31 August 2021

CASTILLO COPPER LIMITED
("Castillo" or the "Company")

Large targets under 6km copper strike at Luanshya Project in Zambia

Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily focused on copper across Australia and Zambia, is pleased to announce that multiple targets for test-drilling have been identified at the Luanshya Project in Zambia's copper-belt, following the completion of eight Induced Polarisation (IP) survey lines. 

Highlights

·    Work on the IP survey across the Luanshya Project in Zambia's copper-belt - focusing on a 6km strike delineated from previous soil sampling campaigns¹ - is progressing to plan, with eight lines now complete

·    Pleasingly, multiple high chargeability targets have been identified within three interpreted lines that potentially indicate the presence of sulphides

·    Reconciling the IP survey findings with the previous geochemical results confirmed the high chargeability targets are directly coincident - this significantly enhances the probability for a discovery

·    Castillo can now formulate the inaugural drilling campaign and, pending the outcome of discussions with service providers, potentially commence work in the fourth quarter of 2021

·    The IP survey, which is being conducted by Geophex Surveys (a Zambian based geophysics consultancy²), will soon finish up at Luanshya then progress to the Mkushi Project

·    Further updates on progress in Zambia will be forthcoming as developments materialise

·    Meanwhile, the second drilling campaign at the Big One Deposit has concluded - the laboratory, which is processing a huge number of samples from many explorers across the Mt Isa region, is expected to return all assays shortly:

o  This will enable the geology team to progress work on formulating the next drilling campaign at Big One 

·    In addition, all key service providers are on track to commence mobilisation at the Arya Prospect during September 2021, targeting several well-defined bedrock conductors  

Simon Paull, Managing Director of Castillo Copper, commented: "Our exploration efforts at the Luanshya Project are bearing fruit, as we now have multiple high-quality targets to test-drill along the 6km copper strike. Moving forward, the Board's goal is to commence the inaugural drilling campaign during the fourth quarter. This will place Castillo Copper in a strong position strategically, with development work progressing concurrently on prime projects in the Zambia and Mt Isa copper-belts."

COMPELLING TARGETS 

IP survey

So far, the geophysics consultancy, Geophex Surveys, has completed eight IP survey lines at the Luanshya Project. The focus area is the 6km copper strike that was previously delineated by soil geochemistry¹. Castillo's geology team in Zambia decided to use the IP survey method, rather than alternatives, due to its deep penetration and high levels of resolution.

As such, interpretations for three lines resulted in multiple high chargeability anomalies being identified, which are potentially indicative of underlying sulphides. Moreover, as these chargeability anomalies are directly coincident with soil geochemistry results, they make compelling targets to test-drill. Notably, the clear nexus between the geophysical and geochemical results, materially enhances the probability for a discovery. 

Based on the results to date, Castillo's geology team in Zambia can now commence formulating the inaugural drilling campaign for the Luanshya Project. Depending on the outcome of discussions with service providers and key approvals, drilling can potentially commence in the fourth quarter of 2021.

In the interim period however, IP survey work will be completed at Luanshya and then progress to the Mkushi Project.

Prospective copper region

The Luanshya Project is located in Zambia's traditional copper-belt, a globally known region that houses numerous copper deposits and operating mines. Moreover, the Luanshya Project is located ~6-10km south of China Nonferrous Mining Corp's (CNMC) three operating mines, with combined JORC (2012) compliant Proven & Probable Reserves of 52.3mt @ 1.26% Cu³. Of significance, the Luanshya Project is on the same NW-SE trendline, which is ~5-10km wide, that hosts two of CNMC's operating copper mines³.

Next steps

There are several ongoing steps for the Zambia operations, including:

·  Complete the IP survey at the Luanshya & Mkushi Projects then analyse the results for incremental targets for test-drilling; and

·    Commence work on the inaugural drilling campaign for the Luanshya Project.

In Queensland, the following is set to take place over the next few weeks:

·    Return of all assays from the laboratory which will enable the geology team to  formulate the next drilling campaign at Big One 

·    Commencement of drilling at the Arya Prospect, as all key service providers are ready to deploy to site.

In addition to this release, a PDF version with supplementary information and images can be found on the Company's website: https://castillocopper.com/investors/announcements/

For further information, please contact:

About Castillo Copper

Castillo Copper Limited is an Australian-based explorer primarily focused on copper across Australia and Zambia. The group is embarking on a strategic transformation to morph into a mid-tier copper group underpinned by its core projects:

·    A large footprint in the Mt Isa copper-belt district, north-west Queensland, which delivers significant exploration upside through having several high-grade targets and a sizeable untested anomaly within its boundaries in a copper-rich region.

·    Four high-quality prospective assets across Zambia's copper-belt which is the second largest copper producer in Africa.

·    A large tenure footprint proximal to Broken Hill's world-class deposit that is prospective for zinc-silver-lead-copper-gold.

·    Cangai Copper Mine in northern New South Wales, which is one of Australia's highest grading historic copper mines.

Castillo Copper is listed on the LSE and ASX under the ticker "CCZ." For further information, visit the Company's website: www.castillocopper.com

References

1)    CCZ ASX Release - 1 July 2021

2)    Geophex Surveys Limited. Available at: <http://africa.geovale.com/assosciates/geophex-surveys-limited/>

3)    CCZ ASX Release - 16 September 2019 & 15 April 2020

Competent Person Statement

The information in this announcement that relates to exploration results is based on and fairly represents information reviewed or compiled by Mr Matt Bull, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Bull is a beneficiary of Southern River Investments, a trust which is a shareholder of Castillo Copper Limited. Mr Bull is a shareholder and director of Trilogy Metals Pty Ltd, a company which provides ad hoc geological consultancy services to Castillo Copper Limited. Mr Bull is a Consultant of Castillo Copper Limited. Mr Bull has sufficient experience that is relevant to the styles of mineralisation and types of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Bull has provided his prior written consent to the inclusion in this announcement of the matters based on information in the form and context in which it appears.

The London Stock Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.