Castle Gold Corporation
TSX VENTURE : CSG

Castle Gold Corporation

January 10, 2008 14:09 ET

Castle Gold Updates Progress at Castillo Mine

TORONTO, ONTARIO--(Marketwire - Jan. 10, 2008) - Castle Gold Corporation ("Castle Gold" or the "Company") (TSX VENTURE:CSG) is pleased to announce that it has placed approximately 8,500 ounces of gold on the leach pad at its El Castillo mine during the fiscal year of 2007 (ended December 31). Of this amount, approximately 3,000 ounces were placed on the pad in the third quarter of 2007, while 5,500 ounces were placed on the pad during the fourth quarter of 2007. Gold sales from Castillo over the same period were approximately 2,200 ounces.

Mine production rates at El Castillo have been steadily increasing from an average of approximately 60,000 tonnes of ore per month in the third quarter of 2007 to roughly 120,000 tonnes of ore per month in the fourth quarter of 2007. Darren Koningen, Vice President of Operations for Castle Gold, said: "We are happy to report these production numbers for the initial ramp-up period of operations at Castillo. The increase in gold price has allowed us to substantially reduce our mining cut-off grade at Castillo, which in turn has given us access to significantly more ore in the pit area than was originally planned."

Given the increased gold price and reduction in cut-off grade at Castillo, Castle Gold has retained A.C.A. Howe International Limited of Toronto, Canada to prepare a new ore reserve estimate and an updated mining plan for the Castillo project. Management expects to receive the ore reserve estimate and mining plan in the first quarter of 2008, and anticipates that the new mining plan will include a substantial increase in annual gold production. Plans are already underway to accommodate this increase.

Darren Koningen (P. Eng.), Vice-President - Operations, is the Qualified Person under National Instrument 43-101 for the El Castillo Mine.

Castle Gold is a growth oriented gold producer focused on expanding gold production within the Americas. Castle Gold owns a 100% interest in the El Castillo gold mine in Durango, 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 project in Mexico and at its El Sastre, Bridge and Lupita projects in Guatemala.

CAUTION REGARDING FORWARD LOOKING STATEMENTS:

The information referred to referred to above contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the future price of metals, timing of exploration activities, mine life, economic viability and estimated internal rate of return, estimation of mineral resources, the results of drilling, estimated future capital and operating costs, future stripping ratios, projected mineral recovery rates and plans for developing, the projects. Generally, these forward-looking statements 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", "can", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the companies to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the exploration and potential development of the projects, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of metals. Although the companies have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements 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 statements. The companies do not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

Current issued and outstanding share capital: 73,760,782

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release.

Contact Information

  • Castle Gold Corporation
    Chris Babcock
    President and CEO
    Toll Free: 1-866-646-3274
    Website: www.castlegoldcorp.com