Castile Resources’ share price boosts on signs of extensive copper-gold at NT Rover project
Castile Resources (ASX:CST) confirms copper outside known targets at battery metals project
Source: iStock
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KEY POINTS
- Castile Resources share price up 10% in mid-afternoon trade
- Company has found a new thick copper intersection nearby existing known mineralisation
- Previous intersection found 30 metres of high grade gold; possible mineral resource upgrade on the cards
Castile Resources’ (ASX:CST) investors are bullish on today’s news the company has found further copper mineralisation on-site.
Castile has today highlighted its most recent assay data for the Jupiter Deeps project from nearby an existing drillhole reported earlier this month.
New assay data shows a twenty seven metre thick long core with middle-upper grade copper mineralisation present.
The close proximity of the two drillhole locations provides evidence that iron-oxide-copper-gold (IOCG) mineralisation may significantly extend underground on-site in a consistent fashion.
Previously reported gold grades raising eyebrows
Investor information service Undervalued Equity reports gold projects with grades above 5 grams per tonne (5g/t) are considered ‘high-grade.’
Undervalued Equity also notes copper grades over 1.5% are ‘high-grade.’
Earlier this month, Castile reported:
9.5 metres @ 9.6g/t gold and 1.4% copper
31m @ 4g/t and 1% copper
It’s worth noting absolute consensus on gold grades is hard to pin down, and that by many yardsticks, 4g/t of gold may also be considered a high grade result.
Subdued response despite promising signs
Castile's share price is up 14.29% over the last week, which may indicate the company is landing on smallcap investors’ radars.
By all accounts, a nine metre thick core may not be infallible proof of a commercial opportunity.
However, the 9.5m @ 9.6g/t result announced on July 4th appears to have been met with little fanfare.
What is Jupiter Deeps?
Jupiter Deeps is the name of a target underground on-site the company’s Rover project in the Central Desert region of the Northern Territory.
While gold may be present on-site, Castile is more focused on chasing after copper.
Management intends to become a player in the battery market; BloombergNEF research notes copper demand is projected to reliably increase for decades as part of battery manufacturing.
“This latest result has been terrific for the company,” Castile managing director Mark Hepburn said.
“It has returned a broad intercept of copper which is located outside the area of our current resource estimate models.”
Castile's three month charts compared to the materials index
