Castillian Resources Corp.
TSX VENTURE : CT
OTCQX : CTIIF

Castillian Resources Corp.

June 25, 2012 07:00 ET

Castillian Intersects 3.78 g Au/t Over 53 Metres in Footwall Zone Within Former Mine at Hope Brook

TORONTO, ONTARIO--(Marketwire - June 25, 2012) - Castillian Resources Corp. ("Castillian" or the "Company") (TSX VENTURE:CT)(OTCQX:CTIIF) is pleased to report the final results from its 4,316 metre diamond drilling program in 15 holes, which completes the first phase of drilling in the Company's 2012 exploration program at the Hope Brook Gold Project, located in southwestern Newfoundland. These last holes reported in this news release focused on confirming the locations of workings and major pillars in the deeper part of the Mine Zone area (HB12-080E, -087) and further testing the Southwest Extension target area (HB12-089, -090) (see also the press release dated June 5, 2012 for a discussion of the previous results released). Significant results are summarized in Table 1 below. Highlights are as follows:

Mine Zone Area

  • Hole HB12-087, drilled from northwest to southeast, intersected 3.78 grams of gold per tonne ("g Au/t") over 53.0 metres core length (16.9 metres true width) from 271.0 to 324.3 metres and a second zone grading 4.41 g Au/t over 5.0m (1.6 metres true width) from 354.5 metres to 359.5 metres in the footwall area below the old workings.
  • Hole HB12-080E, an extension of previously reported hole HB12-080 which was lost, intersected 2.14 g Au/t over 14.4 metres core length (10.8 metres true width) in a shallow pillar within the former mine at approximately the 5000 metre level (122 metres below surface).

Southwest Extension Area

  • 1.21 g Au/t over 23.1 metres core length in hole HB12-090. This hole is approximately 500 metres southwest of the former open pit.
  • 0.78 g Au/t over 11.7 metres core length including 1.13 g Au/t over 5.7 metres core length in hole HB12-089.

Dr. Bill Pearson, P.Geo., President & CEO of Castillian, commented: "These new results continue to confirm that significant pillars remain in the former mine and that there is potential for a significant remaining footwall mineralized zone. The southwest extension remains open along strike and downdip with good potential to define additional mineral resources in this area and potentially extend the constraining shell defining the mineral resource estimate further to the southwest. Work is continuing on the geological mapping and prospecting program over the full 8 kilometre strike length of the favourable mineralized structure as well as compilation of historical data."

Figure 1 shows the location of the major target areas with pierce points of the 2012 holes in the Southwest Extension Target and Northeast Target areas. Figure 2 is a longitudinal section of the Mine Zone area showing the historical workings and the locations of pierce holes in the former mine area completed in this program and in the 2011 drilling program. Collectively, these holes provide good overall coverage with holes drilled from both the north and south of the mine to provide maximum coverage. Table 2 lists collar coordinates, dip, azimuth and length for all holes drilled in the 2012 program.

