In calculating the updated MRE, the geology team primarily used
data from prior drilling campaigns (including RC & diamond core
work across 2017-18) and surface channel sampling programmes to
model the outcome (refer to Appendix A).
Further, the reporting contains a small indicated MRE based on
assessing historical stockpiles which were accurately mapped by
drone survey and channel sampling (Appendix C).
Category Inferred Cu Co Zn Au Ag Cu Co Zn Au Ag
Mass
========== ===== ===== ===== ====== ====== ========= ========= ========= ======
(Tonnes) (%) (%) (%) (g/t) (g/t) (Tonnes) (Tonnes) (Tonnes) (Kg) (Kg)
========== ===== ===== ===== ====== ====== ========= ========= ========= ====== =======
Oxide
Insitu 634,000 2.65 0.01 0.65 0.15 16.1 16,801 63 4,121 95 10,207
========== ===== ===== ===== ====== ====== ========= ========= ========= ====== =======
Fresh 3,773,000 2.48 0.01 0.55 0.31 15.2 93,570 226 20,752 1,170 57,350
========== ===== ===== ===== ====== ====== ========= ========= ========= ====== =======
Ex-Mine
Oxide
Dumps 29,000 2.10 0.02 0.3 0.58 14.5 609 5 87 17 421
========== ===== ===== ===== ====== ====== ========= ========= ========= ====== =======
Total 4,436,000 2.5 0.01 0.6 0.29 15.3 110,980 294 24,960 1,282 67,978
========== ===== ===== ===== ====== ====== ========= ========= ========= ====== =======
HISTORIC STOCKPILES
Category Indicated Cu Co Zn Au Ag Cu Co Zn Au Ag
Mass
========== ===== ===== ===== ====== ====== ========= ========= ========= ====== =======
(Tonnes) (%) (%) (%) (g/t) (g/t) (Tonnes) (Tonnes) (Tonnes) (Kg) (Kg)
========== ===== ===== ===== ====== ====== ========= ========= ========= ====== =======
Smelter
Slag and
Ex-Mine
Oxide
Dumps 199,000 1.35 0.02 1.9 0.1 4.6 2,687 48 3,781 20 915
========== ===== ===== ===== ====== ====== ========= ========= ========= ====== =======
199,000 1.35 0.02 1.9 0.1 4.6 2,687 48 3,781 20 915
========== ===== ===== ===== ====== ====== ========= ========= ========= ====== =======
4,635,000 2.45 0.01 0.6 0.28 14.9 113,667 342 28,741 1,301 68,893
========== ===== ===== ===== ====== ====== ========= ========= ========= ====== =======
FIGURE 1: RESOURCE TONNAGES - CANGAI COPPER MINE
Notes:
1. All Resource tonnages rounded to nearest 1,000 tonnes.
2. Refer to JORC Table 1 for details on data and estimation.
3. Insitu tonnages calculated as a guide only, no recovery
factor, loss or dilution considered.
Source: CCZ geology team
Exploration potential
A key positive for Cangai Copper Mine is the copper orebody
commences from surface. More encouragingly, the full extent of the
underlying copper orebody remains undetermined, as it remains open
to the east, south-east and down dip.
As shown in Figure 2, there are several sizeable DHEM
conductors(2) , which are north and south of the line of lode, that
can potentially extend known mineralisation along strike.
FIGURE 2: DHEM CONDUCTORS AT CANGAI COPPER MINE(1,2,7)
Source: CCZ geology team
Reconciling Historical Mining with Known Facts
Mined out shapes of the various named lenses at Cangai Copper
Mine represent, according to Carne (1908)(3) , mining of material
>13% Cu. However, the actual mined limit must have been lower
than this, or there was some dilution, as total copper produced was
5,080t reportedly @ 8% Cu(4) . Note, this equates to 63,500t
although McQueen (2019)(4) quotes 74,600t).
Figure 3 presents an attempt to reconcile mined and remaining
surficial material from Cangai Copper Mine, based on available
records.
FIGURE 3: AS-MINED RECONCILIATION(4)
Description Mass Comments
(t)
Total material 307,000 GSNSW mining records based on information
mined supplied by Grafton Copper Mining Company
======== ===========================================
Material presented 235,900 Product shipped and stockpile
for smelting
======== ===========================================
Ex-Mine dumps 49,000 Estimates and mapping not complete
======== ===========================================
Unaccounted 22,000 Wasted or used for construction and other
for projects
======== ===========================================
Source: CCZ geology team
In Figure 4 and Figure 5 below, blocks show copper values in %
(red >5% Cu) and wireframes used to constrain the mineral
resource estimate.
FIGURE 4: BLOCK MODEL DISPLAY OF MODELLED COPPER
Legend and Notes:
1. Modelled 10m x 10m x 4m blocks sub-celled to 5m x 5m x 2m
blocks showing copper content, as per legend.
2. Vertical to horizontal exaggeration 2:1.
3. View is looking from south toward the north.
Source: CCZ geology team
FIGURE 5: CANGAI MODEL BLOCKS - VISUALISATION OF COPPER RESOURCE
WIREFRAMES
Notes:
1. Wireframes used for mineral resource estimate.
2. Threshold for wireframes was 0.1%Cu.
3. Vertical to horizontal exaggeration 3:1.
4. View is looking from south toward the north.
Source: CCZ geology team
Cangai Copper Mine's Exploration History
Cangai Copper Mine is within Castillo's tenements - EL8625 and
EL8635 - which cover an area of 314 sq km. Since 2017, all
Castillo's exploration effort has been directed toward Cangai
Copper Mine and associated stockpiles. In 1901, the Cangai Copper
Mine was discovered, with production materializing between 1904-17
and 1934-37 - initially only ore greater than 13% Cu was extracted
using manual techniques(5) .
During its lifecycle, Cangai Copper Mine (Figure 6) produced
5,080t of copper (mentioned above), 1,035kg of silver and 527kg of
gold from a total underground extraction of 307,000t(4.6) . Of
this, circa 63,500t was ore (which equates to 8% Cu, 1.5g/t Au and
15g/t Ag according to GSNSW's Minview portal(4,6) ).
FIGURE 6: LOCATION OF THE CANGAI COPPER MINE
Source: CCZ geology team
During the last century, two groups undertook geological work at
the Cangai Copper Mine(5) :
-- Western Mining conducted geological tests in the early 1980s
and drilled one unsuccessful drill-hole before relinquishing the
tenement in 1984.
-- CRA Exploration (CRAE; now part of Rio Tinto) conducted
geological tests in 1990-92 and concluded Western Mining drilled in
the wrong location. Interestingly, CRAE stated "that there is
potential for further economic mineralisation" but relinquished the
tenement in 1992, as Australia was in a deep recession and base
metal prices were depressed.
In geological terms, structurally controlled epigenetic copper
mineralisation is found in multiple breccia zones in an otherwise
monotonous dacitic tuff, associated with felsic dykes. There are
hints of similar, en-echelon structures nearby. A high-grade
supergene zone is dominated by malachite and azurite. Below the
base of complete oxidization, there is fresh mineralised rock
dominated by chalcopyrite, bornite, and minor sphalerite(6) .
After an extensive surface mapping exercise, old mine workings
have been resurveyed and georeferenced to the MGA94 Z56 datum,
shifting the previously estimated (early 2017) locations of mine
plans 40 to 60m to the north and north-east.
Figure 7 highlights all drilling undertaking historically and by
Castillo across 2017-18.
FIGURE 7: CANGAI DEPOSIT - LINE OF LODE & NOTABLE 2018 DRILL
INTERCEPTS(1,2,7)
Source: CCZ geology team
MINERAL RESOURCE ESTIMATION
ROM Resources has completed a MRE for Cangai Copper Mine,
located in northern New South Wales, using all available historic
assay data as of 31 May 2023. The MRE was classified in accordance
with the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (JORC Code, 2012). Castillo's
Competent Person has consented to the release of the attached
mineral resource statement and has provided the following
Appendices as required under the JORC 2012 code:
Appendix A: Cangai Copper Mine Drill-hole Data
Appendix B: Geological Model Report
Appendix C: Ex-Mine and Stockpile Resource Inventory
Appendix D: JORC Table 1
ASSUMPTIONS AND METHODOLOGY
This MRE for Cangai Copper Mine is based upon several factors
and assumptions:
-- All the available historical drilling data as of 31 May 2023
was used for the MRE. The data was restricted to surface drilling
and underground face sampling as recorded on historical copper
mining records (specifically, Carne 1908). The drilling data was
collected between 1972 -2018 by numerous operating companies as
detailed in Appendix D - JORC Table 1.
-- Mineralisation outlines were interpreted using historical
mine plans, geological interpretations, and sectional views of the
downhole assays above a grade threshold of 0.1% Cu (refer to Figure
5).
-- Inverse Distance Squared (IVD2) estimation was used to
estimate Ag (ppm), Au (ppm), Cu (ppm), Co (ppm), In (ppm), and Zn
(ppm), using variogram parameters defined from the drilling and
historical mine workings data.
-- Top cuts were applied only to mine channel samples during the
estimation to Cu (15%) to remove skewing of the grade estimations
in the supergene zone.
-- The Mineral Resource has been depleted using a 3D void model
of recorded historical underground development and stopes dated
1917.
-- The MRE parameters do not assume any mining methods at this stage.
-- Mineral Resource classification was based principally on historical mine records, geological re-interpretation of the mineralised lodes, geological confidence, drill-hole spacing and grade continuity from available drilling data.
GEOLOGY & GEOLOGICAL INTERPRETATION
Mineralisation in the Coffs Harbour Block is generally
associated with fine grained, siliceous metasediment, quartz
magnetite or jasper. At Cangai Copper Mine, mineralisation is
associated with Silurian-Devonian andesite, cherty tuff, mudstone,
siltstones, lithic wackes and conglomerates of the Willowie Creek
Beds(7) .
Mineralisation in other deposits in the region is interpreted to
be associated with tholeiitic volcanism in a submarine environment.
However, at Cangai Copper Mine, lead isotope studies indicate the
mineralising fluids might be related to the Towgon Grange
Granodiorite intrusion(7) .
The Cangai copper load was discovered accidently by J. Sellars
in August 1901 whilst hunting. He identified blue-green carbonates
outcropping on the highest point of a large rock. The first shaft
was sunk near this point of discovery and 80t of oxidised ore was
raised yielding from 22-34% copper grades. Further lodes and mining
took place and was sold to the Cangai Copper Mining Company who
initially extracted 300 tons of ore, which was despatched to
Newcastle and Melbourne (Wikipedia 2023; McQueen 2019)(7) .
SAMPLING AND SUB-SAMPLING TECHNIQUES
Analysing surface samples was all historical from the period
1967-2018. The data was a combination of NSW Geological Survey
surface sampling database, historical annual / relinquishment
reports revisited, and additional data extracted. Further analyses
were encoded from a 1991 UNSW Honours Thesis (Brauhart 1991)(7) ,
while nearly 1,140 sample analyses from stream sediment, soil, and
rock chip sources were collated and combined.
All the analyses bar a few (<75 out of 5,498) samples were
laboratory tested in various NATA registered laboratories
throughout Australia. Many of the earlier CRA Exploration stream
sediment and soil samples were analysed by CRA internal
laboratories7.
Many of the sampling programmes, especially from the 1990s did
include reference samples and duplicate analyses and other forms of
QA/QC checking. However, sampling prior to 1985 generally has
higher "below detection limits" and less QA/QC checks(7) .
Regarding historical cores from holes held by the NSW Geological
Survey at the Cangai Copper Mine (closed), selected sections were
re-analysed for check sampling purposes using pXRF in June 2017.
The grades quoted for historically cored intervals described in
various ASX releases have been measured using a handheld pXRF
Analyser. These grades are indicative grades only as the pXRF
Analyser does not have the same degree of accuracy as laboratory
generated results. During the period 14-15 August 2017, samples
subjected to the pXRF testing and some additional intervals where
sulphide mineralisation was recognised were selected and the
remaining core cut for laboratory testing(7) .
Samples from the 2017-2018 Cangai drilling programme were
collected using the reverse circulation method of drilling on a 1m
basis. Initially 20-25kg of chips and dust was collected and
riffled down to a 1-2kg sample for further lab analysis(7) .
