Seems they hit Cobalt. Not sure of the significance. Explorers aren’t my thing.

I was just tooling around in the “copper” space..,,

DISC: Slightly frustrated long-term holder of CCZ here and in SMSF.

What had set CCZ apart for me several years ago was the clarity of their focus and intent as well as the prospects in their assets. It lined up for me and there was a clear plan. That all seemed to go to worms a little the last 18 months or so and there was a brief foray in Lithium which they then let go (no doubt causing lots of distraction internally). All roads now lead to cobalt.

That's a little too cynical as this Broken Hill asset has always been in the mix and if there's cobalt in those holes great. And I accept that this is the nature of these small explorers to take advantage and be flexible.

Here's the summary of the announcement today about a potentially significant cobalt resource.

Compelling new assays enhance potential for significant cobalt system at Broken Hill

Compelling new assays uncovered at the Fence Gossan and Ziggy’s Hill Prospect within the Defined Target Area provide incremental evidence there is potentially an extensive cobalt system apparent within the BHA Project’s East Zone

The new cobalt assays, especially from Fence Gossan, are relatively shallow (from surface to circa 100m) and include several standout intercepts

Notably, they align with earlier results at the Tors & Reef Tank Prospects – the assays will be codified then factored into the block model and JORC compliant mineral resource estimate

In addition, diamond drill-core from five holes (>180m) – including The Sisters and Iron Blow Prospects – have been dispatched to the laboratory to test for cobalt, zinc and platinum-group elements (PGE):

o Assays relating to The Sisters (drill-holes BH1 & BH2) are significant as they will feature in the block model & JORC MRE

o The assays for drill-holes RH3, DD80_IB3 & DD80_RW4/1 should provide a greater understanding of the zinc and PGE potential across the north-west part of the tenure, particularly Iron Blow

Castillo Copper’s CEO Dr Dennis Jensen commented: “The Fence Gossan Prospect assays are outstanding and provide the Board with increased confidence there is potentially a significant underlying cobalt system within the BHA Project’s East Zone. In addition, the Board looks forward to receiving the assays for >180m of diamond core from five drill-holes, as it will clarify, firstly, the cobalt potential at The Sister Prospect; and, secondly, if the north-west quadrant is prospective for cobalt, zinc and PGE mineralisation.”

CCZ seemingly successfully pumping up the tyres this morning via Hot Copper reporting on their announcement of a glimpse of high grade cobalt-zinc potential at their Broken Hill holding.

Castillo Copper’s CEO Dr Dennis Jensen commented: “The preliminary results from analysing The Sisters Prospect’s diamond core has delivered Castillo Copper an excellent outcome. We now have compelling evidence, subject to final assays, there is high-grade cobalt-zinc mineralisation apparent and a prime target for future test drilling. Furthermore, the Board believes that, once all the assays are in from The Sisters Prospect, there will be sufficient data to potentially prove up a primary global cobalt mineral resource estimate that complies with the JORC 2012 Code.”

As I have mentioned previously, I had become a little bullish on CCZ based on what I saw as a clear strategic focus and positive execution around that focus in the 24 months or so until a couple of months ago when they jumped on the Li train. It seems they're getting positive news from earlier exploration on their Li options. Now today a positive announcement on their exploration at their Big One deposit. Somewhat concerning though for my Muddled mind is that they seem to be losing strategic clarity (despite announcements to the contrary).

Castillo Copper’s Managing Director Simon Paull commented: “Following a visit to the NWQ Copper Project by CCZ’s chief geological consultant, which yielded fresh perspectives, the Board’s objectives for 2022 comprise geologically modelling an inaugural JORC compliant resource for the Big One Deposit, continued drilling at the Arya Prospect and fully assessing the Eldorado target’s exploration potential. Notably, the case for the Big One Deposit remains compelling given the drilling campaigns to date have intersected significant copper mineralisation. In addition, the Board is positive on the exploration potential of the Litchfield & Picasso Lithium Projects and looks forward to finalising due diligence upon receipt of assays.”

***

o Based on fresh insights, post CCZ’s chief geological consultant visiting the Big One Deposit, the Board has prioritised geologically modelling an inaugural JORC compliant resource plus a third infill drilling campaign – for the following reasons:

? Recent and historical drilling campaigns have intersected relatively shallow copper mineralisation1 (Figure 1); and

There is a significant bedrock conductor2, north of the line of lode, which is larger and of different character than the IP anomaly drilled in 2020, that is yet to be drill-tested

DrillingwillcontinueattheAryaProspect,whilefurtherexploratory work will be undertaken to fully assess the potential of the Eldorado Prospect to host copper mineralisation

o Havingreviewedpeer29Metal’s(ASX:29M)CapricornCopperMine3 (Figure 2), which has multiple ore sources, the Board believes adapting this model for the NWQ Copper Project is prudent:

? The exploration objective moves to identifying and potentially developing several satellite deposits (commencing with the Big One Deposit) within the tenure, which aggregated delivers a bundled scalable platform

o In addition, the Board will review the timeline to secure a mining lease plus consult with potential off-take partners in the Mt Isa region to understand the logistics / costs to process third-party ore

Further to a release a few days ago on the likely high potential of Li at the Picasso prospect (summary below), CCZ announced today that it was extending it's option to acquire the two recent Li prospects it has extended into.

