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TORONTO,
ONTARIO--(Marketwire - Nov. 9, 2009) - CASTLE GOLD CORPORATION (Castle
Gold, the Company) (TSX VENTURE:CSG) is pleased to announce a second
set of assay results from the surface mapping and sampling program
conducted on its 100% owned La Fortuna concessions located in north
west Durango state, Mexico.
A reconnaissance surface sampling and mapping program commenced on the
Company's 10,000 hectare concession earlier in 2009. The objective of
this program was to understand the geology and structures outside of
the established mineralization evident at the La Fortuna mine (National
Instrument 43-101 compliant Measured and Indicated resource containing
4.8 million tonnes grading 1.98 grams per tonne gold for a total of
308,000 ounces of gold - refer to press release dated November 12,
2008) and within the Company's 10,000 hectare mineral concessions. This
first phase exploration program initially focussed on mapping and
sampling of road cuts and mineralized outcroppings that appeared to be
related to the known gold mineral resource at the La Fortuna mine. Subsequent
work explored through similar mapping, road-cut and outcrop sampling,
areas of apparent alteration outside of extensions to the historic La
Fortuna Mine.
Samples from two newly discovered areas 1.0 to 2.0 kilometres northeast
of the La Fortuna Mine (refer to Image 1 - La Fortuna Prospect and
Concession Map), at the Ramada Prospect and the PN Prospect produced
spectacular results from outcrop and grab samples, including sample RR
45 at the Ramada Prospect that assayed 39.30 grams per tonne gold and
154 grams per tonne silver and sample PN 72 from the PN Prospect that
assayed 5.37 grams per tonne gold and 1,510 grams per tonne silver.
Miguel Cardona, Castle Gold's Exploration Manager, commented on the
results from the La Fortuna program stating: "These results
illustrate the abundance of opportunities within the Company's 10,000
hectare land position at La Fortuna. Mineralization at the Ramada and
PN prospects occur in addition to what had earlier been identified from
this same surface program in the area surrounding the historic La
Fortuna gold-silver-copper mine. This phase I surface program has been
successful in assisting us in determining the geology and structural
controls that result in elevated gold, silver and copper mineralization
throughout the concessions. Hand and channel samples, taken from
road-cut and mineralized outcroppings, have demonstrated encouraging,
and in some cases spectacular values of precious metal mineralization. Without
a doubt, these results warrant follow-up work to determine the extent
to which the currently identified 308,000 ounce gold resource at La
Fortuna can be enhanced by these occurrences. The geological team is
now conducting more detailed mapping and sampling of some of the more
interesting areas and it is expected that these results will be
available later this year or early in 2010. Following review of results
from this Phase I work it is intended to drill test the most attractive
of these targets. Current plans envision drilling to commence during
the first half of 2010."
The best result to date from this reconnaissance mapping and sampling
program were obtained from the area mapped as extensions to
mineralization identified at the historic La Fortuna Mine, included
sample FF - 89, south of the La Fortuna mine which assayed 41.1 grams
per tonne gold (refer to press release dated September 30, 2009).
At the newly identified Ramada Prospect, a total of 78 samples were
collected and assayed. Of these 78 samples, 11 are reported grading in
excess of 0.15 grams per tonne gold (the resource cut-off grade at the
El Castillo Mine), with five of these samples exceeding 2.0 grams per
tonne gold and at a few key locations samples generated exceptionally
high gold and silver assay results. Gold and silver were also
accompanied by elevated values of silver, lead (Pb), zinc (Zn) and
copper (Cu) (refer to Table 1, Summary Assay Results - Ramada Prospect,
below, Image 1, La Fortuna Prospect and Concession Map and Image 2,
Ramada Prospect - Geologic and Sample Location Map).
Table 1 Summary Assay Results - Ramada Prospect --------------------------------------------------- Sample Gold Silver Pb Zn Copper Number (gpt) (gpt) (ppm) (ppm) (ppm) --------------------------------------------------- --------------------------------------------------- RR-16 0.15 2.7 1,935 610 221 --------------------------------------------------- RR-51 0.16 4.9 403 1,285 6 --------------------------------------------------- RR-48 0.17 1.5 514 5,550 410 --------------------------------------------------- RR-68 0.17 14.7 1,200 407 485 --------------------------------------------------- RR-29 0.24 230.0 872 176 1,220 --------------------------------------------------- RR-61 0.40 19.1 3,280 4,070 498 --------------------------------------------------- RR-47 2.20 38.8 10,800 18,200 1,340 --------------------------------------------------- RR-49 6.41 224.0 54,800 85,900 8,540 --------------------------------------------------- RR-46 16.15 379.0 51,200 23,300 11,850 --------------------------------------------------- RR-44 17.30 350.0 56,400 55,600 9,750 --------------------------------------------------- RR-45 39.30 154.0 20,900 40,200 17,200 --------------------------------------------------- --------------------------------------------------- gpt equals grams per tonne / ppm equals parts per million (1,000 ppm equals .1%)
At
the PN Prospect, a total of 93 samples were collected and assayed. Of
these 93 samples, 34 are reported grading in excess of 0.15 grams per
tonne gold, with nine of these samples exceeding 1.0 grams per tonne
gold, and three of these samples exceeding 5.0 grams per tonne gold. Sample
PN 32 returned exceptionally high values in gold and silver grading
11.10 grams per tonne gold and 230.0 grams per tonne silver and
included 0.61 percent copper (refer to Table 2, Summary Assay Results -
PN Prospect, below, Image 1, La Fortuna Prospect and Concession Map and
Image 3, PN Prospect - Geologic and Sample Location Map).
