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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Castillo Copper Limited | LSE:CCZ | London | Ordinary Share | AU000000CCZ2 | ORD NPV (DI) |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.04 | 10.00% | 0.44 | 0.35 | 0.45 | 0.445 | 0.40 | 0.40 | 113,000 | 16:40:41 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Copper Ores | 0 | -6.94M | -0.0053 | -1.89 | 12.98M |
TIDMCCZ
RNS Number : 6193C
Castillo Copper Limited
14 June 2023
14 June 2023
CASTILLO COPPER LIMITED
("Castillo", or the "Company")
Preliminary test-work findings; progress with copper assets
Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily focused on copper across Australia and Zambia, is pleased to announce that it has received specialist consultant, ANSTO's(1) , preliminary report on metallurgical test-work undertaken on six samples from the Fence Gossan, Reefs, and Tors Tanks Prospects (BHA Project's East Zone).
HIGHLIGHTS:
-- Specialist consultant, ANSTO(1) , performed metallurgical test-work on six samples from the Fence Gossan, Reefs, and Tors Tanks Prospects (BHA Project's East Zone) which produced the following preliminary findings:
o The Total Rare Earth Element ("REE") plus Yttrium ("TREY") grades for the six samples ranged from 227 to 1,632 ppm TREY;
o The proportion of high-value Magnetic Rare Earth Oxides (MREO; Nd+Pr+Dy+Tb) to Total REO ("TREO") across the six samples ranged from 22% to 27%; and
o The best TREY extraction, using a direct leach process at pH 1, was 30%.
-- The Board is reviewing next steps, including trialing alternate leach tests proposed by ANSTO(1) to improve extraction results
-- Entech Mining(2) are finishing the pit optimisation and mine design study for the Big One Deposit (MRE: 2.1Mt @ 1.1% Cu for 21,886t2 copper metal - inferred)(3)
-- Castillo's geology team are close to completing an update on the 2017 Mineral Resource Estimate ("MRE") for Cangai Copper Mine(4) which will factor in results from drilling campaigns post 2017
Ged Hall, Chairman of Castillo Copper, said: "The Board is pleased the work by ANSTO ratified the earlier assay results and high MREO to TREO ratio. However, the Board is now reviewing ANSTO's recommendations on how to improve the metallurgical results from the BHA Project's East Zone. The Board's focus is now on the Australian copper assets, with critical reports due on Cangai Copper Mine and Big One Deposit that could aid materially in securing development partners."
METALLURGICAL TEST-WORK FINDINGS
The metallurgical test work delivered the following findings:
-- The TREY grades for the six samples ranged from 227 to 1,632 ppm TREY which is consistent with earlier assay results; and
-- The proportion of high-value MREO (Nd+Pr+Dy+Tb) to TREO across the six samples ranged from 22% to 27% and aligns with earlier calculations (Figure 1).
FIGURE 1: RARE EARTH ELEMENT COMPOSITION OF HEAD SAMPLES (PPM)
Elements TT-002RC TT-005DD FG-003RC FG-004RC RT-001RC RT-001RC A ========== ========= ========= ========= ========= La 199 283 335 215 47 206 ========== ========= ========= ========= ========= =========== Ce 450 423 488 411 90 410 ========== ========= ========= ========= ========= =========== Pr 49 75 62 47 10 47 ========== ========= ========= ========= ========= =========== Nd 203 316 220 174 37 174 ========== ========= ========= ========= ========= =========== Sm 43 67 36 32 7 29 ========== ========= ========= ========= ========= =========== Eu 10 16 6 5 1 2 ========== ========= ========= ========= ========= =========== Gd 44 66 28 21 5 18 ========== ========= ========= ========= ========= =========== Tb 7 10 4 3 1 1 ========== ========= ========= ========= ========= =========== Dy 37 53 20 17 4 3 ========== ========= ========= ========= ========= =========== Ho 7 9 3 3 1 0 ========== ========= ========= ========= ========= =========== Er 18 26 10 8 2 0 ========== ========= ========= ========= ========= =========== Tm 2 3 1 1 0 0 ========== ========= ========= ========= ========= =========== Yb 14 21 8 7 2 0 ========== ========= ========= ========= ========= =========== Lu 2 3 1 1 0 0 ========== ========= ========= ========= ========= =========== Y 169 261 88 71 20 7 ========== ========= ========= ========= ========= =========== LREE 901 1097 1105 847 184 837 ========== ========= ========= ========= ========= =========== HREE 185 274 117 96 23 53 ========== ========= ========= ========= ========= =========== Magnets 296 454 305 241 52 226 ========== ========= ========= ========= ========= =========== TRE+Y 1254 1632 1309 1014 227 897 ========== ========= ========= ========= ========= =========== MREO 347 532 358 282 61 265 ========== ========= ========= ========= ========= =========== TREYO 1509 1958 1570 1218 273 1076 ========== ========= ========= ========= ========= =========== MREO/TREO (%) 23.0 27.1 22.8 23.2 22.7 24.7 ========== ========= ========= ========= ========= =========== LRE = La, Ce, Pr, Nd; HRE = Sm, Eu, Gd, Tb, Dy, Ho, Er, Tm, Yb, Lu; Magnets = Pr, Nd, Tb, Dy; MREO = magnet oxides (Note, under ANSTO's definition MREO comprises 4 elements, not six (Gd and Sm not counted); TREO = Total oxides Source: ANSTO
For the metallurgy, all tests were calculated using the solid head and the leach liquor analysis. The best TREY extraction, using a direct leach process at pH 1, was 30% (Figure 2).
To potentially improve on these results, the Board is reviewing recommendations put forward by ANSTO which includes:
-- Assess a wider variety of samples to validate the leach results across the East Zone; and
-- Consider additional leach tests using hydrochloric acid to assess whether increased REE dissolution can be achieved using an alternative lixiviant for an increased leach duration time.
