Castillian Resources Corp.

Castillian Resources Corp.

October 09, 2008 07:38 ET

Castillian Identifies Extensive Gossans Associated With Airborne Geophysical Anomalies on the Kagera Property, Northeast of the Kabanga Nickel Deposits, Tanzania

TORONTO, ONTARIO--(Marketwire - Oct. 9, 2008) - CASTILLIAN RESOURCES CORPORATION (TSX VENTURE:CT) ("Castillian"), announces that it has discovered four high priority target areas with gossan occurrences associated with airborne geophysical anomalies during its field follow up of the VTEM airborne survey completed over its 100% owned, Kagera project in western Tanzania (Figure 1). The gossan occurrences are associated with magnetic and electromagnetic anomalies, mafic/ultramafic rocks. These gossans an associated geophysical and geochemical anomalies occur within a geological trend that hosts the Kabanga nickel deposits located to the southwest and the Luhuma nickel occurrence to the northeast. The Kabanga nickel deposits are recognized as being among the world's largest undeveloped, high grade nickel sulphide deposits and are currently undergoing feasibility studies by Xstrata Nickel and Barrick. Photographs of the gossan occurrences can be viewed in the updated presentation on Castillian's web site at

Gossans consist of intensely oxidized rocks that typically represent remnants of sulphide mineralization that has been exposed to surface weathering and are a characteristic surface expression of the Main, North and Tembo nickel sulphide deposits at the Kabanga project located just 10 km south of Castillian's project area (Figure 2 - 4). Gossans consist of iron oxides often with boxwork textures as occurs at Kabanga and the Castillian targets. Metals other than iron are leached out of gossans during the weathering process and consequently they cannot be used to predict the grade of potential underlying sulphide mineralization.

Castillian has identified numerous geophysical targets within approximately 10 to 20 kilometers of the Kabanga deposits on its Kagera property and to date four of these targets are characterized by the presence of extensive gossan occurrences and locally geochemical anomalies at surface (Figure 2 - 4). At the Kabanga project of Xstrata Nickel/Barrick, nickel sulphides occur in five deposits distributed over approximately 9 kilometers comprising a mineralized trend striking toward Castillian's property which is directly adjacent to the northeast (Figure 1&2).

Castillian is performing field follow-up of the VTEM electromagnetic and magnetic airborne survey (news release dated May 09, 2008) on its Kagera project, located between the Luhuma nickel occurrence and the Kabanga deposits. Priority targets have been selected for systematic exploration including a 7 km trend of EM conductors (late channel) with associated magnetic anomalies, geochemical anomalies and gossan striking northeast along the trend from Kabanga, named the Shanga target.

Kagera Targets Description:

Burende Target:

Gossans were identified at 20 sites over an area of approximately 2.5 km by 4.5 km associated with a series of high priority EM conductors with coincident high magnetic anomalies interpreted to represent mafic/ultramafic rocks.

Nampigwe Target:

Gossans were identified at 20 sites extending along a 6.5 km linear trend associated with coincident magnetic and EM anomalies. Mafic and ultramafic rocks were also identified, locally containing disseminated sulphides.

Nyamahwa Target:

Gossans were identified at eleven sites extending along a 10 km linear trend associated with coincident magnetic and EM anomalies.

Shanga Target:

Anomalous nickel, copper and chrome soil geochemical anomalies are associated with a 1 km magnetic feature associated with a series of discrete EM anomalies that extends along 7 km. This target area is immediately adjacent to the property boundary with the Kabanga Project to the southwest. Two gossan occurrences have been identified associated with the geochemical anomaly on the Shanga target.

Antonio Almeida, Exploration Manager for Castillian reports: "There are excellent geophysical targets that remain to be evaluated. The discovery of gossans supports the possibility of the presence of sulphide mineralization. The coincidence of these gossans with geophysical anomalies and ultramafic rocks such as those associated with known nickel deposits in the area, greatly increases the prospectivity of these targets for nickel sulphide mineralization."

Follow up continues on these targets and other priority targets that were identified from the VTEM airborne survey completed during the summer.

David Gower, P.Geo., Castillian's President and CEO said, "These early results from the Kagera Project are highly encouraging. This is a geological environment with proven potential to host large, high grade nickel sulphide deposits and the most recent discoveries by Xstrata Nickel field crews occurred in 2006 and 2007 on the property immediately to the south of these targets. This highlights the under-explored nature of the area. The occurrence of extensive gossans associated with magnetic and EM anomalies are comparable to the characteristics of deposits at Kabanga just a few kilometers to the south. The next step will be to complete ground EM surveys in order to refine the targets for drilling. This survey method has proved to be an effective targeting tool for nickel sulphides including at Kabanga and in other nickel camps."

The Kagera Nickel Sulphide Project of Castillian covers an area of approximately 960 sq. km within the highly prospective Kabanga-Musongati Belt in northwest Tanzania. The belt occurs within the Kibaran Orogenic Belt developed between the Archaean Congo and Tanzania Cratons. It comprises a linear series of mafic-ultramafic complexes within a 10-35 km wide structural trend that can be traced for 350 km and is host to a number of significant nickel deposits.

Quality Control

All the technical information contained in this report has been reviewed and approved by Fernando Tallarico, Ph.D, P.Geo., Exploration Manager of Castillian and a qualified person under the National Instrument 43-101 ("NI 43-101"). This news release has been reviewed by David Gower, P.Geo., the President and CEO of Castillian and a qualified person as defined by NI 43-101.

About Castillan Resources

Castillian Resources Corp. is a Canadian mineral exploration company listed on the TSX Venture Exchange under the symbol "CT" with approximately 90 million shares issued and outstanding. Castillian has a 100% interest in the Kagera Nickel Sulphide Project which comprises over 960 square kilometres in the highly mineralized Kabanga-Musongati Belt in Tanzania, an option to purchase a 100% interest in the approximately 153,000 ha Mangabal nickel-copper project in Brazil from Xstrata Nickel. The company is earning an interest in the Las Aguilas Nickel-Copper-PGM Project in Argentina from Marifil Mines Ltd. and has rights to acquire 90% of the Pederson deposit, an advanced gold exploration project in Bolivia which is currently under force majeure.

Forward Looking Statements

This document may contain or refer to forward looking information based on current expectations, including, but not limited to, mineralization projections and similarities drawn to other deposits, estimates regarding the timing for resource modeling and other exploration programs, future drill programs and the preparation of a 43-101 compliant technical reports. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. These forward-looking statements are made as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances.

Please note: To view "Figure 1: Location Map of the Kagera Project showing Castillian's claims the West Block in the Kabanga area, where gossans referred to above occur," please visit the following link:

Please note: To view "Figure 2: Regional geological map and Castillian's targets and gossans location," please visit the following link:

Please note: To view "Figure 3: VTEM Mag analytic signal and gossan locations," please visit the following link:

Please note: To view "Figure 4: VTEM BF-25 and gossans location," please visit the following link:

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

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