An additional area of interest observed in this reconnaissance program
includes an area that has been called Cerro Pelon (refer to Image 1 -
La Fortuna Prospect and Concession Map). Cerro Pelon appears to have
the potential for a copper-gold porphyry style deposit. Copper-gold
porphyry deposits are renowned for their large size and despite
generally lower grades of mineralization are among the more
economically attractive styles of combined copper-gold mineralization. Additional
work is required to better understand this potential at Cerro Pelon.
At present Company geologists continue to map in detail the PN Prospect
and Cerro Pelon Prospect as well as continue with reconnaissance
mapping of areas that that have not yet been accessed within Castle
Gold's 100% owned, approximate 10,000 hectare concessions. Additional
samples are being collected and will be assayed as part of this
program. This work is expected to continue until the end of 2009. Upon
consolidation of results from this field program, it is expected that a
first phase drill program to test areas of mineralization will be
initiated in 2010.
Table 2 Summary Assay Results - PN Prospect ------------------------------------- Sample Gold Silver Copper Number (gpt) (gpt) (ppm) ------------------------------------- ------------------------------------- PN38 0.15 25.8 634 ------------------------------------- PN46 0.15 6.2 1,635 ------------------------------------- PN87 0.16 11.8 526 ------------------------------------- PN81 0.16 17.4 1,395 ------------------------------------- PN10 0.16 62.9 3,390 ------------------------------------- PN44 0.17 6.3 2,230 ------------------------------------- PN37 0.17 23.5 1,370 ------------------------------------- PN35 0.19 57.6 3,820 ------------------------------------- PN45 0.19 9.1 1,800 ------------------------------------- PN88 0.22 8.0 990 ------------------------------------- PN85 0.22 3.8 293 ------------------------------------- PN50 0.28 2.0 409 ------------------------------------- LPL02 0.28 10.3 253 ------------------------------------- PN14 0.33 419.0 2,930 ------------------------------------- PN31 0.33 0.7 99 ------------------------------------- PN49 0.42 8.4 1,050 ------------------------------------- PN51 0.45 28.6 3,000 ------------------------------------- PN12 0.45 156.0 977 ------------------------------------- PN59 0.49 10.0 37 ------------------------------------- PN73 0.51 438.0 1,175 ------------------------------------- LPL03 0.53 18.0 3,120 ------------------------------------- PN07 0.55 45.8 4,000 ------------------------------------- PN80 0.57 125.0 1,245 ------------------------------------- PN77 0.65 156.0 5,270 ------------------------------------- PN58 0.72 73.1 31 ------------------------------------- PN08 1.10 121.0 3,640 ------------------------------------- PN34 1.31 233.0 12,450 ------------------------------------- PN79 1.45 94.0 486 ------------------------------------- PN06 1.84 1,200.0 11,450 ------------------------------------- PN57 2.18 15.3 69 ------------------------------------- LPL01 2.91 38.5 403 ------------------------------------- PN72 5.37 1,510.0 6,940 ------------------------------------- PN33 5.98 28.3 949 ------------------------------------- PN32 11.10 230.0 6,010 ------------------------------------- gpt equals grams per tonne / ppm equals parts per million (1,000 ppm equals .1%)
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 Person under National Instrument 43-101. The reconnaissance
mapping and sampling program 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.
At this stage the sampling program was aimed at the identification of
anomalous metal values, alteration patterns and mineralization models. All
rock samples were sent for preparation and analysis to ALS-Chemex
Laboratories in Vancouver, Canada. Analysis was completed using gold
fire assaying with an Atomic Absorption Spectroscopy ("AAS")
finish as well as geochemical multi-element ICP analysis.
For quality control purposes one gold standard, one zinc-lead-silver
standard, one duplicate sample and one blank were also submitted at a
minimum of one each per every 50 samples. Cross check analysis of pulps
at a secondary laboratory will be completed for 5 % of all mineralized
samples.
About Castle Gold
Castle Gold Corporation is a growth oriented gold producer with
projects focused in the Americas. Castle Gold 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.
Forward Looking Statements
Certain statements in this press release constitute
"forward-looking" statements that involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Castle Gold to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. When used in
this news release, words such as "plans", "hope"
and "expects" and similar expressions to the extent they
relate to Castle Gold are intended to identify forward-looking
statements. There is no assurance that any strategic transaction will
be completed. Unless required by applicable securities law, Castle Gold
does not assume any obligation to update forward-looking statements.
To view "Image 1", please visit the following link:
http://media3.marketwire.com/docs/csg_map1_1109.pdf
To view "Image 2", please visit the following link:
http://media3.marketwire.com/docs/csg_map2_1109.pdf
To view "Image 3", please visit the following link:
http://media3.marketwire.com/docs/csg_map3_1109.pdf
Total Shares Outstanding: 75.5MM
Fully Diluted: 82.8MM
52-Week Trading Range: C$0.15 - $1.19
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this news release.
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