Table 1: Significant Diamond Drilling Results, Hope Brook Gold Project, June 21, 2012
Hole No. From
(m)
To
(m)
Core
Length
(m)
True
Width
(m)
Gold
(g/t)
Copper
(%)
Mine Zone Area
HB12-080 132.8 143.3 10.5 7.9 0.72 0.01
and 148.4 156.2 7.8 5.8 0.98 0.11
incl. 155.0 156.2 1.2 0.9 2.51 0.26
HB12-080E(i) # 156.2 170.6 14.4 10.8 2.14 0.12
incl. 156.2 161.9 5.7 4.3 3.40 0.20
HB12-082(ii) 62.0 63.0 1.0 0.8 0.88 0.07
Hole was lost before reaching UG workings target.
HB12-083(ii) 252.0 261.0 9.0 6.8 0.49 0.01
incl. 255.0 256.5 1.5 1.1 1.81 0.01
and 304.9 312.5 7.6 5.7 0.27 0.02
and 320.6 322.1 1.5 1.1 0.60 0.06
Hole was lost before reaching UG workings target.
HB12-087(iii) # 271.0 324.3 53.3 16.9 3.78 tr
incl. 284.0 294.7 10.7 3.4 6.71 tr
and 354.5 359.5 5.0 1.6 4.41 tr
and 406.3 425.2 14.2 6.0 0.81 tr
HB12-047E(iv) 149 187 38.0 14.23 5.47 0.13
incl. 173.5 187 13.5 5.06 10.54 Tr
incl. 173.5 178.5 5.0 1.87 13.00 0.54
incl. 184.5 187 2.5 0.94 19.44 Tr
Extension of HB11-047 to test location and grade of UG workings.
Southwest Extension Target Area
HB12-081 291.9 292.2 0.3 0.2 5.22 1.00
incl. 391.0 391.5 0.5 0.4 0.83 1.62
HB12-084 nsv
HB12-085 121.0 154.4 34.4 25.8 0.59 Tr
incl. 146.0 154.4 8.4 6.3 1.48 0.37
incl. 149.3 150.3 1.0 0.8 3.17 1.17
HB12-086 306.8 311.7 4.9 3.7 0.79 Tr
HB12-088 277.9 286.2 8.3 6.2 0.92 Tr
incl. 277.9 280.9 3.0 2.3 1.36 Tr
incl. 283.6 286.2 2.6 1.9 1.18 Tr
HB12-089 # 227.7 239.4 11.7 8.8 0.78 0.02
incl. 232.3 238.0 5.7 4.3 1.13 0.02
HB12-090 # 214.0 237.1 23.1 17.3 1.21 0.04
incl. 214.0 226.0 12.0 9.0 1.38 0.01
Northeast Extension Target Area
HB12-078 nsv
HB12-079 nsv
(i) HB12-080E, the extension of HB12-080 which was originally lost before reaching its target, extended into the mine workings, testing the grade and location of historic underground mine.
(ii) HB12-082 and HB12-083 were unsuccessful in reaching target because of rock competence.
(iii) HB12-087 was drilled from north to south and successfully penetrated through the possible ramp material and the lower mine workings.
(iv) HB12-047E is the extension of HB11-047 to test the location and grade of old mine workings. This hole ended in the mine workings.
incl. = including; tr = trace, nsv = no significant values, UG = underground
New results reported in this press release are marked with the # symbol
Table 2: Collar Coordinates and Orientations of Drill Holes, Hope Brook, June 21, 2012
Hole No. UTM Mine Grid
Easting Northing Easting Northing Elev.
(i)
Length Az
(ii)
Dip
(ii)
HB12-078 418766 5288202 12403 4969 5136 742 325 -45
HB12-079 418325 5288577 12257 5530 5157 156 324 -65
HB12-080 418096 5287764 11603 4995 5122 156 325 -58
HB12-082 418279 5287812 11781 4930 5153 187 323 -51
HB12-081 417591 5287087 10801 4730 5124 464 325 -71
HB12-083 418282 5287768 11758 4891 5156 326 324 -65
HB12-084 417642 5287446 11049 4994 5132 186 341 -65
HB12-047E 418040 5288015 11702 5233 5142 187 145 -50
HB12-085 417761 5287473 11162 4949 5125 218 325 -45
HB12-086 417859 5287460 11235 4882 5119 350 341 -65
HB12-087 418071 5288066 11756 5257 5146 465 144 -48
HB12-088 417717 5287267 11008 4805 5137 336 324 -48
HB12-089 417762 5287406 11124 4893 5127 308 325 -65
HB12-090 417628 5287228 10913 4824 5125 292 321 -53
(i) Elevations have 5000 metres 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)) 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 done 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.

QUALIFIED PERSON

Dr. Bill Pearson, P.Geo., President and CEO of Castillian, who is a qualified person as defined by NI 43-101, 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, which has 290,000 ounces of NI 43-101 compliant indicated mineral resources and 740,000 ounces of inferred mineral resources (see Table 1 below and the news release issued by Castillian on February 14, 2012). Castillian has also outlined an extensive new Gold-in-Soil anomaly trend on its Canadian Creek property in the Yukon that is adjacent to Kaminak's Sugar Gold-in-Soil trend.

Table 1. NI 43-101 Mineral Resource Estimate, Hope Brook Gold Project as at February 14, 2012
Within constraining shell
@ 0.50 g Au/t cutoff
Below constraining shell
@ 2.0 g Au/t cutoff
Total
Category Tonnes
(millions)
Gold
(g/t)
Gold
(k Oz)
Tonnes
(millions)
Gold
(g/t)
Gold
(k Oz)
Tonnes
(millions)
Gold
(g/t)
Gold
(k Oz)
Indicated 4.0 1.11 140 1.5 3.04 150 5.5 1.65 290
Inferred 11.2 1.57 570 2.0 2.65 170 13.2 1.73 740

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 regarding exploration prospects and timing of future exploration. 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.

Information Concerning Estimates of Indicated and Inferred Resources

This news release uses the terms "indicated resources" and "inferred resources". Castillian advises investors that although these terms are recognized and required by Canadian regulations (under NI 43-101), the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into mineral reserves. In addition, inferred resources have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for preliminary economic assessments as defined under NI 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/ct0625fig1.pdf.

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/ct0625fig2.pdf.

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