TORONTO, ONTARIO–(Marketwired – June 9, 2016) – NewCastle Gold Ltd. (TSX VENTURE:NCA) (the “Company” or “NewCastle”) is pleased to announce that it will resume drilling at its Castle Mountain Gold Project. The 10,400 metre program consists of 27 holes designed to increase the current mineral resource, and includes the drilling 3 hydrological holes.
The initial program will target the southern part of the current resource area known as “Big Chief” and “South Domes” (see Figures 1 to 3 below). These targets are sparsely drilled and lie immediately adjacent to previously mined areas. As such, they are considered to have very good potential for near-term mineral resource expansion, as well as, possible strike extensions of the Lucky John high-grade mineralization encountered in 2014 and 2015.
Big Chief and South Domes drilling will comprise 24 reverse circulation and core holes and will include key core cross-sections to test new geological and structural models. Surface work will also be carried to further to the east in areas of known potential with the goal of identifying future expansion targets and further improving geological modelling on the project.
“The structural and resource studies completed over the last year on the Castle Mountain Gold Project show that significant upside remains and this program is just the beginning of a strategy to enhance and expand the resource beyond its current limits” stated David Adamson, Chief Executive Officer of NewCastle.
Three holes will be also completed to test for water sources within the main mineral resource area. During previous mining operations, two of the better performing water wells were in this area. A review of existing hydrological data has commenced and will be followed up with field-based studies.
To view Figure 1: General outline of the Big Chief and South Domes target areas, please visit the following link: http://media3.marketwire.com/docs/nca_fig1.jpg
To view Figure 2: Big Chief cross-section highlighting gold distribution, please visit the following link: http://media3.marketwire.com/docs/nca_fig2.jpg
To view Figure 3: South Domes cross-section highlighting gold distribution, please visit the following link: http://media3.marketwire.com/docs/nca_fig3.jpg
NewCastle has 100% of the right, title and beneficial interest in and to the Castle Mountain Venture, a California general partnership, which owns the Castle Mountain property in San Bernardino County, California. The Castle Mountain heap leach gold mine produced over one million ounces of gold from 1992 to 2001, when mining was suspended due to low gold prices. The Mine and Reclamation Plan, under which the mine operated, was authorized by the County of San Bernardino as the Lead Agency and remains in effect. Water for the drill programs was accessed from existing patented wells on the Project.
An updated NI 43-101 resource for the project was announced December 2, 2015 which includes Measured Mineral Resources of 17.4 million tonnes grading 0.86 g/t gold containing 0.48 million gold ounces, Indicated Mineral Resources of 202.5 million tonnes grading 0.57 g/t gold containing 3.71 million gold ounces along with Inferred Mineral Resources of 40.8 million tonnes grading 0.58 g/t gold and containing 0.76 million gold ounces. The Project hosts a disseminated low sulphidation epithermal system. Gold is primarily hosted by late-stage rhyolite volcanic units within zones of silicification and brecciation associated with northeast-southwest trending/southeast dipping fault structures which are interpreted to have developed within a collapsed caldera environment. Eleven gold domains are represented by both steep and shallow-dipping orientations.
Ian R. Cunningham-Dunlop, P. Eng., the Company’s Vice President Exploration, is the designated Qualified Person for this news release within the meaning of NI 43-101. He has reviewed and verified that the technical information contained in this release is accurate and has approved of the written disclosure of the same.
Neither the 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 news release.
This news release contains “forward-looking statements” and “forward-looking information” (collectively, “forward-looking information”) within the meaning of applicable Canadian securities legislation. Forward-looking information includes information that relates to, among other things, statements with respect to the completion of the proposed drill program at Castle Mountain, the mineral resource expansion at Castle Mountain and the identification of future expansion targets at Castle Mountain. Forward-looking information is not, and cannot be, a guarantee of future results or events.
Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by us at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results and events to be materially different from those expressed or implied by the forward-looking information. The material factors or assumptions that we identified and were applied by us in drawing conclusions or making forecasts or projections set out in the forward looking information include, but are not limited to that the Company is able to procure personnel, equipment and supplies required for its exploration and development activities in sufficient quantities and on a timely basis and that actual results will be consistent with management’s expectations.
The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information may include, but are not limited to, the risks discussed under the heading “Risks” in general to the business of NewCastle in documents filed (or to be filed) with Canadian regulatory authorities. Should one or more risk, uncertainty, contingency or other factor materialize or should any factor or assumption prove incorrect, actual results could vary materially from those expressed or implied in the forward-looking information. Accordingly, the reader should not place undue reliance on forward-looking information. NewCastle does not assume any obligation to update or revise any forward-looking information after the date of this news release or to explain any material difference between subsequent actual events and any forward-looking information, except as required by applicable law.