Ann: Phase II Drilling Campaign Approved at Cangai, page-2

Great news !

Phase II drilling targets high-grade supergene ore and massive sulphides at Cangai

 Regulatory approval has been granted to start the Phase II RC drilling campaign at Cangai Copper Mine
 The 39 drill-hole program will focus on three areas along the line of lode targeting supergene ore near legacy workings and massive sulphide intersections identified during Phase I
 Earth clearing work is well underway, while the drilling contractor is on-site reviewing planned drill-pads and access routes to expedite the commencement of work
 Assay results from ten hand-picked rock specimens (including malachite and gossan) from around Volkhardts stockpile along the line of lode returned up to 23.9% Cu – this is consistent with supergene ore grades and in a priority drill target area
 Incrementally, assay results for samples collected from the recent trenching exercise at the Smelter Creek stockpile were up to 5.58% Cu, 3.31% Zn and 1,350ppm Co
 The initial four drill-holes are planned for the historic Smelter Creek stockpile
 Metallurgical test-work on samples from the Smelter Creek stockpile are continuing to be optimised, while discussions with prospective off-take partners are ongoing
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Castillo Copper’s Chairman Peter Meagher commented: “Regulatory approval to commence the Phase II drilling campaign heralds another significant milestone towards the Board’s strategic goal of re-opening Cangai Copper Mine. The Board is confident the geology team have mapped out a comprehensive drilling program, targeting supergene ore and massive sulphides, that has the potential to expand the resource size.”
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Castillo Copper Limited’s (“CCZ” or “the Company”) Board has received clearance from the NSW mining regulator to progress the Phase II drilling campaign at Cangai Copper Mine (CCM). This builds on the Phase I program and should significantly broaden the geology team’s understanding of mineralisation apparent within the system.
PHASE II DRILLING CAMPAIGN Approval
The NSW mining regulator has approved the Phase II RC drilling campaign at CCM, which comprises 39 drill-holes. As can be seen from Figure 1, there are three primary zones along the line of lode that the geology team are planning to drill (refer below for more details).