All samples were delivered to ALS Laboratory in either Orange
NSW or Brisbane QLD where the laboratory undertook the splitting
and compositing of the 5m composite samples and undertakes
multi-element analysis on the 1m and 5m composite samples. The 1m
samples were sent to ALS Brisbane for a suite of major oxide and
trace element determinations as described in later sections(7)
.
DRILLING TECHNIQUES
Historical drilling was a combination of RC with limited diamond
cored holes. A total of nine holes were completed by three
different explorers for a total of 2,075m, of which 1,991m was
diamond cored at NQ and HQ diameters(7) .
The two-stage drilling programme started in December 2017 and
completed in August 2018. A total of thirty-six drill-holes were
completed, with all but two were drilled using reverse circulation
methods. A total of 5,257.5m was drilled of which 178.22m was cored
at a HQ diameter (61mm) in two diamond holes (CC0035D and CC0036D).
The holes were surveyed by the drilling company (Budd Drilling)
using an Eastman downhole survey camera. Post drilling the hole
collars were surveyed by DGPS survey methods by a local surveyor
with errors between the initial GPS coordinates and the final
survey of +/- 7m(7) .
CHANNEL SAMPLES
Complementing the RC and diamond-cored holes was the use of 78
surface and underground channel samples. The surface samples were
taken by either CRAE or Castillo by hand sampling across the width
of adit or tunnel entries, collecting a minimum of 10kg, up to
25kg.
The second dataset of underground mine channel samples was
digitised off mine plans provided by the Grafton Copper Mining
Company Limited between 1908-1914. This data represents hand
sampled intervals perpendicular to the width of mined ore at the
limits of the mining for the Sellars and Greenberg Lenses, but
because of geo-referencing errors, a locational accuracy of only
+/- 5-10m is estimated making these only suited to be reported to
Inferred Resources. Carne (1908) noted that this sampling on the
footwall and endwall faces was the accepted method to test for
possible further extensions to mining, in the absence of
exploration drilling. Sample widths were the full horizontal width
of mineralisation at that location, ranging from 0.39-5.2m.
Short search radii in the Y direction have been used in an
attempt to limit extrapolation and smearing of these high-grade
copper values (mostly between 1-12% Cu) across the mineralised
lodes where channel samples have not covered any lower grade
regions.
CRITERIA USED FOR CLASSIFICATION
Resources were classified in accordance with the Australasian
Code for the Reporting of Exploration Results, Mineral Resources
and Ore Reserves (JORC Code, 2012 Edition).
The classification of Mineral Resources was completed by ROM
Resources based on geological confidence, drill hole spacing, data
density and grade continuity. The Competent Person is satisfied
that the result appropriately reflects his view of the deposit.
Continuous zones meeting the following criteria were used to
define the resource class:
Measured Resource
Measured Mineral Resources consist of the high confidence
material which has been grade control drilled (10x15m) with a high
proportion of diamond-cored holes. However, no material is
categorised as Measured in this resource estimation.
Indicated Resource
Indicated Mineral Resources reflects moderate confidence
material with good data density. It reflects a nominal drill
spacing of less than 25m x 25m resource definition drilling,
through to grade control drilling (10 x 15m spacing). No insitu
material was classified as Indicated but small tonnages have been
ascribed to the Smelter slag and McDonough's stockpiles, both of
which have drone survey, extensive channel sampling, and favourable
metallurgical testing.
Inferred Resource
The Inferred Mineral Resource reflects the ongoing uncertainty
in the location of mined adits, stopes, and shafts (possibly errors
of +/- 5 - 10m), with the amount of undocumented mining unknown at
this stage. There is reasonable continuity of the massive sulphides
between each modelled lens, and mineralisation outside mined
strata, as confirmed by drill intersection with mostly RC
drilling.
SAMPLE ANALYSIS METHOD
All the analyses bar a few (<75 out) samples were laboratory
tested in various NATA registered laboratories throughout
Australia. Many of the earlier CRA Exploration stream sediment and
soil samples were analysed by CRA internal laboratories.
Portable XRF
XRF geochemical data taken from field portable XRF Olympus.
Duration of sampling 30 seconds per filter (3 filters).
Calibration of the unit was carried out on the unit at the start
of the sampling at the core library.
The following elements were analysed; Ag, As, Se, Ca, K, S, Ba,
Sb, Sn, Cd, Pd, Zr, Sr, Rb, Pb, Hg, Zn, W, Cu, Ni, Co, V, Ti, Au,
Fe, Mn, Cr, Sc, Mo, Th, U, Ta.
Over 220 surface samples have had their assays duplicated.
Laboratory testing
Laboratory testing consisted of a multi-suite analysis
methodology (ME-MS61) which involves a four-acid digestion, were
completed by ALS in Orange and/ or Brisbane QLD, for the following
elements ; Ag, As, Se, Ca, K, S, Ba, Sb, Sn, Cd, Pd, Zr, Sr, Rb,
Pb, Hg, Zn, W, Cu, Ni, Co, V, Ti, Au, Ga, Ge, LI, La, Fe, Mn, Cr,
Sc, Mo, Th, U, Ta.
Samples containing >10,000ppm Cu are being tested by method
CU-OG62 (Four acid digestion and ICP finish, 0.4g sample). Any
samples containing >10,000ppm Zn were treated in a similar
manner.
Gold was tested by Fire Assay methods at ALS using method
Au-AA25.
None of the historical data has been adjusted.
ESTIMATION METHODOLOGY
For grade estimation and interpolation into the block model
inverse distance to a power of 2 with the polygonal method was used
as a check estimate. At this stage of the evaluation of the
resource, enough data has been collected to undertake a preliminary
3D geostatistical study, but for this update the ID2 method is
still deemed acceptable.
To inhibit bleed of the higher-grade ore below the oxidation
boundary a transition surface was created, and the blocks coded
differently above and below this surface as "OXID" or "FRESH", with
different search ellipses being employed for each domain.
It was noted that unsampled intervals were present within the
mineralisation domains. These intervals represent internal waste
zones, which were too narrow and not able to be wireframed
separately. It should be noted, that given the current drill
spacing, these may smear the overall interpolation to blocks. This
may be attributed, in part, to data spacing, and may not be a true
reflection of grade continuity. No assumptions have been made
regarding by-products, although the copper mineralised zones
contain considerable secondary mineralisation, being Au, Ag, Co,
and Zn.
A single block model for Cangai Copper Mine was constructed
using a 10 mE by 10 mN by 4 mRL parent block size with sub-celling
to 5 mE by 5 mN by 2 mRL for domain volume resolution. This block
size is adequate for the mineralisation style. The size of the
search ellipse for inverse distance was set to X= 90m Y=35m Z =24m
rotated 126 degrees in X, 0 degrees in Y and 85 degrees in Z.
Octants were established with a minimum of 3 octants to be filled
for a valid estimate.
CUT-OFF GRADE AND BASIS FOR SELECTED CUT-OFF GRADE
The resource model is constrained by assumptions about potential
economic cut-off grades. The Mineral Resource wireframes were
generated using a 0.1% Cu wireframe threshold and reported using a
reporting cut-off grade of 0.2% Cu.
MINING/METALLURGICAL METHODS, PARAMETERS AND OTHER MATERIAL
MODIFYING FACTORS
Since the 2017 maiden MRE, some metallurgical testing has taken
place. Two composites formed from bulk samples taken in April 2018
from McDonough's Portal and Shaft stockpiles along the line of
lode(7) have been the focal point of metallurgical test-work. The
test-work in the laboratory has demonstrated the ore has
beneficiated materially. Furthermore, results to date have
confirmed solid copper concentrate recoveries that exceeded 80%,
while the grade was up to 22% Cu and Co 300ppm(7) .
In September 2019 assay results for samples collected from
legacy stockpiles at Smelter Creek Slag stockpile and another
composite along the line of lode (Marks and McDonough's dumps) were
received back from the Peacocke & Simpson Laboratory in
Zimbabwe, with average head grades at 1.23% and 2.03% Cu
respectively(7) .
Further work completed in December 2019, using a representative
insitu massive sulphide ore sample extracted from drillhole CC0023R
completed in August 2018, reported a commercial grade concentrate
of 22.2% Cu & 7.4% Zn with a recovery of 79.3% of total
contained copper was achieved, which is in line with previous
investigations(7) . The following observations were made:
-- This result was derived from using standard metallurgical flotation methods.
-- The result is highly encouraging as it provides first-hand
insight on a potential final copper concentrate product from using
high-grade CCM ore, and
-- The composite sample utilised in the metallurgical test-work
process comprised high-grade massive sulphide RC chips with a head
grade of 8.18% Cu and 4.36% Zn(7) .
For further information, please contact:
Castillo Copper Limited +61 8 6558 0886
Dr Dennis Jensen (Australia), Managing Director
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
About Castillo Copper
Castillo Copper Limited is an Australian-based explorer
primarily focused on copper across Australia and Zambia. The group
is embarking on a strategic transformation to morph into a mid-tier
copper group underpinned by its core projects:
-- A large footprint in the Mt Isa copper-belt district,
north-west Queensland, which delivers significant exploration
upside through having several high-grade targets and a sizeable
untested anomaly within its boundaries in a copper-rich region.
-- Four high-quality prospective assets across Zambia's
copper-belt which is the second largest copper producer in
Africa.
-- A large tenure footprint proximal to Broken Hill's
world-class deposit that is prospective for
zinc-silver-lead-copper-gold and platinoids.
-- Cangai Copper Mine in northern New South Wales, which is one
of Australia's highest grading historic copper mines.
The group is listed on the LSE and ASX under the ticker
"CCZ."
Competent Person's Statement
The information in the report to which this statement is
attached that relates to Exploration Targets, Exploration Results,
Mineral Resources or Ore Reserves is based on information compiled
by Mark Biggs, who is a Member of The Australasian Institute of
Mining and Metallurgy (see Table below). Mr Mark Biggs is the
Managing Director of ROM Resources and has sufficient experience
that is relevant to the style of mineralisation and type of deposit
under consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined in the 2012 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'. These Resource Estimations have been
carried out in accordance with the principles and guidelines of the
Australian Code for Reporting of Mineral Resources and Mineral
Reserves published in December 2012 (JORC Code) and are reported as
of the 30th of June 2023. It should be noted that where Exploration
Target tonnages are calculated in the report, they are considered
conceptual in nature. There has been insufficient exploration to
define a Mineral Resource and that it is uncertain if further
exploration will result in the determination of a Mineral
Resource.
Mr Biggs is a director of ROM Resources, a company which is a
shareholder of Castillo Copper Limited. ROM Resources provides
ad-hoc geological consultancy services to Castillo Copper
Limited.
References
1) CCZ ASX Release - 6 September 2017
2) CCZ ASX Release - 24 September 2018
3) Carne, J.E., 1908, The Copper Mining Industry and the
Distribution of Copper Ores in New South Wales, 2nd Edition, New
South Wales Department of Mines, Geological Survey, Mineral
Resources No. 6, 1908, pp. 180-186.
