5 April 2022

CASTILLO COPPER LIMITED

("Castillo" or the "Company")

Castillo's Zambian Mkushi Project IP Survey Results

Multiple zones of high chargeability coincident with known copper soil anomalies highlighted

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 drill-testing, with potential to host copper mineralisation, have been identified at its 100% owned Mkushi Project in Zambia. These are the findings of the final geophysicists report² which interpreted the IP survey results against three areas of known copper soil anomalies with strike lengths ranging from circa 4-7km long¹.

Highlights

·    The Induced Polarisation (IP) survey campaign undertaken at the Mkushi Project in Zambia highlighted multiple zones of high chargeability coincident with known copper soil anomalies¹ 

·    More significantly, according to the geophysicist's interpretations², these are potential bodies of disseminated copper sulphide mineralisation and prime targets to test drill (Appendix A):    

o  With sufficient geological data, formulating a drilling campaign is the next step to further developing the Mkushi Project    

·      To conduct the survey, 40 pre-selected IP Lines across 54km were utilised to test soil geochemical anomalism for potential disseminated copper mineralisation across three target areas - A, B, C (Figure 1) (Available to view on PDF version of the announcement)  

·    With multiple prime targets for drill-testing now identified across the Mkushi and Luanshya Projects³, which enhances their exploration potential significantly, the Board is now seeking a strategic partner to further develop the Zambia assets (Appendix B)

FIGURE 1: IP LINE LOCATIONS OVER COPPER SOIL GEOCHEMISTRY (Available to view on PDF version of the announcement)

Dr Dennis Jensen, Managing Director of Castillo Copper, said: "The IP survey results from the Mkushi Project are outstanding, especially as they throw off numerous potential targets to test-drill for copper mineralisation. More significantly, it complements the results from the Luanshya Project which has 14 identified primary targets. Moving forward, the Board is now actively seeking to align with a strategic partner to fully develop the Zambian assets." 

MULTIPLE TARGETS TO DRILL TEST

Overall, a total of 40 pre-selected IP Lines across 54km were surveyed using a 50m-spaced dipole-dipole electrode configuration. These were aligned to test soil geochemical anomalism for potential disseminated copper mineralisation across three target areas (A, B & C), ranging from 4-7km long.

The geophysicist's report, which reconciled the geochemical and geophysical results, identified multiple high-priority areas to potentially follow up with test drilling including Lines 5, 6, 7, 8, 9, 10, 11, 12, 13, 15, 19, 21, 42, 44, 46, 48, 50, 52, 54 & 56 (Appendix A).

Of these, Lines 5, 8, 9, 11 are clear illustrations of potential targets for test drilling as high-chargeability is associated with copper anomalism at surface.

FIGURE 2: SELECTED CHARGEABILITY MODELS - LINES 5, 8, 9 & 10 (Available to view on PDF version of the announcement)

In addition, the geophysicist's report noted there is a major NE trending fault that cuts across the Mkushi Project which could potentially be the source of mineralising fluids in the region.

This is consistent with earlier findings by Castillo's geology team which identified two parallel shear zones 2-3km apart trending NE-SW that originates in Shi Yan Group's (SYG) contiguous mining lease. Note, the north shear zone is in SYG's ground which is currently an operating copper mine⁴.

The fault structures and anomalous areas that were previously delineated - Areas A, B & C are on the north and east boundaries of SYG's operation (refer to Figure 1).

Strategic partner

With multiple primary targets for test drilling identified at the Mkushi and Luanshya Projects, which boosts their exploration potential materially, the Board has decided to seek a strategic partner to further develop the Zambian assets.

Next steps

In NSW:

·    JORC 2012 compliant mineral resource estimate for the BHA Project, East Zone.

In Queensland:

·    Awaiting assay results for the Arya Prospect.

·    Big One Deposit - formalising timing for next drilling campaign.

In Zambia:

·    Complete work on the inaugural drilling campaigns for the Luanshya & Mkushi Projects.

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. 

The group is listed on the LSE and ASX under the ticker "CCZ." 

References

1)                    CCZ ASX Release - 2 November 2020

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

3)                    CCZ ASX Release - 25 October 2021

4)                    CCZ ASX Release - 21 October 2019

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 Australian Institute of Geoscientists. 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.

Disclaimer Regarding Forward Looking Statements

This announcement contains various forward-looking statements. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are inherently subject to uncertainties in that they may be affected by a variety of known and unknown risks, variables and factors which could cause actual values or results, performance, or achievements to differ materially from the expectations described in such forward-looking statements.

Castillo Copper Limited does not give any assurance that the anticipated results, performance, or achievements expressed or implied in those forward-looking statements will be achieved.

APPENDIX A:  IP SURVEY RESULTS

FIGURE A1:  ANOMALY SUMMARY AND PRIORITISATION

P1= High Priority, P2= Medium Priority, P3= Low Priority

FIGURE A2: MKUSHI-A STACKED APPARENT CHARGEABILITY SECTIONS (Available to view on PDF version of the announcement)

FIGURE A3: MKUSHI-B STACKED APPARENT CHARGEABILITY SECTIONS (Available to view on PDF version of the announcement)

FIGURE A4: MKUSHI-C STACKED APPARENT CHARGEABILITY SECTIONS (Available to view on PDF version of the announcement)

APPENDIX B: REGIONAL MAP

FIGURE B1: ZAMBIA COPPER PROJECTS (Available to view on PDF version of the announcement)