Castillo Copper to develop cobalt mineralisation potential at BHA Project

Highlights

• With further forensic work uncovering up to 6182 drill-holes across the East Zone1 (BHA Project) – undertaken by North Broken Hill Group – the Board has prioritised codifying the data then modelling up a JORC 2012 compliant cobalt mineral resource estimate:
  • Incrementally, the seven reverse circulation and diamond drillcore samples (in the GSNSW core library) will be tested for cobalt mineralisation.
  • As all previous drilling/assays completed by North Broken Hill Group (NBH Group) meet current QAQC requirements, there should be a high degree of confidence in the final modelled result.
• Given encouraging results from the initial 108 drill-holes, all delivering assays from >200 ppm cobalt (Co) up to 9500 ppm Co, spinning off the BHA Group (via an IPO) has been deferred – this will enable the Board to focus on expediting the development of the East Zone.
• Overall, identifying the cobalt potential within the East Zone is timely, with the battery metal upcycle ongoing and the New South Wales (NSW) government listing the BHA Project on its critical minerals list.

Castillo Copper’s CEO, Dr Dennis Jensen, commented: “After a strategic review, the Board has prioritised modelling up a global JORC 2012 mineral resource estimate for cobalt across the BHA Project’s East Zone. Further forensic work has identified up to 6182 drill-holes, undertaken by the NBH Group, which provides a substantial potential data pool to build into the model. Pleasingly, there are seven reverse circulation and diamond drill core samples that will be re-analysed for cobalt mineralisation which should increase confidence in the final modelled outcome. With documented cobalt readings between >200 ppm Co up to 9500 ppm Co from only 108 drill-holes processed, the Board’s priority is to fast-track codifying all the data then produce an initial JORC 2012 compliant mineral resource estimate.”

Cobalt focus at BHA Project – East Zone

The ongoing upcycle for battery metals, driven by strong down-stream demand for electric vehicles, makes the case for cobalt increasingly compelling. In addition, the NSW government’s new critical minerals policy, which includes cobalt and specifically lists CCZ’s Broken Hill assets, provided extra impetus for the Board to prioritise developing the BHA Project’s East Zone. Notably, the NSW government’s strategic intent is to build a viable downstream industry for processing critical minerals (including cobalt) and establish a global supply hub in the state’s central west region.

Recent forensic work has uncovered up to 6182 drill-holes across the East Zone, which was undertaken by the reputable NBH Group. This is important as a large portion of the drilling undertaken by NBH Group and other more recent explorers meets current QAQC requirements, implying there should potentially be a high degree of confidence from utilising this ample data to model a JORC 2012 compliant mineral resource estimate.

Once the geology team complete codifying the data, then geological modelling work will commence. In tandem, as there are seven reverse circulation and diamond core samples in storage, the geology team will re-assay these for cobalt and rare earth element mineralisation. Potentially, this will increase the confidence in the final modelled result.

Overall, with encouraging results from the initial 108 drill-holes, which all delivered assays from >200 ppm Co up to 9500 ppm Co, the Board is determined to accelerate developing the East Zone in order to produce a primary JORC 2012 compliant cobalt mineral resource estimate.

Next steps

In NSW

• JORC 2012 compliant mineral resource estimate for the BHA Project East Zone.
• Cangai ground gravity and magnetics survey.

In Queensland

• Assay results for Arya Prospect.
• Big One Deposit – JORC 2012 compliant mineral resource estimate.

In Zambia

• Complete geophysical report on the Mkushi Project.
• Complete work on the inaugural drilling campaign for the Luanshya Project.

Read the article online at: https://www.globalminingreview.com/exploration-development/14022022/castillo-copper-to-develop-cobalt-mineralisation-potential-at-bha-project/