4) McQueen, K., 2019, Cangai copper: History of 'a good little
earner', Journal of Australasian Mining History, Vol. 17. October
2019, 96, 24pp
5) Honours thesis by Carl Brauhart UNSW (1991) "The Geology
& Mineralisation of the Cangai Copper Mine, Coffs Harbour Block
Northeastern New South Wales," CRAE Report No: 17739
6) Geological Survey of New South Wales Minview Portal. Available at: https://minview.geoscience.nsw.gov.au/#/?lon=148.5&lat=-32.5&z=7&l=
7) References relating to MRE:
a. Biggs M.S. and Nowland M.L., 2017, EL 8562 and 8635
Jackadgery North Project, Geological Overview Report, prepared by
ROM Resources for Total Minerals Pty Ltd, unpublished, July 17,
13pp.
b. Biggs, M.S., and Miniailo, K., 2017, EL 8625 & EL 8635
Jackaderry South, Resource Model Report, Cangai Mine Project,
Grafton NSW, prepared by ROM Resources for Castillo Copper Limited,
unpublished, Sep 17, 48pp.
c. Brauhart, C., 1991, "The Geology & Mineralisation of the
Cangai Copper Mine, Coffs Harbour Block Northeastern New South
Wales," University of New South Wales Honours Thesis and CRAE
Report No: 17739
d. Castillo Copper Limited, 2018a, ASX Release - Stockpile tests
produce high recoveries and grades up to 22% Copper, 2(nd) August
2018, 25pp.
e. Castillo Copper Limited, 2018b, ASX Release - Cangai update:
Down-hole electromagnetic surveys completed at Volkhardt's Lode,
24(th) September 2018, 26pp.
f. Nowland, M. L. (2022). EL 8625 Cangai Mine Project Annual
Report for 12-month period ending 17 July 2022. Prepared by ROM
Resources for Castillo Copper Limited.
g. Wikipedia, 2023, Cangai Copper Mine, accessed 5/7/2023,
https://en.wikipedia.org/wiki/Cangai_Copper_Mine
APPIX A: CANGAI COPPER MINE DRILL-HOLE DATA
FIGURE A1: DRILLHOLES USED IN THE MODEL
Hole MGA56 MGA56 AHD Depth INC Grid Source Type
Easting Northing Azimuth
CC0019R 450913.69 6736268.50 329.30 37.00 -55 56.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0020R 450918.72 6736266.50 327.20 149.87 -60 93.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0021R 450910.63 6736272.00 331.50 106.00 -50 356.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0022R 450910.59 6736271.00 331.05 144.97 -65 356.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0023R 450912.03 6736270.50 330.57 121.09 -64 26.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0024R 450912.41 6736271.50 331.10 84.07 -51 28.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0025R 450914.28 6736269.50 329.70 115.00 -65 51.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0026R 450914.78 6736270.00 329.90 102.08 -53 48.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0027R 450912.16 6736270.00 330.30 145.19 -81 26.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0028R 450907.19 6736271.50 331.50 150.10 -59 328.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0029R 450582.31 6736501.50 265.30 84.04 -55 74.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0030R 450583.19 6736499.50 266.60 103.02 -75 87.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0031R 450582.41 6736498.00 267.60 127.01 -75 111.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0032R 450583.31 6736498.00 267.60 118.02 -55 111.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0033R 450581.69 6736500.00 266.30 147.02 -85 81.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0034R 450540.59 6736546.50 242.00 79.06 -85 26.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0035D 450909.00 6736270.00 330.60 116.22 -77 23.6 CCZ DDH
========== =========== ======= ======= ==== ========= ======= =====
CC0036D 450911.59 6736269.00 329.80 62.00 -62 17.6 CCZ DDH
========== =========== ======= ======= ==== ========= ======= =====
CRC001 450791.84 6736331.00 358.10 174.07 -45 53.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC002 450792.25 6736329.00 358.00 57.93 -50 66.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC003 450791.09 6736328.50 358.00 71.18 -60 66.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC004 450776.63 6736324.00 357.00 132.16 -60 67.1 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC005 450775.75 6736324.00 356.90 252.30 -60 93.1 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC006 450776.31 6736328.50 356.50 120.11 -50 9.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC007 450765.75 6736322.50 356.20 111.14 -65 63.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC008 450765.16 6736322.00 356.20 240.08 -70 67.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC009 450751.31 6736318.00 355.20 174.16 -55 22.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC010 450751.84 6736317.00 355.30 228.18 -70 29.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC011 450670.28 6736464.00 283.60 201.15 -90 359.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC012 450665.28 6736467.50 281.40 198.26 -55 270.0 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC013 450668.50 6736471.50 280.50 250.12 -55 315.1 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC014 450677.91 6736466.00 285.10 262.37 -55 127.1 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC015 450464.84 6736639.50 202.89 198.13 -55 149.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC016 450463.28 6736649.00 198.10 198.11 -55 164.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC017 450460.09 6736650.00 199.10 198.21 -55 226.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC018 450457.13 6736655.50 198.50 198.07 -55 263.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
BJAC1 450002.90 6736007.80 317.00 226.70 -60 226.7 WMC DDH
========== =========== ======= ======= ==== ========= ======= =====
BJAC2 449672.90 6735545.80 318.90 193.50 -60 21.7 WMC DDH
========== =========== ======= ======= ==== ========= ======= =====
DD91CG1 450687.10 6736294.70 362.00 15.00 -70 46.7 CRAE DDH
========== =========== ======= ======= ==== ========= ======= =====
DD91CG2 450686.12 6736294.71 362.00 421.10 -70 46.7 CRAE DDH
========== =========== ======= ======= ==== ========= ======= =====
DD91CG3 450432.50 6736371.71 316.00 402.40 -28 42.7 CRAE DDH
========== =========== ======= ======= ==== ========= ======= =====
DD91CG4 450644.90 6736943.80 278.00 180.00 -45 53.7 CRAE DDH
========== =========== ======= ======= ==== ========= ======= =====
DD91CG5 451171.57 6736064.02 226.00 275.00 -45 13.7 CRAE DDH
========== =========== ======= ======= ==== ========= ======= =====
DDH2 450557.93 6736414.93 330.00 228.60 -70 37.7 UNION DDH
========== =========== ======= ======= ==== ========= ======= =====
DDH5 451080.00 6736155.00 268.00 132.70 -60 26.7 UNION DDH
========== =========== ======= ======= ==== ========= ======= =====
Source: CCZ geology team
FIGURE A2: 2017-2018 DRILLHOLES - BEST INTERSECTIONS
From To (m) App True Cu % Zn % Ag g/t
(m) Thick. Thick.
CRC001 40 45 5 3.1 0.17 0.06 0.52
===== ======= ======== ======== ===== ===== =======
CRC002 Mining void
=========================================================
CRC003 67 68 1 0.62 1.56 0.26 3.71
===== ======= ======== ======== ===== ===== =======
CRC004 92 97 5 3.1 2.25 0.61 6.52
===== ======= ======== ======== ===== ===== =======
99 100 1 0.62 0.44 0.11 2.19
===== ======= ======== ======== ===== ===== =======
CRC005 221 225 4 2.48 1.54 1.17 11.49
===== ======= ======== ======== ===== ===== =======
CRC006 69 71 2 1.24 0.81 0.67 4.88
===== ======= ======== ======== ===== ===== =======
72 73 1 0.62 0.47 0.14 3.15
===== ======= ======== ======== ===== ===== =======
CRC007 Mining void
=========================================================
CRC008 210 213 3 1.86 0.42 0.15 2.81
===== ======= ======== ======== ===== ===== =======
216 217 1 0.62 0.56 0.21 3.84
===== ======= ======== ======== ===== ===== =======
228 232 4 2.48 0.88 0.27 5.4
===== ======= ======== ======== ===== ===== =======
CRC009 100 102 2 1.24 0.73 0.16 3.26
===== ======= ======== ======== ===== ===== =======
CRC010 145 147 2 1.24 0.63 0.18 13.14
===== ======= ======== ======== ===== ===== =======
CRC011 8 9 1 0.62 0.21 0.06 2.26
===== ======= ======== ======== ===== ===== =======
CRC012 9 11 2 1.24 0.34 0.08 6.17
===== ======= ======== ======== ===== ===== =======
CRC013 1 7 6 3.72 2.69 0.39 9.22
===== ======= ======== ======== ===== ===== =======
CRC014 232 233 1 0.62 0.75 0.13 1.93
===== ======= ======== ======== ===== ===== =======
CRC016 0 1 1 0.62 1.14 0.18 7.9
===== ======= ======== ======== ===== ===== =======
CRC017 4 7 3 1.86 0.71 0.11 2.22
===== ======= ======== ======== ===== ===== =======
CRC018 0 1 1 0.62 0.69 0.11 1.93
===== ======= ======== ======== ===== ===== =======
7 8 1 0.62 0.55 0.21 1.85
===== ======= ======== ======== ===== ===== =======
13 14 1 0.62 1.43 0.17 2.32
===== ======= ======== ======== ===== ===== =======
34 35 1 0.62 0.68 0.22 1.94
===== ======= ======== ======== ===== ===== =======
39 41 2 1.24 2.17 0.71 3.73
===== ======= ======== ======== ===== ===== =======
CC0020R 14 15 1 0.62 0.39 0.04 0.11
===== ======= ======== ======== ===== ===== =======
CC0021R 51 52 1 0.62 0.91 0.21 8.74
===== ======= ======== ======== ===== ===== =======
CC0022R 92 94 2 1.24 2.56 0.38 9.78
===== ======= ======== ======== ===== ===== =======
98 99 1 0.62 0.81 0.54 5.55
===== ======= ======== ======== ===== ===== =======
109 114 5 3.1 1.53 0.37 6.9
===== ======= ======== ======== ===== ===== =======
CC0023R 40 53 13 8.06 4.72 2.04 17.15
===== ======= ======== ======== ===== ===== =======
56 58 2 1.24 2.27 2.78 10.88
===== ======= ======== ======== ===== ===== =======
72 74 2 1.24 0.53 0.1 1.32
===== ======= ======== ======== ===== ===== =======
77 78 1 0.62 0.41 0.07 1.81
===== ======= ======== ======== ===== ===== =======
85 87 2 1.24 1.19 0.35 11.22
===== ======= ======== ======== ===== ===== =======
CC0024R Mining void
=========================================================
CC0025R 90 93 3 1.86 2.66 0.5 7.38
===== ======= ======== ======== ===== ===== =======
103 106 3 1.86 1.26 0.37 6.36
===== ======= ======== ======== ===== ===== =======
CC0026R 53 54 1 0.62 0.46 0.17 1.54
===== ======= ======== ======== ===== ===== =======
CC0026R 57 60 3 1.86 0.63 0.19 3.44
===== ======= ======== ======== ===== ===== =======
CC0027R 125 126 1 0.62 0.55 0.39 2.57
===== ======= ======== ======== ===== ===== =======
CC0028R 109 110 1 0.62 0.54 0.13 3.05
===== ======= ======== ======== ===== ===== =======
119 120 1 0.62 0.28 0.06 2.22
===== ======= ======== ======== ===== ===== =======
CC0029R 36 38 2 1.24 2.66 0.78 10.33
===== ======= ======== ======== ===== ===== =======
CC0030R 56 59 3 1.86 2.74 0.63 10.33
===== ======= ======== ======== ===== ===== =======
CC0031R 70 73 3 1.86 0.5 0.11 1.91
===== ======= ======== ======== ===== ===== =======
CC0032R 56 62 6 3.9 0.63 0.18 1.47
===== ======= ======== ======== ===== ===== =======
CC0033R 74 75 1 0.6 0.21 0.06 1.06
===== ======= ======== ======== ===== ===== =======
CC0034R 41 42 1 0.62 0.98 0.26 5.55
===== ======= ======== ======== ===== ===== =======
CC0035D 9 14 5 3.1 0.26 0.05 0.25
===== ======= ======== ======== ===== ===== =======
CC0036D 10 14 4 2.48 0.23 0.03 0.05
===== ======= ======== ======== ===== ===== =======
49.2 55.1 5.9 3.66 3.79 1.9 15
===== ======= ======== ======== ===== ===== =======
APPIX B: GEOLOGICAL MODEL REPORT
At Cangai Copper Mine structurally controlled epigenetic copper
mineralisation is found in multiple breccia zones in an otherwise
monotonous dacitic tuff, associated with felsic dykes. There are
hints from FLEM interpreted anomalies of similar, en-echelon
structures nearby, one of these being the Smelter Creek Copper
Prospect. At Cangai Copper Mine, a high-grade supergene zone is
dominated by malachite and azurite. Below the base of complete
oxidization, fresh mineralised rock dominated by chalcopyrite,
bornite, and minor sphalerite.
Workings have been resurveyed and georeferenced to MGA94 Z56,
shifting the previously estimated (early 2017) locations of mine
plans 40m to 60m to the north and north-east. The 2017 to 18 Stage
and 2 drilling programmes were hampered by very steep topography,
changes in site staff, tight environmental conditions for access
and pads, and the fact that seven holes hit workings which either
terminated the holes abruptly or caused sample loss in deeper
sections if the drilling continued.
The current block model was updated with the 2017-2018 drilling,
surface channel sampling, and historical mine channel sampling
(only assayed for Cu). The drilling and ground mapping programme
has allowed geo-referencing of the mine workings to be completed.
Some of the original 2017 wireframes were too wide and have been
discarded. Surface FLEM, DHEM, and soil surveys identified several
anomalies on and off the main line of lode and these are subject to
current field planning.
Since December 2017 Castillo has completed:
-- Drone topographic survey.
-- Re-survey collars of historical holes.
-- 34 new RC holes and 2 HQ diamond cored holes, with detailed
assay and XRF and DHEM survey on selected holes. Further, the cored
holes have magnetic susceptibility readings taken.
