11 new targets at Mt Oxide as exploration resumes

07 April 2021

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

11 new targets at Mt Oxide as exploration resumes

Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily focused on copper across Australia and Zambia, is delighted to confirm that improving weather conditions should enable a resumption of exploratory work in April 2021 at the core Mt Oxide Project in the Mt Isa copper-belt district of Queensland, Australia. In addition, further forensic work has uncovered 11 new targets and further details on the Arya Prospect's geological potential.

Highlights

·    Exploratory work to resume at the flagship Mt Oxide Project as the wet season draws to a close:

o  A geophysical survey campaign, designed to extend known mineralisation at the high-grade Big One Deposit, will commence this month; and

o  Drilling crew set to resume work at Big One Deposit and then move across to the Arya Prospect to test several sizeable bedrock conductors.

·    More recently, the Queensland government's Department of Resources granted the final key tenement (EPM 27440) - directly north of the Big One Deposit - that expands the core Mt Oxide Project footprint by circa 23% to 980km²

·    Within the newly granted ground are five well-profiled targets (Crescent, Pancake, Flapjack, The Wall & Johnnies) that are prospective for IOCG, Mt Isa Style & shear-hosted copper mineralisation

·    Further forensic work by Castillo's geology team has uncovered the following:

o  Historical reports showing there are potentially more targets within the vicinity of the Arya Prospect; and

o  An incremental 11 targets within the tenure that are prospective for various styles of copper-gold mineralisation.

·    Encouragingly, complementing 10 already documented prospects, there are now 21 targets that will feature in forward exploration plans

·    Overall, these are timely developments that enhance the Mt Oxide Project's exploration potential for copper mineralisation, at a time when there is an impending global supply deficit

Next steps

·    Within the next few weeks, the geology and geophysical teams intend to visit site and commence work at the Big One Deposit and Arya Prospect

·    Once the geophysical survey has been complete and reconciled, the next phase of the drilling campaign will commence    

Simon Paull, Managing Director of Castillo Copper, commented: "Behind the scenes our geology team has been flat out readying for a resumption of exploration work at the flagship Mt Oxide Project. The Board is targeting to have drilling teams back to site as soon as practical to complete work at the Big One Deposit then commence at the Arya Prospect. Holistically, with 21 targets across the Mt Oxide Project, Castillo now has a significant pipeline of copper-focused exploratory work ahead, coinciding with an impending global supply deficit."

EXPLORATION WORK TO RESUME

With an improvement in weather conditions, Castillo's geology team are planning a return to site and resume exploration activities at the Mt Oxide Project. Within the next few weeks, a geophysical survey will be undertaken at the Big One Deposit that will focus on extending known mineralisation and uncovering additional anomalies.

Once these results are known, the drilling team will complete the campaign at the Big One Deposit and then move across to the Arya Prospect to test several sizeable bedrock conductors. Interestingly, recent forensic work by Castillo's geology team found several more anomalies proximal to the Arya Prospect.

Tenure grant

Recently, the Queensland government's Department of Resources granted the northern most tenement that comprises the Mt Oxide Project. As a result, the footprint has increased by circa 23% to 980km² and formally brings five well profiled copper prospects into the fold (Figure 1) that were part of the 2020 geological study.

Eleven new targets

Ongoing forensic work by Castillo's geology team identified an incremental 11 targets across the Mt Oxide Project which are prospective for various styles of copper-gold mineralisation (Figure 2 & Appendix).

As such, on a combined basis, there are now 21 viable targets across the Mt Oxide Project for copper mineralisation which delivers a significant pipeline of development work ahead and enhances forward exploration potential.

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:

ABOUT CASTILLO COPPER

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

·    The Mt Oxide project 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 Company is listed on the LSE and ASX under the ticker "CCZ."

Competent Person Statement

The information in this report that relates to Exploration Results for "Big One Deposit" is based on information compiled or reviewed by Mr Mark Biggs.  Mr Biggs is both a shareholder and director of ROM Resources, a company which is a shareholder of Castillo Copper Limited.  ROM Resources provides ad hoc geological consultancy services to Castillo Copper Limited.  Mr Biggs is a member of the Australian Institute of Mining and Metallurgy (member #107188) 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, and Mineral Resources. Mr Biggs holds an AusIMM Online Course Certificate in 2012 JORC Code Reporting.  Mr Biggs also consents to the inclusion in this report of the matters based on information in the form and context in which it appears.