Newcastle Minerals Ltd.

Newcastle Minerals Ltd.

January 14, 2008 09:42 ET

Newcastle Announces Drill Hole Assay Results for Newly-Defined Snip North Gold-Copper Porphyry Deposit

VICTORIA, BRITISH COLUMBIA--(Marketwire - Jan. 14, 2008) - Newcastle Minerals Ltd. (TSX VENTURE:NCM) is pleased to announce that the six-hole, 1158.8-meter NQ sized core diamond drilling program on its 100% owned Snip North Property, located in the Iskut River area of northwestern British Columbia, which commenced in early October was completed on October 27, 2007. The Company also previously completed a five-hole, 1047.9-meter NQ sized core-drilling program on the property in October 2006. The Snip North property is located on trend and some 2 to 2.5 kilometers to the northwest of the Bronson Slope gold-copper-silver-molybdenum deposit owned by Skyline Gold Corporation.

Iskut Deposit - 2007 Drilling Results

The assay results from this 2007 drilling program and, as well, the 2006 drilling program confirm the definition of a separate copper-gold-molybdenum porphyry mineralization zone, called the Iskut Deposit, that is returning significant gold-copper-molybdenum values over substantial intercept lengths. The results from the 2007 drilling program for the five Iskut Deposit drill holes are as follows:

From To Intercept Au Cu Mo Ag
Hole (meters) (meters) (meters) g/t % % g/t
SN 07-01 3.8 183.8 180.0 0.448 0.132 0.010 0.6
including 16.2 65.7 49.5 0.622 0.134 0.003 0.9
including 147.2 183.8 36.6 0.434 0.180 0.027 0.5

SN 07-02 25.3 80.2 54.9 0.609 0.086 0.003 1.2
including 28.3 34.4 6.1 1.615 0.119 0.001 1.5
including 61.9 77.1 15.2 0.723 0.171 0.006 2.4

SN 07-03 13.1 19.2 6.1 0.193 0.092 0.003 0.6
and 52.7 208.1 155.4 0.575 0.134 0.006 1.2
including 52.7 83.2 30.5 0.793 0.166 0.005 2.1
including 92.3 110.6 18.3 0.934 0.239 0.018 1.6
including 150.3 168.6 18.3 0.863 0.240 0.007 1.0

SN 07-04 4.4 31.1 27 0.417 0.173 0.020 0.6
and 46.6 162.5 115.9 0.369 0.171 0.013 0.5
including 107.6 147.2 39.6 0.530 0.236 0.014 0.8
and 171.6 186.8 15.2 0.257 0.043 0.002 0.4
and 196.0 202.1 6.1 0.315 0.067 0.002 0.0

SN 07-05 No significant metal values

These results are based on gold cut-off of 0.200 grams per tonne and/or a copper grade of 0.070% over a minimum intercept length of 6.0 meters.

The limited drilling and preliminary geological modeling to date, has defined an east-west trending deposit, dipping steeply south, to be some 500 to 600 meters in trend length, and ranges from 200 to 300 meters in true width and has been drilled, at the deepest, to a depth of 200 meters. The deposit is open along trend to the west, possibly to the east, and to depth. The deposit sub crops below a thin cover of overburden and glacial cover. Essentially no outcrop exists in the location of the current deposit. Outcrop expression on the property is rare and is limited to incised stream valley bottoms, the north side of the Iskut River and some valley sides.

This deposit is located adjacent and on the north side of the Iskut River and parallels the river where defined. The mineralization is contained within altered fine-grained Upper Triassic/Jurassic clastic sediments and andesitic tuffs. Silicified sediments and tuffs, quartz veins and veinlets, pyrite, chalcopyrite, minor epidote and magnetite define the porphyry mineralization and alteration.

The bulk of the 2007 drilling program, totaling five holes, was designed to test the strike, width, and depth extensions of the gold-copper-molybdenum porphyry Iskut Deposit initially outlined during the 2006 drilling program. The 2007 drilling on the deposit was completed on three separate north-south sections, each in the order of 200 meters apart.

