Next Investors logo grey

Castillo Copper progresses stockpile offtake deal at Cangai

Published 20-NOV-2018 10:53 A.M.

|

2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.


Click Here to View Latest Articles

Castillo Copper (ASX:CCZ) has updated the market on its arrangements with Noble Group (SGX:CGP) to progress metallurgical test-work on all legacy stockpiles at the Cangai Copper Mine.

The Cangai Mine, which is situated near Grafton in northeast NSW, is CCZ’s flagship project. It comprises a volcanogenic massive sulphide (VMS) ore deposit, with one of Australia’s highest grade Inferred Resources for copper: 3.2Mt at 3.35% copper.

In terms of contained metal, the Inferred Resource is 107,600t copper, 11,900t zinc, 2.1Moz silver and 82,900Moz gold. Notably, supergene ore with up to 35% copper and 10% zinc is present, which is ideal feedstock for direct shipping ore.

As part of its agreement with Noble, CCZ’s geology team has collected samples from the stockpiles around the Cangai Copper Mine and the old smelter. The samples have been sent to a specialist metallurgical group offshore for third party verification and optimisation.

Smelter creek stockpile

Metallurgical test-work undertaken to date on samples from McDonoughs’ stockpile demonstrated copper concentrate recoveries of >80%, with grades up to 22%.

The team anticipates that these results can be improved upon, and will update the market when these materialise. Once this process is completed, CCZ will aim to complete a binding off-take agreement with Noble Group to distribute up to 200,000t of copper concentrate.

Securing this agreement with Noble is pivotal, given that it will validate the high-grade polymetallic nature of the ore body at Cangai Copper Mine and provide early-stage cashflow.

Meanwhile, work on the current drilling program is progressing well. CCZ intends to release field and assays results for the diamond and RC drilling campaigns imminently.

On top of that, the latest phase of the drill-hole electromagnetic (DHEM) survey work has concluded, with updated findings to also be reported shortly.

Legacy stockpiles at the Cangai Copper Mine

CCZ Chairman, Peter Meagher, commented: “Behind the scenes, CCZ’s various teams have been working extremely hard to progress the Board’s strategic agenda to re-open Cangai Copper Mine. Once the metallurgical results for the various stockpiles are returned, we hope to finalise our agreement with Noble Group, as this will be an important source of early stage cash flow.”

“Incrementally, the Board is looking forward to presenting an update to shareholders on the drilling campaign targeting high grade ore and DHEM survey findings at Cangai Copper Mine,” Meagher added.



General Information Only

This material has been prepared by Jason Price. Jason Price is an authorised representative (AR 000296877) of 62 Consulting Pty Limited (ABN 88 664 809 303) (AFSL 548573) (62C), and a Director of S3 Consortium Pty Ltd (trading as StocksDigital).

This material is general advice only and is not an offer for the purchase or sale of any financial product or service. The material is not intended to provide you with personal financial or tax advice and does not take into account your personal objectives, financial situation or needs. Although we believe that the material is correct, no warranty of accuracy, reliability or completeness is given, except for liability under statute which cannot be excluded. Please note that past performance may not be indicative of future performance and that no guarantee of performance, the return of capital or a particular rate of return is given by 62C, Jason Price, StocksDigital, any of their related body corporates or any other person. To the maximum extent possible, 62C, Jason Price, StocksDigital, their related body corporates or any other person do not accept any liability for any statement in this material.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.