Castle Resources Inc.

June 01, 2009 09:03 ET

Castle Resources Options to Earn Up to 70% Interest In Elmtree Gold Project in New Brunswick

- Highly prospective gold property with a current NI 43-101 resource of 226,500 ounces and significant exploration potential

TORONTO, ONTARIO--(Marketwire - June 1, 2009) - Castle Resources Limited (TSX VENTURE:CRI) ("Castle" or the "Company") is pleased to announce that the Company has entered into an option agreement with Stratabound Minerals Corp. to acquire up to a 70% interest in their 100% owned New Brunswick based Elmtree Gold Property ("Elmtree"), subject to a 30 day due diligence period and regulatory approval.

Castle will earn a 60% interest in Elmtree over a 3 year option period by spending $2.5 million on exploration and drilling expenses; $750,000 is to be spent during the first year and the balance spent over the remaining two years of the option period. Castle will pay Stratabound a total of $200,000 over the 3 year option term and will issue, subject to regulatory approval, 200,000 shares of the Company, based on the following schedule:

Elmtree Earn-In Schedule
Interest Earn-In Schedule Cash Shares
60% Signing of contract $ 100,000 200,000
1st anniversary $ 50,000 n/a
2nd anniversary $ 50,000 n/a
10% 90 days after 3 year option $ 1,000,000 n/a

In addition, Castle has the option to acquire an additional 10% interest in Elmtree at the exercise price of $1,000,000 within 3 months following the end of the initial 3 year option period, bringing Castle's total interest up to 70%.

Consisting of 85 claims (1,375 hectares, 3,400 acres) and situated near the port city of Bathurst, New Brunswick, the Elmtree property contains at least three gold-bearing zones, the higher grade West Gabbro Zone (WGZ), original Discovery Zone (DZ) and the larger tonnage, lower grade South Gold Zone (SGZ). A portion of SGZ contains significant stringer mineralization with appreciable zinc-lead-antimony-gold-silver-indium values.

In a June 2008 NI 43-101 report, the resource estimate consists of 525,000 Indicated tonnes grading 2.45 g/t gold (41,000 ounces gold) plus 4,624,000 Inferred tonnes at an average grade of 1.25 g/t gold (185,500 ounces gold), plus 41,000 Inferred tonnes containing 201,000 ounces of silver, 7.0 million lbs zinc and 2.4 million lbs lead. Contained metals reported were in situ.

"We are very excited to begin a sizable drilling program at Elmtree," said Mr. Stephen Shefsky, President & CEO of Castle Resources Limited. "Stratabound's efforts over the past several years have given us the foundation to now ramp-up exploration and potentially expand the gold resource significantly."

Castle is also pleased to announce that Mr. Brad Leonard has joined the Company as Exploration Manager. Mr. Leonard is a professional geologist with more than 25 years experience in the mining industry and has been involved in a wide range of projects both in Canada and internationally. He has held positions with the Ontario Ministry of Northern Development and Mines in the Ontario Geological Survey and Mining Lands Section.

Before joining Castle, he was the Exploration Manager with the internationally respected consulting firm of Caracle Creek International Consulting Inc.

Mr. Lenny Foreht has agreed to join the Company's management team as VP Corporate Development. Mr. Foreht has extensive experience in the Canadian capital markets and in the junior mining sector. He is currently a partner at Linear Capital Corp. a merchant bank based in Toronto with a focus on financing, developing and advising emerging growth companies.

Castle also wishes to announce that pursuant to the terms and conditions of its Stock Option Plan, it has granted, in the aggregate, 1,500,000 incentive stock options (the "Options") to the officers, management and directors of the Company. The options will be exercisable for a five year period at $0.10 per share.

Brad Leonard, P. Geo., Castle's Exploration Manager, is the Qualified Person responsible for the scientific and technical work discussed as defined under National Instrument 43-101 and has reviewed this press release.

About Castle Resources

Castle Resources Inc. is a Toronto-based junior mineral exploration company focusing on high-quality, advanced exploration gold projects. Management's goal is to quickly advance the new Elmtree option and to seek additional opportunities to continue to add value for shareholders. For more information please visit the Castle Resources' website at


Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information is identified by words such as "estimates", "intends", "expects", "believes","may", "will" and include, without limitation, statements regarding the company's plan of business operations (including plans for progressing assets), estimates regarding mineral resources, projections regarding mineralization and projected expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, risks inherent in the mining industry, financing risks, labour risks, uncertainty of mineral resource estimates, equipment and supply risks, title disputes, regulatory risks and environmental concerns. Most of these factors are outside the control of the company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

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 release.

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