Castillo Copper (ASX: CCZ) has struck high-grade mineralisation at its historic Cangai copper mine, part of the Jackaderry project, which the company claims validates the existing JORC inferred resource.
pXRF readings from the initial four drill holes revealed between 1% and 4.5% copper, with mineralisation sent off for further analysis.
“It is pleasing to see excellent pXRF readings up to 4.5% copper at this early stage and confirmation the JORC modelled resource has been validated,” Castillo executive director Alan Armstrong said.
Castillo anticipates the results will contribute to an updated JORC resource which currently sits at 3.2 million tonnes grading 3.35% copper, 20.2 grams per tonne silver and 0.80g/t gold.
“When combined with stockpile samples of up to 18% copper and significant cobalt mineralisation, the project is developing ahead of expectations” Mr Armstrong said.
He added there was “significant potential” to materially boosting the resource size as the drilling program tests between the lodes outside of the current resource estimate.
Situated in New South Wales, the Jackaderry project hosts the historic Cangai copper mine which operated between 1904 and 1917. Western Mining and CRA Exploration both reviewed the mine at separate times in intervening years, but didn’t progress the project due to tough economic conditions.
Castillo claims its rationale for the Jackaderry project is to explore the copper-cobalt systems, with numerous small historical copper, gold, cobalt and iron mines in the area.
According to the company, Corazon (ASX: CZN) owns tenements adjacent to Jackaderry including the Cobalt Ridge prospect, which Corazon claims is one of Australia’s highest-grade cobalt deposits.
In early December, Corazon announced assays from four drill holes at Cobalt Ridge returned up to 1.37% cobalt.
Conventional flotation test work on Cobalt Ridge ore recovered 93.6% cobalt and 98.4% copper.
Castillo hopes this type of mineralisation is consistent across its Jackaderry project.
In mid-morning trade Castillo’s share price had dropped almost 7% to A$0.068.