Castillian Resources Corp.
TSX VENTURE : CT

Castillian Resources Corp.

April 05, 2011 07:00 ET

Castillian Intersects 2.78 Grams Gold Per Tonne Over 19.8 Metres in Pit Zone at Hope Brook Project, Newfoundland

Drilling has Confirmed Continuity of Pit Zone Over 500m Strike Length

TORONTO, ONTARIO--(Marketwire - April 5, 2011) - Castillian Resources Corporation ("Castillian" or the "Company") (TSX VENTURE:CT) is pleased to report results from six additional drill holes in the "Pit Zone" target at its Hope Brook Gold Project located on the southwest coast of Newfoundland. Significant drill results are detailed in Table 1 below. Highlights from the Pit Zone, a near surface gold mineralized zone immediately southwest of the former open pit mine, include:

  • 2.78 g Au/t and 0.21% Cu over 19.8m core length (14.9m true width) from 4.9m to 24.7m including 4.17 g Au/t and 0.58% Cu over 6.2m core length (4.7m true width) and 5.36 g Au/t and 0.09% Cu over 4.3m core length (3.2m true width) in Hole HB11-017

  • 1.91 g Au/t over 20.0m core length (15.0m true width) from 38.1 to 58.1m including 3.88 g Au/t over 4.0 core length (3.0m true width) in Hole HB11-014

  • 1.60 g Au/t over 21.8m core length (16.4m true width) from 16.0m to 37.7m including 3.80 g Au/t over 2.4m (1.8m true width) in Hole HB11-013

  • 1.79 g Au/t and 0.30% Cu over 11.0m core length (11.0m true width) from 7.3m to 18.3m in Hole HB11-016.

To date eight shallow drill holes have been completed across the 500m strike length of the Pit Zone indicated by historic drilling as shown in Figure 1, a plan map, and Figures 2 and 3, vertical longitudinal sections. All holes have intersected significant gold values with several holes also having copper mineralization similar to values reported for the historic mine resource. Interpretation of airborne and ground geophysical data indicates that the silicified zone hosting the gold mineralization extends at least another 800m 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.

Dr. Bill Pearson, P.Geo., President & CEO of Castillian, commented: "The continued positive results from the Pit Zone are very encouraging. We are now in the process of completing a second and third tier of holes approximately 50m and 100m respectively below the first series to further confirm the downdip and along strike continuity. Induced polarization surveys over the area indicate that the silicified zone likely extends to a depth of at least 100m. We are using a drill hole pattern that is designed to optimize potential resource definition as well as evaluate further extensions of the target zone."

A track mounted diamond drill is being used to accelerate the delineation of the Pit Zone to provide data for a National Instrument 43-101 resource estimate later in 2011. The second larger drill is currently drilling Hole HB11-023 which will further test the downdip extension of the Mine Zone below the 4800 level, the lowest level previously mined approximately 340m below surface. As shown in Figure 3, Hole HB11-023 is targeted to intersect about 50m above and between the pierce points of historical holes CW-100 and CW-104 for which Nil values were reported however these historical holes do not appear to have been drilled deep enough to fully test the target zone.

Table 1: Summary of Significant Drilling Results, Hope Brook Gold Project, April 5, 2011
 
