Castillian Resources Corp.
TSX VENTURE : CT

Castillian Resources Corp.

July 27, 2011 07:30 ET

Castillian Intersects 1.94 Grams Gold Per Tonne Over 25.3 Metres in Near Surface Pit Zone at Hope Brook Project, Newfoundland

TORONTO, ONTARIO--(Marketwire - July 27, 2011) - Castillian Resources Corp. (TSX VENTURE:CT)("Castillian" or the "Company") is pleased to report results for an additional eight diamond drill holes that tested the downdip and along strike extension of the Pit Zone, a near surface gold mineralized zone immediately southwest of the former open pit mine at its Hope Brook gold property. Previous drilling confirmed that the Pit Zone extends at least 500 metres along strike (See Press Releases dated April 5, 2011 and June 6, 2011).

Significant results are given in Table 1 below. Highlights are as follows:

  • 1.94g Au/t over 25.3m core length from 35.2m to 60.5m including 2.61 g Au/t and 0.10%Cu over 9.0m core length in hole HB11-033;

  • 2.08 g Au/t and 0.10%Cu over 19.0m core length from 106.50m to 125.5m including 2.58g Au/t and 0.28%Cu over 6.3m core length in hole HB11-034;

  • 1.23 g Au/t and 0.23% Cu over 29.4m core length from 190.9m to 220.3m including 3.17g Au/t and 0.49%Cu over 4.0m core length (3.0m true width) in hole HB-11-031; and

  • 1.10 g Au/t over 15.7m core length from 42.0m to 57.7m including 4.32g Au/t over 2.5m core length in hole HB11-037.

"We are continuing to receive positive drill results across the Pit Zone which remains open along strike and downdip." Dr. Bill Pearson, P.Geo., President & CEO of Castillian, commented. "We are planning to complete additional 100m fill-in lines of induced polarization on the potential extension of this zone to the southwest to aid in spotting drill holes. In addition, we are planning to test a potential bulk tonnage target area immediately south of the former open pit mine. Deeper drilling is continuing on the Mine Zone and more results will be released as soon as they are available."

To date 29 diamond drill holes totaling 4,942 metres have been completed across the 500m strike length of the Pit Zone as shown in Figures 1 and 2, vertical longitudinal sections. All holes have intersected significant gold values with several holes also having copper mineralization. Interpretation of airborne and ground geophysical data indicates that the silicified zone hosting the gold mineralization extends at least another 800m further along strike to the southwest. Responses for both resistivity indicating silicification and chargeability indicating the presence of sulphides along this additional potential extension are very comparable to responses across the 500m long section already drilled.

Analysis of historical drill data in the open pit area indicates the presence of mineralized zones with lower grade gold values above the main zone previously mined. This target zone is approximately 100m wide extending along the full length of the open pit immediately to the south. The historic core from these holes, however, was only partially sampled previously due to the low gold prices prevailing at that time. A technical team is currently at the Department of Natural Resources core storage facility in Pasadena, Newfoundland assessing the available core from the historical holes for additional sampling. This new sample information along with historical assay data will be used to plan additional diamond drilling to test the potential of this target area.

Eight additional holes have been completed to further test the Hanging Wall and Mine Zones as shown in Figure 1 and set out below. Results for these holes are pending. Since the start of drilling in September 2010, a total of 47 holes totaling 13,202 metres have been completed at Hope Brook on all target zones of an overall planned total of 25,000m.