CCZ’s Board has advised the Vendor Group it is extending the 90-day option period to acquire the Litchfield and Picasso Lithium Projects1:

? Notably, over 650 surface assays for the Litchfield Lithium Project (Figure 1; NT)1, which is contiguous to Core Lithium’s (ASX: CXO) strategic Finniss Lithium Project (JORC compliant ore reserves: 7.4Mt @ 1.3% Li2O)2, remain in process queues at the laboratory

? Analysing and interpreting these assay results should potentially enable CCZ’s geology team to determine if lithium mineralisation is contiguous between the Lichfield and Finniss Lithium Projects

CCZ’s Managing Director, Simon Paull, commented: “The Board has advised the Vendor Group that it is extending the option period to acquire the Litchfield & Picasso Lithium Projects due to ongoing delays in receiving key assay results for both projects. Encouragingly, however, the Board is pleased with the due process undertaken to date and believes both assets have considerable potential to host lithium mineralisation. The Board looks forward to receiving these assays and concluding due diligence shortly thereafter.”

And here a summary of the Picasso release:

Field trip identifies 10km zone of pegmatites at the Picasso Lithium Project

CCZ’s Managing Director, Simon Paull, commented: “The geology team’s visit to the Picasso Lithium Project delivered encouraging news, confirming that a 10km zone of pegmatites is apparent in the tenure’s north- east quadrant. The Board’s preliminary conclusion, based on due diligence undertaken to date, is the Picasso Lithium Project is prospective for lithium mineralisation and delivers significant incremental exploration potential.”

***

o CCZ’s geology team spent several days at the Picasso Lithium Project – mapping and collecting samples – focusing on the high-density corridor 1, resulting in the following determinations:

• ? A circa 10km zone of pegmatite occurrences was confirmed in the north-eastern part of the tenure (Figure 1), which significantly exceeds government mapping; and
• ? The observed pegmatites are potentially related to lithium mineralisation which enhances prospectivity of the tenure’s north-eastern quadrant

Key service provider appointments to accelerate developing new discovery at Big One Deposit

~ Following confirmation of the new high-grade copper discovery at Big One Deposit1 , within the Mt Oxide Project, the Board is expediting the next phase of development, especially with underlying mineralisation open in all directions

~ Geology consultancy, ROM Resources, has been formally appointed to leverage legacy and current data to model up a maiden JORC compliant inferred resource

~ In addition, GeoDiscovery Group, a geophysics consultancy, has been appointed to undertake an extensive geophysical survey, which has two core objectives:

        - Identify massive sulphide bedrock conductors along the 1,200m strike extent that potentially extends known mineralisation;

       - Provide geophysical insights into several known yet underexplored nearby anomalies which includes previously mapped gossanous outcrops to the north-east of the recent drilling campaign; and 

       - Once the survey results are known, the geology team should be able to further refine and optimise the drilling campaign to increase the probability of intersecting mineralisation 

~ CCZ’s geology team is currently working on a holistic update of Big One Deposit results, which is slated to be released imminently

~ Overall, the Board has been delighted with the results to date and is optimistic Big One Deposit has the potential to scale

DISC: I have small holding

Assays Confirm Major Copper Discovery at Big One Deposit

Game changing assays as two 40-44m wide potentially economic intercepts from surface, with up to 16.65%, significantly extends known mineralisation at the high-grade Big One Deposit

Key observations CCZ’s geology team garnered from interpreting drill-holes 301RC and 303RC include:

~The mineralisation is spread out which is significant given the trachyte to diorite dyke is generally 4-6m wide;

~ Secondary enrichment is apparent with several samples >10% Cu, likely due to intersected mineralisation occurring in the transitional zone between the oxide and sulphide domains; and

~High cobalt grades with 12m @ 912ppm Co fm 29m incl: 1m @ 1,435ppm Co fm 30m (301RC) o Further potential upside should become apparent when assays for drill-holes 307-14RC are received, as visible, shallow copper oxides & sulphides were intersected,

Shares are up 47% on day

DISC: I hold

Divestment strategies being considered for Prime Broken Hill asset, prospective for IOCG & BHT mineralisation

The Board is currently liaising with its UK corporate advisor, SI Capital, on the optimal way to move this proposed corporate action forward in a timely manner o CCZ’s BHA (Broken Hill Alliance) Project comprises a large footprint proximal to the world-class Broken Hill silver-zinc-lead deposit

Castillo Copper’s Managing Director Simon Paull commented: “The resurgence of interest in the Broken Hill region is timely, as it provides an excellent opportunity for CCZ to optimise the BHA Project and create value for shareholders. Moreover, the ground is under-explored yet highly prospective for BHT and IOCG mineralisation, with multiple drill-test targets already identified.”

Castillo Copper’s London-based Director Ged Hall remarked: “The BHA Project is an excellent asset, as it comprises a substantial prospective footprint surrounding the world-famous Broken Hill silver-zinc-lead mine. We believe our intent to spin this asset out into a new vehicle will be well received and supported by UK investors.”

Disc: I hold