High-priority copper target at Luanshya Project

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

Castillo confirms high-priority 6km copper target at Luanshya Project

Infill results underscore the potential exploration upside at the highly prospective Luanshya Project in the Zambian copper-belt  

Castillo Copper Limited (LSE: CCZ; ASX: CCZ), a base metal explorer primarily focused on copper across Australia and Zambia, is pleased to announce encouraging results from the recently completed infill soil geochemical sampling campaign at its 100% owned Luanshya Project in Zambia.

The Luanshya Project is located in Zambia's traditional copper-belt, the second largest copper producer in Africa. It is intersected by a NW-SE trend-line, that is circa 5-10km wide in places and known to host copper mineralisation. This includes two of China Nonferrous Mining Corp's (CNMC) three operating copper mines that are circa 7km north-west of the anomaly and bear similar geological features to Luanshya. The infill campaign was conducted to reduce the sample and line spacing in the anomalous area identified by the previous sampling programme in April 2020.

Highlights

·    Castillo's Zambian geology team has completed a comprehensive infill surface sampling campaign at the highly prospective Luanshya Project which has delivered encouraging results:

o  Ratification that a high-priority target for copper mineralisation, along a circa 6km strike event, is apparent; and

o  Building on the first campaign, undertaken in April 2020, the geology team properly demarcated the anomalous area which highlighted portable X-ray fluorescence (XRF) results up to 2,600ppm Cu 

Next steps for Zambia

·    The next two phases of the exploration campaign - that will be progressed sequentially - are designed to narrow down key test-drill targets. They include:

o  Digging five trenches, with a total length of circa 1,500m, to test the copper mineralisation identified; and 

o  An induced polarisation (IP) survey to identify geophysical anomalies at depth which correlate with the surface geochemical results 

·    Concurrently, members of the geology team have been undertaking an infill soil campaign at the Mkushi Project - findings are expected to be released shortly 

Simon Paull, Managing Director of Castillo Copper, commented: "It is pleasing to be able confirm that Castillo now has geology teams undertaking excellent work in Zambia and north-west Queensland. Notably, the infill results from the Luanshya Project clearly underscore the potential exploration upside along the circa 6km strike. The geology team's objective is to systematically complete trenching and geophysical work, then formulate priority targets to test-drill." 

Ged Hall, UK Director of Castillo Copper, said: "The work undertaken by our geology team in Zambia has delivered a compelling initial outcome, with a circa 6km copper strike to explore. This is the start of an exciting journey which is unfolding to the upside."

Further information on surface sampling campaign

Using a portable XRF device, the team collected 765 soil samples from across the Luanshya Project which yielded very encouraging results with copper in soil anomalies up to 2,600ppm Cu defined. Consequently, the geology team were able to clearly demarcate sharp boundaries that contains anomalous copper mineralisation over an extensive circa 6km strike event. 

To further test the identified copper mineralisation along strike, the geology team are shortly planning to dig five trenches with a total length of circa 1,500m to garner incremental insights. Once the results of the trenching programme are reviewed, the next phase will be an IP survey to identify geophysical anomalies at depth.

Post the IP survey, the Zambia geology team will be able to reconcile the results of the geochemical and geophysical data and then commence formulating an inaugural drilling campaign to test key targets.

Highly prospective region

The Luanshya Project is located in Zambia's traditional copper-belt which is well known for numerous large-scale copper mines and deposits. Previous desktop work by Castillo's in-country geology team highlighted four regional trendlines, circa 5-10km wide in places, running NW-SE that are known to host copper mineralisation. It is now confirmed the anomalous area and two of CNMC's three operating copper mines are on the same trendline that intersects the Luanshya Project.  

Further, in terms of the underlying geology, the anomalous area falls in the mica schists, which is similar to the malachite bearing series in CNMC's two mines. According to CNMC's 2018 annual report, its three mines in the Luanshya region have Proven & Probable JORC (2012) Reserves at 52.3mt @ 1.26% Cu.

In addition to this release, a PDF version of this report, with supplementary information can be found on the Company's website: https://www.castillocopper.com/asx-announcements/

For further information, please contact:

Notes to Editors:

About Castillo Copper

Castillo Copper Limited is an Australian-based explorer primarily focused on copper across Australia and Zambia. Castillo Copper is listed on the LSE and ASX under the ticker "CCZ."

The three main projects across Australia and Zambia include:

Australia

Mt Oxide Project

Castillo is targeting the development of a viable copper mining operation at the Mt Oxide Project, which has significant exploration upside with several high-grade targets including an interpreted 130m thick by 1,500m by 450m massive sulphide bedrock conductor that is about to be drilled. The project is located approximately 150km north of Mt Isa in northwest Queensland. The project is within the proximity of several historic and currently operating copper mines including Lady Annie and Capricorn Copper.

Cangai Project

The Company's flagship project is the Cangai Project in northern New South Wales, where the Cangai Copper Mine is located, one of Australia's highest grading historic copper mines. The Company's core focus is the development and expansion of the Cangai Copper Mine, which comprises a volcanogenic massive sulphide deposit, with a JORC Code compliant Inferred Resource of 3.2Mt at 3.35 per cent. Cu. and up to 14.45 per cent. Cu in assayed diamond core intersections.

Zambia

Zed Projects

The Company is the sole shareholder of Zed, an Australian company which holds four high-quality prospective assets across Zambia's copper-belt, the second largest copper producer in Africa. Castillo Copper intends to initially focus on the Luanshya Project, which sits on the Zambian copper belt's Lufilian Arc geological structure. The second priority for the Company is the Mkushi Project, which contiguously surrounds an operating open-pit copper mine, in a region proven to be highly prospective for Cu-Au mineralisation. The Company is currently working towards establishing a Zambian in-country presence, utilising local geologists and joint venture partner teams.

Visit Castillo Copper's website: https://www.castillocopper.com/

Competent Person Statement

The information on the page that relates to Exploration Results for the Luanshya Project is based on information compiled or reviewed by Mr Matt Bull, a consultant to Castillo Copper Limited. Mr Bull is a member of the Australian Institute of Geoscientists and has sufficient experience of relevance to the styles of mineralisation and types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Bull consents to the inclusion in this report of the matters based on information in the form and context in which it appears.