Table 1: Summary of Significant Drilling Results, Hope Brook Gold Project, July 27, 2011
Hole(i) From
(m)
To
(m)
Core
Length
(m)
True
Width
(m)
Gold
(g/t)
Copper
(%)
Zone
Pit Zone
HB11-030 57.40 59.50 2.10 1.6 0.88 tr PZ
and 64.80 69.40 4.60 3.5 0.82 tr PZ
incl. 64.80 66.50 1.70 1.3 1.29 tr PZ
HB11-031 190.90 220.30 29.40 22.1 1.23 0.23 PZ
incl. 190.90 200.90 10.00 7.5 1.57 0.50 PZ
incl. 203.90 207.90 4.00 3.0 3.17 0.49 PZ
and 231.40 238.90 7.50 5.6 0.64 tr PZ
incl. 235.90 238.90 3.00 2.3 1.13 tr PZ
HB11-032 53.00 54.50 1.50 1.1 0.44 tr PZ
and 197.50 200.50 3.00 2.3 0.59 tr PZ
and 210.60 211.80 1.20 0.9 0.73 tr PZ
HB11-033 35.20 60.50 25.30 19.0 1.94 tr PZ
incl. 36.60 47.00 10.40 7.8 2.15 tr PZ
incl. 47.00 56.00 9.00 6.8 2.61 0.10 PZ
and 63.60 68.80 5.20 3.9 0.40 tr PZ
and 74.50 76.70 2.20 1.7 0.46 tr PZ
HB11-034 106.50 125.50 19.00 14.3 2.08 0.10 PZ
incl. 108.40 114.70 6.30 4.7 2.58 0.28 PZ
incl. 116.60 121.00 4.40 3.3 4.44 tr PZ
HB11-035 123.30 140.70 17.40 13.1 0.50 tr PZ
incl. 126.60 128.60 2.00 1.5 1.03 tr PZ
HB11-037 42.00 57.70 15.70 11.8 1.10 tr PZ
incl. 55.20 57.70 2.50 1.9 4.32 tr PZ
HB11-039 181.8 195.4 13.6 10.2 0.40 tr PZ
HB11-042 assays pending PZ
HB11-043 assays pending PZ
Hanging Wall/Mine Zone
HB11-026 assays pending HZ/MZ
HB11-027 assays pending MZ
HB11-028 assays pending HZ/MZ
HB11-036W assays pending HZ/MZ
HB11-038 assays pending HZ/MZ
HB11-040 assays pending HZ/MZ
HB11-041 assays pending HZ/MZ
HB11-044 assays pending HZ/MZ
(i) Hanging Wall/Mine zone holes are NQ core size; Pit Zone holes are BQTK (40.6mm) core size HB11-036W is BQ core size (36.4mm)
(ii) PZ = Pit Zone, HWZ = Hangingwall Zone and MZ = Mine Zone
incl. = including; tr = trace
Table 2: Collar Coordinates and Orientations of Drill Holes, Hope Brook Gold Project, July 27, 2011
Hole UTM Mine Grid Elev.
(i)
Length Az
(ii)
Dip
(ii)
Hole Easting Northing Easting Northing
HB11-030 417900 5287657 11381 5020 5109 214.3 325 -45
HB11-031 417981 5287578 11402 4909 5110 346.0 325 -48
HB11-032 417712 5287357 11053 4878 5116 279.0 325 -44
HB11-033 417669 5287499 11102 5023 5115 151.0 325 -45
HB11-034 417700 5287453 11100 5116 5116 197.3 325 -45
HB11-035 417647 5287378 11015 4939 5115 277.2 327 -67
HB11-036W(iii) 418103 5287492 11453 4769 5151 699.5 327 -67
HB11-037 417594 5287430 11001 5009 5104 130.0 322 -45
HB11-038 418058 5287650 11506 4923 5110 400.2 325 -66
HB11-039 417673 5287327 11006 4880 5111 351.0 325 -46
HB11-040 417988 5287662 11456 4974 5110 381.3 325 -66
HB11-041 418069 5287641 11511 4910 5112 471.8 325 -45
HB11-042 417641 5287450 11050 4999 5122 174.0 325 -45
HB11-043 417606 5287501 11051 5061 5119 120.5 325 -45
HB11-044 418192 5287568 11570 4779 5156 598.9 145 -45
(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.
(iii) Hole11-036W was drilled as a wedged hole from historical hole CW-109 with 427.0m of the total length of 699.5m actually being drilled.

SAMPLING, ASSAYING AND QUALITY CONTROL

The core (NQ (47.6 mm), BQTK (40.6mm) and BQ (36.4mm) 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. Copper is initially analyzed using a four acid digestion ICP (inductively coupled plasma-atomic emission spectrometry) method. Any results for copper greater than 10,000 ppm are assayed further by a four acid digestion and "ore grade" ICP method. 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.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/hbmine240.pdf

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/hbmineswg.pdf

To view Figure 3, please visit the following link: http://media3.marketwire.com/docs/hbminepzone.pdf

ABOUT CASTILLIAN

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 25,000 metre diamond drill program. Castillian also recently announced the start of exploration on its Canadian Creek property in the Yukon that ties onto Kaminak's Sugar Gold-in-Soil trend.

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 and costs 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, exploration expenditures, timing of future exploration, requirements for additional capital. 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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