Castillian Resources Corp.

Castillian Resources Corp.

November 15, 2011 07:00 ET

Castillian Outlines Extensive New Gold-In-Soil Anomaly Trend at Canadian Creek Property, Yukon

- Grid soil geochemistry sampling results have outlined the Canadian Creek trend, an extensive 7.5 kilometre by 2.0 kilometre new gold-in-soil anomaly trend that significantly extends the historic gold-in-soil trend.

- Major structural zone (greater than 10 kilometres along strike) identified is sub-parallel to the Canadian Creek trend and may represent a significant control on gold mineralization on the property.

- Highest new gold-in-soil value within the Canadian Creek trend is 0.97 g Au/t, with historic gold-in-soil values up to 2.29 g Au/t.

TORONTO, ONTARIO--(Marketwire - Nov. 15, 2011) - Castillian Resources Corp. ("Castillian" or the "Company") (TSX VENTURE:CT) is pleased to report the results of its 2011 exploration program at its Canadian Creek property. The property consists of 320 claims covering approximately 6,180 hectares located 160 kilometres south of Dawson, approximately 50 kilometres southeast of Kinross Gold Corporation's White Gold discovery and 25 kilometres southeast of Kaminak Gold Corporation's Coffee Gold discovery. Work completed in 2011 included soil geochemistry grid sampling, detailed ground magnetic surveys, induced polarization surveys, trenching, and geological mapping. Assay results are pending for the trench samples.

Dr. Bill Pearson, P.Geo., President & CEO of Castillian, commented: "The exploration results for the Canadian Creek property are very promising. The fact that the extensive gold-in-soil anomaly is associated with a major structural zone with significant historical drill intersects suggests the potential for a very large gold mineralized system on the property. In Spring 2012 we plan to follow up with diamond drilling and additional trenching and induced polarization surveys."

A total of 5,660 soil geochemical samples including QA/QC duplicates were collected in 2011 at 50 metre intervals on lines spaced 200 metres, with in-fill sampling on 100 metre lines over areas with prospective gold-in-soil anomalies. In addition fill-in sampling was completed in some of the areas with historic soil sampling particularly in the northeast part of the property to better define existing anomalies. Soil results (> 40 ppb Au) as shown in Figure 1 define an extensive gold-in-soil anomaly with a strike length of 7.5 km and a width of 2.0 km. This new gold-in-soil anomaly which is 3.5 km in strike length extends a historic gold-in-soil anomaly on the property, previously named the Casino "B" trend, to form one large gold-in-soil trend that is 7.5 km long by 2.0 km wide, named the Canadian Creek trend.

The highest gold-in-soil results of the 2011 survey were returned in the eastern 3 km adjacent to the boundary with the Casino property. The anomaly in this area consists of a total of 310 samples, of which 56% or 173 are considered to be anomalous (above 40 ppb), with values ranging from < 1ppb to 970 ppb (0.97 g Au/t). Historic gold-in-soil values within this trend range from <1ppb to 2289 ppb Au (2.29 g Au/t).

A 391 line-kilometre detailed magnetic survey was completed in 2011 on the Canadian Creek property. A structural interpretation of this survey suggests that the Canadian Creek property contains a major ENE-WSW trending structural zone that is sub-parallel with the trend of the extensive gold-in-soil anomaly (see Figure 1) and may provide a significant control on gold mineralization on the property. The structural zone was later modified by a series of north-northwest striking faults which may also be important for location of gold mineralization.

A limited induced polarization survey of five north-south lines spaced at 200 metre intervals totalling 10 line-kilometres was completed in the area of historic drill holes CC09-08 and CC09-10, which intersected 3.46 g Au/t over 1.5m and 1.09 g Au/t over 3.0 metres, respectively (see Figure 1). This survey has outlined two distinct zones of elevated chargeability that appear to correlate with magnetic and gold-in-soil anomalies in the general vicinity of the historic drill holes. Further survey lines need to be completed to better define the full extent of the anomaly; however, initial results are encouraging.

The Canadian Creek property abuts Kaminak Gold Corporation's ("Kaminak") Coffee Gold property immediately south of the recently discovered "Sugar gold-in-soil trend" (see Kaminak's press release dated December 2, 2010 and Figure 2). On its eastern claim boundary the property is bordered by the very large tonnage, low grade Casino copper-gold-molybdenum porphyry deposit owned by Western Copper & Gold Corp. Castillian has an option to acquire a 60% interest in the Canadian Creek property from Cariboo Rose Resources Ltd. (see press releases dated October 18, 2010 and January 28, 2011).

Mr. Tony Gilman, P.Eng., Consulting Geologist/Geological Engineer with Terrane Geoscience Inc., and Mr. Kevin Brewer, P.Geo., Manager, Yukon for 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. Geophysical surveys were completed under the direction of Dr. Chris Hale, P.Geo., Chief Geophysicist for Castillian. Dr. Hale is a qualified person as defined by NI 43-101.

About Castillian Resources

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 flagship property is the Hope Brook Gold Project located in southwestern Newfoundland, where it is carrying out a 25,000 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 regarding exploration prospects, the identification of mineral reserves and resources, and the 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; acquisition risks, the actual results of current exploration activities; delay or failure to receive board or regulatory approvals; timing and availability of external financing on acceptable terms; the Property not being integrated successfully or such integration proving more difficult, time consuming or costly than expected, not realizing on the potential benefits of the proposed transaction; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; 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; and, delays in obtaining governmental approvals or required financing or in the completion of activities. 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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To view Figure 2, please visit the following link:


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