CCZ Seeks Approval to Recommence Work at Cangai

Castillo Copper Limited (ASX: CCZ) on 6th May 2019, updated its shareholders on the development of the new strategic intent and forward exploration plans across several projects. Most of the key issues with regards to CCM (Cangai Copper Mine) has already been discussed in the recent quarterly results, now the key focus for the management is the anticipated approval from the Regulator to restart exploration work.

The management, in a recent meeting, decided a diversified project portfolio on the basis of geographical presence as well as differing jurisdictions, which is tactically imperative to safeguard the motive to transform into a primarily mid-tier copper group is achieved. Additionally, the management is conscious about the requirement to ensure each project targeted for development delivers noteworthy exploration upside.

CCM will continue as a flagship project, followed by Mt Oxide within the current Australian portfolio. Finding out the strategic partners to develop the projects through to Definitive Feasibility Study for a free-carried interest is the best way to create value from the Broken Hill and Marlborough projects.

Cangai Copper Mine (CCM):

After completing the rehabilitation work for CCM, the management has been working with the Regulator to reach an agreement on the recommencement of activities at Cangai. The management will wait for such formal agreement with the Regulator for the regulatory approval to recommence the exploration activities on the exploration licences. The management is likely to announce to lift the voluntary suspension of its securities as per the 6th May 2019 voluntary suspension extension request upon receiving regulatory approval to restart exploration activities.

As per the management, as CCM continues to remain one of the highest grading historic copper mines in Australia, there is still more exploration work to be undertaken. The priority of the company is to advance an aeromagnetic survey to raise the scale of known high-grade copper mineralisation at Cangai and the nearby area. The drilling has identified DHEM conductors under Mark’s, Greenberg’s and Volkhardts lodes, where exuberant sulphide copper mineralisation has been mined in the past. Secondly, further DHEM surveys are expected to take place to recognise new target areas that extend the known ore body and suggest CCM’s potential scalability around the existing mine area.

The management has upheld an open dialogue with Noble Group about processing CCM’s legacy stockpiles in the last few months. The company is likely to update on further metallurgical test-work results expected to be released once these have been received from the laboratory.

Mt Oxide: Geoscience Australia released an AEM (Airborne Electromagnetic) survey in mid-Mach 2019 and highlighted that a bedrock conductor in the eastern part of the Mt Oxide project area (circa 180km north of Mt Isa). Castillo have named the AEM conductor the Arya prospect, which is in a region with many popular copper mines comprising of Capricorn, Lady Annie and Mt Oxide.

Next steps: The primary focus of the company is securing regulatory approval to restart activities at CCM and fully develop the exploration plan for the Mt Oxide project.

The last noted share price of CCZ was at $0.016, with its EPS noted at -$0.002.

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