Castillian Resources Corp.

Castillian Resources Corp.

March 10, 2010 08:00 ET

Castillian Proceeds With Agreement on Hope Brook Gold Mine Project, Newfoundland

TORONTO, ONTARIO--(Marketwire - March 10, 2010) - Castillian Resources Corporation ("Castillian" or the "Company") (TSX VENTURE:CT) is pleased to announce that it has completed satisfactory due diligence with respect to its previously announced agreement to acquire a 100% interest in approximately 993 claims comprising the Hope Brook Gold Project located on the southwest coast of Newfoundland (the "Property"; Figure 1) from the Quinlan Brothers prospectors (the "Vendors"). Pursuant to the letter agreement entered into between the Company and the Vendors, Castillian has made its initial payment to the Vendors consisting of a cash payment in the amount of $35,000 cash and has issued 100,000 Common Shares to the Vendors (See Press Release dated February 8, 2010).

The Hope Brook deposit, discovered in 1993 by BP-Selco Inc., was mined from 1987 to 1997 with total production reported to be 752,826 ounces of gold plus a copper concentrate from 1993 to 1997. Preproduction historical resources (non-NI 43-101 compliant) are reported to have been 10.2 million tonnes grading 4.54 g Au/ and 0.12% Cu (1.45 million ounces of gold) (Geological Survey, Newfoundland and Labrador). Gold mineralization occurs within a high-sulphidation epithermal system hosted by Late Proterozoic rocks of the northern Appalachian Avalon zone. In addition to the main zone that was mined, historical drill intersections of 3.88 g Au/t over 41.0m, 6.98 g Au/t over 5.8m and 4.64 g Au/t over 14.3m are reported up to 1km on strike to the southeast of the deposit. Since the closure of mining operations in 1997, little exploration and no drilling has been carried out for gold in the area. These results are historical in nature and as such should not be relied upon.

Bill Pearson, President & CEO of Castillian commented: "We are very excited about the potential of the Hope Brook Gold Mine Project. A compilation of all available data filed with the Mines Branch of Newfoundland & Labrador Natural Resources Ministry is in progress. The Geology Survey of the Mines Branch also have selected diamond drill core available from the deposit which will be examined. Initial results of this work indicate that only about one-half of the historic resource to a depth of about 400m below surface appears to have been developed. In addition, there is excellent potential for larger tonnage lower grade bulk mineable mineralization. An independent geological consultant who is a qualified person has been retained to prepare an NI 43-101 technical report. Work is also progressing on developing the best approach for further exploration."

Dr. Bill Pearson, P.Geo., a qualified person as defined by National Instrument 43-101 has reviewed and approved the scientific and technical content of this press release.

About Castillian Resources

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, South America and Tanzania.

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 with respect to the future financial or operating performance of the Company, its subsidiaries and its projects, statements regarding exploration prospects, statements regarding the potential and financial impact of the acquisition of the Hope Brook Gold Mine property, the terms and conditions of the acquisition, receipt of requisite approvals and the execution of definitive agreements, the benefits of the proposed acquisition, the identification of mineral reserves and resources, costs of and capital for exploration projects, exploration expenditures, timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. 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; acquisition risks, the actual results of current exploration activities; delay or failure to receive board or regulatory approvals; timing and availability of external financing on acceptable terms; the business of Castillian and Tucano not being integrated successfully or such integration proving more difficult, time consuming or costly than expected, not realizing on the potential benefits of the proposed transaction; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; 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; and, delays in obtaining governmental approvals or required financing or in the completion of activities. 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.

The map associated with this press release is available at the following link:


Contact Information