Newcastle Minerals Ltd.

Newcastle Minerals Ltd.

March 04, 2010 08:23 ET

Newcastle Options Mollie River Gold Prospect Near Trelawney's Chester Discovery

VICTORIA, BRITISH COLUMBIA--(Marketwire - March 4, 2010) - Newcastle Minerals Ltd. (TSX VENTURE:NCM) is pleased to announce that it has, subject to regulatory acceptance, negotiated an option to purchase a 100% interest in the Mollie River property, which comprises three mineral claims covering approximately 1,400 acres in the Township of Benneweis of the Porcupine mining district of Ontario.

The Mollie River property is located 4.7 kilometres east of Trelawney Mining and Exploration Inc.'s (TSX VENTURE:TRR) Chester Project. Trelawney recently reported intersecting 107.11 metres of 8.20 grams per tonne of gold, including 313.55 grams per tonne gold over 2.56 metres, on the Chester Project.

Newcastle's President, Michael Romanik, said, "Our preliminary review of exploration data from the 1970s indicates good potential for the Mollie River property. We believe this area's gold potential has been largely overlooked and, as a result of the recent discovery by Trelawney, merits closer examination. This makes the property an excellent, high priority exploration project for Newcastle."

Newcastle's initial work program is expected to take the form of ground geophysics, which will be followed by a diamond drill program.

To exercise its option and acquire a 100% interest in the Mollie River property, Newcastle must pay the optionor $15,000, issue 2,000,000 shares of the Company and grant the optionor a 3% net smelter returns royalty. Newcastle may repurchase one-third of the net smelter returns royalty for $1,000,000.


Michael Romanik, President

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.

Contact Information