(Alliance News) - Castillo Copper Ltd on Monday said it remained open to aligning with a strategic partner, as it looks to test-drill new targets at the NWQ Copper Project in Queensland, Australia.

Castillo Copper is a base metal explorer primarily focused on copper across Australia and Zambia. The NWQ Copper Project is located nearby several historic and currently operating copper mines, including Lady Annie and Capricorn Copper, in the copper-belt district 150 kilometres north of Mount Isa.

The company said its initial focus would be on the Big One deposit.

Big One has an inferred mineral resource estimate of 2.1 million tonnes at 1.1% copper, for 21,886 thousand tonnes of copper metal post-two drilling campaigns across 2020 and 2021.

Castillo's geological consultant has set an exploration target that ranges from 2Mt to 6Mt, at 0.6% to 1% copper for 12kt to 60kt copper metal.

The Valparaisa Prospect, meanwhile, comprises copper mineralisation across two horizons over a six kilometre strike event.

The interaction of two intersecting faults suggests a structurally-controlled copper system that could be drill-tested.

Meanwhile, at the Arya Prospect, Castillo said there was a significant magnetic anomaly which has potential to be a primary source of copper mineralisation.

"With the macro-outlook for copper remaining upbeat, the board has authorised the geology team to visit several prospects to identify new targets to test-drill," said Managing Director Dennis Jensen.

"Key areas of focus include increasing the grade and confidence in the current MRE at Big One and the magnetic anomaly at the Arya Prospect. Given the large size of the NWQ Copper Project, the board remains open to aligning with a strategic partner to further advance development work."

Castillo Copper shares were trading 6.9% lower at 0.86 pence each in London on Monday afternoon.

By Holly Beveridge; Alliance News reporter

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