-- FLEM ground survey completed.
-- Channel sampling and survey of mine reject dumps and smelter slag reject dump.
-- Geo-referencing of underground channel sampling at Sellars
and Greenberg's lenses undertaken by the Grafton Copper Mining
Company in the early nineteen hundreds.
-- More geological mapping carried out.
-- Accurate survey on mine portals, adits, and opencast pit locations.
The biggest shortfall on the two-stage drilling programme was
that once the drilling hit significant workings the hole was lost
due to a loss of circulation, so no samples from the actual
mined/mining oxidized zone were available to confirm the higher
grades that should remain.
Modelling notes are summarised as follows:
-- Topography was from a drone survey with accuracies about +/-
0.05m on the Australian map grid 1994 -Zone 56.
-- Drillhole samples were loaded, validated, and then processed
using a fixed length compositing tool in Datamine to 1m.
-- A preliminary geostatistical study was completed using the
Lidenbrock software. Short ranges (<50m) for copper were
noted.
-- Datamine Block model software was used to generate 10m x 10m
x 4m blocks, sub-celled to half that size, where data criteria were
met.
-- Inverse Distance squared and ordinary kriging interpolation algorithms were used.
-- The database contains all surface drillhole samples analysed
using ALS Methods ME-MS61, MS-ME61R, and AAU25, AAU26. The database
also contains assays for all ex-mine dumps, and current and
historical surface sampling.
-- Assay parameters modelled included a subset of Ag, As, Au,
Co, Cu, Fe, In, Mn, Pb, S, Zn and RDI (insitu relative
density).
Drift plots show the distribution of the copper by easting and
northing in Figures B1 and B2, below.
FIGURE B1: COPPER DRIFT PLOT BY EASTING
Source: CCZ geology team
FIGURE B2: COPPER DRIFT PLOT BY NORTHING
Source: CCZ geology team
All relevant diagrams and tables for the full complements of
assays results (Figures B3 to B4) follow.
FIGURE B3: DRILL-HOLES COMPLETED ALONG THE LINE OF LODE
Source: CCZ geology team
FIGURE B4: CROSS SECTIONS FOR DRILL-HOLES CC0021-24R (Cu and
Au).
Source: CCZ geology team
APPIX C: EX-MINE AND STOCKPILE RESOURCE INVENTORY
FIGURE C1: CANGAI COPPER MINE - LOCATION OF MAJOR STOCKPILES
Notes:
1. Only Lenses 7 & 8 currently have wireframes and metallurgical testing (Figure C-1).
2. A five (5) hole drilling programme is planned for the Smelter Creek Slag dump, in Q4 2023.
Source: CCZ geology team
FIGURE C2: STOCKPILE RESOURCE INVENTORY
Dump_Name Classification Type Wireframe Drone Channel Metallurgy Typical Area Average Volume Density Mass Mass Ag Au Co Cu In Zn Contained Comments
IDX Survey Samples Sample Thickness (@10% (t) (t) (g/t) (g/t) (ppm) (%) (ppm) (%) Cu @100%
ID's void) Indicated Inferred
O5; More work
1 Melbourne_DDS_Dump Inferred Ex-Mine NO YES NO NO 1012538 200 2 400 2.75 0 1,100 55 0.2 183 2.39 13 0.29 26 required
=================== =============== =========== ========== ======= ======== =========== ========= ====== ========== ======= ======== ========== ========== ====== ====== ====== ===== ====== ===== ========== =================
More work
2 Melbourne_Dump_Y Inferred Ex-Mine NO YES NO NO 1012532 100 3 300 2.75 0 825 3.1 0.05 75 2.04 2 0.23 17 required
=================== =============== =========== ========== ======= ======== =========== ========= ====== ========== ======= ======== ========== ========== ====== ====== ====== ===== ====== ===== ========== =================
More work
3 BO_Dump_X Inferred Ex-Mine NO YES NO NO 1012539 300 3 900 2.75 0 2,475 10.9 0.01 18 2.64 3 0.47 65 required
=================== =============== =========== ========== ======= ======== =========== ========= ====== ========== ======= ======== ========== ========== ====== ====== ====== ===== ====== ===== ========== =================
More work
4 Greenberg Inferred Ex-Mine NO YES NO NO O8 500 3 1500 2.75 0 4,125 49 2.3 330 1.98 nd 0.95 82 required
=================== =============== =========== ========== ======= ======== =========== ========= ====== ========== ======= ======== ========== ========== ====== ====== ====== ===== ====== ===== ========== =================
1012528; More work
5 Volkhaardt's Inferred Ex-Mine NO YES YES NO O3 400 5 2000 2.75 0 5,500 6.8 0.8 31 1.89 3 0.08 104 required
=================== =============== =========== ========== ======= ======== =========== ========= ====== ========== ======= ======== ========== ========== ====== ====== ====== ===== ====== ===== ========== =================
Potentially
30-50% destroyed
during
Environmental
6 Mark's Inferred Ex-Mine NO YES YES NO G1 1,700 3 5100 2.75 0 14,025 6 0.18 190 2.15 nd 0.18 302 amelioration
=================== =============== =========== ========== ======= ======== =========== ========= ====== ========== ======= ======== ========== ========== ====== ====== ====== ===== ====== ===== ========== =================
Potentially
20-30% destroyed
during
A Level Hopper 1012501; Environmental
7 & McDonough's Indicated Ex-Mine YES YES YES YES P&S2 1,900 4 7,600 2.75 20,900 1,000 7.1 0.27 61 2.03 2 0.17 445 amelioration
=================== =============== =========== ========== ======= ======== =========== ========= ====== ========== ======= ======== ========== ========== ====== ====== ====== ===== ====== ===== ========== =================
Smelter Ck More work
8 Slag Dump Indicated Ex-Smelter YES YES YES YES P&S1 7,600 7 53,200 3.35 178,220 0 4.3 0.08 240 1.23 7 2.1 2,192 required
=================== =============== =========== ========== ======= ======== =========== ========= ====== ========== ======= ======== ========== ========== ====== ====== ====== ===== ====== ===== ========== =================
199,120 29,050 3,232
=================== =============== =========== ========== ======= ======== =========== ========= ====== ========== ======= ======== ========== ========== ====== ====== ====== ===== ====== ===== ========== =================
Inferred 14.5 0.58 157 2.1 1.4 0.3
=================== =============== =========== ========== ======= ======== =========== ========= ====== ========== ======= ======== ========== ========== ====== ====== ====== ===== ====== ===== ========== =================
Indicated 4.6 0.10 221 1.3 6.5 1.9
=================== =============== =========== ========== ======= ======== =========== ========= ====== ========== ======= ======== ========== ========== ====== ====== ====== ===== ====== ===== ========== =================
Source: CCZ geology team
APPIX D: JORC CODE, 2012 EDITION - TABLE 1; CANGAI DRILLING
PROGRAMME
SECTION 1 SAMPLING TECHNIQUES & DATA
(CRITERIA IN THIS SECTION APPLY TO ALL SUCCEEDING SECTIONS)
Criteria JORC Code explanation Commentary
Sampling techniques Samples from the 2017-2018 Cangai
* Nature and quality of sampling (e.g., cut channels, drilling programme
random chips, or specific specialised industry were collected using the reverse
standard measurement tools appropriate to the circulation method
minerals under investigation, such as down hole gamma of drilling on a 1 metre basis.
sondes, or handheld XRF instruments, etc.). These Initially 20-25kg
examples should not be taken as limiting the broad of chips and dust was collected and
meaning of sampling. riffled down
to a 2-3kg sample for further lab
analysis.
* Include reference to measures taken to ensure sample
representivity and the appropriate calibration of any Field samples were firstly analysed with
measurement tools or systems used. a Niton
portable XRF device to determine
compositing rules.
* Aspects of the determination of mineralisation that
are Material to the Public Report. Subsequently, sample advice forms were
coded with
all samples were delivered, initially to
In cases where 'industry standard' ALS Orange
work has been done this would be relatively laboratory and in Stage 2 to ALS
simple (e.g., 'reverse circulation Laboratory in Brisbane
drilling was used to obtain 1 m samples QLD where the lab undertook the
from which 3 kg was pulverised to produce splitting and compositing
a 30-g charge for fire assay'). In of the 5m composite samples and
other cases, more explanation may be completed multi-element
required, such as where there is coarse analysis on the 5m composite and 1m
gold that has inherent sampling problems. selected samples.
Unusual commodities or mineralisation
types (e.g., submarine nodules) may
warrant disclosure of detailed information.
=================================================================== =========================================
Drilling techniques Drilling was provided by Budd Drilling
* Drill type (e.g., core, reverse circulation, open using a modified
hole hammer, rotary air blast, auger, Bangka, sonic, track mounted UDH RC rig as illustrated
etc.) and details (e.g. core diameter, triple or below by
standard tube, depth of diamond tails, face sampling Figure D1-1. Both reverse circulation
bit or other type, whether core is oriented and if so, and diamond
by what method, etc.). coring techniques were employed during
the drilling
programme.
FIGURE D1-1 BUDD DRILLING AT CANGAI
=================================================================== =========================================
Drill sample Method of recording and assessing Sample recovery was generally 90-100%
recovery core and chip sample recoveries and for each metre
results assessed. except when mining cavities (workings
Measures taken to maximise sample >1m wide)
recovery and ensure representative were intersected. Intersecting these
nature of the samples. Whether a relationship mining voids
exists between sample recovery and generally stopped drilling due to a loss
grade and whether sample bias may have of circulation
occurred due to preferential loss/gain and uncontrolled hole deviation.
of fine/coarse material.
=================================================================== =========================================
Logging Whether core and chip samples have All drilling has been completed to high
been geologically and geotechnically modern-day
logged to a level of detail to support standard by a competent field teams &
appropriate Mineral Resource estimation, drill crew.
mining studies and metallurgical studies.
Whether logging is qualitative or Logging of the lithology has been to
quantitative in nature. Core (or costean, coded sheets
channel, etc.) photography. for data entry into Excel and added to
-- The total length and percentage the geological
of the relevant database. Plastic chip trays were used
intersections logged to store
sample on 1m intervals for future
reference as illustrated
below in Figure D1-2.
FIGURE D1-2 1M SAMPLE CHIPS PRESERVED IN
PLASTIC
SAMPLE TRAYS
Budd Drilling provided an Eastman single
shot tool
for determining hole deviation. Readings
were taken
every 30m downhole. Hole deviations are
in-line
with expectations and follow the trend
of the geological
features. It should be noted that
drillhole CRC013
was planned as a vertical hole but
deviated to the
southwest.
=================================================================== =========================================
Subsampling If core, whether cut or sawn and whether RC samples are collected in 1m samples
techniques and quarter, half or all core taken. and riffle
sample preparation If non-core, whether riffled, tube split into calico bags at the rig. The
sampled, rotary split, etc. and whether samples are
sampled wet or dry. For all sample weighed details recorded. A pXRF unit
types, the nature, quality, and appropriateness is utilized
of the sample preparation technique. to test the samples for mineralisation
Quality control procedures adopted to determine
for all sub-sampling stages to maximise which samples are tested as individual
representivity of samples. metres and
Measures taken to ensure that the which samples are to be composited into
sampling is representative of the in-situ 5m samples.
material collected, including for instance Composite samples were homogenized, and
results for field riffle split
duplicate/second-half sampling. Whether at the labs prior to assaying.
sample sizes are appropriate to the
grain size of the material being sampled. Industry acceptable standards and
blanks were used
as certified reference material to
ensure satisfactory
performance of the laboratory.
Duplicates were inserted
in at a ratio of 1:20 of normal
sampling.
HQ Cored holes were sawed in half with
one half
retained, and the other being submitted
for assay.
Hole CC0035D was not previously
analysed, with laboratory
assay revealing some high copper
intervals.
