Castle Peak Reports Preliminary Resource Estimate at Apankrah-76,000 Ounces @ 8.6 g/t Gold
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/30/13 -- Castle Peak Mining Ltd. ('Castle Peak' or the 'Company') (TSX VENTURE: CAP) is pleased to report a preliminary mineral resource estimate conducted by SEMS Exploration ('SEMS') of Accra, Ghana for the Akorade Project in the southern Ashanti belt. The mineral resource estimate was calculated based on results from 20 of 33 drill holes totaling 4,253 metres ('m') of drilling in a series of parallel structures within the Apankrah Target Area. The inferred mineral resource estimate, with an effective date of April 26, 2013, is as follows:
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Zone Category Tonnes Grade (/t Au) Contained Ounces
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Apankrah Shoot Inferred 275,000 8.6 76,000
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(i)Mineral resources are reported at a cut-off grade of 2 grams per tonne
('g/t') gold ('Au'). Cut-off grades are based on a price of $1,400 USD/oz
Au. All figures are rounded to reflect the relative accuracy of the
estimate. Mineral resources are not mineral reserves and do not have
demonstrated economic viability. Mineral resources have been classified
according to CIM Standards on Mineral Resources and Reserves.
The preliminary mineral resource estimate was conducted by SEMS to estimate the amount of gold defined to date within the Apankrah Shoot, which is situated immediately south of two parallel structures (Nana and Scorpio), where high grade mineralization with visible gold has been intersected in first pass drilling (see figure 1). Both the Nana and Scorpio structures require further drilling to confirm their potential to host mineral resources.
The Company has identified two other structural targets in the area, both of which require drill testing: (1) an induced polarization anomaly ('IP Structure') anomaly lying approx. 250 metres to the south of the Apankrah structure, which mimics the geophysical characteristics of the Apankrah Shoot, and (2) an artisanal mining operation ('Galamsay Structure') running along an east-north-east trending structure found approximately 700m to the north of the Nana structure (see figure 1 at http://www.castlepeakmining.com/s/NewsReleases.asp?ReportID=582600). These targets remain a top priority for further exploration designed to expand the newly defined high grade mineral resource base.
President and CEO Darren Lindsay is pleased with the announcement of the resource estimate and the decision to move forward with this prospective target area. "This is one of only a handful of high grade projects in West Africa, and one of only a few in Ghana." He adds, "This is a major milestone for Castle Peak shareholders, and I look forward to further drill evaluation of these additional structural targets to increase our mineral resource base. The high grade nature of this deposit will play a key role in assessing the preliminary economics in an area that is currently known for larger, lower grade mineral resource development and mining."
Next Steps
Castle Peak plans to complete the preliminary metallurgical analysis of high grade, low grade and expected 'run of mine' samples in an effort to initiate a preliminary economic assessment for developing the Apankrah Target Area.
The Company also continues with field work for target generation, evaluating inferred structure and geology by mapping, prospecting, trenching and soil and channel sampling. The exploration team has built a solid approach to understanding the two key structural trends on its 225 square kilometer land package: (1) the northerly Asuogya-Ayiem-Dansuom trend with its 12 kilometre gold-in-soil anomaly lying immediately adjacent to the Apankrah Target Area; and (2) the southern boundary of the Birimian-Tarkwaian structural corridor, historically under-explored but hosts the potential for larger deposits such as Damang, Wassa and Akyem located north east along this key structural corridor (see figure 2 at http://www.castlepeakmining.com/s/NewsReleases.asp?ReportID=582600).
Darren Lindsay is confident in the Company's strategy for long term growth. "Our goal is to create value by defining a pipeline of economic deposits focusing on strong grades. Staged development of the higher grade Apankrah area with eventual expansion to potentially larger deposits within our key structural corridors provides a solid strategy for increasing shareholder value and attracting potential partnership interest."