FIGURE 2: SUMMARY OF LEACH EXTRACTIONS (0.5 M (NH4)2SO4 SOLUTION)
Sample ID TT-002RC TT-005DD FG003RC FG-004RC RT-001RC RT-001RC A Head TREY (ppm) 1254 1632 1309 1014 227 897 ============== ============== ============== =============== =============== =============== Test ID CCZ-1 CCZ-7 CCZ-2 CCZ-8 CCZ-3 CCZ-9 CCZ-4 CCZ-10 CCZ-5 CCZ-11 CCZ-6 CCZ-12 ====== ====== ====== ====== ====== ====== ====== ======= ====== ======= ====== ======= pH 4 1 4 1 4 1 4 1 4 1 4 1 ====== ====== ====== ====== ====== ====== ====== ======= ====== ======= ====== ======= Duration (h) 0.5 2 0.5 2 0.5 2 0.5 2 0.5 2 0.5 2 ====== ====== ====== ====== ====== ====== ====== ======= ====== ======= ====== ======= Extraction (%) ================================================================================================= La 1 2 1 2 1 3 2 4 11 33 2 3 ====== ====== ====== ====== ====== ====== ====== ======= ====== ======= ====== ======= Ce 1 2 1 3 1 3 2 5 11 33 2 4 ====== ====== ====== ====== ====== ====== ====== ======= ====== ======= ====== ======= Pr 1 2 1 2 1 3 2 5 12 32 2 3 ====== ====== ====== ====== ====== ====== ====== ======= ====== ======= ====== ======= Nd 1 3 1 3 1 3 2 6 11 36 2 4 ====== ====== ====== ====== ====== ====== ====== ======= ====== ======= ====== ======= Sm 1 4 1 3 1 4 3 6 10 32 2 5 ====== ====== ====== ====== ====== ====== ====== ======= ====== ======= ====== ======= Eu 4 2 3 4 5 5 20 39 12 ====== ====== ====== ====== ====== ====== ====== ======= ====== ======= ====== ======= Gd 1 9 1 4 2 7 2 6 9 33 1 5 ====== ====== ====== ====== ====== ====== ====== ======= ====== ======= ====== =======
Tb 10 2 5 6 7 35 ====== ====== ====== ====== ====== ====== ====== ======= ====== ======= ====== ======= Dy 1 17 2 4 2 12 3 5 6 17 7 ====== ====== ====== ====== ====== ====== ====== ======= ====== ======= ====== ======= Ho 20 3 5 13 8 ====== ====== ====== ====== ====== ====== ====== ======= ====== ======= ====== ======= Er 1 26 2 5 2 16 3 6 11 ====== ====== ====== ====== ====== ====== ====== ======= ====== ======= ====== ======= Tm 29 7 19 ====== ====== ====== ====== ====== ====== ====== ======= ====== ======= ====== ======= Yb 2 29 2 7 3 17 4 4 ====== ====== ====== ====== ====== ====== ====== ======= ====== ======= ====== ======= Lu 33 7 18 ====== ====== ====== ====== ====== ====== ====== ======= ====== ======= ====== ======= Y 2 27 2 5 3 18 2 5 5 11 4 14 ====== ====== ====== ====== ====== ====== ====== ======= ====== ======= ====== ======= LRE 1 2 1 3 1 3 2 5 11 34 2 4 ====== ====== ====== ====== ====== ====== ====== ======= ====== ======= ====== ======= HRE 1 13 2 4 2 8 3 6 7 24 1 5 ====== ====== ====== ====== ====== ====== ====== ======= ====== ======= ====== ======= Magnets 1 5 1 3 1 4 2 6 11 34 2 4 ====== ====== ====== ====== ====== ====== ====== ======= ====== ======= ====== ======= TREY 1 7 1 3 1 5 2 5 10 31 2 4 ====== ====== ====== ====== ====== ====== ====== ======= ====== ======= ====== ======= TREY-Ce 1 10 1 3 1 6 2 5 9 29 2 4 ====== ====== ====== ====== ====== ====== ====== ======= ====== ======= ====== =======
Test methodology
A diagnostic desorption test was completed on each sample under the following conditions:
-- 0.5 M (NH(4) )2SO(4) as lixiviant; -- pH 4; -- 0.5 h; -- Ambient temperature (22 (O) C); and -- 4 wt% solids density.
All diagnostic leach tests were carried out on pulverised samples (80 g) at high L/S ratio, where there are no effects of adsorption and co-precipitation. These tests indicate the maximum extraction that could be achieved under ideal test conditions (at more practical lower L/S ratios, extraction could be less). Where required, 1 M H2SO4 was added to maintain the pH at 4 throughout the test duration.
At the completion of the test, the slurry was filtered to separate the leach liquor (PF) and the leached residue. The PF was analysed by ICP-OES at ANSTO for gangue elements, and at ALS Brisbane by ICP-MS for the REs and Sc, Th and U. The residue was washed on the filter with DI water (200 mL), dried and weighed. The water wash and residues were retained but not analysed.
A diagnostic leach test was conducted on each pulverised sample under the following acid leach conditions:
-- 0.5 M (NH(4) )2SO(4) as lixiviant; -- pH 1; -- 2 h; -- 50 (O) C; and -- 4 wt% solids density.
The test procedure was like the foregoing method, throughout the 2h test, the pH was maintained at pH 1 where necessary by addition of concentrated H2SO4. No intermediate thief samples were taken.
At the completion of the test, the slurry was filtered to separate the PF and the leached residue. The PF was analysed by ICP-OES at ANSTO for gangue elements, and at ALS by ICP-MS for the REs and Sc, Th and U. The residue was washed on the filter with DI water (200 mL), dried and weighed. The residues were analysed by XRF at ANSTO for major gangue elements and by lithium tetraborate fusion digest/ICPMS at ALS for the REs, Sc, Th and U. The wash was retained but not analysed.
For further information, please contact:
Castillo Copper Limited +61 8 6558 0886 Dr Dennis Jensen (Australia), Managing Director Gerrard Hall (UK), Chairman SI Capital Limited (Financial Adviser and Corporate Broker) +44 (0)1483 413500 Nick Emerson Gracechurch Group (Financial PR) +44 (0)20 4582 3500 Harry Chathli, Alexis Gore, Henry Gamble
About Castillo Copper
Castillo Copper Limited is an Australian-based explorer primarily focused on copper across Australia and Zambia. The group is embarking on a strategic transformation to morph into a mid-tier copper group underpinned by its core projects:
-- A large footprint 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 and platinoids.
-- Cangai Copper Mine in northern New South Wales, which is one of Australia's highest grading historic copper mines.
The group is listed on the LSE and ASX under the ticker "CCZ."
Competent Person's Statement
The information in this report that relates to Exploration Results for "BHA Project, East Zone" is based on information compiled or reviewed by Mr Mark Biggs. Mr Biggs is a 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. Further, Mr Biggs consents to the inclusion in this report of the matters based on information in the form and context in which it appears.
References
1) ANSTO. Available at: https://www.ansto.gov.au/services/resources-sector/minerals 2) Entech Mining. Available at: https://entechmining.com.au 3) CCZ ASX Release - 28 February 2022 & 20 February 2023
4) CCZ ASX Release - 28 September 2018 (Annual Report 2018), 3 September 2018, 19 February 2020, 28 April 2020 & 9 March 2023
APPIX A: BHA PROJECT'S EAST ZONE
FIGURE A1: BHA PROJECT's EAST ZONE - REE EXPLORATION FOOTPRINT
Source: CCZ geology team
FIGURE A2: BHA PROJECT
Source: CCZ geology team
APPIX B: ANSTO METALLURGICAL TESTING
Castillo identified clay-hosted REE mineralisation at its Fence Gossan, Tors and Reefs Tanks Prospects(1) , which are within the BHA Project's East Zone, located about 30km from Broken Hill.
Initial flotation tests showed REE minerals can be separated from the clays by flotation to produce a higher-grade concentrate (2-3 times REE enrichment). Castillo wants to develop an understanding of the potential to extract the REEs contained in the clay zones.
Castillo contacted(2) ANSTO and requested a work program to characterise the REE/clay mineralisation with respect to RE leachability for six samples ranging from fresh pegmatite to highly weathered clay (see Figure B1). The MREO grades of the samples to be supplied vary from 362 -- 603 ppm.
