Cadence Minerals plc (LON:KDNC) has announced that further to the announcement of 27 October 2021, Castillo Copper (LON:CCZ) has provided an update on the Picasso Lithium Project following the visit of its geology team who mapped and collected samples from the high-density corridor.
For the full Castillo announcement, please click link here.
· A circa 10km zone of pegmatite occurrences was confirmed in the north-eastern part of the tenure, which significantly exceeds government mapping; and
· The observed pegmatites are potentially related to lithium mineralisation which enhances prospectivity of the tenure’s north-eastern quadrant
· Due diligence for the Litchfield Lithium Project is progressing with the laboratory expected to return assays within 2-3 weeks
Field Trip Findings:
Castillo’s geology team undertook considerable mapping across the Picasso Lithium Project, though much of the time was focused on the tenure’s north-east quadrant where the high-density pegmatite corridor is located. Encouragingly, a circa 10km zone of pegmatite occurrences was confirmed in the tenure’s north-east quadrant which is the best exposed part of the Picasso Lithium Project. Notably, the pegmatites potentially host lithium mineralisation though this is subject to further investigation. There are several areas of outcropping basement where granite is the dominant rock type. Interestingly, there is potential to discover further pegmatites across the tenure as there is significant shallow sand cover.
Simon Paull, Managing Director of Castillo Copper, commented: “The geology team’s visit to the Picasso Lithium Project delivered encouraging news, confirming that a 10km zone of pegmatites is apparent in the tenure’s north-east quadrant. The Board’s preliminary conclusion, based on due diligence undertaken to date, is the Picasso Lithium Project is prospective for lithium mineralisation and delivers significant incremental exploration potential.”
Lithium Technologies Pty Ltd and Lithium Supplies Pty Ltd (“LS”), in which Cadence owns a 29% shareholding, each own 50% of Synergy Prospecting Pty Ltd and have granted , as announced on 29 September 2021, Castillo a 90-day option to acquire 100% of the outstanding shares of LT and LS and by implication 100% of Synergy.
During this 90-day period, Castillo will be conducting due diligence on all three entities to ensure the underlying assets are in good standing and there are no material adverse issues. Under the terms of the option agreement, Castillo can exercise its right to acquire LT, LS and Synergy at any time during the 90-day period.
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 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.
· Cangai Copper Mine in northern New South Wales, which is one of Australia’s highest grading historic copper mines.
The primary assets of Synergy, which are wholly-ownded, comprise the Litchfield Lithium Project (EL31774) in NT and Picasso Lithium Project (E63/1888) in WA. In addition, Synergy has an application in NT – EL31828 – known as the Alcoota Lithium Project, which comprises ground proximal to Alice Springs. Castillo will need to undertake further geological due diligence on this application.
LT and LS also hold applications for six lithium properties in San Luis Province, Central Argentina. Again, Castillo will need to undertake further geological due diligence on these applications.
Further details on these assets and all the applications and permits are contained on our website here
Option terms & consideration
The terms of the 90-day option are as follows:
· A$50,000 non-refundable deposit in cash on formally granting the option that will go directly to Synergy for working capital purposes.
Upon exercising the option within the 90-day period, the binding consideration terms are as follows:
· A$1m script payment in CCZ shares will become payable to the Vendor Group based on the 14-day WVAP calculated from the date of which the option agreement is announced to the ASX. Note, the Vendor Group will be subject to a 6-month voluntary escrow period for 50% of the shares and 12-months for the 50% balance from the date of settlement. In addition, both parties agree to sign off on a binding term sheet.
Incremental consideration terms are applicable if the following milestones are achieved:
· A$1m script payment in CCZ’s shares to the Vendor Group based on the 14-day WVAP if two drill-holes produce assayed intercepts greater or equal to a true width of at least 10m @ 1.3% Li2O.Note, the two holes will be at least 100m apart, but not greater than 200m.
· A$1m script payment in CCZ’s shares to the Vendor Group based on the 14-day WVAP if a JORC compliant total inferred resource of at least 7Mt @ 1.3% Li2O is modelled by SRK Consulting.
· In the event of commercial mining operations commencing a 2% NSR will be payable to the nominees of the facilitator.
Cadence Minerals CEO, Kiran Morzaria, added: “We are pleased to note the progress and initial conclusions announced today by Castillo following the field trip work undertaken at the Picasso Project. We look forward to further progress.”