Drilling commences at Big One Deposit in Mt Oxide

27 October 2020

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

Drilling commences at Big One Deposit within the Mt Oxide Project

Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily focused on copper across Australia and Zambia, is pleased to confirm that drilling has now commenced at the Big One Deposit within the Company's 100% owned Mt Oxide Project in the Mt Isa copper-belt district of Queensland, Australia.

Highlights

·    Drilling has commenced at the Big One Deposit within the Mt Oxide Project ahead of progressing to the nearby Arya Prospect

·    The Big One Deposit campaign comprises:

o  A 4,385m reverse circulation ("RC") drilling campaign, over 35 drill-holes, which will focus on a strike zone (~580m by ~120m) to test for mineralisation from ~26m up to ~190m below surface

o  An incremental 160m diamond drilling campaign, comprising two drill-holes, that will test primarily for shallow mineralisation from ~26m up to ~52m below surface

·    The drilling campaign's overall objective is to verify scalability via targeting to extend known mineralisation, especially how deep high-grade supergene mineralisation extends from surface and if this transitions into underlying sulphides at depth

·    Previous drilling delivered excellent copper intercepts up to 28.4% Cu with the best high-grade economic intercept of 3m @ 12.25% Cu from 42m incl: 2m @ 17.87% Cu from 43m; and 1m @ 28.4% Cu from 44m (B07)

Next steps

·    Update on drilling programme

·    Initial assay results

Simon Paull, Managing Director of Castillo Copper, commented: "After considerable hard work from all stakeholders, the Board is delighted that drilling has now commenced at the Big One Deposit in our core Mt Oxide Project. As the geology team will be sending samples for analysis at regular intervals, we will be providing regular updates on findings over the course of the campaign."   

The configuration of the planned drill-holes, within the ~580m by ~120m strike zone, ranges from ~20m up to ~100m apart. Upon completion of the campaign, Castillo should have considerable insights about the scalability of the Big One Deposit by targeting an incremental parallel structure from known mineralisation.

Expanding on historic drill results

The core objective of the upcoming Big One Deposit drilling campaign is to build on results from an earlier programme which delivered excellent economic copper intercepts up to 28.4% Cu. Notably, the drilling intersected shallow high-grade supergene copper ore.

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/

Overview of Mt Oxide Project

Castillo is targeting the development of a viable copper mining operation at the Mt Oxide Project, which is located in the copper-belt district approximately 150km north of Mt Isa in north-west Queensland. The project is within the proximity of several historic and currently operating copper mines including Lady Annie and Capricorn Copper.

Currently, the main highlight within the Mt Oxide Project is the exploration targets known as the Big One Deposit, which comprises shallow high-grade supergene ore up to 28.4% Cu, and the Arya Prospect, which was identified through an airborne electromagnetic survey conducted by Geoscience Australia in March 2019.

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

The Mt Oxide Project is located approximately 150km north of Mt Isa in northwest Queensland, within the proximity of several historic and currently operating copper mines including Lady Annie and Capricorn Copper. Castillo is targeting the development of a viable copper mining operation at the 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. The Company's maiden drilling campaign at Mt Oxide is currently underway, commencing at the Big One Deposit ahead of progressing to the nearby Arya Prospect.

Cangai Project

The Cangai Project is 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 in this report that relates to Exploration Results for the "Mt Oxide Project" contained in this announcement is based on a fair and accurate representation of the publicly available information at the time of compiling the RNS Release, and is based on information and supporting documentation compiled by Matthew Stephens, a Competent Person who is a Fellow of The Australian Institute of Geoscientists. Matthew Stephens is a Senior Consultant Geologist consulting to Xplore Resources Pty Ltd. Mr Stephens has been a Fellow of the Australian Institute Geoscientists for 11 years and has sufficient experience that is relevant to the style of mineralisation and type 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 Stephens consents to the inclusion in the report of the matters based on his information and the form and context in which it appears.