Castillian Resources Corp.
TSX VENTURE : CT

Castillian Resources Corp.

November 28, 2011 07:00 ET

Castillian Intersects 5.05 g Au/t Over 9.4 Metres and 4.52 g Au/t Over 10.9 Metres at Hope Brook, Newfoundland

Pit Zone Extended 200 Metres Further Along Strike to Southwest

TORONTO, ONTARIO--(Marketwire - Nov. 28, 2011) - Castillian Resources Corp. ("Castillian" or the "Company") (TSX VENTURE:CT) is pleased to report the results of an additional 21 diamond drill holes at its Hope Brook Gold Project in southwestern Newfoundland. The drilling has extended the Pit Zone an additional 200 metres southwest, to a drilled strike length of 700 metres from the previously reported 500 metres.

Drilling also tested the near surface potential bulk mineable zones south and north of the former open pit mine and initial in-fill drilling of the Mine Zone extension. Collar locations of the holes are shown in Figure 1.

Highlights include:

  • 1.09 g Au/t over 11.1m at a depth of approximately 90m below surface in hole HB11-060 in the southwest extension of the Pit Zone extension
  • 4.53 g Au/t over 10.9m within a wider mineralized zone grading 1.60 g Au/t over 40.2m in hole HB11-067 in the Pit Zone approximately 60m below surface
  • 3.01 g Au/t over 7.0m in a wider mineralized zone grading 1.57 g Au/t over 16.0m in hole HB11-064 in the Mine Zone extension about 250m below surface and about 400m southwest of the historical underground workings
  • 5.05 g Au/t and 0.98% Cu over 9.4m within a broader mineralized zone grading 2.86 g Au/t and 0.51% Cu over 19.3m in hole HB11-49 in the target area south of the Open Pit
  • 2.77 g Au/t over 2.0m within a very broad mineralized zone grading 0.42 g Au/t over 45.6m in hole HB11-047 in the Target area north of the Open Pit

"Three diamond drills continue to operate at Hope Brook. They are focused on completing additional in-fill drilling required to define a National Instrument 43-101 mineral resource and to follow up the higher grade intersections in the Mine Zone below the historic workings. Work required for the National Instrument 43-101 resource estimate, including data validation and modeling with our independent consultants, is advancing as planned. We intend to proceed with a preliminary economic assessment once the results of the resource estimate are determined." Dr. Bill Pearson, P.Geo., President & CEO of Castillian commented.

"A limited amount of exploration drilling was completed in the Pit Zone, which now extends at least 700m along strike and remains open." In addition, as previously reported (see the press release issued by the Company on November 15, 2011), geophysical surveys indicate there is excellent potential for an extension of the mineralized structure northeast of the open pit for some 600m along strike. The entire target zone at Hope Brook currently extends more than 1,700m along strike and is open to both the southwest and northeast as well as at depth.

Pit Zone and Mine Zone Extension

Thirteen holes totaling 4,399.3 metres were completed as in-fill drilling of the Pit Zone and Mine Zone Extension as shown in Figure 2, a vertical longitudinal section. Hole HB11-67 intersected 4.52 g Au/t over 10.9m within a wider mineralized zone grading 1.60 g Au/t over 40.2m in the Pit Zone approximately 60m below surface. Hole HB11-064 returned 3.01 g Au/t over 7.0m in a wider mineralized zone grading 1.57 g Au/t over 16.0m in the Mine Zone Extension about 400m below surface and about 400m southwest of the historical underground workings. Assays are pending for three drill holes and additional holes are planned for the area.

The surface extent of the Pit Zone is shown in Figure 1. The track-drill completed several exploration holes and this drilling has extended the gold-bearing silicified mineralization in the Pit Zone to a total strike length of 700 m, with hole HB11-060 intersecting the best result of 1.09 g Au/t over 11.1m at a depth of approximately 90m below surface. Geophysical data indicate that this zone likely extends further to the south where it is offset 180m along a north-south striking fault as shown in Figure 1. Historical drilling previously completed in the general area of this offset does not appear to have adequately tested this extension.

