Castillian Resources Corp.
TSX VENTURE : CT

Castillian Resources Corp.

December 01, 2010 08:00 ET

Castillian Confirms Near Surface Zone Extends 500 Metres Along Strike From Open Pit-Intersects 2.41 g Au/t Over 26.5 Metres at Hope Brook, Newfoundland

TORONTO, ONTARIO--(Marketwire - Dec. 1, 2010) - Castillian Resources Corporation ("Castillian" or the "Company") (TSX VENTURE:CT) is pleased to report results from three (3) drill holes that tested a near-surface mineralized zone located immediately southwest of the open pit at its Hope Brook Gold Project located on the southwest coast of Newfoundland. These results combined with drill holes completed in the mid 1980's confirm that this near surface mineralized zone extends from the open pit southwestwards for a strike length of at least 500 metres as shown in Figure 1. Geophysical data indicates that the silicified zone hosting the gold mineralization may extend much further along strike and extend to a depth of at least 100m below surface. Significant drill results are detailed in Table 1 below. Highlights are as follows:

  • 2.41 grams gold per tonne (g Au/t) over 26.5 metres (m) (19.5m true width) from 0.0m to 25.6m including 4.65 g Au/t over 8.0m core length (true width 6.1m) in Hole HB10-005, collared approximately 335m southwest of the open pit;
  • 2.08 g Au/t over 15.3m core length (11.6m true width) from 15.8m to 31.1m including 3.36 g Au/t over 5.3m core length (4.0m true width) in Hole HB10-004 collared approximately 270m southwest of the open pit; and
  • 1.05 g Au/t over 9.0m core length (6.8m true width) from 14.5m to 23.5m including 2.07 g Au/t over 3.2m (2.4m true width) in Hole HB10-006 collared approximately 425m southwest of the open pit

Highlights from the near surface historical drilling as shown in Figure 2 in this zone include:

  • 4.64 g Au/t over 14.9 m in CW-235 collared about 210m southwest of the open pit;
  • 2.06 g Au/t over 13.6 m in CW-012 collared about 135m southwest of the open pit. Drill core for this hole is available at the NL government core facility in Pasadena
  • 3.11 g Au/t over 18.0 m in CW-212 collared about 75m southwest of the open pit; and
  • 1.28 g Au/t over 24.5 m in CW-243 which intersected the gold mineralized zone approximately 10 m above the intersection in Hole HB10-004 about 270m southwest of the pit;

Note that the historical results are not NI 43-101 compliant and hence should not be relied upon. 

Dr. Bill Pearson, P.Geo., President & CEO of Castillian commented: "The new drilling by Castillian combined with the historical drill holes completed in the mid 1980's confirms the presence of a significant near-surface mineralized zone that extends more than 500m from the area that was mined by open pit. This zone was not included as part of the historical resource estimates and represents an area where significant new, near-surface resources may be delineated on the Hope Brook Property." 

Dr. Chris Hale, P. Geo., Castillian's Chief Geophysicist commented: "HB10-004 to-006 sampled a zone of elevated resistivity reflecting silicification within a broadly conductive zone of aluminous alteration. This silicification appears to extend from the historical open pit toward the southwest where the resistivity anomaly can be correlated over 800 meters of strike length between L11200E and L10400E. This is the present limit of the IP/Resistivity coverage. Elevated resistivity is measured from near the surface to a depth approaching 100m, the maximum limit of the current survey. To date the geophysical surveys indicate a robust zone of silicification that is not yet limited in depth or toward the southwest. In addition, a second, parallel resistivity anomaly is suggested in the hanging wall between L11200E and L10400E about 100m to the south but this anomaly remains to be tested by drilling."

Table 1: Summary of Significant Drilling Results, Hope Brook Gold Project, December 1, 2010

             
Hole(i) From (m) To (m) Core Length (m) True Width (m) Horizontal Width(ii)
(m)
Gold
(g/t)
 
HB10-004 15.8 31.1 15.3 11.6 12.2 2.08
incl. 23.7 29.0 5.3 4.0 4.2 3.36
HB10-005 0 25.6 25.6 19.5 20.5 2.41
incl. 13.1 21.1 8.0 6.1 6.4 4.65
HB10-006 14.5 23.5 9.0 6.8 7.2 1.05
incl. 14.5 17.7 3.2 2.4 2.6 2.07
(i) All holes are NQ core size
 
(ii) Horizontal width is quoted in the table to allow direct comparison to historical intersections that are reported using horizontal width as shown on the longitudinal section in Figures 1. True width in the case of these holes is very close to horizontal width.

