Castle Gold Corporation
TSX VENTURE : CSG

Castle Gold Corporation

October 01, 2009 08:30 ET

Castle Gold Reports Up to 41.1 Grams Per Tonne Gold From Outcrop Samples at Its La Fortuna Project, Mexico

TORONTO, ONTARIO--(Marketwire - Oct. 1, 2009) - CASTLE GOLD CORPORATION (Castle Gold, the Company) (TSX VENTURE:CSG) is pleased to announce assay results from the surface mapping and sampling program conducted on it's 100% owned La Fortuna concessions located in north west Durango state, Mexico.

A reconnaissance surface sampling and mapping program commenced on the Company's 10,000 hectare concession earlier in 2009. The objective of this program was to understand the geology and structures outside of the established mineralization evident at the La Fortuna mine (National Instrument 43-101 compliant Measured and Indicated resource containing 4.8 million tonnes grading 1.98 grams per tonne gold for a total of 308,000 ounces of gold - refer to press release dated November 12, 2008) and within the Company`s 10,000 hectare mineral concessions. The initial work of this first phase exploration program focussed on mapping and sampling road cuts and outcroppings that appeared to be related to the known gold mineral resource at the La Fortuna mine.

The best result from this program came from sample FF - 89, located in the Meloncita prospect (refer to Image 2 - La Fortuna and Extensions Geologic and Sample Location Map), south of the La Fortuna mine which assayed 41.1 grams per tonne gold. Additional results from this area included samples FF - 86 through FF - 90. Anomalously elevated results also came from an area to the east, northeast of the La Fortuna mine area, including samples FF - 30 through FF - 36 (refer to Image 2).

A total of 136 samples were collected and assayed from a wide ranging area in the La Fortuna and Extensions area of which 18 are reported grading in excess of 0.30 grams per tonne gold, with 12 of these samples exceeding 1 grams per tonne gold, and seven of these samples exceeding 2 grams per tonne gold, and a few key location samples providing exceptionally high gold assay results (refer to Table 1 below).

Thomas Atkins, President and CEO of Castle Gold commented on the results from the La Fortuna program stating: "The reconnaissance program is a first phase program aimed at identifying areas of future exploration interest. The program was successful in assisting us in determining the geology and structural controls that appear to produce elevated concentrations of gold, silver and copper mineralization observed to the northeast and south of the La Fortuna mine. Hand and channel samples, taken from outcrop and rock exposed in road cuts, have demonstrated encouraging values of gold, silver and copper. These results warrant follow-up work to determine the extent to which known mineral resources at La Fortuna might be enhanced. The geological team led by Miguel Cardona, Castle Gold's Manager of Exploration continue to accumulate data from remaining areas of the concessions and once complete, management intends to press release these results and begin planning the next stage of exploration. Subsequent stages of exploration may include diamond drilling to test priority target areas discovered in this initial reconnaissance work."

Additional area of interest observed in this reconnaissance program include, areas named Cerro Pelon, Ramada and PN Prospect (refer to Image 1 - La Fortuna Prospect and Concession Map). The Company expects to be in a position to release results from similar mapping and sampling work on these areas in the coming weeks.



Table 1

Summary Assay Results - La Fortuna and
Extensions Area

---------------------------------------------
Sample Gold Silver Lead Zinc Copper
Number (gpt) (gpt) (ppm) (ppm) (ppm)
---------------------------------------------
---------------------------------------------
FF - 30 3.05 19.2 187 77 349
---------------------------------------------
FF - 31 1.69 31.0 147 181 954
---------------------------------------------
FF - 32 0.74 34.3 553 376 659
---------------------------------------------
FF - 33 3.98 37.8 1310 70 478
---------------------------------------------
FF - 34 8.79 93.0 1150 118 529
---------------------------------------------
FF - 35 1.29 16.4 351 447 504
---------------------------------------------
FF - 36 2.03 47.2 1240 346 3470
---------------------------------------------
FF - 37 0.46 3.9 30 337 2190
---------------------------------------------
FF - 73 0.34 4.7 109 6 50
---------------------------------------------
FF - 86 6.02 7.3 60 9 24
---------------------------------------------
FF - 87 3.87 1.8 99 5 8
---------------------------------------------
FF - 88 1.73 4.9 144 23 57
---------------------------------------------
FF - 89 41.10 20.8 168 15 34
---------------------------------------------
FF - 90 1.77 2.0 291 14 50
---------------------------------------------
FF - 103 0.51 0.4 0 15 194
---------------------------------------------
FF - 118 0.65 23.4 151 109 657
---------------------------------------------
FF - 135 0.71 4.5 21 19 330
---------------------------------------------
FF - 136 0.84 17.5 94 36 309
---------------------------------------------
---------------------------------------------

gpt equals grams per tonne / ppm equals parts per million
(1000 ppm equals .1%)


Qualified Person Comments/Quality Control Procedures

This press release has been reviewed by Mr. Darren Koningen, P. Eng., Castle Gold's Vice President Project Development. Mr. Koningen is a Qualified Person under National Instrument 43-101. The reconnaissance mapping and sampling program were supervised by Miguel Cardona, Castle Gold's Exploration Manager a BSc geological engineer with over 20 years experience in mineral exploration, project development and resource calculation.

At this stage the sampling program was aimed at the identification of anomalous metal values, alteration patterns and mineralization models. All rock samples were sent for preparation and analysis to ALS-Chemex Laboratories in Vancouver, Canada. Analysis was completed using gold fire assaying with an Atomic Absorption Spectroscopy ("AAS") finish as well as geochemical multi-element ICP analysis. For quality control purposes one gold standard, one zinc-lead-silver standard, one duplicate sample and one blank were also submitted at a minimum of one each per every 50 samples. Cross check analysis of pulps at a secondary laboratory will be completed for 5 % of all mineralized samples.

About Castle Gold

Castle Gold Corporation is a growth oriented gold producer with projects focused in the America's. The Company owns a 100% interest in the El Castillo gold mine in Mexico and a 50% interest in the El Sastre gold mine in Guatemala. Castle Gold is also advancing exploration and development work at its La Fortuna gold-silver-copper project in Mexico.

To view Image 1, please visit the following link:
http://media3.marketwire.com/docs/csgimage1.pdf

To view Image 2, please visit the following link:
http://media3.marketwire.com/docs/csgimage2.pdf



TSX-V Trading Symbol: CSG
Total Shares Outstanding: 75.5MM
Fully Diluted: 83.0MM
52-Week Trading Range: C$0.15 - $0.80


The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Castle Gold Corporation
    Thomas Atkins
    President and CEO
    416 214 4809 or Toll Free: 1 866 646 3274
    or
    Castle Gold Corporation
    Rory Quinn
    Manager Investor and Public Relations
    416 214 4809 or Toll Free: 1 866 646 3274
    416 366-7421 (FAX)
    info@castlegoldcorp.com
    www.castlegoldcorp.com