CDT - Castle Minerals

[greggles]

CDT has been granted the exploration licence for the Success Dome base and precious metals targets in the Ashburton Basin region of WA. Lots of potential here. This is very good news for CDT.

CDT like to call themslves a project incubator, and that's a good thing to aspire to, but now they need to focus on progressing their best projects and showing the market what they really have. It's nice to have lots of prospective dirt to drill, but it's better to have the $$$ under that dirt.

 

[greggles]

CDT has applied for another 133km2 exploration license, extending the scope of the Kendenup Graphite Project to include the Mt. Barrow graphite occurrence.

Lithium is getting all the headlines, but graphite is facing a supply crunch as EV production ramps up. The industry is facing a supply deficit of 32% by 2025, so it's only a matter of time until the graphite price catches up with reality.

 

[greggles]

A lot of small cap miners are starting to form bottoms after the recent market correction and CDT is no exception. It has found good support around 2.2c, which it previously found back in December 2021.

It is now slowly moving north again, but will struggle to get through the mid-4s without a catalyst to give it some momentum.

CDT needs some good news, and with plenty of news flow in the coming months they may get some.

 

[greggles]

The recent RC drilling program at CDT's Kambale Graphite Project in Ghana is almost complete and based on early observations it appears that the company has managed to substantially increase the footprint of the graphitic schist.

The price of graphite remains strong and this news will keep sentiment towards CDT very positive in the near term.

 

[Dona Ferentes]

The recent RC drilling program at CDT's Kambale Graphite Project in Ghana is almost complete and based on early observations it appears that the company has managed to substantially increase the footprint of the graphitic schist.

The price of graphite remains strong and this news will keep sentiment towards CDT very positive in the near term.

Early days. No Cg numbers yet, apart from the earlier results, where they state the company is looking to "expand the footprint of the deposit by testing several new high conductivity zones that extend north and south and well outside of the known Inferred Resources of 14.4Mt at 7.2%C (graphitic carbon) for 1.03Mt contained graphite".

 

[greggles]

Early days. No Cg numbers yet, apart from the earlier results, where they state the company is looking to "expand the footprint of the deposit by testing several new high conductivity zones that extend north and south and well outside of the known Inferred Resources of 14.4Mt at 7.2%C (graphitic carbon) for 1.03Mt contained graphite".

Yes, early days but things are shaping up well at Kamabale. However, we won't know the outcome of the campaign for sure until the final assay results are through and we know what the drilling has revealed. Management has said that first assay results from the campaign are expected in mid-August.

 

[greggles]

Management has said that first assay results from the campaign are expected in mid-August.

CDT share price up 10% today on no news. I assume that the share price is rising on anticipation of imminent news, specifically assay results from the Kambale Graphite Project.

 

[greggles]

CDT recovering a little in the last week as the anticipated release of the assay results from the Kambale Graphite Project draws closer.

The announcement on 15 August stated the following:

Samples being prepared in Ghana, with assaying to be undertaken in Perth and first assay results expected in September.

In the same announcement CEO Stephen Stone said the following:

We are expecting to receive assays in early September and once these are processed and evaluated we will design a diamond core drilling program to obtain samples for Phase 2 test work.

So they can't be far away now. Early September has passed and it is now mid-September. Hopefully the assay results will be announced this week.

 

[greggles]

CDT has applied for two new exploration licenses, expanding the Terra Rossa sub-project within their Earaheedy base and precious metals project. Results are pending on a 671-sample fine-fraction soils campaign at Terra Rossa to advance priority targets.

Results are also due from recent drilling at the Kambale Graphite Project.

 

[greggles]

The assay results from the first 23 of 52 drill holes from the Kambale Graphite Project are finally through. As the announcement states, the results are encouraging. Widths and grades seem very good but it's early days and with overall market sentiment the way it currently is, this kind of announcement isn't really going to do much to move the share price.

Still, it's definitely a step in the right direction.

 

[greggles]

Busy quarter for CDT. Good to see them looking to offload some non-core projects to focus on battery metals. It will hopefully put off the need for a CR until next year and give them a focus that they so desperately need.

News flow should start to ramp up as we head towards the new year.

NEXT QUARTER*
During the December 2022 Quarter, Castle is planning to:

BATTERY METALS
Kambale (Graphite)

• Receive final results from the 29 outstanding RC drill holes.
• Undertake an Exploration Target estimate (JORC 2012).
• Undertake a diamond core program to obtain samples for Phase 2 test work.
• Commence Phase 2 test work in Perth.
• Advance project ESG initiatives.

Great Southern (Graphite)

• Secure additional access agreements with landowners and extend ground EM coverage.

Woodcutters (Lithium)

• Undertake a geochemical and rock chip sampling program to follow-up several areas of lithium and coincident indicator elements anomalism.

Wilgee Springs (Lithium)

• Undertake an initial orientation soil sampling program and geophysical investigations.

