Castillian Intersects 5.47 Grams Gold Per Tonne Over 38.0 Metres in Pillar Within Former Mine at Hope Brook
05.06.2012 | Marketwire
TORONTO, ONTARIO -- (Marketwire) -- 06/05/12 -- Castillian Resources Corp. ("Castillian" or the "Company") (TSX VENTURE: CT)(OTCQX: CTIIF) is pleased to announce that it has completed 4,316 metres of diamond drilling in 15 holes, including two holes which were extensions of holes previously drilled, to finish the first phase of drilling in the 2012 exploration program at the Hope Brook Gold Project, located in southwestern Newfoundland. This program focused on confirming the locations of workings and major pillars in the Mine Area, testing the Southwest Extension target area and preliminary testing of the Northeast target area as shown in Figures 1 and 2. Significant results received to date are summarized in Table 1, below. Highlights are as follows:Mine Zone Area
- Hole HB12-047E, an extension of hole HB11-047, intersected 5.47 grams of gold per tonne ("g Au/t") over 38.0 metres core length, including 10.54 g Au/t over 13.5 metres in the upper part of the former mine, confirming the presence of a high grade pillar in this area.
Southwest Extension Area
- Hole HB12-081 tested the potential connector area between the Mine Zone and the 240 Zone. This hole intersected a narrow high grade zone with 5.22 g Au/t and 1.00% copper over 0.3 metres core length. Based on the geophysical evidence, it appears this hole may have been below the plunge of the main silicified zone.
- 1.48 g Au/t over 8.4 metres core length within a broader section grading 0.59 g Au/t over 34.4 metres core length in hole HB12-085.
- 0.92 g Au/t over 8.3 metres core length including 1.36 g Au/t over 3.0 metres core length in hole HB12-088.
Northeast Target Area
- Holes HB-12-78 and -79 tested the potential extension of the Hope Brook mineralized zone based on geophysical and geological data. These holes confirmed that the mineralized stratigraphy extends northeast of the former mine. Both holes intersected an approximately 10 metre wide zone of quartz veining with scattered pyrite but did not return any significant results. It appears that the holes are too high in the structural sequence and any potential extension is deeper.
Dr. Bill Pearson, P.Geo., President & CEO of Castillian, commented: "This drilling program has been successful in confirming that significant pillars remain in the former mine and that the position of underground workings in the resource model for Hope Brook are reasonable. Partial results of drilling completed in the Southwest Extension area indicate potential to define additional mineral resources in this area and potentially extend the constraining shell defining the mineral resource estimate to the southwest. While the drilling in the Northeast target area did not return any significant values, the holes did confirm a major structure is present in a similar sequence of rocks to those in the mine area. However, deeper drilling will be required to attempt to locate a potential extension to the Mine Zone in this area."
Pearson continued: "We will be initiating a geological mapping and prospecting program in the near term over the full 8 kilometre strike length of the favourable mineralized structure to follow up on targets outlined in the fall 2011 program, as well as those indicated by historical data. Compilation of historical data outside of the former mine area continues, with some 24,000 files of scanned documents and maps currently being reviewed."
Figure 1 shows the location of the major target areas with pierce points of the 2012 holes in the Southwest Extension Target and Northeast Target areas. Figure 2 is a longitudinal section of the Mine Zone area showing the historical workings and the locations of pierce of holes in the former mine area completed in this program and in the 2011 drilling program. Collectively, these holes provide good overall coverage with holes drilled from both the north and south of the mine to provide maximum coverage. Table 2 lists collar coordinates, dip, azimuth and length for all holes drilled in the 2012 program.
Table 1: Significant Diamond Drilling Results, Hope Brook Gold Project, June 5, 2012
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Core True
Hole From To Length Width Gold Copper
No. (m) (m) (m) (m) (g/t) (%) Zone(ii)
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Mine Zone Area
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HB12-080 132.8 143.3 10.5 7.9 0.72 0.01
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and 148.4 156.2 7.8 5.8 0.98 0.11
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incl. 155.0 156.2 1.2 0.9 2.51 0.26
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Extension of HB12-080 further into
HB12-080E(i) Assays Pending workings.
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HB12-082(ii) 62.0 63.0 1.0 0.8 0.88 0.07
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Hole was lost before reached UG workings target.
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HB12-083(ii) 252.0 261.0 9.0 6.8 0.49 0.01
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incl. 255 256.5 1.5 1.1 1.81 0.01
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and 320.6 322.1 1.5 1.1 0.60 0.06
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Hole was lost before reached UG workings target.
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HB12-087(iii) Assays Pending
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HB12-047E(iv) 149.0 187.0 38.0 14.23 5.47 0.13
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incl. 173.5 187.0 13.5 5.06 10.54 Tr
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incl. 173.5 178.5 5.0 1.87 13.0 0.54
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incl. 184.5 187 2.5 0.94 19.44 Tr
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Extension of HB11-047 to test location and grade of UG
workings.
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SW Extension Target
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HB12-081 291.9 292.2 0.3 0.2 5.22 1.00
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and 391.0 391.5 0.5 0.4 0.83 1.62
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HB12-084 nsv
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HB12-085 121.0 154.4 34.4 25.8 0.59 Tr
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incl. 146.0 154.4 8.4 6.3 1.48 0.37
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incl. 149.3 150.3 1.0 0.8 3.17 1.17
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HB12-086 306.8 311.7 4.9 3.7 0.79 Tr
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HB12-088 277.9 286.2 8.3 6.2 0.92 Tr
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incl. 277.9 280.9 3.0 2.3 1.36 Tr
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incl. 283.6 286.2 2.6 1.9 1.18 Tr
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HB12-089 Assays Pending
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HB12-090 Assays Pending
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NE Extension Target
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HB12-078 nsv
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HB12-079 nsv
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(i) HB12-080E was originally lost before reaching its target and was later
extended into the mine workings, testing the grade and location of the
historic underground mine.
