Castillo Copper is looking to sharpen its focus on its Mount Oxide project in North West Queensland, with plans to divest its Broken Hill Alliance (BHA) project in New South Wales.
The move followed a strategic review, factoring into account the excellent
recent drill results from Big One deposit at Mount Oxide, the company said.
It is considering divestment opportunities including a possible spin-off of the BHA asset into a new vehicle which could be listed in either London or Australia.
The Castillo board believes this is an optimal way to create value for shareholders while freeing up resources to channel more effort into developing the core Mount Oxide project and is liaising with advisor SI Capital on the ideal way to move this action forward.
“The resurgence of interest in the Broken Hill region is timely, as it provides an excellent opportunity for CCZ to optimise the BHA project and create value for shareholders,” managing director Simon Paull said.
Castillo Copper last week released what it described as ‘game changing’ assay results confirming a major copper discovery at Big One deposit.
It said at the time that it was accelerating development plans for the deposit, with a geophysics campaign being formulated and modelling of a JORC-compliant resource underway.
The latest results include 40m at 1.64 per cent copper including 1m at 16.65 per cent and 44m at 1.19 per cent copper including 1m at 12.6 per cent.
The recent drilling campaign also demonstrated high cobalt grades, including 12m at 912ppm cobalt.
The Big One deposit is part of Castillo’s Mount Oxide project, located 150km north of Mount Isa near the old Mount Oxide copper mine.