=================================================================== =========================================
Quality of The nature, quality and appropriateness Multi-suite analysis methodology
assay data of the assaying and laboratory procedures (ME-MS61) which
and laboratory used and whether the technique is considered involves a four-acid digestion, is being
tests partial or total. completed
For geophysical tools, spectrometers, by ALS in Orange and Brisbane QLD, for
handheld XRF instruments, etc, the the following
parameters used in determining the elements ; Ag, As, Se, Ca, K, S, Ba, Sb,
analysis including instrument make Sn, Cd,
and model, reading times, calibrations Pd, Zr, Sr, Rb, Pb, Hg, Zn, W, Cu, Ni,
factors applied and their derivation, Co, V, Ti,
etc. Nature of quality control procedures Au, Ga, Ge, LI, La, Fe, Mn, Cr, Sc, Mo,
adopted (e.g., standards, blanks, duplicates, Th, U, Ta.
external laboratory checks) and whether
acceptable levels of accuracy (i.e., Samples containing >1000ppm Cu are being
lack of bias) and precision have been tested
established. for Au by fire assay method CU-OG62.
Gold was tested
by Fire Assay methods at ALS (Au-AA25).
===================================================================== =========================================
Verification The verification of significant intersections All significant intercepts have been
of sampling by either independent or alternative verified by
and assaying company personnel. two people, one ROM and one from
The use of twinned holes. FieldCrew. Additionally,
Documentation of primary data, data field reading of multi-elements were
entry procedures, data verification, estimated using
data storage (physical and electronic) a Niton and in Stage 2 an Olympus Vanta
protocols. M Portable
Discuss any adjustment to assay data. XRF analyser as conducted as in internal
check prior
to sending samples for laboratory
analysis. Reading
times using 2 beam "Geochem Mode" was
employed via
30sec/beam for a total of 60 sec.
All logging and sampling data is
collected, and
data entered onto Excel spreadsheets.
These sheets
were loaded into a Datamine GDB Database
and further
validation steps were taken.
The responsible field geologist makes
the modelling
geologist aware of any errors and/or
omissions to
the database and the corrections (if
required) are
corrected in the database immediately.
No adjustments or calibrations are made
to any of
the assay data recorded in the database.
No holes were deliberately twinned;
however, two
cored holes (CC0035D and CC0036D) were
drilled about
the site of the CC0023R, which was
treated as the
pilot hole.
Comparison of duplicate analyses did not
reveal
any major variances (most element values
<10% variance).
===================================================================== =========================================
Location of Accuracy and quality of surveys used Drill pads were initial located using an
data points to locate drill holes (collar and down-hole RTK differential
surveys), trenches, mine workings and GPS. Drillholes collar locations have
other locations used in Mineral Resource been picked
estimation. using a Garmin handheld GPS to +4m. At
Specification of the grid system used. completion,
Quality and adequacy of topographic all drillholes were accurately surveyed.
control. Collars
RLs were corrected and tagged to a
recently completed
Drone DTM topography model which has
accuracies
for AHD of +/-0.2m.
===================================================================== =========================================
Data spacing Drillholes CC0019R was abandoned after
and distribution * Data spacing for reporting of Exploration Results. 36m due to
Rig problems. Drillhole CC0020R deviated
too much
* Whether the data spacing, and distribution is from the original plan and was abandoned
sufficient to establish the degree of geological and at 155m.
grade continuity appropriate for the Mineral Resource
and Ore Reserve estimation procedure(s) and All other drillholes in the Stage 1 & 2
classifications applied. programme
(Figure D1-3) were drilled at a nominal
pad-to-pad
* Whether sample compositing has been applied. spacing of 180m. Drilling then proceeded
on each
of the four (4) pads in a 180-degree fan
fashion
on 4 nominal sections. It should be
noted that this
methodology was necessary due to very
steep topography
and ESF4 conditions.
Whether the original samples were 1m or
5m in length,
in the Datamine Block model module the
samples have
been converted to a fixed length of 1m.
FIGURE D1-3: 2017-2018 DRILLHOLE
PROGRAMME COLLAR
LOCATIONS
===================================================================== =========================================
Orientation Whether the orientation of sampling The drilling was originally planned to
of data in relation achieves unbiased sampling of intersect workings
to geological possible structures and the extent and drill into data gaps between orebodies
structure to which this is known, considering such that
the deposit type. in general the intersections are where
If the relationship between the possible (due
drilling orientation and the orientation to restricted access) perpendicular to a
of key mineralised structures strike of
is considered to have introduced 126 degrees (see Table D1-1).
a sampling bias, this should be Additional surface bedding and foliation
assessed and reported if material. data, and
that from some of the accessible underground
mine adits
was compiled from a UNSW Honours thesis
(Brauhart 1991).
Information is available from underground
workings,
open cut(s), shaft(s), adit(s), shallow
pits, and scrapings.
The Lode is sub-vertical to vertical,
striking 126
degrees true north and pitching at 60
degrees to the
west. The high-grade ore as mined, varies
from 0.3m-8m
wide, true width.
The known copper-gold mineralisation around
Cangai
strikes from 290-330 degrees, It should be
noted that
these orebody shapes were drawn at >13% Cu
so that
the with the major orebody shapes shown by
Figure D1-4,
below:
FIGURE D1-4: ORIENTATION OF COPPER-GOLD
MINERALISATION
AT THE CANGAI MINE
modelled wireframes in this current resource
have been
enlarged to try to capture mineralisation
down to 0.1%
Cu.
============================================================= =============================================
Sample security -- The measures taken to ensure Samples were bagged and sample advice for
sample security. each hole
was coded. Split samples were delivered by
Gnomic Exploration
personnel to ALS Laboratories in Orange
(Stage 1) or
by Mick Bavea to ALS Brisbane (Stage 2).
=============================================================== =============================================
Audits or reviews No audits or reviews have yet been
* The results of any audits or reviews of sampling undertaken of sampling
techniques and data. techniques and data. A review of the
modelling process
was received.
=============================================================== =============================================
TABLE D1-1: CANGAI COPPER DRILLING COLLAR TABLE STAGE 1 &
2
Hole MGA56 MGA56 AHD Depth INC Grid Source Type
Easting Northing Azimuth
CC0019R 450913.69 6736268.50 329.30 37.00 -55 56.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0020R 450918.72 6736266.50 327.20 149.87 -60 93.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0021R 450910.63 6736272.00 331.50 106.00 -50 356.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0022R 450910.59 6736271.00 331.05 144.97 -65 356.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0023R 450912.03 6736270.50 330.57 121.09 -64 26.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0024R 450912.41 6736271.50 331.10 84.07 -51 28.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0025R 450914.28 6736269.50 329.70 115.00 -65 51.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0026R 450914.78 6736270.00 329.90 102.08 -53 48.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0027R 450912.16 6736270.00 330.30 145.19 -81 26.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0028R 450907.19 6736271.50 331.50 150.10 -59 328.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0029R 450582.31 6736501.50 265.30 84.04 -55 74.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0030R 450583.19 6736499.50 266.60 103.02 -75 87.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0031R 450582.41 6736498.00 267.60 127.01 -75 111.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0032R 450583.31 6736498.00 267.60 118.02 -55 111.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0033R 450581.69 6736500.00 266.30 147.02 -85 81.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0034R 450540.59 6736546.50 242.00 79.06 -85 26.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CC0035D 450909.00 6736270.00 330.60 116.22 -77 23.6 CCZ DDH
========== =========== ======= ======= ==== ========= ======= =====
CC0036D 450911.59 6736269.00 329.80 62.00 -62 17.6 CCZ DDH
========== =========== ======= ======= ==== ========= ======= =====
CRC001 450791.84 6736331.00 358.10 174.07 -45 53.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC002 450792.25 6736329.00 358.00 57.93 -50 66.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC003 450791.09 6736328.50 358.00 71.18 -60 66.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC004 450776.63 6736324.00 357.00 132.16 -60 67.1 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC005 450775.75 6736324.00 356.90 252.30 -60 93.1 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC006 450776.31 6736328.50 356.50 120.11 -50 9.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC007 450765.75 6736322.50 356.20 111.14 -65 63.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC008 450765.16 6736322.00 356.20 240.08 -70 67.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC009 450751.31 6736318.00 355.20 174.16 -55 22.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC010 450751.84 6736317.00 355.30 228.18 -70 29.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC011 450670.28 6736464.00 283.60 201.15 -90 359.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC012 450665.28 6736467.50 281.40 198.26 -55 270.0 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC013 450668.50 6736471.50 280.50 250.12 -55 315.1 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC014 450677.91 6736466.00 285.10 262.37 -55 127.1 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC015 450464.84 6736639.50 202.89 198.13 -55 149.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC016 450463.28 6736649.00 198.10 198.11 -55 164.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC017 450460.09 6736650.00 199.10 198.21 -55 226.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
CRC018 450457.13 6736655.50 198.50 198.07 -55 263.6 CCZ RC
========== =========== ======= ======= ==== ========= ======= =====
BJAC1 450002.90 6736007.80 317.00 226.70 -60 226.7 WMC DDH
========== =========== ======= ======= ==== ========= ======= =====
BJAC2 449672.90 6735545.80 318.90 193.50 -60 21.7 WMC DDH
========== =========== ======= ======= ==== ========= ======= =====
DD91CG1 450687.10 6736294.70 362.00 15.00 -70 46.7 CRAE DDH
========== =========== ======= ======= ==== ========= ======= =====
DD91CG2 450686.12 6736294.71 362.00 421.10 -70 46.7 CRAE DDH
========== =========== ======= ======= ==== ========= ======= =====
DD91CG3 450432.50 6736371.71 316.00 402.40 -28 42.7 CRAE DDH
========== =========== ======= ======= ==== ========= ======= =====
DD91CG4 450644.90 6736943.80 278.00 180.00 -45 53.7 CRAE DDH
========== =========== ======= ======= ==== ========= ======= =====
DD91CG5 451171.57 6736064.02 226.00 275.00 -45 13.7 CRAE DDH
========== =========== ======= ======= ==== ========= ======= =====
DDH2 450557.93 6736414.93 330.00 228.60 -70 37.7 UNION DDH
========== =========== ======= ======= ==== ========= ======= =====
DDH5 451080.00 6736155.00 268.00 132.70 -60 26.7 UNION DDH
========== =========== ======= ======= ==== ========= ======= =====
Source: CCZ geology team
SECTION 2: REPORTING OF EXPLORATION RESULTS
(CRITERIA LISTED IN THE PRECEDING SECTION APPLY TO THIS
SECTION)
Criteria JORC Code explanation Commentary
Mineral -- Castillo Copper holds 100% of EL 8625
tenement * Type, reference name/number, location and ownershi & EL 8635.
and land p The tenure has been granted for a period
tenure status including agreements or material issues with third of thirty-six
parties such as joint ventures, partnerships, months until 17(th) July 2020, for Group
overriding royalties, native title interests, 1 minerals.
historical sites, wilderness or national park and The location of the tenure is shown in
environmental settings. Figure D2-1
below:
FIGURE D2-1: LOCATION OF EL 8625 AND
* The security of the tenure held at the time of EL8635 JACKADERRY
reporting along with any known impediments to SOUTH
obtaining a licence to operate in the area.
The current drilling has all been
completed on EL 8625
and EL 8635 Jackaderry South only.
========================================================= ==========================================
Exploration -- Acknowledgment and appraisal of Some mining history and discovery
done by other exploration by other parties. information provided
parties by North Broken Hill Ltd (1970) is
as follows:
Previous explorers (Brownlow, 1989;
Abraham-Jones, 2012)
have noted that a 'basement window'
of exposed magmatic
hydrothermal alteration and
historical copper workings
may represent the western and upper
extent of a much
larger hydrothermal system concealed
under Mesozoic
cover to the east, prospective for:
--
Quartz-tourmaline-sulphide-cemented,
magmatic-hydrothermal
breccia hosted
copper-gold-molybdenum-cobalt
(Cu-Au-Mo-Co)
deposit.
-- Concealed porphyry
copper-gold-molybdenum-cobalt
(Cu-Au-Mo-Co) ore body associated
with quartz diorite
to tonalitic porphyry apophyses
proximal to the tourmaline-sulphide
cemented breccia's.
-- Potential also exists for
copper-gold (Cu-Au) skarn.
Considerable exploration has taken
place in and around
the Cangai Copper Mine (closed) by
several large explorers
such as Western Mining and CRA
Exploration, the results
of which are covered in the Local
Geology section
Geology Deposit type, geological setting Regional Geology
and style of mineralisation. The underlying geology is contained within the
Coffs Harbour
Block, east of the Demon Fault. The major
basement unit is
the Silurian-Devonian Silverwood Group
(locally the Willowie
Creek Beds), a mixed sequence of tuffaceous
mudstones, intermediate
to basic igneous rocks, slates, and phyllites,
a low stage
of regional metamorphism.
