Castillian Resources Corp.
TSX VENTURE : CT

Castillian Resources Corp.

August 15, 2011 07:00 ET

Castillian Intersects 3.02 g au/t and 0.85% Cu Over 7.30 Metres in Mine Zone Extension at Hope Brook, Newfoundland

TORONTO, ONTARIO--(Marketwire - Aug. 15, 2011) - Castillian Resources Corp. (TSX VENTURE:CT) ("Castillian" or the "Company") is pleased to report results for an additional seven diamond drill holes that tested the downdip and along strike extension of the Mine Zone and Hanging Wall Zones at its Hope Brook gold property, Newfoundland. Significant results are given in Table 1 below. Highlights are as follows:

Mine Zone Extension

  • 3.02 g Au/t and 0.85% Cu over 7.30m within a wider mineralized zone grading 1.37 g Au/t and 0.26% Cu over 25.80m in hole HB11-036W;
  • 3.37 g Au/t and 0.37% Cu over 8.30m within a wider mineralized zone grading 1.57 g Au/t and 0.11% Cu over 30.40m in hole HB11-038;

Hanging Wall Zone

  • 3.67 g Au/t and 0.47% Cu over 9.60m within a wider mineralized zone grading 2.05 g Au/t and 0.27% Cu over 19.10m in hole HB11-026;

"The good results from Hole HB11-036W confirm the extension of the higher grade gold-copper mineralization both down dip and along strike well outside of the historic mine," commented Dr. Bill Pearson, P.Geo., President & CEO. "Drilling is continuing to further extend this highly prospective area. In addition, bore hole geophysical surveys are in progress to confirm continuity between deeper wide spaced drill hole intersections and to locate additional zones of off-hole mineralization for drill testing."

Locations of pierce points for new and previously reported drill holes are shown on the vertical longitudinal sections in Figures 1 and 2. The pierce point for Hole HB11-36W as shown in Figure 2 is approximately 160m southwest and 110m vertically below the southern limit of the 4800 level (approximately 340m below surface), the deepest level developed in the former mine. This hole was wedged from historical drill hole CW-109 which was reported to intersect 1.27 g Au/t and 0.19% Cu over 15.1m core length. The intersection in the new wedge hole is higher grade and much wider as compared to the original reported intersection. The intersection in Hole HB11-038 is approximately 75m vertically above Hole HB10-008 which (see press release dated January 21, 2011) intersected 3.17 g Au/t and 0.91% Cu over 9.90 metres(see press release dated January 21, 2011). The intersection in Hole HB-11-041 which is approximately 50m southwest of Hole HB10-008 is narrower at 4.01 g Au/t over 3.60m because the silicified zone there is cut by mafic dykes. These dykes occur randomly throughout the mineralized silicified zones at Hope Brook but only locally disrupt the mineralization. Holes in which dykes were intersected are shown on the longitudinal sections in Figures 1 and 2.

Drilling of the Hanging Wall Zone, which occurs approximately 30m to 50m above the Mine Zone, continues to return positive results. Hole HB-11-026 intersected 3.67 g Au/t and 0.47% Cu over 9.60m within a wider mineralized zone grading 2.05 g Au/t and 0.27% Cu over 19.10m. This hole also intersected a wide interval of 3.07 g Au/t and 0.20% Cu over 34.00m in the Mine Zone near the 4870 level within the old mine. Analysis of historical underground mining data is being carried out to assess the potential for outlining an unmined resource within the lower part of the historic mine.

Drilling on the Pit Zone targets continues with the current focus as previously reported (see press release dated July 27, 2011) on assessing the bulk tonnage potential of the approximately 100m wide mineralized zone extending along the full length of the open pit immediately to the south. The historic core from these holes was only partially sampled previously due to the low gold prices prevailing at that time. A Castillian technical team is working at the Department of Natural Resources core storage facility in Pasadena, Newfoundland completing additional sampling of available core. To date approximately 800m of core from eleven historic holes have been sawn and one half of the core sent for assay. A further 30 historic holes have been identified for additional sampling at the facility. These holes test the strike extent of the mineralized zone southwest of the former mine. This new sample information along with historical assay data will be used to plan additional diamond drilling in the Pit Zone area as well as to identify additional target areas along strike.

Since the start of drilling in September 2010, a total of 49 holes totaling 14,627 metres have been completed at Hope Brook on all target zones of an overall planned total of 25,000m. Drilling continues with two drills at the rate of approximately 2,200m per month.