(1) ASX Announcements 23(rd) November 2022, and 16(th) and 28(th) February 2023.
(2) Phone call from Mark Biggs (ROM Resources, 24(th) February 2023).
FIGURE B1 SAMPLE DESCRIPTIONS
Drillhole Sample Number(s) From To Thick. Comments* (m) (m) (m) MREO = 466 ppm; highly TT_002RC CCZ03888-92 14.00 19.00 5.00 weathered clay ================== ====== ====== ======= =========================== MREO = 603 ppm; highly TT_005DD CCZ04936-49 5.00 18.00 13.00 weathered clay ================== ====== ====== ======= =========================== MREO = 459 ppm; Also, Preliminary Met ALS Perth sample; highly weathered FG_003RC CCZ04513-30 2.00 20.00 18.00 clay ================== ====== ====== ======= =========================== MREO = 427 ppm; highly FG_004RC CCZ04686-91 7.00 13.00 6.00 weathered clay ================== ====== ====== ======= ===========================
MREO = 466 ppm; highly RT_001RC CCZ03819-21 14.00 17.00 3.00 weathered clay ================== ====== ====== ======= =========================== MREO = 362 ppm; fresh RT_001RC CCZ04869 64.00 65.00 1.00 pegmatite ================== ====== ====== ======= ===========================
*MREO = Magnetic REEs (ANSTO definition: Pr, Nd, Tb, Dy)
Source: ANSTO
A key early question for Castillo is to establish the proportion of ionically adsorbed REEs, and the potential for increased extraction of the REEs by a simple direct acid leaching approach.
Clay rare earth deposits
The so-called REE ionic clay deposits (IAD) are commercially leached in China and Myanmar as a major source of heavy REE. A feature of the IADs is the REEs are present as physically adsorbed ions which can be readily solubilised by displacing the REE ions with an appropriate cation. Typical desorption conditions are contact with 0.3-0.5 ammonium sulfate (AS) at pH 4-5 for 30 minutes at ambient temperature, 20-30 wt% solids. Under these conditions up to 70% extraction (typically 40-60%) of TRE+Y can be obtained, with very little dissolution of gangue elements, which makes for simple downstream processing to produce a mixed REE carbonate.
Over the last few years, there have been numerous reports of elevated concentrations of REEs associated with clays, but in most cases the deposits have not proven to be of the classic ionic clay type, and a lower pH has been found to be necessary to dissolve the REE's. Under these circumstances, the economics of the process will depend on RE extraction, acid consumption and the concentrations of dissolved gangue elements.
An initial indication of potential economic viability can be obtained by leaching under desorption conditions (pH 4) and a lower pH to determine REE extraction(3) versus gangue dissolution.
(3) Total REE extraction is not necessarily the best indicator as the individual REs will likely dissolve to different extents, and the value of the individual REs varies significantly (the most valuable are Nd, Pr, Tb, Dy).
Objectives and scope
The main objective of the work program is to assess the leachability of REEs from clay samples over a range of pHs.
The specific tasks in the scope were:
o Drying of as-received samples and preparation for compositing, assay and leach tests.
o Head assays on six samples (XRF, fusion digest/MS).
o Carry out a diagnostic leach on the 6 samples using ammonium sulfate (AS) at pH 4.
o Carry out a diagnostic leach tests on 6 samples using ammonium sulfate at pH 1 (in sulfuric acid).
o Provision of a data pack, with a summary note and discussion of the main findings.
Chondrite plot
A method for providing confidence in the accuracy of the analysis of samples containing REEs is to produce a Chondrite plot. Normalisation against Chondrite meteorite concentrations removes the normal 'saw tooth' distribution obtained from the concentration profile and readily highlights differences in the relative concentrations of individual REE's in each mineral phase or sample (and analytical accuracy). The Chondrite plots should produce a smooth plot across the REE series if the sample being examined has not experienced preferential removal of elements. The Chondrite plots for the six Castillo composites are shown in Figure B2.
The plots show a smooth transition in normalised concentration from element to element which provides confidence in the analytical accuracy. The Eu anomaly is normal and is indicative of weathering through the geological history of the deposit (and is seen in clays, monazite, xenotime, or bastnasite deposits). The slight variation in Ce is common and may be an indication of dominant Ce mineralogy in certain samples. The slopes of the plots indicate that the distributions of REEs are similar in all the composites except for RT 001RC A (fresh Pegmatite). The slope of RT-001RC A indicates a significantly lower HRE/LRE ratio than the other five samples.
FIGURE B2: CHONDRITE PLOT OF HEAD SAMPLES
Source: ANSTO 2023
FIGURE B3: RARE EARTH ELEMENT COMPOSITION OF HEAD SAMPLES (PPM)
Elements TT-002RC TT-005DD FG-003RC FG-004RC RT-001RC RT-001RC A La 199 283 335 215 47 206 ========= ========= ========= ========= ========= =========== Ce 450 423 488 411 90 410 ========= ========= ========= ========= ========= =========== Pr 49 75 62 47 10 47 ========= ========= ========= ========= ========= =========== Nd 203 316 220 174 37 174 ========= ========= ========= ========= ========= =========== Sm 43 67 36 32 7 29 ========= ========= ========= ========= ========= =========== Eu 10 16 6 5 1 2 ========= ========= ========= ========= ========= =========== Gd 44 66 28 21 5 18 ========= ========= ========= ========= ========= =========== Tb 7 10 4 3 1 1 ========= ========= ========= ========= ========= =========== Dy 37 53 20 17 4 3 ========= ========= ========= ========= ========= =========== Ho 7 9 3 3 1 0 ========= ========= ========= ========= ========= =========== Er 18 26 10 8 2 0 ========= ========= ========= ========= ========= =========== Tm 2 3 1 1 0 0 ========= ========= ========= ========= ========= =========== Yb 14 21 8 7 2 0 ========= ========= ========= ========= ========= =========== Lu 2 3 1 1 0 0 ========= ========= ========= ========= ========= =========== Y 169 261 88 71 20 7 ========= ========= ========= ========= ========= =========== LREE 901 1097 1105 847 184 837 ========= ========= ========= ========= ========= =========== HREE 185 274 117 96 23 53 ========= ========= ========= ========= ========= =========== Magnets 296 454 305 241 52 226 ========= ========= ========= ========= ========= =========== TRE+Y 1254 1632 1309 1014 227 897 ========= ========= ========= ========= ========= =========== MREO 347 532 358 282 61 265 ========= ========= ========= ========= ========= =========== TREYO 1509 1958 1570 1218 273 1076 ========= ========= ========= ========= ========= =========== MREO/TREO (%) 23.0 27.1 22.8 23.2 22.7 24.7 ========= ========= ========= ========= ========= ===========
Notes:
1. LREE = La, Ce, Pr, Nd; HREE = Sm, Eu, Gd, Tb, Dy, Ho, Er, Tm, Yb, Lu. 2. Magnets = Pr, Nd, Tb, Dy; MREO = magnet oxides. 3. TREO = Total oxides.
