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News
Release 2007-04
Castle
Gold Sells First El Castillo Gold At Us $715 Per Ounce
TORONTO, ON,
September 27, 2007 - Castle Gold Corporation ("Castle
Gold" or the "Company") (TSX-V:
CSG) announces the first gold
sale from its 100% owned El Castillo mine in Durango, Mexico. The Company capitalized on the recent
increase in the price of gold by selling 450 ounces at an average realized price
of US$715 per ounce. This first
sale of El Castillo gold represents production from the first month-and-a-half
of pre-production leaching that began in July.
Production at El
Castillo is ramping up to the initial operating rate of 200,000 tonnes of ore
and waste per month. Ore is
currently being placed on the leach pad at a rate of 75,000 tonnes per month and
will increase to 100,000 tonnes per month over the next two months as the pit is
developed. Further increases to
Castillo's production rate are planned for 2008.
The El Castillo mine is
expected to be producing at a rate of 15,000 ounces of gold per year by year
end. The gold production rate is
forecast to increase to 30,000 ounces per year during 2008. Consideration will also be given to
expanding the production rates beyond 30,000 ounces of gold per year through one
or two additional expansions.
"I am very pleased that
our mine building team has successfully built a second mine in less than two
years," stated Christopher Babcock, President and CEO of Castle Gold. "This tremendous achievement epitomizes
our mining objectives of focusing on the fundamentals, enhancing efficiencies,
growing production rates, and thereby profitability, at our two producing gold
mines. We could not be more excited
about the timing of these events with the price of gold extending to new highs
coincident with the ramp-up of the gold production at El
Castillo."
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 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.
For further information about
Castle Gold contact:
Court
Babcock, Investor Relations (778) 928-5006 or Toll-free
1-866-646-3274
Coal
Harbor Communications Inc. (604) 662-4505 or Toll-free
1-877-642-6200
Current issued and outstanding share capital: 70,195,647 |
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
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Dale Paruk
Coal Harbor Communications Inc.
Suite 701, 555 Jervis Street
Vancouver BC V6E 4N1
Tel: 1+ (604) 662-4505