Castillian Resources Corp.
TSX VENTURE : CT

Castillian Resources Corp.

October 05, 2005 14:09 ET

Castillian Acquires Nickel Properties in Kagera Nickel Belt, Tanzania

TORONTO, ONTARIO--(CCNMatthews - Oct. 5, 2005) - This release corrects and replaces the release disseminated on October 4, 2005 at 0800 ET. Castillian Resources Corp. is listed on the TSX Venture Exchange under the symbol "CT".

CASTILLIAN RESOURCES CORP. (TSX VENTURE:CT) has entered into an agreement with Tsar Emerald International AB to acquire three nickel properties in the prospective Kagera Nickel Belt, host to the Barrick/Falconbridge Kabanga Nickel Deposit in northwestern Tanzania.

The three properties, NE Kabanga, Burigi and Kibombo - collectively the Kagera Nickel Project, comprise a large land position, approximately 1752 square kilometres within the Kibaran Orogenic Belt, a north-northeasterly trending metasedimentary sequence along the western border of Tanzania which is intruded by mafic and ultramafic intrusions with associated nickel and copper mineralization, including the Kabanga Nickel Deposit.

The Kabanga Nickel Deposit, owned by Barrick Gold Corporation and subject to an exploration and development joint venture between Barrick and Falconbridge Limited, was discovered after a large comprehensive geochemical and geophysical program during the 1970s by the United Nations Development Program (UNDP) identified a chain of coincident airborne magnetic and geochemical anomalies within a 20-30km wide northeasterly trending belt extending over 200km in length from Burundi in the south, through western Tanzania to Uganda in the north. The Kabanga Ni-Cu Deposit, which is within 25 kilometers of the Kagera Nickel Project, with an Inferred Resource of 26.4 million tonnes grading 2.6% nickel, 0.27% copper and 0.16% cobalt (Barrick Gold Corporation, Feb 2003) was discovered by following up one of the UNDP anomalies; additional mineralization has also been reported at a new adjacent discovery, the MNB Deposit.

The Kagara Nickel Project areas were selected to cover other identified magnetic geophysical anomalies and nickel and other associated metal geochemical anomalies within the northern extension of the Kagera Belt to the north from Kabanga. Two of the five target areas recommended by the UNDP evaluation mission in 1979, Anomalies 29-04 and 18-01, are located within the Kagara Nickel Project area; the other three recommended targets are within ground held by Barrick/Falconbridge, one of which is the Kabanga discovery.

Initial reconnaissance exploration work will comprise follow-up geological, geophysical and geochemical surveys to identify areas of specific interest within the broader regional anomalies detected by the UNDP surveys.

To acquire the right to earn up to a 100% interest in Sagittarius Minerals (Tanzania) Limited ("Sagittarius"), a Tanzanian company that holds title to the nickel properties, Castillian will make a one time cash payment of $100,000 to Tsar Emerald International AB. ("Tsar") and assume the agreement that Tsar has with the owners of Sagittarius to acquire this Tanzanian company. Castillian would be required to issue the equivalent of CDN$30,000 worth of common shares of Castillian to the current shareholders of Sagitarrius, on each of the 30 day, 6 month, 12 month and 18 month respective anniversaries of the receipt of regulatory approval for the transaction.

The agreements referred to above remain subject to receipt of regulatory approval.

Castillian's President, Mr John Buckle commented, "We are excited about securing a land position within such a favourable geological terrain. The project areas have had only cursory historical exploration and, given the presence of anomalies defined by the UNDP work, considerable potential exists for discovery of significant nickel-copper sulphide mineralization."

Mr. Douglas A Currie, MAusIMM, an independent geological consultant to the company, is the Qualified Person responsible for the technical disclosure in this press release.

Castillian Resources Corp. is a Canadian mineral exploration company listed on the TSX Venture Exchange under the symbol "CT".

To view a map of the Kibaran Belt, Tanzania please click on the following link: http://www.ccnmatthews.com/docs/ctmap.pdf

Contact Information

  • Castillian Resources Corp.
    John Buckle
    President & CEO
    (905) 517-6555
    or
    Castillian Resources Corp.
    Tony Wonnacott
    Corporate Secretary
    (416) 861-5879
    (416) 861-8165 (FAX)
    info@castillian.ca
    www.castillian.ca