|
TORONTO,
ONTARIO--(Marketwire - May 21, 2009) - CASTLE
GOLD CORPORATION (Castle Gold, the Company)(TSX
VENTURE:CSG) is pleased to announce initial assay results from the
first eight of its 19 hole Phase 1 reverse circulation drill program
aimed at expanding the gold resource to the south and south-east of the
open pit at its 100 percent owned El Castillo gold mine in Durango
State, Mexico.
The best intersection of this program was in hole CA - 216 which
intersected 109.7 metres grading 0.70 grams per tonne gold from 16.8
metres to 126.5 metres drill hole depth, including: 65.5 metres grading
1.02 grams per tonne gold from 61.0 metres to 126.5 metres. All but one
of the initial eight drill holes intersected gold mineralized intervals
of from 7.6 metres up to 109.7 metres intersection length at gold
grades above the resource cut-off grade (0.15 grams per tonne gold)
used to calculate the El Castillo mine gold resource and reserves
(refer to table 1 - Summary Assay Results - El Castillo Mine Phase 1
Resource Expansion Drill Program), and are comparable or better than
the historic assay results in the vicinity of these Phase 1 drill
holes, the locations of which are illustrated in Image 1 - El Castillo
Mine Drill Hole Location Map. Additional assay results are pending on
eleven of a total of 19 reverse circulation drill holes designed to
test the potential for resource grade mineralization in the area
immediately to the south and south east of the designed El Castillo
open pit mine.
Thomas Atkins, President and CEO of Castle Gold commented on the drill
results stating: "We're very encouraged by these results. Drill
hole CA - 216 is fantastic! Great work from our geological team led by
the Company's Exploration Manager, Miguel Cardona. These initial
results enhance our confidence that there may well be potential to
expand the open pit resources in the area to the south and south-east
of the current El Castillo open pit. We'll wait until all results are
received from the Phase 1 program and then look at these in the context
of the historic drilling and the potential that the recent drilling can
add to the mineral resource. Once we've a better understanding of this
potential, we'll consider the next phase of drilling to further enhance
the confidence in this area. These results fit well with the recently
announced metallurgical results from the Transition-Sulphide Zone below
the currently designed open pit. Should future drill results, plus
additional metallurgical test-work, continue to demonstrate the
potential to expand resources in these areas, the Company may well be
in a position to calculate a new expanded resource, consider expanded
reserves and reconsider an upward revision to mine production levels
going forward, as had been our objective from these programs."
Table 1 Summary Assay Results - El Castillo Mine Phase 1 Resource Expansion Drill Program --------------------------------------------- Drill Hole From To Length Gold Grade Number (m) (m) (m) (gpt) CA - 215 7.6 82.3 74.7 0.25 including 13.7 50.3 36.6 0.31 including 13.7 24.4 10.7 0.53 CA - 216 16.8 126.5 109.7 0.70 including 16.8 57.9 41.1 0.24 including 61.0 126.5 65.5 1.02 CA - 217 29.0 80.8 51.8 0.25 30.5 50.3 19.8 0.33 CA - 218 64.0 71.6 7.6 0.33 CA - 219 13.7 24.4 10.7 0.25 CA - 220 No significant results CA - 221 19.8 42.7 22.9 0.28 19.8 30.5 10.7 0.39 CA - 222 30.5 51.8 21.3 0.23 --------------------------------------------- Note: Reported drill hole intersection lengths are indicated in the table above and are not true width. Drill holes are drilled at 60 degree angle to horizontal in a generally perpendicular direction to interpreted mineralized structures. More information is required regarding orientation of mineralized structures relative to the drill hole angle prior to being able to determine true intersection width.
Subsequent
stages in the exploration and potential development of the mineral
resources to the south and south-east of the currently designed El
Castillo open pit are intended to include:
1. Evaluation of all Phase 1 drill hole data taking into account
geology, structures and assay results;
2. Consideration of an updated resource calculation based on the
addition of the results from Phase 1 drilling combined with the
historic drilling; and
3. Consideration of a Phase II drill program to further define resource
potential in the area.