GOLD and BASE METALS
Earaheedy (Base metals)

• Undertake on the Withnell licence, a close-spaced soil sampling program ahead of planned RC drilling.
• Receive results from a soil sampling program at Terra Rossa and plan an RC drill program based on these.
• Plan a soil sampling program and/or an RC drilling program at E52/3928, once it is granted.

GENERAL

• Continue to assess opportunities to grow the Company’s interests, especially in the Battery Metals area.
• Advance discussions with several parties regarding the possible farm-out or sale of its Beasley Creek, Polelle, Wanganui and Success Dome projects.
• Finalise an Information Memorandum / Prospectus for the possible divestment via a direct sale of or listing on ASX of Castle’s Ghana gold interests.

 

[greggles]

CDT on the move this morning (up 28.57%) after releasing an Independent Exploration Target Estimate for their Kambale Graphite Project in Ghana. The estimate ranges between 16.82 million tonnes (low end) and 50.46 million tonnes (high end). Either way we're talking about a lot of graphite, although it is worth noting that the mineralised zone remains open to the north, south and at depth so in my opinion it is unlikely to be closer to the lower end estimate as that would be a very conservative figure.

A follow-on 31-hole, 2,460m RC drilling program is currently underway with a JORC 2012 Mineral Resource estimate expected to be delivered around end-Q1 2023, as long as there are no delays in turnaround times.

I think CDT are correct in focusing their efforts on this project in the short term as graphite is the battery metal of the moment right now with prices expected to firm in the short to medium term as supply dwindles.

 

[greggles]

CDT up 12.5% today. Volume is good, but not out of the ordinary. CDT has made a habit recently of spiking early in the day and then finishing flat, indicating that there are willing sellers prepared to unload their shares into any buying strength. It will be interesting to see if that happens again today. If not, it could be a bullish sign.

 

[greggles]

Castle Minerals has completed the 4 hole core sample diamond drilling program at Kambale for Phase 2 of the metallurgical test work. A 31 hole infill drilling program has now commenced and a maiden JORC MRE is due around end Q1 2023.

Good to see CDT management get cracking at the Kambale Graphite Project. While many of their projects have a lot of potential, Kambale is the best short term bet IMO.

 

[Sean K]

Castle Minerals has completed the 4 hole core sample diamond drilling program at Kambale for Phase 2 of the metallurgical test work. A 31 hole infill drilling program has now commenced and a maiden JORC MRE is due around end Q1 2023.

Good to see CDT management get cracking at the Kambale Graphite Project. While many of their projects have a lot of potential, Kambale is the best short term bet IMO.

View attachment 150686

Where does this potentially fit in the scale of things greggy?

 

[greggles]

Where does this potentially fit in the scale of things greggy?

View attachment 150689

View attachment 150690

With no finalised MRE we can only go by preliminary estimates based on what is currently known through drilling. For the most detail, have a look at the announcement dated 28 November (Independent Exploration Target Estimate Kambale). Lots of data and interpretation of drilling results with the following conclusion, "an Exploration Target of 16.82 million tonnes to 50.46 million tonnes at a grade between 6.74%TGC and 10.40%TGC (Total Graphitic Carbon) has been independently estimated for the Kambale graphite project".

This places the project in the large scale category but keep in mind that the deposit is open to the north, south and at depth. Given CDT's current market cap (~$23 million) I think the company is a reasonable bet.

 

[greggles]

300kg of diamond drill core samples from Kambale has arrived in Perth for analysis and metallurgical test work. Management is moving the Kambale Graphite Project ahead fast. I think they are determined to get the share price higher for the next capital raising.

The March Quarter should be a busy one and new flow should be coming thick and fast.

 

[greggles]

A huge amount of progress made during the last quarter across a number of projects, although primarily focused on Kambale.

Management is doing a great job at pushing things forward and with cash at hand starting to dwindle I think that's the best approach. The share price has moved up from 2c at the start of January to 2.7c today, so the market is sitting up and paying attention.

This will also be a busy quarter for CDT and we should see a steady news flow in the coming months.

 

[greggles]

Two months later and the good news from Kambale keeps on coming. Assay results released today look very good with multiple near surface zones of graphite mineralisation with some intercepts being very thick (up to 69m). The market is just starting to realize the potential here and with graphite demand predicted to soar this could be the right battery metal at the right time for CDT.

CDT also announced a heavily oversubscribed $2.5 million placement today via the issue of 125,000,000 new shares at 2c per share, bringing CDT's working capital to a total of $4 million. The challenge now for management is to use what they have to develop Kamabale as far as possible as fast as possible and they are well on track to achieving that with a Maiden JORC 2012 Resource Estimate due by the end of March and Phase 2 Metallurgical Test Work progressing.

 

[greggles]

CDT continuing to move the Woodcutters Lithium Project ahead with a 937 sample soil sampling campaign just having been completed. This campaign is a critical one for Woodcutters as it will determine whether or not CDT continue their exploration efforts at the project.