TORONTO, ONTARIO -- 11/09/09 --
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
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Sample Gold Silver Pb Zn Copper
Number (gpt) (gpt) (ppm) (ppm) (ppm)
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RR-16 0.15 2.7 1,935 610 221
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RR-51 0.16 4.9 403 1,285 6
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RR-48 0.17 1.5 514 5,550 410
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RR-68 0.17 14.7 1,200 407 485
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RR-29 0.24 230.0 872 176 1,220
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RR-61 0.40 19.1 3,280 4,070 498
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RR-47 2.20 38.8 10,800 18,200 1,340
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RR-49 6.41 224.0 54,800 85,900 8,540
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RR-46 16.15 379.0 51,200 23,300 11,850
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RR-44 17.30 350.0 56,400 55,600 9,750
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RR-45 39.30 154.0 20,900 40,200 17,200
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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
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Sample Gold Silver Copper
Number (gpt) (gpt) (ppm)
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PN38 0.15 25.8 634
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PN46 0.15 6.2 1,635
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PN87 0.16 11.8 526
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PN81 0.16 17.4 1,395
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PN10 0.16 62.9 3,390
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PN44 0.17 6.3 2,230
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PN37 0.17 23.5 1,370
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PN35 0.19 57.6 3,820
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PN45 0.19 9.1 1,800
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PN88 0.22 8.0 990
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PN85 0.22 3.8 293
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PN50 0.28 2.0 409
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LPL02 0.28 10.3 253
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PN14 0.33 419.0 2,930
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PN31 0.33 0.7 99
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PN49 0.42 8.4 1,050
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PN51 0.45 28.6 3,000
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PN12 0.45 156.0 977
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PN59 0.49 10.0 37
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PN73 0.51 438.0 1,175
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LPL03 0.53 18.0 3,120
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PN07 0.55 45.8 4,000
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PN80 0.57 125.0 1,245
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PN77 0.65 156.0 5,270
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PN58 0.72 73.1 31
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PN08 1.10 121.0 3,640
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PN34 1.31 233.0 12,450
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PN79 1.45 94.0 486
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PN06 1.84 1,200.0 11,450
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PN57 2.18 15.3 69
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LPL01 2.91 38.5 403
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PN72 5.37 1,510.0 6,940
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PN33 5.98 28.3 949
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PN32 11.10 230.0 6,010
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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.
Contacts:
Castle Gold Corporation
James Mark Plaxton
Chairman of the Board and Interim President
416-907-6825
MPlaxton@CastleGoldCorp.com
Castle Gold Corporation
Rory Quinn
Manager Investor & Public Relations
416-214-4809 or Toll Free: 1-866-646-3274
416-214-4877 (FAX)
RQuinn@CastleGoldCorp.com
Castle Gold Corporation
info@CastleGoldCorp.com
www.CastleGoldCorp.com
