Castillo Copper Limited has provided an update on its recently completed drill programme at the Cangai copper project in New South Wales, Australia. Highlights of the announcement include the following.
- Stage 2 diamond-drill programme completed – all holes intersected mineralisation.
- The best intersection from the most recent drilling was 4.39 m at 5.06% Cu, 2.56% Zn and 20.1 g/t Ag from 49.9 m (CC0036D) – this included 0.3 m at 14.45% Cu, 5.93% Zn and 40.1g/t Ag (results pending for Au).
- An outline of the company’s strategy for early 2019:
- complete Phase II RC-drilling campaign, focusing on testing DHEM conductors under the Mark’s, Greenberg’s and Volkhardt’s lodes;
- conduct incremental DHEM survey work in order to further understand prospective extensions to the known ore body, and
- undertake heli-magnetic surveys within the Cangai South tenure to identify further alteration systems.
Analyst comments: this latest announcement, which follows on from our previous update, confirms that the company encountered further high-grade copper mineralisation at its Cangai copper project. The results, coupled with those from the 36 holes in the recently completed diamond drill programme, are likely to lead to a resource upgrade in the new year.
In addition, Castillo has outlined its strategy for 2019, key elements of which are the testing of DHEM targets and generation of new targets using that technique, with which the company already successfully identified the Volkhardt’s conductor 1 (11 m at 5.94% Cu, 2.45% Zn and 19.1 g/t Ag, and 4.39 m at 5.06% Cu, 2.56% Zn and 20.1 g/t Ag).
As well as the DHEM, Castillo will undertake heli-magnetic surveys across its regional landholdings. Indeed, given the region’s prospectivity it’s surprising that so little historical exploration has been completed there so far. We look forward to seeing the results of Castillo’s strategy and the recommencement of drilling early next year.
Meanwhile, we maintain our assessment of Castillo as a SPECULATIVE BUY.