Source: ANSTO
FIGURE B4: GANGUE COMPOSITION OF HEAD SAMPLES
Elements Unit TT-002RC TT-005DD FG-003RC FG-004RC RT-001RC RT-001RC A Al wt% 8.65 8.50 8.68 10.3 9.14 11.1 ====== ========= ========= ========= ========= ========= =========== Ca wt% 0.93 0.29 0.50 0.45 0.66 3.03 ====== ========= ========= ========= ========= ========= =========== Cu wt% 1.15 0.106 0.009 0.002 0.002 0.006 ====== ========= ========= ========= ========= ========= =========== Fe wt% 10.1 13.2 3.44 1.26 2.46 6.87 ====== ========= ========= ========= ========= ========= =========== K wt% 0.70 0.94 1.08 0.90 1.53 3.48 ====== ========= ========= ========= ========= ========= =========== Mg wt% 0.95 1.14 1.13 1.13 0.95 2.39 ====== ========= ========= ========= ========= ========= =========== Mn wt% 0.47 0.25 0.02 0.005 0.009 0.07 ====== ========= ========= ========= ========= ========= =========== Na wt% 1.55 0.85 4.23 6.34 4.18 2.59 ====== ========= ========= ========= ========= ========= =========== P wt% 0.05 0.07 0.04 0.11 0.05 0.05 ====== ========= ========= ========= ========= ========= =========== Sc ppm 57 48 24 29 15 10 ====== ========= ========= ========= ========= ========= =========== Si wt% 25.1 24.2 30.3 29.5 30.6 22.9
====== ========= ========= ========= ========= ========= =========== Th ppm 2 4 17 21 18 102 ====== ========= ========= ========= ========= ========= =========== U ppm 8 14 19 10 3 8 ====== ========= ========= ========= ========= ========= =========== TREE+Y ppm 1254 1632 1309 1014 227 897 ====== ========= ========= ========= ========= ========= ===========
Source: Indratti (2023)
APPIX C: JORC CODE, 2012 EDITION TABLE 1 - ANSTO METALLURGICAL TESTING
Section 1: Sampling Techniques and Data
Criteria JORC Code explanation Commentary Sampling Nature and quality of The samples described in Table B1 were derived techniques sampling (e.g., cut from the EL 8434 October 2022 drilling program, channels, random as follows: chips, or specific Diamond Drilling (DDH) specialised Diamond drilling of HQ diameter (TT_005DD) industry standard was completed to 137.7m r in the completed measurement tools program and was located 5m away from a RC hole appropriate already drilled (TT_ 003RC). to the minerals under Reverse Circulation ('RC') Drilling investigation, such RC drilling at Fence Gossan with samples submitted as for analysis using the above-mentioned methodologies down hole gamma was used to obtain a representative sample sondes, or handheld by means of riffle splitting. XRF instruments, Four (4) reverse circulation (RC) holes for etc.). These examples a total of 516m have been completed at the should not be taken Fence Gossan Prospect. as Four (4) RC holes were completed at Reefs Tank limiting the broad for a total of 564m. meaning of sampling. At Tors Tank, four (4) RC holes for a total Include reference to of 625.7m (including the cored hole) were completed. measures taken to The RC drilling technique was used to obtain ensure a representative sample by means of a cone sample representivity or riffle splitter with samples submitted for and the appropriate assay by mixed acid digestion and analysis calibration via ICP-MS + ICP-AES with anticipated reporting of any measurement a suite of 48 elements (sulphur >10% by LECO) tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where 'industry standard' work has been done this would be relatively simple (e.g., 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30g charge for fire assay'). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information. ================================= ======================================================================================================= Drilling Drill type (e.g., Drilling consisted of reverse circulation, techniques core, reverse and HQ diamond coring. One cored hole of HQ circulation, (61mm) diameter was completed at Tors Tank open-hole hammer, (TT005DD) after all the RC holes had been completed. rotary air blast, Diamond drilling will be completed with standard auger, diameter, conventional HQ and NQ with historical Bangka, sonic, etc.) holes typically utilizing RC and percussion and details (e.g., pre-collars to an average 30 metres (see Drillhole core Information for further details). diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.). ================================= ======================================================================================================= Drill sample Method of recording Reverse Circulation ('RC') Drilling - Reverse recovery and assessing core circulation sample recoveries were visually and estimated during drilling programs. Where the chip sample estimated sample recovery was below 100% this recoveries and was recorded in field logs by means of qualitative results assessed. observation. Measures taken to Reverse circulation drilling employed sufficient maximise sample air (using a compressor and booster) to maximise recovery sample recovery. and ensure Historical cored drillholes by North Broken representative nature Hill, CRA , and Pasminco were well documented of the samples. and generally have >90% core recovery. Whether a No relationship between sample recovery and relationship exists grade has been observed. between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. ================================= ======================================================================================================= Logging Whether core and chip The drilling that did occur was completed to samples have been modern-day standards. In this program at all geologically three areas holes were completed to varying and geotechnically depths ranging from 100-220m. logged to a level of No downhole geophysical logging took place; detail however, measurements of magnetic susceptibility to support were taken at the same 1m intervals as the appropriate Mineral PXRF readings were taken. Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged. ================================= ======================================================================================================= Sub-sampling If core, whether cut Core samples will be hand-split or sawn with techniques or sawn and whether re-logging of available historical core indicating
and sample quarter, a 70:30 (retained: assayed) split was typical. preparation half or all core The variation of sample ratios noted are considered taken. consistent with the sub-sampling technique If non-core, whether (hand-splitting). riffled, tube No second half samples were submitted for analysis, sampled, but duplicates have been taken at a frequency rotary split, etc and of 1:20 in samples collected. whether sampled wet It is considered water planned to be used for or core cutting is unprocessed and unlikely to dry. have introduced sample contamination. For all sample types, Procedures relating to the definition of the the nature, quality, line of cutting or splitting are not available. and appropriateness It is expected that 'standard industry practice' of the sample for the period was applied to maximize sample preparation representivity. technique. Quarter core will be submitted to ALS for chemical Quality control analysis using industry standard sample preparation procedures adopted and analytical techniques. for all The sample interval details and grades quoted sub-sampling stages for cored intervals described in various maps to maximise in the main section are given in previous ASX representivity releases (Castillo Copper 2022a, b, c, 2023a). of samples. Measures taken to ensure that the sampling is representative of the in-situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled. ================================= ======================================================================================================= Quality The nature, quality and The following rare earth elements were analysed of assay appropriateness of using ME-MS61R Sample Decomposition is by data and the assaying and laboratory HF-HNO(3) -HClO(4) acid digestion, HCl leach laboratory procedures used (GEO-4A01). The Analytical Method for Silver tests and whether the technique is shown below: Element Symbol Units Lower Upper is considered partial Limit Limit or total. Silver Ag ppm 0.01 100 For geophysical tools, ======== ======= ======= ======= spectrometers, handheld XRF instruments, etc, the Inductively Coupled Plasma - Atomic Emission parameters used in Spectroscopy (ICP - AES) Inductively Coupled determining the analysis Plasma - Mass Spectrometry (ICP-MS) including instrument A prepared sample (0.25 g) is digested with make and model, reading perchloric, nitric, hydrofluoric, and hydrochloric times, calibrations acids. The residue is topped up with dilute factors applied and their hydrochloric acid and analysed by inductively derivation, etc. coupled plasma atomic emission spectrometry. Nature of quality control Following this analysis, the results are procedures adopted reviewed for high concentrations of bismuth, (eg standards, blanks, mercury, molybdenum, silver, and tungsten duplicates, external and diluted accordingly. laboratory checks) and Samples meeting this criterion are then analysed whether acceptable levels by inductively coupled plasma-mass spectrometry. of accuracy (i.e. lack of Results are corrected for spectral interelement bias) and precision interferences. have been established. Four acid digestions can dissolve most minerals: however, although the term "near total" is used, depending on the sample matrix, not all elements are quantitatively extracted. Results for the additional rare earth elements will represent the acid leachable portion of the rare earth elements and as such, cannot be used, for instance to do a chondrite plot. Geochemical Procedure Element geochemical procedure reporting units and limits are listed below: Element Symbol Units Lower Upper Limit Limit Aluminum Al % 0.01 50 ======== ======== ======== ======== Arsenic As ppm 0.2 10 000 ======== ======== ======== ======== Barium Ba ppm 10 10 000 ======== ======== ======== ======== Beryllium Be ppm 0.05 1 000 ======== ======== ======== ======== Bismuth Bi ppm 0.01 10 000 ======== ======== ======== ======== Calcium Ca % 0.01 50 ======== ======== ======== ======== Cadmium Cd ppm 0.02 1 000 ======== ======== ======== ======== Cerium Ce ppm 0.01 500 ======== ======== ======== ======== Cobalt Co ppm 0.1 10 000 ======== ======== ======== ======== Chromium Cr ppm 1 10 000 ======== ======== ======== ======== Cesium Cs ppm 0.05 500 ======== ======== ======== ======== Copper Cu ppm 0.2 10 000 ======== ======== ======== ======== Iron Fe % 0.01 50 ======== ======== ======== ======== Gallium Ga ppm 0.05 10 000 ======== ======== ======== ======== Germanium Ge ppm 0.05 500
======== ======== ======== ======== Hafnium Hf ppm 0.1 500 ======== ======== ======== ======== Indium In ppm 0.005 500 ======== ======== ======== ======== Potassium K % 0.01 10 ======== ======== ======== ======== Lanthanum La ppm 0.5 10 000 ======== ======== ======== ======== Lithium Li ppm 0.2 10 000 ======== ======== ======== ======== Magnesium Mg % 0.01 50 ======== ======== ======== ======== Molybdenum Mo ppm 0.05 10 000 ========= ======= ======== ========== Sodium Na % 0.01 10 ========= ======= ======== ========== Niobium Nb ppm 0.1 500 ========= ======= ======== ========== Nickel Ni ppm 0.2 10 000 ========= ======= ======== ========== Phosphorous P ppm 10 10 000 ========= ======= ======== ========== Lead Pb ppm 0.5 10 000 ========= ======= ======== ========== Rubidium Rb ppm 0.1 10 000 ========= ======= ======== ========== Rhenium Re ppm 0.002 50 ========= ======= ======== ========== Sulphur S % 0.01 10 ========= ======= ======== ========== Antimony Sb ppm 0.05 10 000 ========= ======= ======== ========== Scandium Sc ppm 0.1 10 000 ========= ======= ======== ========== Selenium Se ppm 1 1 000 ========= ======= ======== ========== Tin Sn ppm 0.2 500 ========= ======= ======== ========== Strontium Sr ppm 0.2 10 000 ========= ======= ======== ========== Tantalum Ta ppm 0.05 100 ========= ======= ======== ========== Tellurium Te ppm 0.05 500 ========= ======= ======== ========== Thorium Th ppm 0.2 10 000 ========= ======= ======== ========== Titanium Ti % 0.005 10 ========= ======= ======== ========== Thallium Tl ppm 0.02 10 000 ========= ======= ======== ========== Uranium U ppm 0.1 10 000 ========= ======= ======== ========== Vanadium V ppm 1 10 000 ========= ======= ======== ========== Tungsten W ppm 0.1 10 000 ========= ======= ======== ========== Method ME-MS81 This method involves a lithium borate fusion prior to acid dissolution and ICP- MS analysis provides the most quantitative analytical approach for a broad suite of trace elements. Options for adding the whole rock elements from an |CP - AES analysis on the same fusion, or base metals from a separate four acid digestion, are available. Lower and upper detection limits are given below: Element Symbol Units Lower Upper Limit Limit Yttrium Y ppm 0.1 500 ======== ======= ======= ======= Zinc Zn ppm 2 10 000 ======== ======= ======= ======= Zirconium Zr ppm 0.5 500 ======== ======= ======= ======= Dysprosium Dy ppm 0.05 1 000 ======== ======= ======= ======= Erbium Er ppm 0.03 1 000 ======== ======= ======= ======= Europium Eu ppm 0.03 1 000 ======== ======= ======= ======= Gadolinium Gd ppm 0.05 1 000 ======== ======= ======= ======= Holmium Ho ppm 0.01 1 000 ======== ======= ======= ======= Lutetium Lu ppm 0.01 1 000 ======== ======= ======= ======= Neodymium Nd ppm 0.1 1 000 ======== ======= ======= ======= Praseodymium Pr ppm 0.03 1 000 ======== ======= ======= =======
Samarium Sm ppm 0.03 1 000 ======== ======= ======= ======= Terbium Tb ppm 0.01 1 000 ======== ======= ======= ======= Thulium Tm ppm 0.01 1 000 ======== ======= ======= ======= Ytterbium Yb ppm 0.03 1 000 ======== ======= ======= ======= * Laboratory inserted standards, blanks and duplicates were analysed per industry standard practice. There was no evidence of bias from these results. ================================= ======================================================================================================= Verification The verification of of sampling significant * Two of the drillholes have been twinned, at Tors Tank and assaying intersections where TT_005DD was drilled next to TT_003RC. by either independent or alternative company * Conversion of elemental analysis (REE parts per personnel. million) to stoichiometric oxide (REO parts per The use of twinned million) was undertaken by ROM geological staff using holes. the below element to stoichiometric oxide conversion Documentation of factors primary data, data (https://www.jcu.edu.au/news/releases/2020/march/rare-earth-metals-an-untapped-resource) entry procedures, data verification, data storage (physical and Table C1-1: Element -Conversion Factor -Oxide electronic) Form protocols. Ce 1.2284 CeO(2) Discuss any ============== =================== adjustment to assay Dy 1.1477 Dy(2) O(3) data. ============== =================== Er 1.1435 Er(2) O(3) ============== =================== Eu 1.1579 Eu(2) O(3) ============== =================== Gd 1.1526 Gd(2) O(3) ============== =================== Ho 1.1455 Ho(2) O(3) ============== =================== La 1.1728 La(2) O(3) ============== =================== Lu 1.1371 Lu(2) O(3) ============== =================== Nd 1.1664 Nd(2) O(3) ============== =================== Pr 1.2083 Pr(6) O(11) ============== =================== Sm 1.1596 Sm(2) O(3) ============== =================== Tb 1.1762 Tb(4) O(7) ============== =================== Tm 1.1421 Tm(2) O(3) ============== =================== Y 1.2699 Y(2) O(3) ============== =================== Yb 1.1387 Yb(2) O(3) ============== =================== Rare earth oxide is the industry accepted form for reporting rare earths. The following calculations are used for compiling REO into their reporting and evaluation groups: TREO (Total Rare Earth Oxide) = La(2) O(3) + CeO(2) + Pr(6) O(11) + Nd(2) O(3) + Sm(2) O(3) + Eu(2) O(3) + Gd(2) O(3) + Tb(4) O(7) + Dy(2) O(3) + Ho(2) O(3) + Er(2) O(3) + Tm(2) O(3) + Yb(2) O(3) + Y(2) O(3) + Lu(2) O(3) . TREO-Ce = TREO - CeO(2) LREO (Light Rare Earth Oxide) = La(2) O(3) + CeO(2) + Pr(6) O(11) + Nd(2) O(3) + Sm(2) O(3) HREO (Heavy Rare Earth Oxide) = Eu(2) O(3) + Gd(2) O(3) + Tb(4) O(7) + Dy(2) O(3) + Ho(2) O(3) + Er(2) O(3) + Tm2O3 + Yb2O3 + Y2O3 + Lu2O3 CREO (Critical Rare Earth Oxide) = Nd(2) O(3) + Eu(2) O(3) + Tb(4) O(7) + Dy(2) O(3) + Y(2) O(3) MREO (Magnetic Rare Earth Oxide) = Pr(6) O(11) + Nd(2) O(3) + Tb(4) O(7) + Dy(2) O(3) . (as advised by ANSTO) Previously, Castillo Copper had reported MREO (Magnetic Rare Earth Oxide) as = Pr(6) O(11) + Nd(2) O(3) + Sm(2) O(3) + Gd(2) O(3) + Tb(4) O(7) + Dy(2) O(3) . Total Rare Earth Oxides (TREO) Example Calculation: To calculate TREO an oxide conversion "factor" is applied to each rare-earth element assay. The "factor" equates an elemental assay to an oxide concentration for each element. Below is an example of the factor calculation for Lanthanum (La): o Relative Atomic Mass (La) = 138.9055 o Relative Atomic Mass (O) = 15.9994 o Oxide Formula = La(2) O(3) o Oxide Conversion Factor = 1/ ((2x 138.9055)/(2x 138.9055 + 3x 15.9994)) Oxide Conversion Factor = 1.173 (3dp) None of the historical data has been adjusted.