(ii) HB12-082 and HB12-083 were unsuccessful in reaching their respective
targets because of rock competence.
(iii) HB12-087 was drilled from north to south and successfully penetrated
through the possible ramp material and the lower mine workings.
(iv) HB12-047E is an extension of HB11-047 to test the location and grade
of old mine workings. This hole ended in the mine workings.
incl. = including; tr = trace, nsv = no significant values, UG =
underground
Table 2: Collar Coordinates and Orientations of Drill Holes, Hope Brook,
June 5, 2012
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Dip
Hole No. UTM Mine Grid Elev. (i) Length Az(ii) (ii)
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Easting Northing Easting Northing
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HB12-078 418766 5288202 12403 4969 5136 742 325 -45
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HB12-079 418325 5288577 12257 5530 5157 156 324 -65
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HB12-080 418096 5287764 11603 4995 5122 156 325 -58
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HB12-082 418279 5287812 11781 4930 5153 187 323 -51
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HB12-081 417591 5287087 10801 4730 5124 464 325 -71
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HB12-083 418282 5287768 11758 4891 5156 326 324 -65
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HB12-084 417642 5287446 11049 4994 5132 186 341 -65
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HB12-047E 418040 5288015 11702 5233 5142 187 145 -50
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HB12-085 417761 5287473 11162 4949 5125 218 325 -45
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HB12-086 417859 5287460 11235 4882 5119 350 341 -65
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HB12-087 418071 5288066 11756 5257 5146 465 144 -48
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HB12-088 417717 5287267 11008 4805 5137 336 324 -48
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HB12-089 417762 5287406 11124 4893 5127 308 325 -65
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HB12-090 417628 5287228 10913 4824 5125 292 321 -53
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(i) Elevations have 5000 metres added to actual measurements to conform to
historical practice
(ii) All measurements are in metres except Azimuth (Az) and Dip, which are
measured in degrees.
SAMPLING, ASSAYING AND QUALITY CONTROL
The core (NQ (47.6 mm) is logged, photographed and then sawn in half with one-half sent to the laboratory for analysis and the other half retained and stored on site. All core samples were prepared and assayed at ALS Chemex, with sample preparation done in Sudbury and analytical work done in Vancouver. All locations of ALS Chemex are ISO 9001:2000 certified. The entire sample received is weighed and crushed to greater than or equal to 70% passing 2mm (10 mesh). A sample split of up to 1000g is then pulverized to greater than or equal to 85% passing 75 microns (200 mesh) to produce a homogenized sample. A 50g aliquot is used for fire assaying with an atomic absorption (AA) finish to determine gold concentration. Copper is initially analyzed using a four acid digestion ICP (inductively coupled plasma-atomic emission spectrometry) method. Any results for copper greater than 10,000 ppm are assayed further by a four acid digestion and "ore grade" ICP method. Internal quality control includes the use of blanks, duplicates and standards in every batch of samples. The Company also conducts internal check assaying using certified external reference standards and blanks. Regular external check assays are performed at a second certified Canadian commercial laboratory. Castillian also inserts external reference standards as well as blank granite drill core in each sample batch as a further external check.
QUALIFIED PERSON
Dr. Bill Pearson, P.Geo., President and CEO of Castillian, who is a qualified person as defined by NI 43-101, has reviewed and approved the scientific and technical content of this press release.
ABOUT CASTILLIAN
Castillian Resources Corp. is a Canadian mineral exploration company listed on the TSX Venture Exchange under the symbol "CT" which has gold and base metal properties in Canada and South America. Castillian's flag ship property is the Hope Brook Gold Project located in southwestern Newfoundland, which has 290,000 ounces of NI 43-101 compliant indicated mineral resources and 740,000 ounces of inferred mineral resources. Castillian has also outlined an extensive new Gold-in-Soil anomaly trend on its Canadian Creek property in the Yukon that is adjacent to Kaminak's Sugar Gold-in-Soil trend.
Cautionary Note Regarding Forward-looking Information
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements regarding exploration prospects and timing of future exploration. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; future prices of mineral prices; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and shortages and other risks of the mining industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Information Concerning Estimates of Indicated and Inferred Resources
This news release uses the terms "indicated resources" and "inferred resources". Castillian advises investors that although these terms are recognized and required by Canadian regulations (under NI 43-101), the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into mineral reserves. In addition, inferred resources have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for preliminary economic assessments as defined under NI 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.
To view, Figure 1: Longitudinal Section with location of pierce points for drilling the Southwest and Northeast Target Areas (see Figure 2 for drilling in Mine Zone area), please visit the following link:
http://media3.marketwire.com/docs/796116A.pdf
To view, Figure 2. Longitudinal Section of Mine Zone area showing locations of drill hole pierce points, please visit the following link:
http://media3.marketwire.com/docs/796116B.pdf
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:
Castillian Resources Corp.
Bulgan Orgilsaikhan, Communications Coordinator
416-309-2895
borgilsaikhan@castillian.ca
www.castillian.ca
Castillian Resources Corp.
Bill Pearson, President & CEO
416-861-2968
president@castillian.ca
www.castillian.ca