To date a total of 2,632m in seven (7) drill holes have been completed. The first three of these holes tested an area below the former mine and as previously reported (see press release November 16, 2010), Hole HB10-003 intersected 5.43 g Au/t over a core length of 10.7m in a new hangingwall zone above the main zone previously mined. The next three holes (HB10-004, -005 and -006) reported in this release tested a potential near surface mineralized zone immediately southwest of the former pit as shown in Figure 1. The locations of the pierce points of these holes are shown in the attached vertical longitudinal sections, Figures 2 and 3. Hole HB10-007 targeted the 240 zone located about 1 km south of the open pit however this hole was lost due to caving before it reached the target depth. Hole HB10-008 in progress will test the southwestern extension of the main and hangingwall zones about 50m below and to the southwest of the 4800 level, the deepest level developed in the former mine at approximately 340m below surface.

Collar coordinates and orientations of diamond drill holes in the current program are listed in Table 2.

Table 2: Collar Coordinates and Orientations of Drill Holes, Hope Brook Gold Project, December 1, 2010

             
Hole UTM Mine Grid        
Hole Easting Northing Easting Northing Elev.
(i)
Len-
gth
(ii)
Az
(iii)
Dip
(iii)
HB10-004 417706 5287539 11154 5037 5113 50.0 325 -45
HB10-005 417646 5287520 11093 5055 5116 50.0 325 -44
HB10-006 417571 5287475 11006 5061 5102 40.8 160 -45
HB10-007 417328 5286583 10296 4468 5129 384.8
(iv)
318 -62
HB10-008 418094 5287634 11526 4893 5118 In
progress
330 -65
 
(i) Elevations have 5000 m added to actual measurements to conform to historical practice
(ii) Total meterage in this table does not include two lost holes and one hole stopped due to excessive deviation for a collective total of 307.4 m bringing the total meterage drilled to date to 2,632 m excluding meterage in Hole HB10-008 that is in progress
(iii) All measurements are in metres except Azimuth (Az) and Dip which are measured in degrees.
(iv) Hole HB10-007 testing 240 Zone was lost due to caving and did not reach target depth.

SAMPLING, ASSAYING AND QUALITY CONTROL

The core (NQ 47.6 mm) is logged, photographed and then sawn in half with one-half sent to the laboratory for analysis and the other half retained and stored on site. All core samples were prepared and assayed at ALS Chemex with sample preparation done in Sudbury and analytical work in Vancouver. All locations of ALS Chemex are ISO 9001:2000 certified. The entire sample received is weighed and crushed to ≥ 70% passing 2mm (10 mesh); a sample split of up to 1000g is then pulverized to ≥ 85% passing 75 microns (200 mesh) to produce a homogenized sample. A 50g aliquot is used for fire assaying with an atomic absorption (AA) finish to determine gold concentration. Internal quality control includes the use of blanks, duplicates and standards in every batch of samples. The Company also conducts internal check assaying using certified external reference standards and blanks. Regular external check assays are performed at a second certified Canadian commercial laboratory. Castillian also inserts external reference standards as well as blank granite drill core in each sample batch as a further external check.

Mr. Dan Lee, P.Geo. Chief Geologist and Project Manager for Hope Brook and Dr. Bill Pearson, P.Geo., President and CEO of Castillian, both of whom are qualified persons as defined by National Instrument 43-101 ("NI 43-101"), have reviewed and approved the scientific and technical content of this press release. Dr. Chris Hale, P.Geo., Chief Geophysicist for Castillian and a qualified person as defined by NI 43-101 has supervised all geophysical work at Hope Brook and has reviewed and approved the scientific and technical content of this press release.

Castillian Resources Corp. is a Canadian mineral exploration company listed on the TSX Venture Exchange under the symbol "CT" which has gold and base metal properties in Canada and South America. Castillian's flag ship property is the Hope Brook Gold Project located in southwestern Newfoundland where it is carrying out a 5,000 metre diamond drill program.

Cautionary Note Regarding Forward-looking Information

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the diamond drill program at the Hope Brook project and its anticipated results, the exploration program and anticipating timing with respect to the exploration program, future financial or operating performance of the Company, its subsidiaries and its projects, statements regarding exploration prospects, the identification of mineral reserves and resources, costs of and capital for exploration projects, exploration expenditures, timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; future prices of mineral prices; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and shortages and other risks of the mining industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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http://media3.marketwire.com/docs/656932A.pdf

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http://media3.marketwire.com/docs/656932C.pdf

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