January 10, 2008
Castle Gold Updates Progress at Castillo Mine
TORONTO, ONTARIO--(Jan.10, 2008) - Castle Gold Corporation ("Castle
Gold" or the "Company") (TSX VENTURE:CSG) is pleased to announce
that it has placed approximately 8,500 ounces of gold on the leach pad at its
El Castillo mine during the fiscal year of 2007 (ended December 31). Of this
amount, approximately 3,000 ounces were placed on the pad in the third quarter
of 2007, while 5,500 ounces were placed on the pad during the fourth quarter of
2007. Gold sales from Castillo over the same period were approximately 2,200
ounces.
Mine production rates at El Castillo have been steadily increasing from an
average of approximately 60,000 tonnes of ore per month in the third quarter of
2007 to roughly 120,000 tonnes of ore per month in the fourth quarter of 2007.
Darren Koningen, Vice President of Operations for Castle Gold, said: "We
are happy to report these production numbers for the initial ramp-up period of
operations at Castillo. The increase in gold price has allowed us to
substantially reduce our mining cut-off grade at Castillo, which in turn has
given us access to significantly more ore in the pit area than was originally
planned."
Given the increased gold price and reduction in cut-off grade at Castillo,
Castle Gold has retained A.C.A. Howe International Limited of Toronto, Canada
to prepare a new ore reserve estimate and an updated mining plan for the
Castillo project. Management expects to receive the ore reserve estimate and
mining plan in the first quarter of 2008, and anticipates that the new mining
plan will include a substantial increase in annual gold production. Plans are
already underway to accommodate this increase.
Darren Koningen (P. Eng.), Vice-President - Operations, is the Qualified Person
under National Instrument 43-101 for the El Castillo Mine.
Castle Gold is a growth oriented gold producer focused on expanding gold
production within the Americas. Castle Gold owns a 100% interest in the El
Castillo gold mine in Durango, 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 project in Mexico and at its El Sastre, Bridge and
Lupita projects in Guatemala.
CAUTION
REGARDING FORWARD LOOKING STATEMENTS:
The information referred to referred to above contains "forward-looking
statements" within the meaning of the United States Private Securities
Litigation Reform Act of 1995 and applicable Canadian securities legislation.
Forward-looking statements include, but are not limited to, statements with
respect to the future price of metals, timing of exploration activities, mine
life, economic viability and estimated internal rate of return, estimation of
mineral resources, the results of drilling, estimated future capital and
operating costs, future stripping ratios, projected mineral recovery rates and
plans for developing, the projects. Generally, these forward-looking statements
can be identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is
expected", "budget", "scheduled",
"estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or state that
certain actions, events or results "may", "can",
"could", "would", "might" or "will be
taken", "occur" or "be achieved". Forward-looking
statements are subject to known and unknown risks, uncertainties and other
factors that may cause the actual results, level of activity, performance or
achievements of the companies to be materially different from those expressed
or implied by such forward-looking statements, including but not limited to:
risks related to the exploration and potential development of the projects,
risks related to international operations, the actual results of current
exploration activities, conclusions of economic evaluations, changes in project
parameters as plans continue to be refined, future prices of metals. Although
the companies have attempted to identify important factors that could cause
actual results to differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that such
statements will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking statements. The
companies do not undertake to update any forward-looking statements that are
incorporated by reference herein, except in accordance with applicable
securities laws.
Current issued and outstanding share capital: 73,760,782
The TSX Venture Exchange has not reviewed and does not accept responsibility
for the adequacy of this news release.
CONTACT INFORMATION:
Castle Gold Corporation
Chris Babcock
President and CEO
Toll Free: 1-866-646-3274
Website: www.castlegoldcorp.com
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