Hole(i) From To Core True Gold Copper Zone
  (m) (m) Length Width (g/t) (%)  
      (m) (m)      
HB10-010 243.7 261.5 17.8 13.4 0.53 tr PZ/MZ
incl. 243.7 246.2 2.5 1.9 1.47 tr PZ/MZ
HB11-013 11.0 39.7 28.7 21.5 1.31 tr PZ
incl. 16.0 37.8 21.8 16.4 1.60 tr PZ
incl. 22.1 27.0 4.9 3.7 2.21 tr PZ
incl. 29.2 37.8 8.6 6.5 2.03 tr PZ
incl. 35.4 37.8 2.4 1.8 3.80 tr PZ
HB11-014 38.1 58.1 20.0 15.0 1.91 tr PZ
incl. 39.8 46.6 6.8 5.1 2.74 0.19 PZ
incl. 52.1 56.1 4.0 3.0 3.88 tr PZ
HB11-015 9.9 12.7 2.8 2.1 0.72 tr PZ
and 21.3 31.3 10.0 7.5 0.65 tr PZ
incl. 25.6 29.0 3.4 2.6 1.19 tr PZ
and 42.6 43.4 0.8 0.6 1.34 tr PZ
and 49.9 63.5 13.6 10.2 0.58 tr PZ
incl. 59.3 62.5 3.2 2.4 1.19 tr PZ
HB11-016 7.3 18.3 11.0 8.2 1.79 0.30 PZ
incl. 9.7 14.6 4.9 3.7 2.07 0.31 PZ
incl. 14.9 17.2 2.3 1.7 1.85 0.47 PZ
incl. 17.4 18.3 0.9 0.7 4.00 0.59 PZ
and 21.4 22.3 0.9 0.7 0.66 0.35 PZ
and 39.1 42.1 3.0 2.4 0.32 tr PZ
HB11-017 4.9 24.7 19.8 14.9 2.78 0.21 PZ
incl. 4.9 11.1 6.2 4.7 4.17 0.58 PZ
incl. 14.5 24.7 10.2 7.7 2.82 tr PZ
incl. 14.5 18.8 4.3 3.2 5.36 0.09 PZ
incl. 18.8 23.8 5.0 3.8 1.05 tr PZ
HB11-018 assays pending         PZ
HB11-019 assays pending         PZ
HB11-020 hole abandoned         PZ
HB11-021 assays pending         PZ
HB11-022 assays pending         PZ
   
  (i) All holes are NQ core size
   
  (ii) Horizontal width which is shown for historical longitudinal sections in Figures 2 and 3 is very close to true width.
   
  (iii) PZ = Pit Zone, HWZ = Hangingwall Zone and MZ = Mine Zone
   
  incl. = including; tr = trace

To date a total of 5,622.1 m in 22 drill holes have been completed of which eleven holes have been previously reported (see press releases November 17, 2010, December 1, 2010, January 21, 2011 and March 23, 2011). 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, April 5, 2011
 
Hole UTM Mine Grid        
Hole Easting Northing Easting Northing Elev.
(i)
Length Az
(ii)
Dip
(ii)
HB10-010 417948 5287519 11340 4882 5111 551.3 325 -50
HB11-011 418325 5287869 11850 4954 5146 228.0 325 -63
HB11-012 418325 5287867 11848 4952 5146 502.3 325 -74
HB11-013 417897 5287690 11397 5051 5114 71.6 325 -44
HB11-014 417867 5287649 11348 5035 5116 69.2 325 -44
HB11-015 417812 5287634 11294 5054 5108 161.2 325 -44
HB11-016 417778 5287604 11249 5049 5111 65.8 325 -45
HB11-017 417735 5287580 11201 5054 5110 55.0 325 -45
HB11-018 417754 5287557 11203 5024 5110 108.2 325 -45
HB11-019 417790 5287500 11200 4956 5116 210.0 325 -48
HB11-020 Hole abandoned            
HB11-021 417804 5287568 11250 5005 5111 157.5 325 -50
HB11-022 417832 5287614 11300 5026 5112 192.9 325 -45
HB11-023 418225 5287639 11660 4816 5151 in progress 320 -65
   
  (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.

SAMPLING, ASSAYING AND QUALITY CONTROL

The core (NQ 47.6 mm and BTW 42.0 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 43-10,1 has supervised all geophysical work at Hope Brook and has reviewed and approved the scientific and technical content of this press release.

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 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 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.

To view Figure 1: Surface Geology - Plan, please visit the following link: http://media3.marketwire.com/docs/ct_fig1.pdf.

To view Figure 2: Longitudinal Section Near Surface Target Zone with New Drilling, please visit the following link: http://media3.marketwire.com/docs/ct_fig2.pdf.

To view Figure 3: Longitudinal Section and 240 Zone Exploration Target Areas, please visit the following link: http://media3.marketwire.com/docs/ct_fig3.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.

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