================================= ======================================================================================================= Location Accuracy and quality All drillholes and samples have been converted of data of surveys used to to MGA94 (Zone 54). The holes were originally points locate surveyed with handheld GPS, and were subsequently drill holes (collar resurveyed by a more accurate DGPS survey from and down-hole GMC Surveying. It is thus estimated that locational surveys), accuracy therefore varies between 0.1-0.2m trenches, mine The quality of topographic control (a combination workings and other of drone survey over the Fence Gossan area locations and GSNSW 1 sec DEM for the remainder) is deemed used in Mineral adequate for the purposes of the exploration Resource estimation. drilling program. Specification of the grid system used. Quality and adequacy of topographic control. ================================= ======================================================================================================= Data spacing Data spacing for The average sample spacing from the current and reporting of drilling program across the tenure varies per distribution Exploration prospect, and sample type, as listed in Table Results. C1-2, below: Whether the data spacing, and distribution Table C1-2: EL 8434 Drillhole Spacing Prospect Drillholes RMS Drillhole is sufficient to Completed Spacing establish the degree (m) of geological The Sisters Not yet and grade continuity =========== ============== appropriate for the Iron Blow Not Yet Mineral =========== ============== Resource and Ore Tors Tank 4 127 Reserve estimation =========== ============== procedure(s) Fence Gossan 4 208 and classifications =========== ============== applied. Ziggy's n/a n/a Whether sample Hill compositing has been =========== ============== applied. Reefs Tank 1 n/a =========== ============== The Datamine software allows creation of fixed length samples from the original database given a set of stringent rules. Sample locations were previously shown by plans in Castillo Copper (2023a). ================================= ======================================================================================================= Orientation Whether the Historical drill holes at the BHAE are typically of data orientation of drilled vertically for auger and RAB types in relation sampling achieves (drilled along section lines) and angled at to unbiased sampling of -55˚ or -60˚ to the horizontal and geological possible structures drilled perpendicular to the mineralised trend structure and for RC and DDH. the extent to which Drilling orientations are adjusted along strike this is known, to accommodate folded geological sequences. considering All Fence Gossan holes were designed to drill the deposit type. toward grid south at an inclination of 60 degrees If the relationship from horizontal. between the drilling The drilling orientation is not considered orientation to have introduced a sampling bias on assessment and the orientation of the current geological interpretation. of key mineralised Geological mapping by various companies has structures reinforced that the strata dips variously between is considered to have 5 and 65 degrees. introduced a sampling bias, this should be assessed and reported if material. ================================= ======================================================================================================= Sample The measures taken to Sample security procedures are considered 'industry security ensure sample standard' for the current period. security. Samples obtained during drilling completed between 4/10/22 to the 10/10/22 were transported by exploration employees or an independent courier directly from Broken Hill to ALS Laboratory, Adelaide. Samples selected for metallurgical testing were then shipped to ANSTO in Sydney NSW. The Company considers that risks associated with sample security are limited given the nature of the targeted mineralisation. ================================= ======================================================================================================= Audits The results of any No external audits or reviews have yet been or reviews audits or reviews of undertaken. The reporting of head grades by sampling ANSTO internal laboratory work matches that techniques and data. previously reported by ALS work conducted on behalf of Castillo Copper (Biggs 2023; Castillo Copper 2023a). ================================= =======================================================================================================
SECTION 2: REPORTING OF EXPLORATION RESULTS
Criteria JORC Code explanation Commentary Mineral Type, reference EL 8434 is located about 28km east of Broken tenement name/number, Hill whilst EL 8435 is 16km east of Broken and land location and Hill. Both tenures are approximately 900km tenure status ownership northwest of Sydney in far western New South including Wales (Figures C2-1 and C2-2 in Appendix A, agreements or above). material EL 8434 and EL 8435 were both granted on the issues with 2(nd of) June 2016 to Squadron Resources for third parties a term of five (5) years for Group One Minerals. such as joint On the 25(th of) May 2020, Squadron Resources ventures, changed its name to Wyloo Metals Pty Ltd (Wyloo). partnerships, In December 2020 the tenure was transferred overriding from Wyloo Metals to Broken Hill Alliance Pty royalties, Ltd a 100% subsidiary company of Castillo Copper native Limited. Both tenures were renewed on the 12(th title interests, of) August 2021 for a further six (6) years historical and are due to expire on the 2(nd of) June sites, 2027. wilderness EL 8434 lies across two (2) 1:100,000 geology or national park map sheets Redan 7233 and Taltingan 7234, and and two (2) 1:250,000 geology map sheets, SI54-3 environmental Menindee, and SH54-15 Broken Hill in the county settings. of Yancowinna. EL 8434 consists of one hundred The security of and eighty-six (186) units) in the Adelaide the tenure held and Broken Hill 1:1,000,000 Blocks covering at the time an area of approximately 580km(2) . of reporting EL 8435 is located on the 1:100,000 geology along with any map sheet Taltingan 7234, and the 1:250,000 known geology map sheet SH/54-15 Broken Hill in the impediments county of Yancowinna. EL 8435 consists of twenty-two to obtaining a (22) units (Table 1) in the Broken Hill 1:1,000,000 licence to Blocks covering an area of approximately 68km(2) operate in the . area. Access to the tenures from Broken Hill is via the sealed Barrier Highway. This road runs north-east to south-west through the northern portion of EL 8434, passes the southern tip of EL 8435 eastern section and through the middle of the western section of EL 8435. Access is also available via the Menindee Road