Castillo Copper Ltd (ASX:CCZ) (LON:CCZ) (FRA:7OR) is set to begin its aggressive 2021 exploration program at Mt Oxide Copper Project in northwest Queensland coinciding with a “massive global transformation” in the copper market.
Green stimulus programs at a global level together with electric vehicles rapidly gaining traction have propelled copper prices to 10-year-highs due to fears of forward supply deficits.
This provides great encouragement for Castillo Copper which is advancing along the path to becoming a mid-tier copper group.
Upcoming Mt Oxide work
Managing director Simon Paull reflects the optimism in describing the upcoming work at Mt Oxide.
“Over the past few months CCZ’s geology and corporate teams have been working tirelessly behind the scenes on two fronts – the next phase of exploration for the flagship Mt Oxide Project and identifying prospective strategic partners to develop our Zambia and New South Wales assets.
“With the wet season in northwest Queensland now largely over, we have received approval from the landowner to recommence exploration activities at the Mt Oxide Project.”
Geophysical survey work is being carried out at Mt Oxide ahead of drilling.
He said the company’s first priority was to extend known mineralisation discovered at the Big One Deposit.
“Currently, a team is at site conducting a geophysical survey along the line of lode,” he said.
“Once the geophysical results are interpreted and new targets formulated, our drilling team will complete the reminder of the campaign that was designed in late 2020.
“The drilling crew will then move to the Arya Prospect, where there are two shallow targets around 25 metres deep.
“However, most of the intrigue is focused on the huge interpreted 130-metre-thick potential massive sulphide target that is 1.5-kilometres long and 450-metres wide at a depth of around 430 metres.
“Contingent on the assays from Big One Deposit and Arya Prospect further drilling may be required to build our understanding of these two primary targets.
“However, there is no shortage of exploration potential for the Mt Oxide Project as there are another 19 targets that warrant investigation.”
A team is at site conducting a geophysical survey.
Drilling campaign “timely”
The MD said with the company being strongly leveraged to the global copper market, embarking on a drilling campaign was timely.
“We are in the midst of a massive global transformation, thanks to green stimulus and electric vehicles rapidly gaining traction, that has propelled the copper price to 10-year highs due to fears of significant forward supply deficits.
“More significantly, with more investment now expected to be earmarked for copper exploration, our corporate team has been extremely busy liaising with prospective strategic partners to develop our Zambia and New South Wales assets.
“To recap, CCZ has four projects across Zambia’s copper belt, a large footprint in Broken Hill that is prospective for IOCG-cobalt mineralisation and the high-grade historic Cangai Copper Mine.”
Paull added: “The board remains optimistic that 2021 will be a transformative year as we ramp up our exploration efforts at the Mt Oxide Project, coupled with, working towards successfully optimising our Zambia and NSW assets.”