It is expected that this proposed work will be completed in the third
quarter of 2009.
The Company drilled a total of 19 reverse circulation drill holes for a
total of 2,170.2 metres in the Phase 1 Program, plus 2 holes for a
total of 301.8 metres as part of a condemnation program for mine
planning purposes. Historic drilling in the south and south-east area
includes a total of 4,973 metres in 21 drill holes (refer to Table 2 -
Summary Assay Results - El Castillo Mine Historic Resource Drill
Results).
Table 2 Summary Assay Results - El Castillo Mine Historic Resource Drilling ----------------------------------------------- Drill Hole From To Length Gold Grade Number (m) (m) (m) (gpt) CA - 14 24.0 34.5 10.5 0.22 CA - 44 0.0 24.0 24.0 0.53 45.0 126.0 81.0 0.34 CA - 46 16.5 45.0 28.5 0.43 102.0 144.0 42.0 0.34 CA - 49 22.5 30.0 7.5 0.24 CA - 51 0.0 42.0 42.0 0.32 CA - 56 No significant results CA - 101 No significant results CA - 103 0.0 37.5 37.5 0.22 CA - 105 13.5 40.5 27.0 0.25 54.0 72.0 18.0 0.32 CA - 112 70.5 84.0 13.5 0.35 CA - 141 54.0 73.5 19.5 0.23 112.5 136.5 24.0 0.48 CA - 143 7.5 70.5 63.0 0.30 CA - 144 54.0 124.5 70.5 0.46 CA - 147 111.0 127.5 16.5 0.40 CA - 149 106.5 141.0 34.5 0.26 CA - 164 25.5 145.0 120.0 0.40 CA - 181 28.5 51.0 22.5 0.61 67.5 78.0 10.5 0.25 CA - 189 13.5 84.0 70.5 0.41 CA - 193 1.5 16.5 15.0 0.20 24.0 42.0 18.0 0.20 57.0 118.5 61.5 0.43 CA - 199 72.0 108.0 36.0 0.39 CA - 214 No significant results ----------------------------------------------
Qualified Person Comments/Quality
Control Procedures
This press release has been reviewed by Mr. Darren Koningen,
P. Eng., Castle Gold's Vice President Project
Development. Mr. Koningen is a Qualified
Persons under National Instrument 43-101. The reverse circulation drill
program and on-site sample preparation procedures were supervised by
Miguel Cardona, Castle Gold's Exploration Manager a BSc geological
engineer with over 20 years experience in mineral exploration, project
development and resource calculation.
All drill hole samples were composited at site into 1.5 meter intervals
and split with half the sample sent for preparation and analysis to
ALS-Chemex Laboratories in Vancouver, Canada
using gold fire assays with an Atomic Absorption Spectroscopy
("AAS") finish. The remainder of the
samples were then split again at site with half kept as the
final sample reject and half assayed by Castle Gold at their on-site
laboratory facilities according to hot cyanide-shake procedures. The
assays from the Castle Gold laboratory were used for comparative
purposes only and are not reported in this summary.
About Castle Gold
Castle Gold Corporation is a growth oriented gold producer with
projects focused in the America's. The Company owns a 100% interest in
the El Castillo gold mine in Mexico and a 50% interest in the El Sastre gold mine in Guatemala. Castle Gold is also
advancing exploration and development work at its La Fortuna
gold-silver-copper project in Mexico.
The Company would also like to make mention that it has granted 250,000
options to purchase shares of the Company to Darren Koningen,
Vice President New Projects for Castle Gold Corp. The options are
exercisable at a price of C$0.65 per share for a period of three years
and vest quarterly over 12 quarters commencing the issuance date of May
11, 2009.
To view an image of the El Castillo Mine Drill Hole Location Map,
please visit the following link: http://media3.marketwire.com/docs/ElCastillomine.pdf
TSX-V Trading Symbol: CSG
Total Shares Outstanding: 75.3MM
Fully Diluted: 82.3MM
52-Week Trading Range: C$0.15 - $0.71
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this news release.
|