Castillian Resources Corp.
TSX VENTURE : CT

Castillian Resources Corp.

January 21, 2011 08:00 ET

Castillian Extends Pit Zone and Mine Zone at Hope Brook Project, Newfoundland-Intersects 1.44 Grams Gold Per Tonne Over 28.0 Metres in Pit Zone

- Extends the mineralization in the Pit Zone down dip, intersecting 28.0 meters grading 1.44 g/t gold at a vertical depth of approximately 65 metres below surface

- Intersected 3.17 grams gold per tonne and 0.91% copper over 9.90 metres in the Mine Zone extension, 50 metres southwest of 4800 level confirming main underground zone from historical mining extends southwest of old workings

- Winter Drill program has recommenced and planned drill program expanded by an additional 10,000 metres

- Second track-mounted drill rig being added to accelerate delineation drilling of the Pit Zone target

TORONTO, ONTARIO--(Marketwire - Jan. 21, 2011) - Castillian Resources Corporation ("Castillian" or the "Company") (TSX VENTURE:CT) is pleased to report results from two (2) additional drill holes and announce the re-commencement of drilling at its Hope Brook Gold Project located on the southwest coast of Newfoundland. Significant drill results are detailed in Table 1 below. Highlights are as follows:

"PIT ZONE" - Near Surface Gold Zone Southwest of former Open Pit Mine

  • 1.44 g Au/t over 28.0 m core length (21.1 m true width) from 61.90 m to 89.90 m including 3.56 g Au/t over 5.9 m core length (4.5 m true width) in Hole HB10-009 approximately 270m southwest of the open pit. This hole is on section and about 40 m below the intersection of 2.08 g Au/t over 15.3 m core length (11.6 m true width) in Hole HB10-004 previously reported (see press release December 1, 2010) confirming the downdip extent of the gold mineralized zone. The Pit Zone has a minimum strike extent of 500 m. A track mounted diamond drill is being mobilized to the project to accelerate the delineation of this zone to provide data for a NI 43-101 resource estimate later in 2011.

"MINE ZONE" – Extension of the Main Mineralized Zone mined from the previous Underground Operation

  • 3.17 grams gold per tonne (g Au/t) and 0.91% copper (Cu) over 9.90 metres (m) (6.0 m true width) within a broad zone of mineralization grading 1.08 g Au/t and 0.22 % Cu over 69.10 m core length (41.6 m true width) in Hole HB10-008. This hole intersected the main mineralized zone approximately 50 m southwest of the 4800 level in the former Hope Brook mine which is about 340 metres below surface and confirms that the main zone mined underground continues southwest of the old workings.

Dr. Bill Pearson, P.Geo., President & CEO of Castillian commented: "We are very pleased with the results of our initial drill program at Hope Brook. These results confirm the excellent potential of our major target areas both near surface and for extensions of the zone previously mined from underground. The Hope Brook Mine closed during a period of very low gold prices, well before the deposit was completely mined out. We believe we are in a fortunate situation where we can extend the known mineralization from the unmined parts of the Hope Brook deposit and build toward a NI 43-101 resource estimate later this year. Significantly, many of the deeper historic drill holes appear to have been too short to fully test the target zone. In view of these results, Castillian will be expanding the drill program by an additional 10,000 metres and will be adding a second mobile drill to delineate the near surface target zone which to date extends more than 500 metres southwest of the past producing open pit. The drill, currently on site, will focus on expanding the Hope Brook Deposit Mine Zone southwest and below the mine workings, as well as further testing the new hanging wall zone." 

Table 1: Summary of Significant Drilling Results, Hope Brook Gold Project, January 21, 2011
 
Hole(i) From
(m)
To
(m)
Core
Length
(m)
True
Width
(m)
Horizontal
Width(ii)
(m)
Gold
(g/t)
Copper
(%)
HB10-008 313.00 382.10 69.10 41.6 42.2 1.08 0.22
    incl. 331.70 382.10 50.40 30.3 30.8 1.33 0.30
    incl. 347.90 357.80 9.90 6.0 6.1 3.17 0.91
    incl. 359.70 361.10 1.40 0.8 0.8 4.03 0.87
    incl. 379.80 381.40 1.60 1.0 1.0 3.27 1.04
HB10-009 61.90 110.80 48.90 36.9 37.5 1.07 tr
    incl. 61.90 89.90 28.00 21.1 21.5 1.44 tr
    incl. 73.10 79.00 5.90 4.5 4.5 3.56 tr
    incl. 102.10 110.80 8.70 6.6 6.7 1.20 tr
HB10-010 assays pending          
(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 sections in Figures 1 and 2. True width in the case of these holes is very close to horizontal width.
 
incl.= including; tr = trace

To date a total of 3,731 m in ten (10) drill holes have been completed of which seven (7) holes have been previously reported (see press releases November 17, 2010 and December 1, 2010). The location of the pierce points for holes HB10-008,-009 and -010 are shown in Figure 1 and 2, longitudinal sections. Assays for Hole HB10-010 are pending. 

Hole HB10-008 intersected a wide zone of silicification grading 1.08 g Au/t and 0.22% Cu over 69.10 m core length (41.6 m true width) including a higher grade section of 3.17 g Au/t and 0.91% Cu over 9.90 m core length (6.0 m true width). The hole intersected the main mineralized zone that was previously mined approximately 50 m southwest of the 4800 level in the former Hope Brook mine. The 4800 level is about 340 m below surface. This hole confirms that the main zone continues to the west of the underground workings and is open along strike in this direction. Many of the historic holes appear to have been too short to fully test the target zone hence the zone also appears to be open at depth.

Figure 3 is a geological cross section which shows the good downdip continuity of the near surface mineralized zone intersected in hole HB10-004 (2.08 g Au/t over 15.3 core length (11.6 m true width)) to the intersection 40 m vertically below in new hole HB10-009 (1.44 g Au/t over 28.0m core length (21.1 m true width)). The surface target zone extends along strike for at least 500 m and induced polarization geophysical surveys indicate that the favourable silicified zone extends to a depth of at least 100 m.

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, January 20, 2011
 
  UTM Mine Grid Elev.(i) Length Az(ii) Dip(ii)
Hole Easting Northing Easting Northing
HB10-008 418094 5287634 11526 4893 5115 493.20 330 -65
HB10-009 417734 5287494 11151 4984 5114 154.80 325 -54
HB10-010 417948 5287519 11340 4882 5111 551.30 325 -50
 
(i) Elevations have 5000 m added to actual measurements to conform to historical practice.
(ii) All measurements are in metres except Azimuth (Az) and Dip which are measured in degrees.

CASTILLIAN TO BE AT CAMBRIDGE HOUSE CONFERENCE, VANCOUVER

Castillian will present and exhibit at the Cambridge House International 2011 Vancouver Resource Investment Conference; January 23-24, 2011. at the Vancouver Convention Centre, 1055 Canada Place. The exhibit hours will be from 8:30 a.m. - 6:00 p.m. on Sunday January 23rd and 8:30 a.m. - 5:00 p.m. on Monday January 24th.

Castillian will be presenting at the Conference on Monday January 24th in the 12 noon session in Room: Workshop 2. Participants are invited to visit the Company at Booth #531 where Dr. Bill Pearson, President & CEO will be available to answer questions and provide information on Castillian projects and exploration activities.

Information on registration for the conference is available on the Cambridge House International Inc. website at www.cambridgehouse.com.

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 15,000 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 and the completion of a NI 43-101 compliant resource estimate, 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.

NOTE: To view Figures 1, 2 and 3, please visit the following link - http://media3.marketwire.com/docs/ct0121.pdf.

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