A sample of rock from the Cangai mine site.
A sample of rock from the Cangai mine site. Costillo Copper

RICH FUTURE: Old mine a copper goldmine

WITH a rich history of copper mining in the area, the Castillo Copper explorations at Jackadgery have revealed more high-grade copper, zinc and silver from drilling.

In a recent interview with Small Caps, an online news source dedicated to market news and information on ASX listed small cap companies, Castillo Copper chairman Peter Meagher said they have found extensive sulphide mineralisation across the five holes they have drilled on the site.

The assay, or testing of the metal to determine its contents and quality of the sample, has revealed high-grade copper in sections of the drill, he said.

"ASSAY results up to 10.25% copper, 6.04% zinc and 32.5 grams per tonne silver from the first five drill-holes are exceptional," he said.

"The event clearly represents a demarcation point that materially distinguishes our Cangai copper mine."

Castillo plan to drill a further 34 holes as part of their campaign to test the assays and determine how much material is in the area.

It's estimated the mine at Cangai contains 3.2 million tonnes at 3.35% copper, and they estimate there is 107,600 tonne of copper, 11,900 tonne of zinc, 2.1 million ounces of silver and 82,900Moz of gold.

With a strong history of mining copper at Cangai, the company believes with new technology they will be able to process the dump from the historic site and extract more ore.

More than 5000 tonnes of copper was produced from Cangai in the early 1900s before it closed down. However, some work was completed on the sear in the late 1980, early 1990s.

Historically, high grade loads in the Cangai region were mined to a depth of 90m using underground techniques, the company said as long as explorations are successful, the mine would be explored via an open pit technique.

In a video made by the company Mr Meagher said the company plans to build upon the known JORC (Joint Ore Resource Committee) resource.

"Whilst we have drill rigs at the Cangai site, we intend to do some exploration drilling on a tenement that is adjacent to the Cangai mine and is also adjacent to a mine where a company called Corazon has been having some exploration success," he said.