CASTILLO COPPER LIMITED
("Castillo", or the "Company")

Advancing copper projects with key appointment

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 appointed a service provider to progress development work at the Big One Deposit, and that the Castillo geology team is progressing work to update and enhance the confidence in the 2017 inferred JORC Mineral Resource Estimate ("MRE") for Cangai Copper Mine.

HIGHLIGHTS:

·    With the long-term demand outlook for copper remaining positive, especially with the transition to green energy gaining increased traction, there is likely to be persistent upward pressure on the price and greater exploration to establish new supply chains

·    With this positive backdrop, the Board has been progressing plans to expedite developing the copper assets, with the following service provider appointment as well as work conducted on the Cangai resource by the Castillo geology team:

·    Entech Mining¹ will undertake a pit optimisation and mine design study for the Big One Deposit (NWQ Copper Project Mt Isa copper belt), which has an inferred JORC MRE at 2.1Mt @ 1.1% Cu for 21,886t² copper metal:

o If the findings are positive then next steps comprise determining the optimal path to market and effective use of third-party processors

o Concurrently, work can focus on capitalising on Big One Deposit's exploration potential via drill-testing known targets north of the line of lode

o Interest in the Mt Isa copper belt is significant, as Castillo's footprint is proximal to ground owned by majors including Rio Tinto, Anglo America, Teck & Glencore

·    The Castillo geology team will update and enhance the confidence in the 2017 inferred JORC MRE for Cangai Copper Mine (northern NSW) - 107,589t contained copper metal (3.2Mt @ 3.35%)³:

o Critically, drilling work post-2017, which includes 34 RC drill-holes for circa 5,000m⁴, will be factored into the geological model

o Notably, Cangai Copper Mine still delivers exploration potential as DHEM surveys⁴ in 2018-19 identified several untested bedrock conductors that are open at depth

Ged Hall, Chairman of Castillo Copper, said: "The Board is well versed in the current global demand-supply dynamics for copper which by all accounts suggests explorers, like Castillo Copper with inferred resources, are potentially prime beneficiaries. Having recently outlined plans to ramp up advancing the Big One Deposit and Cangai Copper Mine, the Board is delighted to announce the appointment of this key service provider to progress development work."  

ADVANCING WORK ON COPPER ASSETS

Big One Deposit, NWQ Copper Project

The Board has appointed Entech Mining¹ - a multi-disciplinary specialist mining consultant - to undertake a pit optimization and mine design study for the Big One Deposit (Inferred MRE: 2.1Mt @ 1.1% Cu for 21,886t² copper metal). Contingent on the study's findings, next steps potentially comprise detailing effective processing options and viable path to market.

In addition, there are known targets north of the line of lode, which deliver exploration potential, that require drill-testing to extend known mineralisation.

In recent years, interest in the Mt Isa copper belt has grown significantly. Notably, Castillo's footprint is proximal to ground owned by major mining groups including Rio Tinto, Anglo American, Teck and Glencore (Figure 1).

FIGURE 1: NWQ COPPER PROJECT RELATIVE TO PEERS

Source: CCZ geology team

Cangai Copper Mine

For Cangai Copper Mine, the Board has tasked the Castillo geology team with updating and enhancing the confidence in the 2017 inferred JORC MRE (107,589t copper metal; 3.2Mt @ 3.35%)³. A key feature will be including drilling work post-2017, which includes 34 RC drill-holes for circa 5,000m⁴, into the geological model.

To re-iterate, Cangai Copper Mine still delivers exploration potential as DHEM surveys⁴ in 2018-19 identified several untested bedrock conductors that are open at depth (Figure 2).

FIGURE 2:  CANGAI COPPER MINE - CONDUCTORS & DRILL-HOLES

Source: CCZ geology team

For further information, please contact:  

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 and Mineral Resource Estimates for "Big One and Cangai Copper Mines" 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.  Mr Biggs also consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

References

1)        Entech Mining. Available at: https://entechmining.com.au

2)        CCZ ASX Release - 28 February 2022 & 20 February 2023

3)        CCZ ASX Release - 28 September 2018 (Annual Report 2018), 3 September 2018, 19 February 2020, 28 April 2020 & 9 March 2023

4)        CCZ ASX Release - 3 September 2018 & 11 December 2018