The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from Marketwire

Castillian Intersects 3.78 g Au/t Over 53 Metres in Footwall Zone Within Former Mine at Hope Brook

Monday, June 25, 2012

Castillian Intersects 3.78 g Au/t Over 53 Metres in Footwall Zone Within Former Mine at Hope Brook07:00 EDT Monday, June 25, 2012TORONTO, ONTARIO--(Marketwire - June 25, 2012) -Castillian Resources Corp. ("Castillian" or the "Company") (TSX VENTURE:CT)(OTCQX:CTIIF) is pleased to report the final results from its 4,316 metre diamond drilling program in 15 holes, which completes the first phase of drilling in the Company's 2012 exploration program at the Hope Brook Gold Project, located in southwestern Newfoundland. These last holes reported in this news release focused on confirming the locations of workings and major pillars in the deeper part of the Mine Zone area (HB12-080E, -087) and further testing the Southwest Extension target area (HB12-089, -090) (see also the press release dated June 5, 2012 for a discussion of the previous results released). Significant results are summarized in Table 1 below. Highlights are as follows:Mine Zone AreaHole HB12-087, drilled from northwest to southeast, intersected 3.78 grams of gold per tonne ("g Au/t") over 53.0 metres core length (16.9 metres true width) from 271.0 to 324.3 metres and a second zone grading 4.41 g Au/t over 5.0m (1.6 metres true width) from 354.5 metres to 359.5 metres in the footwall area below the old workings. Hole HB12-080E, an extension of previously reported hole HB12-080 which was lost, intersected 2.14 g Au/t over 14.4 metres core length (10.8 metres true width) in a shallow pillar within the former mine at approximately the 5000 metre level (122 metres below surface). Southwest Extension Area1.21 g Au/t over 23.1 metres core length in hole HB12-090. This hole is approximately 500 metres southwest of the former open pit. 0.78 g Au/t over 11.7 metres core length including 1.13 g Au/t over 5.7 metres core length in hole HB12-089. Dr. Bill Pearson, P.Geo., President & CEO of Castillian, commented: "These new results continue to confirm that significant pillars remain in the former mine and that there is potential for a significant remaining footwall mineralized zone. The southwest extension remains open along strike and downdip with good potential to define additional mineral resources in this area and potentially extend the constraining shell defining the mineral resource estimate further to the southwest. Work is continuing on the geological mapping and prospecting program over the full 8 kilometre strike length of the favourable mineralized structure as well as compilation of historical data."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 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 21, 2012Hole No.From (m)To (m)Core Length (m)True Width (m)Gold (g/t)Copper (%)Mine Zone AreaHB12-080132.8143.310.57.90.720.01and148.4156.27.85.80.980.11incl.155.0156.21.20.92.510.26HB12-080E(i)#156.2170.614.410.82.140.12incl.156.2161.95.74.33.400.20HB12-082(ii)62.063.01.00.80.880.07Hole was lost before reaching UG workings target.HB12-083(ii)252.0261.09.06.80.490.01incl.255.0256.51.51.11.810.01and304.9312.57.65.70.270.02and320.6322.11.51.10.600.06Hole was lost before reaching UG workings target.HB12-087(iii)#271.0324.353.316.93.78trincl.284.0294.710.73.46.71trand354.5359.55.01.64.41trand406.3425.214.26.00.81trHB12-047E(iv)14918738.014.235.470.13incl.173.518713.55.0610.54Trincl.173.5178.55.01.8713.000.54incl.184.51872.50.9419.44TrExtension of HB11-047 to test location and grade of UG workings.Southwest Extension Target AreaHB12-081291.9292.20.30.25.221.00incl.391.0391.50.50.40.831.62HB12-084nsvHB12-085121.0154.434.425.80.59Trincl.146.0154.48.46.31.480.37incl.149.3150.31.00.83.171.17HB12-086306.8311.74.93.70.79TrHB12-088277.9286.28.36.20.92Trincl.277.9280.93.02.31.36Trincl.283.6286.22.61.91.18TrHB12-089 #227.7239.411.78.80.780.02incl.232.3238.05.74.31.130.02HB12-090 #214.0237.123.117.31.210.04incl.214.0226.012.09.01.380.01Northeast Extension Target AreaHB12-078nsvHB12-079nsv(i)HB12-080E, the extension of HB12-080 which was originally lost before reaching its target, extended into the mine workings, testing the grade and location of historic underground mine. (ii)HB12-082 and HB12-083 were unsuccessful in reaching target 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 the 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 = undergroundNew results reported in this press release are marked with the # symbolTable 2: Collar Coordinates and Orientations of Drill Holes, Hope Brook, June 21, 2012Hole No.UTMMine GridEastingNorthingEastingNorthingElev.(i)LengthAz(ii)Dip(ii)HB12-07841876652882021240349695136742325-45HB12-07941832552885771225755305157156324-65HB12-08041809652877641160349955122156325-58HB12-08241827952878121178149305153187323-51HB12-08141759152870871080147305124464325-71HB12-08341828252877681175848915156326324-65HB12-08441764252874461104949945132186341-65HB12-047E41804052880151170252335142187145-50HB12-08541776152874731116249495125218325-45HB12-08641785952874601123548825119350341-65HB12-08741807152880661175652575146465144-48HB12-08841771752872671100848055137336324-48HB12-08941776252874061112448935127308325-65HB12-09041762852872281091348245125292321-53(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 CONTROLThe 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 ≥ 70% passing 2mm (10 mesh). A sample split of up to 1000g is then pulverized 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 PERSONDr. 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 CASTILLIANCastillian 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 (see Table 1 below and the news release issued by Castillian on February 14, 2012). 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.Table 1. NI 43-101 Mineral Resource Estimate, Hope Brook Gold Project as at February 14, 2012Within constraining shell @ 0.50 g Au/t cutoffBelow constraining shell @ 2.0 g Au/t cutoffTotalCategoryTonnes (millions)Gold (g/t)Gold (k Oz)Tonnes (millions)Gold (g/t)Gold (k Oz)Tonnes (millions)Gold (g/t)Gold (k Oz)Indicated4.01.111401.53.041505.51.65290Inferred11.21.575702.02.6517013.21.73740Cautionary 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 ResourcesThis 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, please visit the following link: http://media3.marketwire.com/docs/ct0625fig1.pdf.To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/ct0625fig2.pdf.FOR FURTHER INFORMATION PLEASE CONTACT: Bulgan OrgilsaikhanCastillian Resources Corp.Communications Coordinator416-309-2895borgilsaikhan@castillian.caORBill PearsonCastillian Resources Corp.President & CEO416-861-2968president@castillian.cawww.castillian.caNEITHER 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.