which runs north-west to south-east through the southern section of the EL 8434. The Orange to Broken Hill Rail line also dissects EL 8435 western section the middle and then travels north-west to south-east slicing through the eastern arm of EL 8434 (Figure C2-1). Figure C2-1: EL 8434 and EL 8435 General Location Map ============================ ================================================================= Exploration Acknowledgment Explorers who were actively involved over done by other and appraisal of longer parties exploration historical periods in various parts of EL8434 by other were: - North Broken Hill Ltd, CRAE parties. Exploration, Major Mining Ltd and Broken Hill Metals NL, Pasminco Exploration Ltd, Normandy Exploration Ltd, PlatSearch NL/Inco Ltd/ EGC Pty Ltd JV and the Western Plains Gold Ltd/PlatSearch/EGC Pty Ltd JV. A comprehensive summary of work by previous explorers was presented in Leyh (2009). However, more recently, follow-up field reconnaissance of areas of geological interest, including most of the prospective zones, was carried out by EGC Pty Ltd over the various licenses. This work, in conjunction with a detailed interpretation of aeromagnetic, gravity plus RAB / RC drill hole logging originally led to the identification of at least sixteen higher priority prospect areas. All these prospects were summarized in considerable detail in Leyh (2008). Future work programs were then also proposed for each area. Since then, further compilation work plus detailed geological reconnaissance mapping and sampling of gossans and lode rocks has been carried out. A total of 22 prospects were then recognised on the exploration licence with at least 12 occurring in and around the tenure. With less than 45% outcropping Proterozoic terrain within the licence, this makes it very difficult to explore and is in the main very effectively screened from the easy application of more conventional exploration methodologies due to a predominance of extensive Cainozoic cover sequences. These include recent to young Quaternary soils, sands, clays and older more resistant, only partially dissected, Tertiary
duricrust regolith covered areas. The depth of the cover ranges from a few metres in the north to over 60 metres in some areas on the southern and central license. Exploration by EGC Pty Ltd carried out in the field in the first instance has therefore been heavily reliant upon time consuming systematic geological reconnaissance mapping and relatable geochemical sampling. These involve a slow systematic search over low outcropping areas, poorly exposed subcrop and float areas as well as the progressive development of effective regolith mapping and sampling tools. This work has been combined with a vast amount of intermittently acquired past exploration data. The recent data compilation includes an insufficiently detailed NSWGS regional mapping scale given the problems involved, plus some regionally extensive, highly variable, low-level stream and soil BLEG geochemical data sets over much of the area. There are also a few useful local detailed mapping grids at the higher priority prospects, and many more numerous widespread regional augers, RAB, and percussion grid drilling data sets. Geophysical data sets including ground magnetics, IP and EM over some prospect areas have also been integrated into the exploration models. These are located mainly in former areas of moderate interest and most of the electrical survey methods to date in this type of terrain continue to be of limited application due to the high degree of weathering and the often prevailing and complex regolith cover constraints. Between 2007 and 2014 Eaglehawk Geological Consulting has carried out detailed research, plus compilation and interpretation of a very large volume of historic exploration data sourced from numerous previous explorers and dating back to the early 1970's. Most of this data is in non-digital scanned form. Many hard copy exploration reports (see references) plus several hundred plans have been acquired from various sources, hard copy printed as well as downloaded as scans from the Geological Survey of NSW DIGS system. They also conducted field mapping, costean mapping and sampling, and rock chip sampling and analysis. Work Carried out by Squadron Resources and Whyloo Metals 2016-2020 Research during Year 1 by Squadron Resources revealed that the PGE-rich, sulphide-bearing ultramafic rocks in the Broken Hill region have a demonstrably alkaline affinity. This indicates a poor prospectivity for economic accumulations of sulphide on an empirical basis (e.g., in comparison to all known economic magmatic nickel sulphide deposits, which have a dominant tholeiitic affinity). Squadron instead directed efforts toward detecting new Broken Hill-Type (BHT) deposits that are synchronous with basin formation. Supporting this modified exploration rationale are the EL's stratigraphic position, proximity to the Broken Hill line of lode, abundant mapped alteration (e.g., gahnite and/or garnet bearing exhalative units) and known occurrences such as the "Sisters" and "Iron Blow" prospects. The area overlies a potential magmatic Ni-Cu-PGE source region of metasomatised sub-continental lithospheric mantle (SCLM) identified from a regional targeting geophysical database. The exploration model at the time proposed involved remobilization of Ni-Cu-PGE in SCLM and incorporation into low degree mafic-ultramafic partial melts during a post-Paleoproterozoic plume event and emplacement higher in the crust as chonoliths/small intrusives - Voisey's Bay type model. Programs were devised to use geophysics and geological mapping to locate secondary
structures likely to control and localise emplacement of Ni-Cu-PGE bearing chonoliths. Since EL8434 was granted, the following has been completed: * Airborne EM survey. * Soil and chip sampling. * Data compilation. * Geological and logistical reconnaissance. * Community consultations; and * Execution of land access agreements . Airborne EM Survey Geotech Airborne Limited was engaged to conduct an airborne EM survey using their proprietary VTEM system in 2017. A total of 648.92-line kilometres were flown on a nominal 200m line spacing over a portion of the project area. Several areas were infilled to 100m line spacing. The VTEM data was interpreted by Southern Geoscience Consultants Pty Ltd, who identified a series of anomalies, which were classified as high or low priority based on anomaly strength (i.e., does the anomaly persist into the latest channels). Additionally, a cluster of VTEM anomalies at the "Sisters" prospect have been classified separate due to strong IP effects observed in the data. Geotech Airborne have provided an IP corrected data and interpretation of the data has since been undertaken. Soil and Chip sampling The VTEM anomalies were followed up by a reconnaissance soil sampling programme. Spatially clustered VTEM anomalies were grouped, and follow-up soil lines were designed. Two (2) VTEM anomalies were found to be related to culture and consequently no soils were collected. Two (2) other anomalies were sampled which were located above thick alluvium of Stephens Creek and were therefore not sampled. A line of soil samples was collected over a relatively undisturbed section at Iron Blow workings and the Sisters Prospect. One hundred and sixty-six (166) soil samples were collected at a nominal 20cm depth using a 2mm aluminum sieve. Two (2) rock chips were also collected during this program. The samples were collected at either 20m or 40m spacing over selected VTEM anomalies. The samples were pulverised and analysed by portal XRF at ALS laboratories in Perth. Each site was annotated with a "Regolith Regime" such that samples from a depositional environment could be distinguished from those on exposed Proterozoic bedrock, which were classified as an erosional environment. The Regolith Regime groups were used for statistical analysis and levelling of the results. The levelled data reveals strong relative anomalies in zinc at VTEM anomaly clusters 10, 12 and 14 plus strong anomalous copper at VTEM 17. ============================ ================================================================= Geology Deposit type, As the strata is tightly folded, the intersected geological cobalt-rich layers are overstated in terms setting, and of apparent thickness, however the modelling style software calculates a true, vertical thickness. of Cobalt mineralisation is commonly associated mineralisation. with shears, faults, amphibolites, and a quartz-magnetite rock within the shears, or on or adjacent to the boundaries of the Himalaya Formation. In general, most of the cobalt and rare earth element - rich layers have a north-northwest to north strike. REE enrichment generally occurs as a 5 to 10-metre-thick zone between the completely weathered layer and strongly weathered layer and it is targeted for commercial mining (Figure D2-2). Compared to other REE deposits, regolith-hosted rare earth element deposits are substantially low-moderate grade (containing 0.05-0.3 wt.% extractable REEs). Nevertheless, due to its easy extraction
