Duncastle Gold Corp.

Duncastle Gold Corp.

January 21, 2010 09:15 ET

Duncastle Reports on 2009 Yankee-Dundee Results and Plans 2010

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 21, 2010) - Duncastle Gold Corp. (TSX VENTURE:DUN)(FRANKFURT:5D3) reported today that it has received the consultant's report compiling the results of the 2009 drill program at its historic and past-producing Yankee-Dundee project, located three kilometres northeast of Ymir, in southeastern British Columbia.

Most significantly, the 2009 report highlights the strong continuity of gold and silver-enriched sulphide mineralization between previously modeled higher-grade shoots such that a single, more continuous zone, known as Yankee Girl West, can now be defined along the western projection of the Yankee Girl structure. Drilling has extended the strike of this zone to approximately 285 metres and vertical depth of 280 metres. The Yankee Girl West zone is now one of five exploration target areas of similar or greater dimension, referred to in later text as "panels", which Duncastle has defined at and around the historic workings of the Yankee Girl mine.

A total of 48 core holes have been completed on the project to date with much of the drilling focused on the Yankee Girl mine area located at the southwestern corner of this 5,987 ha property. Recommendations from the report will form the basis for the 2010 exploration activity on the project.

Exploration priorities for 2010 include:

  • continued surface drilling of the Yankee Girl West zone (panel 3),
  • underground drilling via the existing Wildhorse Adit targeting the area of the Cayzor raise on the Yankee Girl structure (panel 2), and
  • ground-based geophysics on the Yankee-Girl and Goodenough areas.

2009 Exploration Results

The 2009 exploration program consisted of 2,832 metres of core drilling in 11 holes. Seven drill holes tested portions of the Yankee Girl structure and three holes tested the area of the Goodenough mine, 3 kilometres north of the Yankee Girl.

Past reporting by Duncastle and others dating to 1934 have referred to mineralized shoots along strike and to the west of the historic Yankee Girl mine similar to the shoots mined between 1907 and 1951. Drilling in 2009 demonstrated sufficient on-strike continuity of higher–grade mineralization such that the previously referred to Yukon, 400 and possibly 790 shoots have merged into a larger mineralized zone which is now termed the Yankee Girl West zone ("YGW"). The drill-defined strike-length of the mineralized zone has expanded from 50m in 2008 to some 285m in 2009 along the western projection of the Yankee Girl structure. To date gold and silver-enriched polymetallic mineralization in the YGW has been drill tested to only 280 metres vertical depth where it reaches the historic mine workings (1235 level) and remains open at depth to the west below the 1235 level, and to the east towards the historic mine.

As tested to date, the mineralized portion of the Yankee Girl structure consists of a quartz breccia up to 7.8 metres estimated true thickness, containing massive sulphide horizons ranging up to 1.2 metres thick. Massive sulphide horizons contain clots and lenses of massive to finely banded sphalerite, galena, pyrite and locally pyrrhotite with scattered rounded quartz and minor host rock fragments with up to four massive sulphide horizons distributed within, or along the contacts of the quartz breccia.

Highlights of previously reported assays, quoted as estimated true thickness, from 2009 drilling include:

  • a 2.8 metre interval averaging 5.2g/t Au, 122.3g/t Ag, 4.5% Pb and 13.8% Zn contained within a 17.2 metre interval grading 1.2g/t Au, 21.9g/t Ag and 2.4% Zn from hole YD09-39,
  • a 3.2 metre interval, grading 4.2g/t Au, 21.9g/t Ag, 0.9% Pb and 1.1% Zn from hole YD09-40. Three additional intercepts including a 0.44 metre interval of 17.8 g/t Au, 124 g/t Ag, 3.4% Pb and 3.9% Zn occur in the hangingwall of the main intercept,
  • a 1.63 metre interval averaging 1.35g/t Au, 81.73g/t Ag, 0.59% Pb and 1.84% Zn from drill hole YD09-44 targeting the Yankee Girl structure 485 metres west of the Yankee Girl mine (the farthest step out along strike to the west to date),
  • a 4.3 metre interval averaging 5.6g/t Au, 27.4g/t Ag, 0.8% Pb and 4.1% Zn from drill hole YD09-45, and
  • a 4.5 metre interval averaging 3.4g/t Au, 84.4g/t Ag, 1.6% Pb, and 2.6% Zn within a broader 6.5 metre interval averaging 2.6g/t Au, 61.5g/t Ag, 1.1% Pb, and 1.9% Zn from drill hole YD09-46.

