VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 19, 2013) - Duncastle Gold Corp. ("Duncastle" or the "Company") (News - Market indicators) (FRANKFURT:5D3) provided a project and corporate update including the acquisition of mineral claims between its Drayton and Black Lake projects in northwest Ontario and the completion of a prospecting program on the Black Lake project, among other items.
Acquisition
Duncastle announced today the acquisition by direct staking of 11 claims between its Drayton and Black Lake projects zone located 10 kilometres south of Sioux Lookout and 70 kilometres east of Dryden in Northwestern Ontario.
This strategic acquisition increases Duncastle's land position to a total of about 5,584 hectares on the northwest extension of the Sioux Lookout deformation zone which host major gold deposits at Tamaka's Goldlund project and Treasury Metal's Goliath project, located about 40 and 80 kilometres respectively to the southwest. Duncastle now has over 20 kilometres of strike in the rapidly developing Wabigoon Greenstone belt which has added over 14 million ounces gold in the past ten years including the Rainy River Resources deposit, among other significant discoveries. This regional success adds to the broader success of Northwest Ontario which has seen over $1.6 billion in acquisition deals for gold projects in the past three years.
President Michael Rowley commented "we are pleased to have been able to expand our holdings at the Drayton/Black Lake project and continue to look for opportunities to consolidate the area. The combined project is underexplored and offers significant potential for discovery of high grade gold mineralization."
Black Lake Exploration Update
The Company also released results of a geo-referencing and sampling program that was conducted on the 1,904 hectare Black Lake property over a three week period in June 2013 and included location and sampling of several of the historic prospects. A total of 14 rock chip samples were collected and submitted for analysis. Seven of fourteen samples returned anomalous values ranging from 0.7g/t gold to 4.6g/t gold. The samples were collected from the area of the historic Moretti showing northwest on the property and a series of gold-quartz veins and mineralized schists exposed to the south of Black Lake.
Since acquisition (see Nov 21, 2012 news release) the Company has undertaken a comprehensive review of the historical work on the project as part of target development work to guide future exploration on the property. Thirteen different mineral occurrences located on or around the property were reviewed and prioritized for follow-up exploration.
Historically, two types of gold mineralization have been identified on the property:
- Shear-hosted gold-bearing quartz-carbonate veins (Red Lake style); and
- Intrusion-hosted disseminated gold mineralization (Timmins style)
Duncastle's primary target type is the shear-hosted gold-quartz vein occurrences which occur within a series of northeast-trending deformation zones that transect the stratigraphy over an approximate six-kilometre strike-length.
The Moretti occurrence is the most historically significant target on the property and comprises quartz-chlorite-carbonate veins exposed in outcrop and historic trenches over a 300 metre strike-length. Historic work from the area returned numerous select chip and grab samples grading between 20g/t gold and 1,212g/t gold and several bulk samples including a 8,063kg sample averaging 14.1g/t gold and a second 4,087kg sample, collected from trenches over 100 metres away, which averaged 18.6g/t gold (historical results not independently verified by Duncastle).
Work by Duncastle shows that historic drilling at the Moretti occurrence failed to test the down-dip projection of much of the apparent strike length of the target vein system. Properly drill testing this target is a priority for future work programs.
Recommendations from the compilation include an initial phase of field verification of the thirteen target areas followed by drill testing on up to five of the target areas.
Correction to June 25, 2013 news release
The Company advises that the timing of the next advance royalty payment due from Armex Mining per the terms of an agreement for the sale of the Yankee Dundee project was incorrectly stated in a news release on June 25, 2013. The payment is due 18 months after Armex receives a Notice of Work (permit) and is correctly described in the January 21, 2013 release. All other terms of the sale, which may provide Duncastle a total of about $4-million or more by way of cash and royalty payments depending on mine performance, commodity markets and other factors, remain unchanged.
Termination of Pipestone Agreement
Duncastle also announced today that it has terminated the letter of understanding for the Pipestone property as announced November 13 and December 12, 2012 by mutual agreement with Mineral Mountain Resources Ltd, and has returned the property accordingly.
Management Update
The Company advises that Victor Jones has resigned from the Board of Directors. Duncastle thanks him for his service and wishes him well in his future endeavours.
About Duncastle Gold
Duncastle Gold Corp. is a Vancouver-based gold exploration company with over 191 square kilometers of projects in Ontario and British Columbia, Canada. In addition to the Drayton-Black Lake gold project in Ontario and its royalty interest in the past-producing Yankee-Dundee Mine in southeast BC, Duncastle controls the highly prospective polymetallic Porphyry Creek project in northwest BC.
As part of the Manex Resource Group, Duncastle benefits from shared expertise in corporate finance, public company administration, investor relations, and technical and geological services provided for seven public companies active in North America. Since its formation in 1997, the Manex Group companies have raised over $375 million in exploration financing.
Rob Macdonald, (P.Geo.), is the Qualified Person responsible for reviewing the technical results in this release.
On behalf of the Board of Directors,
Michael Rowley, President, Director, Duncastle Gold Corp.
This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general economic conditions, interest rates, commodity markets, regulatory and governmental approvals for the company's projects, and the availability of financing for the company's development projects on reasonable terms. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic, market or business conditions. Duncastle Gold Corp. does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
