Ann: BHA Assays Display Cobalt Potential/ Lithium Update, page-3

Battery metal drill-hole assays unlock BHA East
Zone potential / lithium update
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Castillo Copper’s Managing Director Simon Paull commented: “A recent
geological review of the Broken Hill Alliance Project’s East Zone uncovered
108 drill-holes yielding cobalt values >200ppm, with the highest being
9,500ppm. As a result, with the cobalt price now over US$70,000/t on the
London Metal Exchange, work on modelling a JORC compliant mineral
resource is now underway. Further, surface assays have enabled numerous
zones anomalous for cobalt-copper and separately zinc to be delineated that
are proximal to the Himalaya Formation out-crop and sub-crop. This is a timely
discovery that significantly enhances the Project’s exploration potential for
battery metals, especially as it coincides with the NSW government launching
its critical minerals and high-tech metals strategy. As such, the Board has
decided to no longer pursue the acquisition of the Litchfield and Picasso lithium
assets.”
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FIGURE 1: BROKEN HILL ALLIANCE (BHA) PROJECT FOOTPRINT
Source: CCZ geology team
o A review on BHA’s East Zone, acquired from Wyloo Metals1 in 2020,
discovered numerous areas anomalous for cobalt-copper and zinc
mineralisation delineated from surface / down-hole assays:
 Notably, with assayed values ranging from >200ppm Co up to
9,500ppm Co across 108 drill-holes2 (proximal to the Himalaya
Formation out-crop / sub-crop) work on modelling a JORC
2012 compliant mineral resource is now underway
 The region is well-known for its cobalt potential, as Cobalt Blue
(ASX: COB) has JORC 2012 compliant ore reserves of 118Mt @
687ppm Co for 81,100t contained metal3
o The Board is highly encouraged by the NSW government’s new
strategy, which targets building a viable downstream industry for
processing critical minerals (including cobalt-copper-REE’s) and
establishing a global supply hub in the state’s central west region4
o With the BHA East Zone’s exploration potential materially enhanced,
the Board has dropped plans to acquire additional lithium assets5
o Further, the Board will prioritise modelling a JORC 2012 compliant
resource at the Big One Deposit and further developing the graphite-
base metal discovery at the Arya Prospect.