Overlying this rock formation is a younger
tectonic melange
of Early Carboniferous age - the Gundahl
Complex of slates,
phyllites and schist, with chert, greenstone,
and massive
lithic greywackes.
These rocks are intruded by the Early Permian
Kaloe Granodiorite
(tonalite), which also in turn is intruded by
numerous later-stage
mafic (lamprophyre) dykes.
Local Geology
The local geology is well understood as
considerable exploration
has taken place in and around the Cangai
Copper Mine (closed)
by several major explorers such as Western
Mining and CRA
Exploration, the results of which are covered
in the section
below. The mineralisation is controlled by the
presence of
shear zones within the country rock and
persistent jointing.
Chloritic alteration is pervasive, with the
major minerals
identified (Henley and Barnes 1990) as:
* Azurite major ore
* Chalcocite major ore
* Chalcopyrite major ore
* Copper major ore
* Malachite major ore
* Pyrite major ore
* Pyrrhotite major ore
* Arsenopyrite minor ore
* Sphalerite minor ore
* Cuprite minor ore
* Gold minor ore
* Limonite minor ore
* Chlorite major gangue
* Calcite major gangue
* Quartz major gangue
* Sericite minor gangue
The structurally controlled epigenetic copper
mineralisation
is found in multiple breccia zones in an
otherwise monotonous
dacitic tuff, associated with felsic dykes.
There are hints
of similar, en-echelon structures nearby. A
high-grade supergene
zone is dominated by malachite and azurite.
Below the base
of complete oxidization, there is fresh
mineralised rock
dominated by chalcopyrite (see Figure A2-2),
bornite, and
minor sphalerite.
After an extensive major surface mapping
exercise, old mine
workings have been resurveyed and
georeferenced to the MGA94
Z56 datum, shifting the previously estimated
(early 2017)
locations of mine plans 40 to 60m to the north
and northeast.
FIGURE D2-2 COPPER MINERALISATION IN HQ
DRILLHOLE CC0036D
----------------------------------- -----------------------------------------------------
Western Mining 1982-1984
Western Mining found that the recognition of
substantial
amounts of pyrrhotite in high grade ore
collected from
mine dumps led to the reappraisal of previous
explorer's
ground magnetics (Brown, 1984). Two soil
anomalies were
identified @ +60ppm Cu (max 1100ppm) and several
strong
linear magnetic anomalies (=250nT above
background).
Soil sampling and detailed ground inspections
conducted
over the linear magnetic high failed to identify
any
anomalous geochemistry or a possible source
lithology.
A 180m diamond drill hole was drilled to test
the anomaly.
Given the poor results of both the drilling and
the
follow-up stream sediment sampling, no further
work
was recommended. The decision was made to
relinquish
the licence in 1984.
CRA Exploration 1991-1992
CRA Exploration examined the geological form,
setting
and genesis of the mineralisation at the Cangai
Copper
Mine over several years. The work carried out
consisted
of geological mapping, collection of rock chip
samples,
and underground investigations at the mine site.
Drill
core from a CRA exploration programme and mine
dumps
were also inspected. They concluded that the
Cangai
Copper Mine is hosted by sedimentary rocks of
the Siluro-Devonian
Willowie Creek Beds of tuffaceous mudstones,
tuffaceous
sandstones, and conglomerates. Mineralisation
appears
to be associated with steeply plunging ore
shoots in
and adjacent to the main shear zone (Figure
A2-2). Massive
primary ore consists of chalcopyrite, pyrite and
pyrrhotite
with lesser sphalerite and minor arsenopyrite
and galena.
A detailed, well documented report was produced,
but
no reasons were given for the relinquishment of
the
licence.
FIGURE A2.2: ROCK CHIP SAMPLING AT CANGAI COPPER
MINE
--------------------------------------- -------------------------------------------------
Drill hole A summary of all information All historical holes were used except BJAC1 and 2,
Information material which
to the understanding of the were drilled outside the block model boundaries.
exploration Drill
results including a tabulation hole collar summary and intersection summary
of tables are
the following information for included as Appendix A in this report and
all progressively
Material drill holes: in various Castillo Copper ASX release throughout
-- easting and northing of the 2018.
drill Mineralised zones are identified by the field
hole collar geologist
-- elevation or RL (Reduced and flagged as geological/mineralised zones as
Level shown in
- elevation above sea level in Table D2-1 at the end of this section.
metres)
of the drill hole collar
-- dip and azimuth of the hole
-- down hole length and
interception
depth
-- hole length.
If the exclusion of this
information
is justified on the basis that
the
information is not Material and
this exclusion does not detract
from the understanding of the
report,
the Competent Person should
clearly
explain why this is the case
------------------------------------- ---------------------------------------------------
Data aggregation In reporting Exploration Results, No top cuts have been applied to reporting
methods weighting averaging techniques, of the significant
maximum and/or minimum grade Intersections and lower cut of 0.2%
truncations (2,000ppm) Cu has generally
(e.g., cutting of high grades) and been used. Full detailed assay intervals for
cut-off grades are usually Material the key elements
and should be stated. Where aggregate are included in the Appendices of the Cangai
intercepts incorporate short lengths CP report.
of high-grade results and longer
lengths of low-grade results, the Summary Intersections per 2017 to 2018
procedure used for such aggregation drillhole have been
should be stated and some typical reported based on estimated laboratory
examples of such aggregations should assays in Appendix
be shown in detail. A of this release, with a minimum criteria =
The assumptions used for any 0.5% Cu or
reporting 0.2% Zn or 2 g/t Ag if assays. For visual
of metal equivalent values should sulphide estimates
be clearly stated. ranges given the following criteria apply:
1. Disseminated sulphides > 5%-10%
sulphides.
2. Semi-Massive 10% - 30% sulphides
3. Massive over 30% sulphides
There has been no reporting of metal
equivalent values
in this mineral resource estimate.
------------------------------------- ---------------------------------------------------
Relationship These relationships are All intersections are reported as downhole widths.
between mineralisation particularly Once
widths and important in the reporting of assays are returned and the geological controls are
intercept Exploration Results. fully
lengths If the geometry of the established, the 3D modelling package will determine
mineralisation true
with respect to the drill hole widths.
angle is known, its nature should The Lode is currently modelled to be sub-vertical to
be reported. If it is not known vertical,
and only the down hole lengths striking 126 degrees and pitching at 60 degrees west.
are reported, there should be Varies
a clear statement to this effect from 0.3m-5.2m wide. The main mining was from
(e.g. 'down hole length, true Volkhardt's,
width not known'). Melbourne, Mark's, Sellar's, Volkhardt's and
Greenberg's
lens. The secondary supergene zone grades averaged
20-35%
Cu. The sulphide zone decreased to 8-10% Cu at depth.
The
Lode was largest at structural intersections. Breccia
was
recorded at D level.
The host rock is massive fine-grained intermediate
volcanic,
and bedding is difficult to define. The deposit is
structurally
controlled with lodes following or adjacent to the
shear
zone. A temperature of formation is suggested to be
about
380 degrees centigrade (Brauhart 1991). The NSW
Geological
Survey has characterized Cangai as a meta-hydrothermal
structurally
controlled deposit. Figure D2-3 below is a
cross-section
showing the four (4) main near vertical mineralised
zones
at the Cangai Mine.
FIGURE D2-3: NW TO SE CROSS-SECTION OF WORKINGS AT
CANGAI
MINE
Geo-registering was undertaken in June 2018,
particularly
the anomalous zones (which are in the process of being
digitised
off the 1908,1912, and 1914 mine plans (Brauhart
1991),
which become priority targets for geological mapping,
ground
magnetic and EM surveys. Data has also been extracted
from
a thorough UNSW Honours Thesis as referenced below:
Brauhart,
C. (1991). The Geology & Mineralisation of the Cangai
Copper
Mine, Coffs Harbour Block Northeastern New South
Wales.
CRAE Report No: 17739. University of NSW.
----------------------------------- -------------------------------------------------------
Diagrams Appropriate maps and sections Appropriate diagrams have been included in the body
(with scales) and tabulations of text
intercepts should be (Appendix B) of this announcement and previous ASX
included for any significant announcements
discovery (see references).
being reported These should
include,
but not be limited to a plan view
of drill hole collar locations
and appropriate sectional views.
----------------------------------- -------------------------------------------------------
Balanced reporting Where comprehensive reporting All drillholes completed to date have been reported in
of all Exploration Results is not various
practicable, representative Castillo Copper ASX releases.
reporting
of both low and high grades and/or
widths should be practiced avoiding
misleading reporting of Exploration
Results.
----------------------------------- -------------------------------------------------------
Other substantive Other exploration data, if Historical explorers have also conducted airborne and
exploration meaningful ground
data and material, should be reported gravity, magnetic, EM, and resistivity surveys over
including (but not limited to): parts
geological observations; of the tenure area but this is yet to be collated. A
geophysical surface
survey results; geochemical EM Survey has been undertaken and has been previously
survey results; bulk samples - reported
size and (multiple conductors discovered from FLEM survey
method of treatment; metallurgical (Castillo
test results; bulk density, Copper 8(th) January 2018 ASX Release).
groundwater, Castillo Copper also conducted DHEM surveys on eight
geotechnical and rock (8)
characteristics; drillholes, two of which produced EM anomalies modelled
potential deleterious or as
contaminating plates by the Maxwell software
substances.
----------------------------------- -------------------------------------------------------
Future Work The nature and scale of planned CCZ's geology team have mapped out the next drilling
further work (e.g., tests for campaign
lateral that will specifically target extending the known
extensions or depth extensions copper
or large-scale step-out drilling). orebody (Figure A2-4) through the following actions,
Diagrams clearly highlighting Targeting
the areas of possible extensions, the following locations:
including the main geological
interpretations -- Smelter Creek Copper Smelter Dumps
and future drilling areas, provided -- Along strike and under the McDonough's workings
this information is not -- Proximal to Marks' workings
commercially -- Underneath Volkhardt's' workings
sensitive. -- DHEM anomaly located along strike from CRC005.