Quantec Geoscience Ltd. ("Quantec") has completed the Titan 24 survey at Hope Brook (see press release dated June 28, 2011). Nine lines spaced at 200m intervals from 12000E to 10400E were completed for a total of approximately 18 surveyed line kilometers. Current extensions were used on each line to increase the depth of penetration. Preliminary pseudo sections indicate that the known structure extends to the maximum depth sampled by the Titan array. Data are currently being processed by Quantec and a final report is being prepared. Additional 100m fill-in lines of high resolution induced polarization and resistivity surveys are planned on the 800m potential southwest extension of the Pit Zone. Regional geological mapping, prospecting and re-sampling of selected historic trenches are also planned. The Hope Brook camp has been expanded to accommodate the additional people required to complete this work.

Table 1: Summary of Significant Drilling Results, Hope Brook Gold Project, August 15, 2011
Hole(i) From
(m)
To
(m)
Core Length
(m)
True Width (m) Gold
(g/t)
Copper
(%)
Zone
Mine Zone/Hanging Wall
HB11-026 281.10 284.10 3.00 2.3 1.22 tr HZ
and 298.90 318.00 19.10 14.3 2.05 0.27 HZ
incl. 304.40 314.00 9.60 7.2 3.67 0.47 HZ
and 326.70 330.40 3.70 2.8 3.07 0.14
and 333.80 342.40 8.60 6.4 1.28 0.23
and 334.80 337.80 3.00 2.3 2.15 0.28
and 346.60 380.60 34.00 25.5 3.07 0.20 MZ
incl. 352.90 360.30 7.40 5.6 4.50 0.39 MZ
HB11-027 365.60 369.70 4.10 3.07 2.21 tr
incl. 366.60 368.70 2.10 1.57 3.27 tr
incl. 376.00 380.60 4.60 3.45 1.45 0.13
and 377.60 379.60 2.00 1.50 2.52 0.26
HB11-028 523.80 528.80 5.00 3.75 0.57 tr
HB11-036W 489.40 515.20 25.80 19.4 1.37 0.26 MZ
incl. 501.60 515.20 13.60 10.2 2.14 0.49 MZ
incl. 507.90 515.20 7.30 5.5 3.02 0.85 MZ
HB11-038 210.30 216.70 6.40 4.8 1.02 tr
and 219.50 236.20 16.70 12.5 1.51 0.12 HZ
incl. 219.50 222.00 2.50 1.9 3.50 0.09 HZ
and 231.00 236.20 5.20 3.9 1.06 0.28 HZ
and 241.00 247.10 6.10 4.6 0.66 0.25
and 253.70 257.80 4.10 3.1 2.03 0.16
and 265.30 295.70 30.40 22.8 1.57 0.11 MZ
incl. 265.30 273.60 8.30 6.2 3.37 0.37 MZ
and 288.20 290.40 2.20 1.6 2.52 tr MZ
and 375.40 378.70 3.30 2.5 0.82 0.20
incl. 376.40 377.40 1.00 0.8 2.32 tr
HB11-40 167.60 174.8 7.20 5.4 0.84 0.19 HZ
incl. 167.60 170.40 2.80 2.1 1.38 0.27 HZ
and 189.40 201.50 12.10 9.1 0.65 tr MZ
incl. 193.40 195.40 2.00 1.5 0.64 0.13 MZ
and 206.30 224.50 18.20 13.7 1.37 tr MZ
incl. 216.40 220.00 3.60 2.7 3.50 0.12 MZ
HB11-041 328.50 334.00 5.50 4.1 2.74 tr MZ
incl. 330.40 334.00 3.60 2.7 4.01 0.11 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) HZ = Hangingwall Zone and MZ = Mine Zone
incl. = including; tr = trace
Table 2: Collar Coordinates and Orientations of Drill Holes Testing Mine Zone, Hope Brook Gold Project, August 15, 2011
Hole UTM Mine Grid Elev.(i) Length Az(ii) Dip(ii)
Hole Easting Northing Easting Northing
HB11-027 418249 5287713 11699 4866 5143 591.6 322 -67
HB11-028 418274 5287577 11640 4737 5168 794.4 325 -65
HB11-026 418249 5287713 11699 4866 5143 476.7 322 -59
HB11-036W(iii) 418103 5287492 11453 4769 5151 699.5 327 -67
HB11-038 418058 5287650 11506 4923 5110 400.2 325 -66
HB11-040 417986 5287662 11455 4975 5108 381.3 325 -66
HB11-041 418069 5287641 11511 4910 5112 471.8 325 -45
HB11-044 418192 5287568 11570 4779 5156 598.9 145 -45
HB11-046 418386 5287691 11799 4769 5159 754 324 -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.

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.

To view Figure 1 and 2, please visit the following link: http://media3.marketwire.com/docs/ct815i.pdf.

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