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TORONTO,
ONTARIO--(Marketwire - June 9, 2009) - CASTLE
GOLD CORPORATION (Castle Gold, the Company) (TSX VENTURE:CSG) is pleased to announce initial assay results
from the remaining 13 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 second set of drill holes was in drill
hole CA - 231 which intersected 42.7 metres grading 0.72 grams per
tonne gold from 54.9 metres to 97.5 metres drill hole
depth. All but two of the 13 remaining drill holes from the program
intersected gold mineralized intervals from surface to depths of as
much as 146.3 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. It should be noted that drill holes CA - 228 and CA - 229 were
condemnation drill holes drilled for mine planning purposes, bringing
the total number of holes drilled under this combined program to 21
drill holes.
Thomas Atkins, President and CEO of Castle Gold commented on the drill
results stating: "Results from the remaining holes from this
program continue to provide encouragement that the Company can expand
the resources, and possibly the reserves, in the area to the south and
south-east of the currently planned open pit reserves. Drill hole CA -
231 was another good intersection that combines with a terrific
intersection in hole CA - 216 from the first
round of drilling. With all the results now having been received, our
technical team will now include this data into our mine drill database
and recalculate the mineral resources. Once we've seen what this new
resource looks like, we'll be better positioned to determine how much
additional work may be required to further expand resources and
ultimately to bring this material into the mine plan. We continue to
consider the results of this drill program within the context of an
overall resource expansion program underway, including additional
definition of work towards better defining the metallurgical
characteristics of the Transition-Sulphide Zone below the currently
designed open pit. We expect to continue to be able to report on these
exciting value adding developments over the coming months and
quarters."
The Company drilled a total of 21 reverse circulation drill holes for a
total of 2,170.2 metres in the Phase 1 Program, including 2 holes
totalling 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 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 - 223 15.2 25.9 10.7 0.28 56.4 68.6 12.2 0.25 CA - 224 3.0 64.0 61.0 0.21 including 3.0 9.1 6.1 0.33 including 53.3 64.0 10.7 0.27 CA - 225 0.0 30.5 30.5 0.53 CA - 226 3.0 33.5 30.5 0.23 including 3.0 18.3 15.3 0.31 CA - 227 47.2 68.6 21.4 0.16 80.8 89.9 9.1 0.21 CA - 228 73.2 146.3 73.2 0.28 including 74.6 85.3 10.7 0.39 including 91.4 111.2 19.8 0.36 CA - 229 No significant results CA - 230 9.1 51.8 42.7 0.32 including 9.1 27.0 19.8 0.35 including 35.0 50.3 15.3 0.41 CA - 231 54.9 97.5 42.7 0.73 CA - 232 0.0 65.5 65.5 0.42 including 13.7 48.8 35.1 0.53 including 59.4 65.5 6.1 0.70 CA - 233 6.1 117.3 111.2 0.35 including 51.8 65.5 13.7 0.39 including 80.8 105.2 24.4 0.47 CA - 234 No significant results CA - 235 0.0 9.1 9.1 0.22 ---------------------------------------------------- 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, as are being advanced by this drilling 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.
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
a comparative purposes only and are not reported in this summary.
Corporate Development
The Company would also like to make mention that it has granted 45,000
options to purchase shares of Castle Gold to Agoracom,
an online investor relations services provider. The terms of the
engagement are for a minimum period of 6 months and include a monthly
fee of CDN$4,000 per month. The options are exercisable at a price of
C$0.68 per share for a period of five years and vest quarterly over 4
quarters commencing the issuance date of June 2, 2009.
AGORACOM services have been retained to add to Castle Gold's investor
relations program by including Castle Gold in their internet platform,
including a Castle Gold investor relations 'IR Hub' at: http://www.agoracom.com/IR/castlegold where interested parties can post questions and receive answers
from the Company in addition to browse through various sources of
information on the Company and its projects.
In a press release dated May 21, 2009 an announcement regarding
issuance of options to Darren Koningen
erroneously made reference to a three year exercise period, however in
fact the options issued are exercisable over a five year period. All
other details regarding the issuance of these options are as stated in
this earlier press release.
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.
TSX-V Trading Symbol: CSG Total Shares Outstanding: 75.3MM Fully Diluted: 82.8MM 52-Week Trading Range: C$0.15 - $0.71
Image 1: El Castillo Mine Drill Hole Location Map is available at the following web
link: http://media3.marketwire.com/docs/csg0609img1.pdf.
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this news release.
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