Duncastle Gold Corp.

Duncastle Gold Corp.

August 17, 2010 12:37 ET

Duncastle Commences Ground Geological Program at Porphyry Creek

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 17, 2010) - Duncastle Gold Corp. (TSX VENTURE:DUN)(FRANKFURT:5D3) reported today that it has commenced ground based geological work at its Porphyry Creek project located 20 kilometers northwest of Smithers, in northwest British Columbia.

The work program continues the target selection and prospect evaluation process started in 2008 and will focus on assessing newly identified geophysical anomalies in preparation for an anticipated Fall 2010 drilling program. Ranex Exploration Ltd has been retained to conduct the exploration program from its Smithers office with oversight from Duncastle's corporate office at the Manex Resource Group.

To complement the 2008 ground program on the west side of the property, the 2010 program will focus on priority geophysical targets on the east side of the property which were generated from a recently completed airborne DIGHEM survey (July 26, 2010 news release). Targets on the eastern side of the property and are associated with two clusters of known copper/molybdenum +/- gold/silver mineral occurrences including the Sultana, Big Thing, MT and Tina showings. Geophysical responses from the survey may reflect differing host lithologies, associated alteration assemblages and metal type and content between the different occurrences within theses broader target areas.

Sultana, Big Thing and MT Prospects

The Sultana prospect is the most developed target on the property and will be the focus of most of the work in this phase of exploration. Preliminary 2010 airborne results show a coincident 600m by 400m conductive (EM) and magnetic response within a broader 1,400m by 900m anomaly. The geophysical anomalies are spatially associated with historic trench (up to 7.5g/t Au, 2,057g/t Ag and 0.5% Cu over 2.7 meters) and drill results (up to 1.03g/t Au, 638g/t Ag, and 9.06% Cu over 0.6 meters), and also with circa 1969-70 sampling of altered intrusive by Utah Mines Ltd (1) which identified a broad 500m x 500m Cu-Mo surface anomaly on the property within fractured granodiorite mineralized with chalcopyrite.

The MT Showing located 2 kilometres to the south of the Sultana has a more muted geophysical response but features high-grade historic rock grab samples (select) including 5,187g/t Ag and 2.34% Cu in one sample, 23.0g/t Au, 1,817g/t Ag and 1.09% Cu in a second, and 5.1g/t Au, 2,846g/t Ag and 3.65% Cu in a third(1).

Tina West, Tina North and Porphyry East Targets

These geophysical targets are located near the Tina molybdenum showing and were identified recently from the preliminary airborne survey. Tina West and Porphyry East show conductive EM anomalies, strong magnetic response and positive potassic anomalies in the radiometric component of the survey. Tina North shows a magnetic anomaly.

Other targets which were identified in the 2010 geophysical survey and are currently interpreted as distal, high-grade polymetallic veins include the Brunswick Mine and the Brian Boru prospect.

Brunswick Mine

The area of the historic Brunswick Mine features co-incident geophysical anomalies including a strong EM response (conductive high) in preliminary data. Dump and talus samples returned 2,566g/t Ag, 11.1% Pb and 19.4% Zn in one sample and 1,131g/t Ag, 4.9% Pb and 4.1% Zn in a second from the Brunswick Adit area in the 2008 geological program. In addition, stream sediment sampling in the area returned anomalous copper and silver values in the 2008 program.

Brian Boru prospect

The Brian Boru prospect area shows a strong conductive high (EM anomaly) co-incident with highly mineralized samples from the 2008 program (152g/t Ag and 22% Zn from a massive sulphide boulder), and anomalous copper and silver values in stream sediment sampling, also from the 2008 program.

(1) Historical results are compiled from government databases and predate NI 43-101. Duncastle has not independently verified past exploration results.

The Porphyry Creek project consists of over 118 sq km of mineral claims with historic workings and numerous high-grade gold, silver and polymetallic showings around a distinct 10 kilometer long magnetic high with coincident copper, lead and zinc geochemical anomalies shown in government data. Data compilation and modeling by Duncastle has demonstrated mineral zonation on the property consistent with porphyry style deposits. There are over 20 porphyry discoveries within a 350km radius of the project, including Berg, Bell, Huckleberry, Mt Milligan, and Galore Creek among others, plus other deposit types (eg Eskay Creek).

Duncastle Gold Corp. is a Vancouver based gold exploration company with mineral claims covering or surrounding past producing mines in two historic BC districts. In Southeast BC Duncastle holds a claim block with a focus on the high-grade gold-silver-lead-zinc veins at the former Yankee-Dundee mine, 50 km from the smelter at Trail, BC. In Northwest BC Duncastle's project covers a 10 km long magnetic anomaly, previous workings, and high-grade precious metal veins on its Porphyry Creek claims. Duncastle has assembled contiguous claim blocks totaling more than 170 sq km in these two productive regions.

As part of the Manex Resource Group, Duncastle benefits from shared expertise in corporate finance, public company administration, investor relations, and the technical and geological services provided for the eight public companies active in North America. Since its formation in 1997, the Manex Group companies have raised over C$250 million in exploration financing.

Rob Macdonald, (P.Geo.), is the Qualified Person responsible for reviewing the technical results in this release.

On behalf of the Board of Directors,
"Michael Rowley"
Michael Rowley
President, Director, Duncastle Gold Corp.

This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general economic conditions, interest rates, commodity markets, regulatory and governmental approvals for the company's projects, and the availability of financing for the company's development projects on reasonable terms. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic, market or business conditions. Duncastle Gold Corp. does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.

Neither 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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