Resource Base Methodology
The mineral resource is based on the assumption that underground mining will be employed. Historical mining, which occurred in the far northeast end of the deposit, has been depleted to a depth of 30 metres, and recent artisanal mining over the central section depleted to an average depth of 5 metres. The resource estimation was carried out in Datamine software using an inverse distance cubed method, after applying an assay top-cut of 50 g/t, and used a minimum down-hole intersection length of 2 metres. Average drill hole section spacing was 25 metres, and the vertical distance between drill holes on a section averaged 40 metres. The interpreted mineral resource model spanned a distance of 175 metres in strike, and up to 250 metres down-dip. SEMS is unaware of any legal, political, environmental, or other risks that could materially affect the potential development of the inferred mineral resources.
QAQC and Reporting
Castle Peak is currently in the final stages of preparing the NI 43-101 Apankrah Project Technical Report, which will contain details of the mineral resource estimate. This report is required to be announced and filed on SEDAR and the Castle Peak website within 45 days of this news release and is authored by Andrew Netherwood (AusIMM), Joe Amanor (AusIMM) and Simon Meadows Smith (IOM3) as fulltime employees of SEMS, all of whom act as independent consultants to the Company. Messrs Netherwood and Amanor are Qualified Persons as defined by National Instrument 43-101 ('NI 43-101') and have reviewed and approved the contents of this news release. The mineral resource estimate referenced in this press release was prepared by Andrew Netherwood, AusIMM, an independent Qualified Person as defined by NI 43-101.
The analyses used in the preparation of the mineral resource estimate were carried out at SGS Laboratory Services ('SGS') in Tarkwa. All samples used for the mineral resource estimation represent approximately one-metre, orientated diamond drill core which was sawn in half. Half of the core has been stored in the on-site core yard and its counterpart sent for preparation and gold assaying by SGS. Samples were analyzed by 50g charge fire assay with an atomic absorption finish. Samples with visible gold returning initial assay results greater than 5g/t Au were re-analyzed using screen metallic method. Sampling procedures included the systematic insertion of blanks, certified standards and duplicates into the sample stream both in the field and at the lab.
SEMS conducted an independent review of Castle Peak's drill hole and QAQC databases and concluded that Castle Peak's gold assay data is of acceptable quality to be used for a mineral resource estimate and made certain recommendations for future QAQC protocols.
About Castle Peak
Castle Peak Mining Ltd. is a Canadian-based exploration and development company focused on advancing greenfields and early stage gold projects. The Company holds a strategic land package in the Ashanti belt adjacent to several producing gold mines in Ghana, West Africa. The Ashanti belt is known as one of the most prolific gold belts in the world, putting Ghana as the second largest gold producer in Africa with past production of greater than 150 million ounces. The investment inflow for Ghana's mining sector was $2.5 billion from 2009 to 2011, with increasing annual production reaching 3.6 million ounces in 2011 (source: Ghana Business News, November 11, 2012).
On behalf of the Board of Castle Peak Mining Ltd.:
Darren Lindsay, President and Chief Executive Officer
FORWARD-LOOKING STATEMENTS
Except for statements of historical fact, this news release contains certain 'forward-looking information' and 'forward-looking statements' within the meaning of applicable securities laws including statements regarding proposed exploration, sampling and drilling at the Akorade Project; statements concerning the anticipated results of that exploration, sampling and drilling; increasing the resource base; potential development and mining; prospects for long-term growth; increasing shareholder value; or attracting potential partners. Such forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to known and unknown risks, uncertainties and assumptions that could cause actual results to vary materially from the anticipated results or events predicted in these forward-looking statements, including those risk factors identified in the Company's Annual MD&A filed under the Company's SEDAR profile. As a result, readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this release. Except as required by applicable law, Castle Peak disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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.
Contacts:
Castle Peak Mining Ltd.
Marlo Hamer-Jackson
Investor Relations Manager
604 681 1466 (X225)
604 681 1404 (FAX)
marlohj@castlepeakmining.com
www.castlepeakmining.com