Castillo Copper has identified a new target with potential iron oxide copper-gold (IOCG) mineralisation within the Mount Oxide project in North West Queensland.
Factoring in the newly identified Pancake prospect, there are now four IOCG targets at the project including the Arya, Crescent and Flapjack prospects.
The Mount Oxide project is located 150km north of Mount Isa near the old Mount Oxide copper mine.
Castillo Copper managing director Simon Paull described the additional target as an excellent outcome, saying it materially enhanced the upside potential at Mount Oxide.
It came after a review of historic data for the site.
Work undertaken historically at the Pancake prospect included aerial GEOTEM and ground electromagnetic surveys, Castillo said.
These uncovered two sub-surface anomalies: a shallow source adjacent to mapped north-west trending faults and a moderate depth source dipping to the east.
In addition, considerable surface samples were taken which delivered high-grade assay results and observed alteration styles comparable to Mount Isa-style mineralisation
These included soil samples up to 670 parts per million copper, 1320 parts per million lead and 4600 parts per million zinc and rock chips up to 433 parts per million copper, 1320 parts per million lead and 7140 parts per million zinc.
Analysing the historical geochemical data resulted in a sizeable zinc-lead-copper anomalous zone being defined, the company said.
Castillo said its next steps would be to continue its review with further drilled down analysis on the remaining prospects within the Mount Oxide pillar and to finalise preliminary drill targets.