Table 1: Summary of Significant Drilling Results, Pit Zone Target,
Hope Brook Gold Project, November 28, 2011
Hole(i) From
(m)
To
(m)
Core Length
(m)
True Width (m) Gold
(g/t)
Copper
(%)
Zone(ii)
SW Extension of Pit Zone
HB11-060 120.9 132.0 11.1 8.3 1.09 tr PZ
incl. 123.0 124.0 1.0 0.8 3.23 tr PZ
incl. 129.0 131.0 2.0 1.5 1.41 0.11 PZ
HB11-061 36.8 38.8 2.0 1.5 0.50 tr PZ
HB11-062 113.6 124.9 11.3 8.5 0.54 tr PZ
incl. 118.9 119.9 1.0 0.8 2.15 tr PZ
HB11-063 256.3 262.3 6.0 4.5 0.36 tr PZ
and 272.3 274.0 1.7 1.3 0.54 tr PZ
Pit Zone - Mine Zone Extension In-fill Drilling
HB11-042 75.3 95.7 20.4 15.3 0.30 tr PZ
incl. 80.2 81.2 1.0 0.8 1.44 tr PZ
HB11-043 4.5 9.0 4.5 3.4 1.21 tr PZ
HB11-056 412.0 424.0 12.0 9.0 0.81 tr MZ
incl. 420.0 423.0 3.0 2.3 2.23 tr MZ
HB11-059 485.5 504.0 18.5 13.9 0.53 tr MZ
incl. 494.1 495.7 1.6 1.2 1.14 0.11 MZ
HB11-064 404.0 420.0 16.0 12.0 1.57 tr MZ
incl. 410.7 418.0 7.3 5.5 3.01 tr MZ
HB11-065 Assays pending
HB11-066 Assays pending
HB11-067 61.9 102.1 40.2 30.2 1.60 0.07 PZ
incl. 85.6 96.5 10.9 8.2 4.53 0.20 PZ
incl. 86.5 89.5 3.0 2.3 8.56 0.20 PZ
HB11-068 Assays pending
(i) Hanging Wall/Mine Zone holes are NQ core size; Pit Zone holes are BQTK (40.6mm) core size and HB11-036W is BQ core size (36.4mm)
(ii) PZ = Pit Zone, HZ = Hangingwall Zone and MZ = Mine Zone (Extension)
incl. = including; tr = trace; nsv = no significant values

Target Areas South and North of the Open Pit

Target areas drilled south and north of the open pit are shown in Figure 1. Eight holes totaling 1,201.5m were completed south of the open pit and three holes totaling 493.4m were completed north of the open pit. In addition, as previously reported (see the press release issued by the Company on August 15, 2011), additional sampling was completed on historic drill core available at the Government core library in Pasadena, Newfoundland. Results from the new drilling confirmed that there are zones of significant gold mineralization outside of those that were mined as indicated in historical drilling results. Hole HB11-049, which intersected 5.05 g Au/t and 0.98% Cu over 9.4m within a broader mineralized zone grading 2.86 g Au/t and 0.51% Cu over 19.3m, likely intersected an area of potential unmined resource.

Since the drilling program commenced in September 2010, a total of 22,500 metres of drilling in 72 holes has been completed at Hope Brook with three holes still in progress. The full 25,000 metre drill program is expected to be completed by mid-December 2011 with the three drills currently operating.