Holes SN 07-03 and SN 07-04 represent the most westerly drill section on the property, which was drilled south to north from the hanging wall side of the deposit through to the footwall side of the deposit, respectively. Holes SN 07-01 and SN 07-02, a second parallel section 200 meters to the east, was also drilled from the hanging wall side and through the footwall side, respectively. Hole SN 07-05 on a third section approximately 200 meters east of the second section was situated to the north and on the footwall side of the deposit and consequently did not intersect mineralization. These holes complemented drilling coverage done in 2006 on the second and third above noted sections. All drill holes were directed at a 360 degrees azimuth and at a dip of -50 degrees to the north. ACME Laboratories of Vancouver, BC completed core assays for copper, gold, silver, and molybdenum.

Four 2007 drill holes on the Iskut Deposit returned significant grade and lengthy intercepts that are tabulated above. Holes SN 07-01 and SN 07-04, collared in mineralization, were essentially mineralized throughout their complete lengths and bottomed in mineralization. Hole SN 07-03 was mineralized for most of its length and also bottomed in mineralization. Hole SN 07-02 intercepted a significant length of relatively gold-enhanced mineralization on the footwall wall side of the deposit.

East Zone - 2007 Rock Sampling & Drilling Results

In the vicinity of the East Zone, located some 550 meters to the east of the east edge of the Iskut Deposit, historical exploration in 1987 defined an area of rock sampling containing low-grade copper and gold mineralization indicative of porphyry mineralization. Representative sampling by the Company in mid-October 2007 returned the following results from limited rock grab sampling:

Sample Au Cu Mo Ag
No. (ppb) (%) (ppm) (ppm) Location
708449 498 0.083 5 2.6 Adjacent to SN07-06 Drill Site
708448 240 0.014 10 0.5 Outcrop 100 m SE of SN 07-06
708447 55 0.041 5 0.4 Outcrop 190 m SE of SN 07-06
708446 2555 0.058 156 7.6 Outcrop 200 m SE of SN 07-06

The Company's sixth and final drill hole, from the October 2007 drilling program, SN 07-06, was completed to a depth of 155.7 meters to test this zone. The results are as follows:

From To Intercept Au Cu Mo Ag
Hole (meters) (meters) (meters) g/t % % g/t
SN 07-06 10.1 16.2 6.1 0.264 0.071 0.001 1.8
and 40.5 101.5 61.0 0.320 0.074 0.001 1.5

Untested areas of ground both to the west and east of drill site SN 07-06 cumulating in approximately 700 meters of favorable trend remain to be evaluated.

Future Exploration Work

Newcastle's next objective is to compile the exploration and drilling results from the 2007 program and to complete a technical report on the Snip North property that is National Instrument 43-101-compliant. This report will detail the future drilling and exploration recommended to further evaluate the property.

The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed for technical accuracy by Mr. A. A. Burgoyne, P.Eng., M.Sc., of Burgoyne Geological Inc., who serves as the Qualified Person for the property under National Instrument 43-101.


Kevin C. Whelan, President

Mr. Lou Straith, A.Sc.T. and. Mr. Cam DeLong, B.Sc., M.Sc, managed the drilling program on the Snip North property. Mr. A.A. Burgoyne, M.Sc., P.Eng. is the designated Qualified Person (Q.P.) for the project and has verified the data disclosed. He has determined that the laboratory reports matched the drill sample logs and that the quality control assays fall within reasonable limits. Newcastle Minerals' QA/QC procedures incorporate blanks and duplicates inserted at the drill site and standards after sample preparation. Drilling is by wire line core using diamond bits. ACME Analytical Laboratories Ltd. in Vancouver, British Columbia (an ISO9001: 2000 accredited lab) process a one-half split of NQ diameter core from each three-meter section of the drill hole weighing approximately 9 kg. Analyses for gold are with a 50 gram sub sample, fire assay fusion with ICP-ES (Induced Couple Plasma-Emission Spectrographic) finish; copper analyses are with a 1 gram sub sample, aqua regia digestion followed by ICP-ES finish; silver and molybdenum analyses are with a 0.5 gram sub sample, aqua regia digestion followed by ICP-ES finish.

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

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