The share price of copper explorer Castillo Copper Ltd [ASX:CCZ] nearly doubled in the opening minutes of trade this morning.
CCZ released ‘game-changing’ results from its Mt Oxide Project in Mt Iza, Queensland.
At the time of writing the CCZ share price is up 2.7 cents, or 61.36%, to trade at 7.1 cents per share.
Source: Trading View
CCZ shares have gained strong momentum at the beginning of 2021 on the back of a surge in the copper price.
Major copper discovery at Big One Deposit
The base metal explorer has today announced results from its Big One Deposit at its Mt Oxide Project.
CCZ said the results are a ‘game changer’ for the project with managing director, Simon Paull, commenting:
‘We are delighted to receive assays of this calibre, especially with global copper supplies tight. There is now compelling evidence Big One Deposit is a shallow, high-grade copper-cobalt system that can potentially scale further.’
Their latest assays intercepted two 40–44m wide potentially economic intercepts from the surface, with up to 16.65% copper, significantly extending known mineralisation at the site.
- 40m at 1.64% from surface, including 11m at 4.40% from 24m, 5m at 7.34% from 28m, and 1m at 16.65% from 29m
- 44m at 1.19% from surface, including 14m at 3.55% from 27m, 3m at 10.88% from 37m, and 1m at 12.6% from 37m
- 12m at 0.79% from 52m, including 8m at 1.06% from 57m, 3m at 2.03% from 58m, 1m at 4.27% from 59m, and 1m at 1.46% from 62m
Source: Castillo Copper
According to CCZ, the latest assays significantly extend known mineralisation and build on high-grade historic potentially economic intercepts.
Historic intercepts that produced results from supergene copper mineralisation up to 28.4%.
What might be most exciting about today’s announcement is CCZ’s confidence of finding more mineralisation of a similar nature at the Big One Deposit.
CCZ’s geology team said there is ‘likely’ secondary enrichment at the site and the prospects of intersecting more shallow copper mineralisation in the next drilling campaign is encouraging.
Will the CCZ share price momentum continue?
With today’s big news, CCZ said they are now actively accelerating forward development plans.
While there is a pause in drilling activities, due to the commencement of the wet season across northern Australia, a geophysics campaign is being formulated to identify new potential test-drill targets.
CCZ will now begin modelling a JORC compliant resource based on available historic and fresh data.
Should this deliver a positive result, then CCZ said they will apply for a fresh mining lease.
Meaning we could potentially see CCZ transition into development this year.
And, of course, keep an eye on the price of copper.
With the rise of renewable energy, electric cars, and battery innovation, the base metal could experience significant tail winds in the coming years.
Check out this full Money Morning article showcasing how and why now may be the time to start thinking about this green narrative.
This is a growing trend that could put stocks like CCZ in a position that could see them soar to heights like never before.
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