method, low processing costs and large abundance, the orebodies are generally economic to be extracted ( Duuring, (2020); Kanazawa and Kamitani (2006); and Murakami, H.; Ishihara (2008) ). Figure C2-2: Weathering Profile over REE - Rich Granite https://en.wikipedia.org/wiki/Regolith-hosted_rare_ea rth_element_deposits Weathering profile of regolith hosted REE deposits shown above, the legend is: (A) Humic layer. (B) Completely weathered layer. (C) Strongly weathered layer. (D) Weathering front. (E) Unweathered rock. Most of the REE found in cerium monazite (Ce (PO(4) )) which always contains major to minor amounts of other REE (Nd, La, Pr, Sm etc) replacing Ce. Also, the mineral often contains trace amounts of U and Th (coupled with Ca). This will be collaborated with XRD and/or SEM analysis. ============================ ================================================================= Drill hole A summary of all Header information about all drillholes and Information information surface samples completed at Reefs Tank, Tors material to Tank and Fence Gossan have been tabulated in the this release in Appendix B. understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length. If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. ============================ ================================================================= Data aggregation In reporting No metal equivalents have been reported. Rare methods Exploration earth element results have been converted to Results, rare earth oxides as per standard industry weighting practice (Castillo Copper 2022c, 2023a). averaging No compositing of assay results has taken place, techniques, but rather menu options within the Datamine maximum and/or GDB module have been used to create fixed length minimum 1m assay intervals from the original sampling grade lengths. truncations The rules follow very similarly to those used (e.g., cutting by the Leapfrog Geo software in creating fixed of high length samples. grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high-grade results and longer lengths of low-grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated. ============================ ================================================================= Relationship These A database of all the historical borehole sampling between relationships has been compiled and validated. It is uncertain mineralisation are particularly if there is a strong relationship between the widths and important surface sample anomalies to any subsurface intercept in the reporting anomalous intersections due to the possible lengths of Exploration masking by variable Quaternary and Tertiary Results. overburden that varies in depth from 0-15m. If the geometry The mineralisation appears to be secondary of the enrichment in the regolith clays and extremely mineralisation weathered material derived from quartzo-feldspathic with pegmatites. respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g., 'down hole length, true
width not known'). ============================ ================================================================= Diagrams Appropriate maps Current surface anomalies are shown on maps and sections released on the ASX (Castillo Copper 2022a, (with scales) 2022b, 2022c and 2023a). All historical surface and tabulations sampling has had their coordinates converted of intercepts to MGA94, Zone 54. should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. ============================ ================================================================= Balanced Where All recent laboratory analytical results have reporting comprehensive been recently reported (see Castillo Copper reporting of all 2022a, b, c, 2023a) for assay results. Exploration Regarding the surface and sampling, no results Results is not other than duplicates, blanks or reference practicable, standard assays have been omitted. representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. ============================ ================================================================= Other substantive Other Historical explorers have also conducted airborne exploration exploration and ground gravity, magnetic, EM, and IP resistivity data data, if surveys over parts of the tenure area but this meaningful and is yet to be fully georeferenced (especially material, should the ground IP surveys). Squadron Resources be reported conducted an airborne EM survey in 2017 that including (but covers Iron Blow and The Sisters, but not the not limited to): southern cobalt and REE prospect areas. geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. ============================ ================================================================= Further The nature and It is recommended that: work scale of planned * Assess a wider variety of samples to validate the further leach results across the deposit. work (e.g., tests for lateral * Consider QEMSCAN mineralogy to identify possible REE extensions phases. This would confirm the reason for low or depth extractions and inform the likelihood of increased extensions or dissolution under more aggressive acid leach large-scale conditions. It would also inform the possibility of step-out upgrading the REE content by beneficiation (e.g., drilling). screening); and Diagrams clearly highlighting the areas * Consider additional leach tests using hydrochloric of possible acid to assess whether increased REE dissolution can extensions, be achieved using an alternative lixiviant for an including the increased leach duration time but noting that a main moderate acidity is still likely to be required, geological which would likely prove to be uneconomic. interpretations and future drilling areas, provided this information is not commercially sensitive. ============================ =================================================================
TABLE 1 REFERENCES
Biggs, M.S., 2023, Metallurgy Testing at ANSTO Started, unpublished memo for Castillo Copper Limited, ROM Resources, Mar 2023,3pp.
Castillo Copper Limited, 2022a ASX Release, Drilling hits targeted cobalt zones & wide pegmatite intercepts at Broken Hill 12 October 2022
Castillo Copper Limited, 2022b ASX Release, Drilling hits more wide pegmatite intercepts at Broken Hill, 24 October 2022
Castillo Copper Limited, 2022c ASX Release, Completed auger sampling campaign targets 6.5km2 REE mineralisation zone, 23 December 2022
Castillo Copper Limited, 2023a ASX Release, MREO focused metallurgical test-work underway by ANSTO, 13 April 2023.
Datta, I., 2023, Technical memo, Scoping Tests for rare earth recovery, prepared for Castillo Copper Limited, Jun23, 14pp.
Duuring, P 2020, Rare-element pegmatites: a mineral systems analysis: Geological Survey of Western Australia, Record 2020/7, 6p.
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https://en.wikipedia.org/wiki/Regolith-hosted_rare_earth_element_deposits
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