On the eastern margin of the Yankee Girl mine, hole YD09-48 intercepted the historic workings and returned 1.7 metres averaging 6.4g/t Au, 35.9g/t Ag, 1.2% Pb and 1.8% Zn and a 0.3 metre interval of 21.0g/t Au, 232.0g/t Ag, 6.3% Pb and 21.3% Zn, with mineralization occurring in the immediate hangingwall and footwall of the historic workings. The result infers that significant higher-grade material remains around the historic workings and further confirms that at least some of the past mining efforts were based on visual assessment with little testing of the face or walls for grade.

A long-section of drilling on the Yankee Girl structure showing the panels where further exploration is being considered is shown in the attached figure (To view figure, click on the following link: http://media3.marketwire.com/docs/0120FigureDUN.JPG).

Panel 1 - the eastern mineralized zone above the 1235 level, including the historic mine (1907 – 1951).

Panel 2 - the eastern mineralized zone below the 1235 level and above the Wildhorse Adit, including minor production during the final years of the mine.

Panel 3 - the western mineralized zone including the Yankee Girl West zone.

Panel 4 - the western zone below the 1235 level and above the Wildhorse adit.

Panel 5 - the zone below the Wildhorse Adit, also below the above four panels.

2010 Exploration Plans

Duncastle is now reviewing the exploration approach recommended in the report and the access work required to expedite use of the existing adits. Elements of the plan under consideration are:

  • Additional surface drilling on the Yankee Girl West zone (Panel 3) to further expand the zone and test the continuity of mineralization both horizontally and vertically from surface to the 1235 level. Deeper drill testing holes into Panel 4 are also recommended as there is no data from this area.
  • Rehabilitation of the Wildhorse Adit to access drill targets below the mine workings. The Wildhorse adit is a 1.4 kilometre exploration adit that reaches the Yankee Girl structure 110 metres below the workings. It was completed in 1954 and inspected by Duncastle personal in 2006 and found to be in apparently sound structural condition.
  • Underground drilling from the Wildhorse adit to test the area of the Cayzor raise where historic chip sampling in 1961 partially defined a zone some 200ft (61m) in height (approximately down-dip along the mineralized structure) containing wall samples averaging 8.68g/t Au, 74.4g/t Ag, 2.4% Pb and 4.48% Zn over an average width of 1.31 metres.
  • Underground drilling targeting the Bonus Vein, a structure parallel to the Yankee Girl vein which was discovered during construction of the Wildhorse Adit but has limited expression at surface. Historic data reports 2.43m grading 7.15g/t Au, 21.1g/t Ag, 0.37% Pb and 1.6% Zn at the Bonus vein.
  • A detailed ground-based geophysics survey, as recommended for the Yankee Girl and Goodenough mine areas.

Note that historic data provided in the section above has not been independently confirmed by the company, is not 43-101 compliant and cannot be relied upon.

About Duncastle Gold

Duncastle Gold Corp. is a mineral exploration company headquartered in Vancouver with projects in both northwestern and southeastern British Columbia, two of BC's most prolific regions. In northwestern BC the company holds under 100% option the 8,641 hectare Porphyry Creek project in the Rocher Deboule Mountains near Smithers, where multiple high-grade silver, gold and base metal occurrences surround a 10 kilometre long magnetic high. Exploration is targeting porphyry copper-gold showings and prior workings as well as high- grade silver-gold-copper prospects. In southeast BC Duncastle has the historic prolific Yankee-Dundee Mine Project totaling approximately 5,987 hectares under a 100% option agreement in the Nelson Mining District, located three kilometres northeast of the town of Ymir. Exploration by the company is targeting high-grade gold-quartz veins throughout the Ymir district which historically, together with the adjacent Sheep Creek district, is reported to have produced more than one million ounces of gold, ending in the 1950s (Production data was obtained from historical government records and has not been independently verified by the company and may be unreliable). The Ymir camp was the largest silver producer in the British Commonwealth in the 1930s (BC MEMPR Bulletin 109, 2001). Duncastle Gold Corp. is a Manex Resource Group company.

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

On behalf of the Board of Directors,

"Victor J E Jones."
Victor J E Jones, 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. Duncastle Gold Corp. relies upon litigation protection for forward looking statements.

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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