Table 2: Summary of Significant Drilling Results, Potential Bulk Mineable Target Areas
Near Open Pit, Hope Brook Gold Project, November 28, 2011
Near Surface Potential Bulk Mineable Targets near Open Pit
Target Area South of Open Pit
Hole(i) From
(m)
To
(m)
Core Length
(m)
True Width (m) Gold
(g/t)
Copper
(%)
Zone(ii)
HB11-048 nsv tr dykes
HB11-049 203.9 227.5 23.6 17.7 0.74 0.12 HZ
incl. 209.6 217.6 8.0 6.0 1.17 0.25 HZ
and 237.7 257.0 19.3 14.5 2.86 0.51 MZ
incl. 237.7 247.1 9.4 7.1 5.05 0.98 MZ
HB11-050 nsv tr dykes
HB11-052 128.0 142.4 14.4 10.8 0.42 tr MZ
incl. 129.0 131.0 2.0 1.5 1.38 0.12 MZ
HB11-053 151.3 156.5 5.2 3.9 0.31 tr HZ
and 174.7 187.0 12.3 9.2 0.54 tr MZ
HB11-054 84.5 87.5 3.0 2.3 1.04 tr HZ
and 103.0 107.2 4.2 3.2 0.45 tr MZ
HB11-055 111.0 113.0 2.0 1.5 0.49 tr HZ
and 124.7 138.3 13.6 10.2 0.32 tr HZ
and 145.3 152.0 6.7 5.0 0.58 tr MZ
incl. 145.3 147.3 2.0 1.5 1.16 tr MZ
HB11-057 100.00 111.70 11.7 8.8 0.45 tr HZ
incl. 108.70 109.70 1.0 0.8 2.41 tr HZ
Near Surface Potential Bulk Mineable Targets near Open Pit
Target Area North of Open Pit
HB11-045 nsv tr
HB11-047 96.6 142.2 45.6 34.2 0.42 tr MZ
and 146.0 148.0 2.0 1.5 2.77 tr MZ
HB11-058 nsv tr Fault
(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, HZ = Hangingwall Zone and MZ = Mine Zone (Extension)
incl. = including; tr = trace; nsv = no significant values
Table 3: Collar Coordinates and Orientations of Drill Holes Testing Mine Zone,
Hope Brook Gold Project, November 28, 2011
Hole No. UTM Mine Grid
Easting Northing Easting Northing Elev.
(i)
Length Az
(ii)
Dip
(ii)
HB11-042 417641 5287447 11049 4997 5128 174 325 -45
HB11-043 417606 5287501 11050 5061 5114 121 325 -45
HB11-045 417943 5287904 11558 5197 5130 131 145 -45
HB11-047 418040 5288015 11702 5233 5142 148 145 -50
HB11-048 418193 5287813 11711 4980 5139 103 325 -45
HB11-049 418194 5287813 11711 4979 5139 257 325 -72
HB11-050 418293 5287923 11855 5012 5149 102 325 -47
HB11-051E 418407 5287315 11600 4449 5171 1193 322 -70
HB11-052 418265 5287867 11801 4983 5154 145 325 -48
HB11-053 418287 5287835 11800 4944 5151 187 320 -45
HB11-054 418105 5287754 11605 4981 5119 118 325 -45
HB11-055 418145 5287769 11646 4971 5126 152 325 -45
HB11-056 418033 5287407 11346 4739 5150 575 325 -55
HB11-057 418069 5287709 11550 4965 5118 138 325 -45
HB11-058 418122 5288034 11779 5202 5145 214 325 -45
HB11-059 418033 52874061 11346 4738 5150 651 325 -60
HB11-060 417573 5287283 10899 4901 5101 248 325 -50
HB11-061 417515 5287362 10897 4999 5099 135 325 -45
HB11-062 417483 5287245 10803 4921 5096 193 325 -45
HB11-063 417562 5287131 10802 4783 5120 346 325 -50
HB11-064 417928 5287304 11202 4714 5162 556 325 -51
HB11-065 417779 5287409 11140 4887 5123 410 325 -75
HB11-066 417928 5287303 11202 4714 5162 561 325 -49
HB11-067 417756 5287506 11177 4979 5117 230 325 -49
HB11-068 417796 5287536 11227 4980 5114 226 325 -49
HB11-069 418455 5287595 11800 4651 5158 685 325 -63
HB11-070 418324.00 5287740.00 11776.21 4844.60 5158 592 325 -69
HB11-071 417829 5287523 11246 4951 5112 260 325 -62
HB11-072 417785 5287463 11176 4927 5122 290 325 -60
HB11-073 418402 5287617 11770 4699 5158 In Progress 321 -71
HB11-074 417876 5287444 11239 4859 5130 In Progress 325 -62
HB11-075 418289 5287702 11726 4834 5154 In Progress 325 -62
(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.
Hole HB 11-051E was extended for borehole geophysics surveys and hence is not included in results table.

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 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 PERSONS

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. All geophysical survey work and interpretation is supervised by Dr. Chris Hale, P.Geo., Chief Geophysicist for Castillian and a qualified person as defined by NI 43-101.

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 has 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.

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 and 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. Plan Map with Drill Hole Collar Locations, Hope Brook Gold Project UPDATE" and "Figure 2. Vertical Longitudinal Section, Pit Zone - Mine Zone Extension", please visit the following link: http://media3.marketwire.com/docs/CTFigure.pdf.

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