FIGURE A2-4 POTENTIAL EXPLORATION DRILLING AREAS
----------------------------------- -------------------------------------------------------
TABLE D-1: GEOLOGICAL QUALITATIVE MINERALISATION
DESCRIPTIONS
Hole From To (m) Cu (ppm) Zn (ppm) Ag (g/t) Au (g/t) Sulphide mineral (%) Geology comments
ID (m)
CC0020R 14 15 3860 402 0.11 0.01 - -
===== ======= ========= ========= ========= ========= ====================== =======================
< 5% pyrite and
CC0021R 51 52 9060 2070 8.74 0.11 chalcopyrite -
===== ======= ========= ========= ========= ========= ====================== =======================
CC0022R 92 93 40100 5750 15.45 0.12 10-15% chalcopyrite, Massive sulphide
10-15% pyrite, 5-10%
pyrrhotite
===== ======= ========= ========= ========= ========= ====================== =======================
< 5% pyrite and
CC0022R 93 94 6510 1370 2.86 0.02 chalcopyrite Disseminated sulphides
===== ======= ========= ========= ========= ========= ====================== =======================
< 5% pyrite and
CC0022R 98 99 8080 5380 5.55 0.05 chalcopyrite Disseminated sulphides
===== ======= ========= ========= ========= ========= ====================== =======================
< 5% pyrite and
CC0022R 109 110 6270 1600 5.52 0.12 chalcopyrite Disseminated sulphides
===== ======= ========= ========= ========= ========= ====================== =======================
< 5% pyrite and
CC0022R 109 110 5410 1380 5.20 0.10 chalcopyrite Disseminated sulphides
===== ======= ========= ========= ========= ========= ====================== =======================
CC0022R 110 111 14650 3280 9.01 0.22 5-10% pyrite and Semi-massive sulphide
chalcopyrite,
pyrrhotite
===== ======= ========= ========= ========= ========= ====================== =======================
CC0022R 111 112 27800 6780 12.55 0.23 5-10% pyrite and Semi-massive sulphide
chalcopyrite,
pyrrhotite,
< 5% sphalerite
===== ======= ========= ========= ========= ========= ====================== =======================
CC0022R 112 113 23200 6310 6.60 0.19 5-10% pyrite and Semi-massive sulphide
chalcopyrite,
pyrrhotite,
< 5% sphalerite
===== ======= ========= ========= ========= ========= ====================== =======================
CC0022R 113 114 12350 2840 3.22 0.07 5-10% pyrite and Semi-massive sulphide
chalcopyrite,
pyrrhotite
===== ======= ========= ========= ========= ========= ====================== =======================
< 5% pyrite and
CC0023R 40 41 7430 1720 2.29 0.06 chalcopyrite Disseminated sulphides
===== ======= ========= ========= ========= ========= ====================== =======================
CC0023R 41 42 89900 22900 23.40 1.31 10-15% chalcopyrite, Massive sulphide
10-15% pyrite, 5-10%
pyrrhotite
===== ======= ========= ========= ========= ========= ====================== =======================
CC0023R 42 43 81300 38800 24.30 0.83 10-15% chalcopyrite, Massive sulphide
10-15% pyrite, 5-10%
pyrrhotite
===== ======= ========= ========= ========= ========= ====================== =======================
CC0023R 43 44 67400 22800 22.30 1.37 10-15% chalcopyrite, Massive sulphide
10-15% pyrite, 5-10%
pyrrhotite
===== ======= ========= ========= ========= ========= ====================== =======================
CC0023R 44 45 18600 6240 6.75 0.17 5-10% pyrite and Semi-massive sulphide
chalcopyrite,
pyrrhotite,
< 5% sphalerite
===== ======= ========= ========= ========= ========= ====================== =======================
CC0023R 45 46 41800 8210 17.45 0.56 10-15% chalcopyrite, Massive sulphide
10-15% pyrite, 5-10%
pyrrhotite
===== ======= ========= ========= ========= ========= ====================== =======================
CC0023R 46 47 11650 3850 5.40 0.13 5-10% pyrite and Semi-massive sulphide
chalcopyrite,
pyrrhotite
===== ======= ========= ========= ========= ========= ====================== =======================
CC0023R 47 48 36900 17850 21.30 0.33 10-15% chalcopyrite, Massive sulphide
10-15% pyrite, 5-10%
pyrrhotite
===== ======= ========= ========= ========= ========= ====================== =======================
CC0023R 48 49 102500 16750 32.50 0.73 10-15% chalcopyrite, Massive sulphide
10-15% pyrite, 5-10%
pyrrhotite
===== ======= ========= ========= ========= ========= ====================== =======================
CC0023R 49 50 43300 26400 20.70 0.53 10-15% chalcopyrite, Massive sulphide
10-15% pyrite, 5-10%
pyrrhotite
===== ======= ========= ========= ========= ========= ====================== =======================
Duplicate of previous
CC0023R 49 50 34400 26200 17.70 0.55 sample Massive sulphide
===== ======= ========= ========= ========= ========= ====================== =======================
CC0023R 50 51 75200 60400 30.60 0.38 10-15% chalcopyrite, Massive sulphide
10-15% pyrite, 5-10%
pyrrhotite
===== ======= ========= ========= ========= ========= ====================== =======================
< 5% pyrite and
CC0023R 51 52 3030 9010 2.00 0.05 chalcopyrite Disseminated sulphides
===== ======= ========= ========= ========= ========= ====================== =======================
< 5% pyrite and
CC0023R 52 53 2300 5840 1.39 0.03 chalcopyrite Disseminated sulphides
===== ======= ========= ========= ========= ========= ====================== =======================
CC0023R 56 57 23700 17700 9.41 0.30 5-10% pyrite and Semi-massive sulphide
chalcopyrite,
pyrrhotite,
< 5% sphalerite
===== ======= ========= ========= ========= ========= ====================== =======================
CC0023R 57 58 22000 34000 11.80 0.38 5-10% pyrite and Semi-massive sulphide
chalcopyrite,
pyrrhotite,
< 5% sphalerite
===== ======= ========= ========= ========= ========= ====================== =======================
< 5% pyrite and
CC0023R 72 73 4540 789 1.35 0.03 chalcopyrite Disseminated sulphides
===== ======= ========= ========= ========= ========= ====================== =======================
< 5% pyrite and
CC0023R 73 74 5830 1240 1.27 0.04 chalcopyrite Disseminated sulphides
===== ======= ========= ========= ========= ========= ====================== =======================
< 5% pyrite and
CC0023R 77 78 4050 732 1.81 0.03 chalcopyrite Disseminated sulphides
===== ======= ========= ========= ========= ========= ====================== =======================
CC0023R 85 86 12650 2980 12.60 0.31 5-10% pyrite and Semi-massive sulphide
chalcopyrite,
pyrrhotite
===== ======= ========= ========= ========= ========= ====================== =======================
CC0023R 86 87 11150 3900 10.00 0.25 5-10% pyrite and Semi-massive sulphide
chalcopyrite,
pyrrhotite
===== ======= ========= ========= ========= ========= ====================== =======================
CC0025R 90 91 45300 4050 9.71 0.40 10-15% chalcopyrite, Massive sulphide
10-15% pyrite, 5-10%
pyrrhotite
===== ======= ========= ========= ========= ========= ====================== =======================
CC0025R 91 92 20700 5960 6.80 0.13 5-10% pyrite and Semi-massive sulphide
chalcopyrite,
pyrrhotite
===== ======= ========= ========= ========= ========= ====================== =======================
CC0025R 92 93 15000 4700 5.75 0.08 5-10% pyrite and Semi-massive sulphide
chalcopyrite,
pyrrhotite
===== ======= ========= ========= ========= ========= ====================== =======================
< 5% pyrite and
CC0025R 103 104 8460 2400 11.80 0.13 chalcopyrite Disseminated sulphides
===== ======= ========= ========= ========= ========= ====================== =======================
CC0025R 104 105 12600 2940 3.62 0.09 5-10% pyrite and Semi-massive sulphide
chalcopyrite,
pyrrhotite
===== ======= ========= ========= ========= ========= ====================== =======================
CC0025R 105 106 15400 5350 4.93 0.15 5-10% pyrite and Semi-massive sulphide
chalcopyrite,
pyrrhotite
===== ======= ========= ========= ========= ========= ====================== =======================
TABLE D2-2: SIGNIFICANT INTERSECTIONS RC-DRILLING AT CANGAI
& COMPARISON OF XRF AND LAB (ALS) RESULTS
Hole From To Significant Intersections Significant Intersections
ID (m) (m) pXRF Result Lab Result (ALS Brisbane)
5m @ 0.17% Cu & 0.06% 5m @ 0.16% Cu & 0.99g/t Ag
CRC001 40 45 Zn (Composite sample*)
===== ===== ========================== ===================================
CRC002 52 58 MINING VOID MINING VOID
===== ===== ========================== ===================================
1m @ 1.56% Cu, 3.71g/t Ag & 0.26%
CRC003 67 68 1m @ 3.1% Cu & 0.5% Zn Zn
===== ===== ========================== ===================================
68 71 MINING VOID MINING VOID
===== ===== ========================== ===================================
5m @ 1.3% Cu & 0.59% 5m @ 1.56% Cu, 4.43g/t Ag & 0.4%
CRC004 92 97 Zn Zn
===== ===== ========================== ===================================
Incl. 3m @ 1.6% Cu & Incl. 3m @ 2.22% Cu, 6.38g/t Ag
94 97 0.75% Zn & 0.60% Zn
===== ===== ========================== ===================================
97 98 MINING VOID MINING VOID
===== ===== ========================== ===================================
7m @ 0.45% Cu & 0.15% 7m @ 0.29% Cu, 1.00g/t Ag & 0.20%
98 105 Zn Zn (Composite sample*)
===== ===== ========================== ===================================
3m @ 1.76% Cu, 13.08g/t Ag & 1.33%
CRC005 221 224 3m @ 1.7% Cu & 1.4% Zn Zn
===== ===== ========================== ===================================
Incl. 1m @ 2.6% Cu & incl. 1m @ 2.66% Cu, 20.70g/t Ag
221 222 2.5% Zn & 2.35% Zn
===== ===== ========================== ===================================
4m @ 0.63% Cu & 0.46% 4m @ 0.57% Cu, 3.34g/t Ag & 0.38%
CRC006 69 73 Zn Zn
===== ===== ========================== ===================================
CRC007 107 111 MINING VOID MINING VOID
===== ===== ========================== ===================================
3m @ 0.8% Cu & 0.36% 3m @ 1.01% Cu, 6.60g/t Ag & 0.34%
CRC008 210 213 Zn Zn
===== ===== ========================== ===================================
1m @ 0.4% Cu & 0.19% 1m @ 0.56% Cu, 3.84g/t Ag & 0.21%
216 217 Zn Zn
===== ===== ========================== ===================================
4m @ 0.74% Cu & 0.29% 4m @ 0.88% Cu, 5.43g/t Ag & 0.27%
228 232 Zn Zn
===== ===== ========================== ===================================
2m @ 0.69% Cu & 0.18% 2m @ 0.72% Cu, 3.32g/t Ag & 0.16%
CRC009 100 102 Zn Zn
===== ===== ========================== ===================================
2m @ 0.65% Cu & 0.19%
CRC010 145 147 Zn
===== ===== ========================== ===================================
1m @ 0.15% Cu & 0.06%
CRC011 8 9 Zn
===== ===== ========================== ===================================
1m @ 0.09% Cu & 0.02%
13 14 Zn
===== ===== ========================== ===================================
2m @ 0.35% Cu & 0.08%
CRC012 9 11 Zn
===== ===== ========================== ===================================
6m @ 1.90% Cu & 0.24%
CRC013 1 7 Zn
===== ===== ========================== ===================================
Incl. 4m @ 2.2% Cu &
2 6 0.27% Zn
===== ===== ========================== ===================================
5m @ 0.31% Cu & 0.12%
CRC014 232 237 Zn
===== ===== ========================== ===================================
Incl. 1m @ 0.7% Cu &
232 233 0.12% Zn
===== ===== ========================== ===================================
Incl. 1m @ 0.3% Cu &
234 235 0.24% Zn
===== ===== ========================== ===================================
13m @ 0.04% Cu & 0.05%
CRC015 0 13 Zn
===== ===== ========================== ===================================
1m @ 0.72% Cu & 0.14%
CRC016 0 1 Zn
===== ===== ========================== ===================================
2m @ 0.11% Cu & 0.06%
12 14 Zn
===== ===== ========================== ===================================
3m @ 0.86% Cu & 0.13%
CRC017 4 7 Zn
===== ===== ========================== ===================================
2m @ 0.73% Cu & 0.21%
CRC018 6 8 Zn
===== ===== ========================== ===================================
2m @ 1.17% Cu & 0.18%
13 15 Zn
===== ===== ========================== ===================================
Incl. 1m @ 1.77% Cu &
13 14 0.2% Zn
===== ===== ========================== ===================================
2m @ 0.74% Cu & 0.31%
33 35 Zn
===== ===== ========================== ===================================
4m @ 1.25% Cu & 0.62%
38 42 Zn
===== ===== ========================== ===================================
Incl. 1m @ 3.7% Cu &
39 40 2.0% Zn
===== ===== ========================== ===================================
Notes:
1. * = Required 1m resampling
Source: CCZ geology team
FIGURE D2-5: RIG SETUP AT CRC001
Source: CCZ geology team
SECTION 3: ESTIMATION AND REPORTING OF MINERAL RESOURCES
(Criteria listed in section 1, and where relevant in section 2,
also apply to this section.)
Criteria / JORC Code Explanation Commentary
Database integrity Historical data from hard copy reports and electronic
* Measures taken to ensure that data has not been files such as excel and word, have been
corrupted by, for example, transcription or keying captured within a Datamine GDB database. Historical
errors, between its initial collection and its use data has been reviewed by ROM Resources
for Mineral Resource estimation purposes. Geologists before entered, and cross referenced with
recent data. Data base checks have been
run by ROM Resources geologists before resource
* Data validation procedures used. estimation commenced. Where the location of
historical drill holes was in question they have been
removed from the model. Reported collars
have been adjusted to the topography model (drone)
where the discrepancy is +/-0.2m.
========================================================
Site visits Mr Mark Biggs visited site three times during 2017-2018
* Comment on any site visits undertaken by the to observe the geology and the initial
Competent Person and the outcome of those visits. exploration programme, as well as drilling and sampling
procedures (Biggs, 2021). Recommendations
to: (1) collect additional bulk density data from
* If no site visits have been undertaken indicate why mineralised lodes; and (2) employ triple
this is the case. tube diamond drilling methods and in split logging for
geotechnical holes have since been
implemented. No other material issues were noted.
