Castle Gold Corporation
TSX VENTURE : CSG

Castle Gold Corporation

February 24, 2009 08:00 ET

Castle Gold Announces 625,000 Ounce Transition/Sulphide Zone Gold Resource Below El Castillo Open Pit Mine

TORONTO, ONTARIO--(Marketwire - Feb. 24, 2009) - CASTLE GOLD CORPORATION (Castle Gold, the Company) (TSX VENTURE:CSG) is pleased to announce the results from a study of the mineral resources contained within the Transition Zone and the Sulphide Zone (Transition/Sulphide Zone) of mineralization that exists below the oxide reserves at the Company's 100 percent owned El Castillo open pit mine in Durango State, Mexico.

The Transition/Sulphide Zone mineral resource includes 27.9 million tonnes at an average grade of 0.7 grams per tonne gold for a total of 624,712 ounces contained gold in the Inferred resource category. This resource was calculated at a cut-off grade of 0.5 grams per tonne gold. Tonnage, grade and contained ounces of gold within the Transition/Sulphide Zones are also calculated for varying cut-off grades in Table 1 - Transition/Sulphide Zone Resource Summary at Different Cut-Off Grades, El Castillo Mine. This compares and is in addition to an oxide resource currently being mined at El Castillo of 94.3 million tonnes grading 0.39 grams per tonne gold for a total Measured and Indicated resource of 1,177,000 ounces gold at a cut-off of 0.15 grams per tonne gold. (refer to technical report filed on Sedar, August 2008).

Thomas Atkins, President and CEO of Castle Gold commented on the mineral resource stating: "Determining the size and grade of the Transition/Sulphide Zone resource is the first step in a multi-step process to evaluate the potential of this material to yield economically recoverable quantities of gold. The next step is to determine the metallurgy of this material and the extent to which the gold is economically recoverable. Metallurgical testing is currently underway and we expect preliminary results from this work in March or April of this year. Results from the resource and metallurgical work will then be incorporated into a NI 43-101 technical report that, if the gold has the potential to be economically recoverable, will facilitate our determining Measured, Indicated and Inferred resources for this material. From a geostatistical basis much of the current resource would be in the Measured and Indicated resource categories. If gold is economically recoverable, it is possible that some of this material may have the potential to be brought into the mine plan and may assist the Company in evaluating a further expansion in production beyond the 50,000 ounces of annual production currently being envision to be achieved later this year."

The resource is calculated from the historic database of 211 reverse circulation and diamond drill holes that were drilled beyond the depths of the oxide material (beyond 100 metres depth) to an average depth of approximately 230 metres (maximum depth of 400 metres). The resource was calculated employing the inverse distance squared methodology at the indicated gold cut-off grades, the same methodology employed in the calculation of the El Castillo oxide resources. The Company is in the process of performing preliminary metallurgical testing to determine the mineralogical nature of the Transition/Sulphide gold mineralization based on samples taken from lengths of material from four historic core holes intersecting these zones. Metallurgical work is being performed by SGS Mineral Services (Lakefield, Ontario). This preliminary work is expected to be completed in March or April of this year.



Table 1

Transition/Sulphide Zone Resource Summary at Different Cut-Off Grades,
El Castillo Mine

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TRANSITION ZONE INFERRED RESOURCES
Cut off Grade Tonnes Grade Contained Gold
----------------------------------------------------------------------------
(gpt) (000's) (gpt) (ounces)

0.30 37,856 0.48 583,046
0.40 18,857 0.61 372,561
----------------------------------------------------------------------------
0.50 11,071 0.73 261,479
----------------------------------------------------------------------------
0.60 6,853 0.85 188,160
0.70 3,967 1.00 128,007

----------------------------------------------------------------------------
SULPHIDE ZONE INFERRED RESOURCES
Cut off Grade Tonnes Grade Contained Gold
----------------------------------------------------------------------------
(gpt) (000's) (gpt) (ounces)

0.30 59,825 0.46 879,110
0.40 30,045 0.57 551,765
----------------------------------------------------------------------------
0.50 16,818 0.67 363,233
----------------------------------------------------------------------------
0.60 10,070 0.76 244,954
0.70 5,116 0.86 140,830

----------------------------------------------------------------------------
COMBINED TRANSITION-SULPHIDE ZONE INFERRED RESOURCES
Cut off Grade Tonnes Grade Contained Gold
----------------------------------------------------------------------------
(gpt) (000's) (gpt) (ounces)

0.30 97,680 0.47 1,462,156
0.40 48,903 0.59 924,326
----------------------------------------------------------------------------
0.50 27,889 0.70 624,712
----------------------------------------------------------------------------
0.60 16,923 0.80 433,114
0.70 9,083 0.92 268,837

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Qualified Person Comments/Quality Control Procedures

This press release has been reviewed by Mr. Darren Koningen, P. Eng., Castle Gold's Vice President Project Development. Mr. Koningen is a Qualified Persons under National Instrument 43-101. The resource evaluation was prepared by Miguel Cardona, Exploration Manager for Castle Gold. Mr. Cardona is a BSc geological engineer with over 20 years experience in mineral exploration, project development and resource calculation. Mr. Cardona calculated the resource using Surpac software with the inverse distance squared resource calculation methodology at the indicated gold cut-off grades. This same methodology was employed in the independent third party calculation of the oxide resources within the El Castillo deposit. Drill data was from historical drilling, the data base of which was previously verified by the independent third party.

About Castle Gold

Castle Gold Corporation is a growth oriented gold producer with projects focused in the America's. The Company owns a 100% interest in the El Castillo gold mine in Mexico and a 50% interest in the El Sastre gold mine in Guatemala. Castle Gold is also advancing exploration and development work at its La Fortuna gold-silver-copper project in Mexico.



TSX-V Trading Symbol: CSG
Total Shares Outstanding: 75.3MM
Fully Diluted: 81.7MM
52-Week Trading Range: C$0.15 - $0.64


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Contact Information

  • Castle Gold Corporation
    Thomas Atkins
    President and CEO
    (416) 214-4809 or Toll Free: 1-866-646-3274
    (416) 366-7421 (FAX)
    or
    Castle Gold Corporation
    Rory Quinn
    Manager Investor and Public Relations
    (416) 214-4809 or Toll Free: 1-866-646-3274
    (416) 366-7421 (FAX)
    Email: info@castlegoldcorp.com
    Website: www.castlegoldcorp.com