Castillian Resources Corp.
TSX VENTURE : CT

Castillian Resources Corp.

March 23, 2011 09:00 ET

Castillian Intersects 4.56 Grams Gold Per Tonne Over 8.9 Metres in Hanging Wall Zone at Hope Brook Project, Newfoundland

New Hanging Wall Drill Holes Intersecting Higher Gold Grades than Historic Drill Holes

TORONTO, ONTARIO--(Marketwire - March 23, 2011) - Castillian Resources Corporation ("Castillian" or the "Company") (TSX VENTURE:CT) is pleased to report results from two (2) additional drill holes at its Hope Brook Gold Project located on the southwest coast of Newfoundland. Significant drill results are detailed in Table 1 below. Highlights include:

"HANGING WALL ZONE" – Approximately 30-50m into the hanging wall, above previously mined Mine Zone

  • 3.12 g Au/t over 9.0m core length (6.8m true width) from 152.9 to 161.9m including 9.26 g Au/t over 2.0m (1.5m true width) and 2.37 g Au/t over 18.30m from 175.0 to 193.90 including 4.56 g Au/t over 8.9m (6.7m true width) in Hole HB11-011. These intersections are approximately 130m below surface. 
  • Hole HB-11-012 intersected 2.39 g Au/t and 0.16 %Cu over 19.30m (14.5m true width) including 6.63 g Au/t and 0.46% Cu over 3.7m core length (2.8m true width) on the same section as Hole HB11-011 approximately 120m further below the intersection in Hole HB11-011. 
  • Hole HB11-011 was a re-drill of historic hole CW-64 which intersected 3.34 g Au/t over 2.0m core length, 6.32 g Au/t over 3.4 m core length and 3.83 g Au/t over 6.4m core length. 
  • The intersections in hole HB11-011 were higher grade and more extensive than those reported in the historic drill hole.

"MINE ZONE" – Extension of the Main Mineralized Zone mined from the previous Underground Operation

  • 5.92 g Au/t over 2.5m core length (1.9m true width) from 358.5 to 361.0m and 1.65 g Au/t over 16.5m core length (12.4m true width) including 2.62 g Au/t over 3.0m core length (2.3m true width) in Hole HB11-012. 
  • This hole, which intersected the Hanging Wall Zone as noted above, was expected to intersect the underground workings however the hole passed through an unmined part of the deposit and tested the full downdip extent of the Mine Zone approximately 50m below the 4800m level, the deepest level that was developed in the mine at approximately 340m below surface. 

Dr. Bill Pearson, P.Geo., President & CEO of Castillian, commented: "We continue to be very pleased with the positive drilling results on the Hanging Wall and Mine Zones. The Hanging Wall Zone now extends at least 300m vertically and is open downdip and along strike to the southwest. Hole HB 11-012 further confirmed the downdip continuity of the Mine Zone below the 4,800m level, the lowest level previously mined. We are using a drill hole pattern that is designed to optimize potential resource definition as well as evaluate further extensions of both target zones. 

Table 1: Summary of Significant Drilling Results, Hope Brook Gold Project, March 23, 2011

Hole(i)   From
(m)
To
(m)
  Core Length
(m)
  True Width (m)   Gold
(g/t)
  Copper
(%)
  Zone
HB10-010   Assays Pending                   PZ
HB11-011   145.9 162.9   17.0   12.8   2.24   tr   HWZ
incl.   152.9 161.9   9.0   6.8   3.12   tr   HWZ
incl.   159.9 161.9   2.0   1.5   9.26   tr   HWZ
and   175.0 193.3   18.3   13.7   2.37   tr   HWZ
incl.   175.0 183.9   8.9   6.7   4.56   tr   HWZ
HB11-012   311.0 330.3   19.3   14.5   2.39   0.16   HWZ
incl.   323.3 327.0   3.7   2.8   6.63   0.46   HWZ
and   358.5 361.0   2.5   1.9   5.92   0.28   MZ
and   392.5 409.5   16.5   12.4   1.65   tr   MZ
incl.   400.0 404.0   4.0   3.0   2.42   tr   MZ
incl.   406.0 409.0   3.0   2.3   2.62   tr   MZ
HB11-013   Assays Pending                   PZ
HB11-014   Assays pending                   PZ
HB11-015   Assays pending                   PZ
HB11-016   Assays pending                   PZ
HB11-017   Assays pending                   PZ
HB11-018   Assays pending                   PZ
   
(i) All holes are NQ core size
(ii) Horizontal width which is shown for historical longitudinal sections in Figures 1 and 2 is very close to true width.
(iii) PZ = Pit Zone, HWZ = Hanging Wall Zone and MZ = Mine Zone
incl. = including; tr = trace 

To date a total of 4,992.4 m in eighteen (18) drill holes have been completed of which nine (9) holes have been previously reported (see press releases November 17, 2010, December 1, 2010 and January 21, 2011). The location of the pierce points of these holes are shown in Figures 1, and 2, longitudinal sections. Figure 3 is a cross section showing results of the Hanging Wall and Main Zone drilling. 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, March 23, 2011

    UTM   Mine Grid   Elev.(i)   Length   Az(ii)   Dip(ii)
Hole   Easting Northing   Easting Northing  
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
   
(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) 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. 

INVESTOR RELATIONS

Castillian is pleased to announce the appointment of Ms. Sabina Srubiski as Investor Relations Manager. Ms. Srubiski has six years experience in public relations and for the last two and half years has worked in investor relations for a mining exploration and development company. In connection with the appointment, Ms. Srubiski has been awarded a consulting contract for $1,000 per month and has been granted 50,000 stock options at a price of $0.17. The options shall vest quarterly over a one year period with the first instalment vesting on the date of grant, subject to the regulatory four month hold period. The options shall remain subject to regulatory approval, including the approval of the TSX Venture Exchange and shall expire five years from the date of grant subject to the termination provisions of Castillian's Stock Option Plan.

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, costs of and capital for exploration projects, exploration expenditures, timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. 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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