========================================================
Geological interpretation The deposits have been interpreted on vertical oblique
* Confidence in (or conversely, the uncertainty of) the sections at variable spacing by reviewing
geological interpretation of the mineral deposit. geological logging and copper grades, as well as
considering interpretations from historic
mining reports and previously mined voids. Confidence
* Nature of the data used and of any assumptions made. is moderate in areas of close-spaced
drilling.
Data has been supplied as a drill hole database,
* The effect, if any, of alternative interpretations on including collar, survey, lithology, weathering,
Mineral Resource estimation. and assay data.
Magnetic susceptibility readings completed on the RC
chips have not uniquely characterised
* The use of geology in guiding and controlling Mineral mineralised zones, either within or outside the named
Resource estimation. lenses' wireframes. The felsic dyke
is characterised by 3x higher Ca assay values.
Alternate correlations of lodes between drill holes are
* The factors affecting continuity both of grade and possible in some places but would
geology. not materially affect the Mineral Resource estimate.
Mineralised lodes have been interpreted using a 0.1%
nominal copper cut off and aided with
the use of lithology, veining, and structure to help
identify the key shear structures.
Potentially economic mineralisation not always
restricted to an easily identifiable sheared,
porphyritic syenite or diorite. Within the lodes higher
grade copper (>2%) is erratically
distributed.
The main lode wireframe includes some barren material
between copper mineralisation.
Due to its narrow nature the orientation of interpreted
lode wireframes can be influenced
locally due to the accuracy of down-hole surveys.
========================================================
Dimensions The extent of mineralisation with Cu >500ppm below the
* The extent and variability of the Mineral Resource original topography is:
expressed as length (along strike or otherwise), plan Main Strike = 955m, Depth = 290m, Width = 1 to 35m.
width, and depth below surface to the upper and lower Mineralisation extends significantly downdip from the
limits of the Mineral Resource. historical pit floor for the main lode.
========================================================
Estimation and modelling techniques Block grade estimation for Cu was by inverse distance
* The nature and appropriateness of the estimation squared methods (ID2). ID2 was considered
technique(s) applied and key assumptions, including suitable for the style of mineralisation, size of
treatment of extreme grade values, domaining, blocks relative to the drill hole spacing,
interpolation parameters and maximum distance of and the assumed open pit and underground mining
extrapolation from data points. If a computer selectivity.
assisted estimation method was chosen include a Drill holes were composited to 1m, and data was
description of computer software and parameters used. interpolated using Datamine Minescape Block
Model software.
Hard boundaries were adopted for lode wireframes, with
* The availability of check estimates, previous each lode estimated independently.
estimates and/or mine production records and whether No blocks outside the line of lode mask were estimated.
the Mineral Resource estimate takes appropriate Blocks were estimated using 1 - 8 samples with a
account of such data. maximum of 2 samples from any one drill hole.
A two-pass search strategy was employed with search
ellipsoids orientated in accordance with
* The assumptions made regarding recovery of the average lode orientation.
by-products. Main Lode:
Maximum search distance of 45m by 25m by 2m for search
pass 1.
* Estimation of deleterious elements or other non-grade Maximum search distance of 90m by 65m by 8m for search
variables of economic significance (eg sulphur for pass 2.
acid mine drainage characterisation).
* In the case of block model interpolation, the block
size in relation to the average sample spacing and
the search employed.
* Any assumptions behind modelling of selective mining
units.
* Any assumptions about correlation between variables.
* Description of how the geological interpretation was
used to control the resource estimates.
* Discussion of basis for using or not using grade
cutting or capping.
* The process of validation, the checking process used,
the comparison of model data to drill hole data, and
use of reconciliation data if available.
========================================================
Moisture Resource tonnages are estimated on a dry in situ basis
* Whether the tonnages are estimated on a dry basis or (air-dried).
with natural moisture, and the method of
determination of the moisture content.
========================================================
Cut-off parameters Reporting cut-off grades of 0.2% Cu for open pit and
* The basis of the adopted cut-off grade(s) or quality will require confirmation through feasibility
parameters applied. work. For the channel samples in the oxidized zone a
top-cut of 15% Cu was applied, whereas
for fresh mineralisation no top-cut was applied.
========================================================
Mining factors or assumptions Cangai has previously been selectively mined by open
* Assumptions made regarding possible mining methods, cut mining methods. A total of 5,080t
minimum mining dimensions and internal (or, if of ore @ 8% Cu has been deducted from the resource
applicable, external) mining dilution. It is always estimate to reflect this.
necessary as part of the process of determining Portions of the remaining resources are considered to
reasonable prospects for eventual economic extraction have sufficient grade and continuity
to consider potential mining methods, but the to be considered for both selective open cut and
assumptions made regarding mining methods and underground mining but will require confirmation
parameters when estimating Mineral Resources may not through feasibility work.
always be rigorous. Where this is the case, this No mining parameters or modifying factors have been
should be reported with an explanation of the basis applied to the Mineral Resources.
of the mining assumptions made.
========================================================
Metallurgical factors or assumptions Since the 2017 maiden mineral resource estimate, some
* The basis for assumptions or predictions regarding metallurgical testing has taken place.
metallurgical amenability. It is always necessary as Two composites formed from bulk samples taken in April
part of the process of determining reasonable 2018 from McDonough's Portal and Shaft
prospects for eventual economic extraction to stockpiles along the line of lode (Castillo Copper
consider potential metallurgical methods, but the 2018a) have been the focal point of metallurgical
assumptions regarding metallurgical treatment test-work. The test-work in the laboratory has
processes and parameters made when reporting Mineral demonstrated the ore has beneficiated materially.
Resources may not always be rigorous. Where this is Furthermore, results to date have confirmed solid
the case, this should be reported with an explanation copper concentrate recoveries that exceeded
of the basis of the metallurgical assumptions made. 80%, while the grade was up to 22% Cu and Co 300ppm.
In September 2019 assay results for samples collected
from legacy stockpiles at Smelter Creek
Slag stockpile and another composite along the line of
lode (Marks and McDonough's dumps)
were received back from the Peacocke & Simpson
Laboratory in Zimbabwe, with average head grades
at 1.23% and 2.03% Cu respectively.
Further work completed in December 2019, using a
representative insitu massive sulphide ore
sample extracted from drillhole CC0023R completed in
August 2018, reported a commercial grade
concentrate of 22.2% Cu & 7.4% Zn with a recovery of
79.3% of total contained copper was achieved,
which is in line with previous investigations. The
following observations were made:
-- This result was derived from using standard
metallurgical flotation methods; and
-- The result is highly encouraging as it provides
first-hand insight on a potential final
copper concentrate product from using high-grade CCM
ore.
-- The composite sample utilised in the metallurgical
test-work process comprised high-grade
massive sulphide RC chips with a head grade of 8.18% Cu
and 4.36% Zn.
========================================================
Environmental factors or assumptions The historical Cangai Mine is a series of lapsed Mining
* Assumptions made regarding possible waste and process Licenses with an EA in place (only
residue disposal options. It is always necessary as on the EL).
part of the process of determining reasonable Historically, ore processing and tailings storage has
prospects for eventual economic extraction to been conducted off-site, various third-party
consider the potential environmental impacts of the options are available for offsite ore processing and
mining and processing operation. While at this stage tailings storage.
the determination of potential environmental impacts, Mining has previously taken place at Cangai with no
particularly for a greenfields project, may not significant environmental impediments.
always be well advanced, the status of early
consideration of these potential environmental
impacts should be reported. Where these aspects have
not been considered this should be reported with an
explanation of the environmental assumptions made.
========================================================
Bulk density During the modelling exercise discrepancies were found
* Whether assumed or determined. If assumed, the basis where the existing specific gravity
for the assumptions. If determined, the method used, water displacement testing undertaken on site in 2018
whether wet or dry, the frequency of the measurements were at odds with detailed density analysis
, conducted on slag and ex-mine dump bulk samples
the nature, size and representativeness of the collected for the purpose of metallurgical
samples. recovery testing.
A new programme of specific gravity testing was
undertaken on stored HQ diamond core from
* The bulk density for bulk material must have been CC0035D and CC0036D focusing on dual water (Fieldcrew)
measured by methods that adequately account for void and alcohol methods (ALS Brisbane).
spaces (vugs, porosity, etc), moisture and Comparisons were also made to lithology, state of
differences between rock and alteration zones within weathering, and copper content.
the deposit. Specific gravity (SG) for rock and pulp samples can be
measured by different methods. A rock
sample can be submersed in water, either as submitted
* Discuss assumptions for bulk density estimates used or covered with paraffin wax. As a pulp
in the evaluation process of the different materials. sample can't be submerged in water, specific gravity
measurements are taken by using a pycnometer.
For 25 HQ core samples (CC0035D and 36D) good
correlation was found between the two SG methodologies,
one conducted on site by Fieldcrew personnel and the
other at ALS Brisbane using method "OA-GRA08b"
(see attached graph).
Comparison of the ALS SG results, and trace copper (in
ppm) showed a very strong logarithmic
correlation (see attached graph)
========================================================
Classification The insitu resources were classified on a
* The basis for the classification of the Mineral block-by-block basis using estimation outputs. Inferred
Resources into varying confidence categories. Resource blocks required the closest sample within 45m,
an average sample distance <90m, and
a minimum of 2 drill holes, with the remaining blocks
* Whether appropriate account has been taken of all assigned to Exploration Target ranges
relevant factors (ie relative confidence in (not reported here).
tonnage/grade estimations, reliability of input data, The resource classification appropriately reflects the
confidence in continuity of geology and metal values, Competent Person's view of the deposit.
quality, quantity and distribution of the data).
* Whether the result appropriately reflects the
Competent Person's view of the deposit.
========================================================
Audits or reviews The Cangai Mineral Resource estimate was reviewed by a
* The results of any audits or reviews of Mineral specialist consultant. Their report
Resource estimates. found agreement in some of the modelling assumptions,
but disagreed with the use of channel
samples and the modelled width of various ore lenses.
========================================================
Discussion of relative accuracy/ confidence The relative accuracy of the Mineral Resource estimate
* Where appropriate a statement of the relative is reflected in the reporting of the
accuracy and confidence level in the Mineral Resource Mineral Resource as per the guidelines of the 2012 JORC
estimate using an approach or procedure deemed Code.
appropriate by the Competent Person. For example, the Detailed statistical and geostatistical methods to
application of statistical or geostatistical quantify the relative accuracy of the resource
procedures to quantify the relative accuracy of the have not been undertaken. However, preliminary
resource within stated confidence limits, or, if such statistical analysis suggests the relative
an approach is not deemed appropriate, a qualitative error of this estimate to be +/-20-30%
discussion of the factors that could affect the Lode geometry and grade can vary significantly over
relative accuracy and confidence of the estimate. short distances, but continuity of mineralisation
and grade is supported by close-spaced drilling in
areas classified as Inferred.
* The statement should specify whether it relates to Drill hole data was collected and analysed using
global or local estimates, and, if local, state the prevailing industry practices but a small
relevant tonnages, which should be relevant to amount of drilling pre-dates 1990. There is a small
technical and economic evaluation. Documentation possibility of the resource including
should include assumptions made and the procedures minor amounts of undocumented underground voids from
used. historical mining, as post mining drilling
did intersect underground voids in seven (7) instances.
The resource statement relates to the global resource
* These statements of relative accuracy and confidence estimate. The grade cut-offs and depth
of the estimate should be compared with production of potential open pit material used to determine the
data, where available. Mineral Resource were assumed and require
confirmation through feasibility work.
The deposit is not currently being mined, but the
resource estimate has a lower average grade
than production records for the same mineralisation
zone that was mined at higher elevations
from 1903 - 1917 and 1934 - 1937.
During its lifecycle, the Cangai Copper Mine produced
5,080 tonnes of copper, 1,035kg of silver
and 527kg of gold from a total underground extraction
of 307,000t of which approximately 63,500t
was ore (this equates to 8% Cu, 1.5g/t Au and 15g/t Ag
as provided by GSNSW MinView portal).
========================================================
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCEZLFLXDLBBBB
(END) Dow Jones Newswires
July 25, 2023 02:00 ET (06:00 GMT)
Grafico Azioni Castillo Copper (LSE:CCZ)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Castillo Copper (LSE:CCZ)
Storico
Da Giu 2023 a Giu 2024
