Castle Gold Corporation

Castle Gold Corporation

May 07, 2009 11:27 ET

Castle Gold Announces Results From Preliminary Metallurgical Test Work Completed on Transition-Sulphide Resource at El Castillo Gold Mine

TORONTO, ONTARIO--(Marketwire - May 7, 2009) - CASTLE GOLD CORPORATION (Castle Gold, the Company) (TSX VENTURE:CSG) is pleased to announce the results from initial metallurgical test work completed on samples taken from the Transition and Sulphide Zones (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.

Metallurgical test work was conducted by SGS Mineral Services (Lakefield, Ontario, Canada) on four separate sections of quartered drill core taken from two diamond drill holes that passed through the Transition (one sample) and Sulphide (three samples) gold mineralized zones. The samples were subjected to both conventional bottle roll techniques as well as coarse ore bottle rolls to simulate heap leaching conditions. Sample head grades averaged from 0.53 grams per tonne gold to 1.15 grams per tonne gold. (refer to Table 1, Coarse Ore Cyanide Gold Extractions).

Coarse ore cyanide bottle roll testing of the single sample of material from the Transition Zone resulted in gold extractions of 75.5% to 79.9% following 21 days leaching (3/4 inch to 1/4 inch crush sizes). Coarse ore testing of samples from the Sulphide Zone indicated recoveries from as high as 42.8% for one sample to as low as 8.3% (at 3/4 inch to 1/4 inch crush sizes and 21 days leaching).

Darren Koningen, Vice President - Project Development for Castle Gold commented on the metallurgical testing stating: "We're very encouraged by these results. The extent to which gold was leachable in the Transition Zone material is particularly encouraging as these extractions are comparable to those seen among oxide resources at El Castillo and this Transition material lies immediately below the current oxide open pit reserves. These results warrant more detailed follow-up work and it's our plan to advance additional testing to further define the metallurgical variability of these zones and better understand the nature and extent to which gold can be recovered from this material. Based on the presently available drill information, the Transition Zone contains an inferred resource of 261,000 ounces of gold grading 0.73 grams per tonne gold at a 0.5 gram per tonne cut -off grade, as was indicated in the original February 2009 resource announcement. These grades are in close relation to the grade of material sampled in this test work."

Table 1

Coarse-Ore Cyanide Gold Extractions - Transition-Sulphide Zones, El Castillo Mine

Sample From To Length Weight Grade Extraction(i)
(m) (m) (m) (kg) (gpt gold) (% gold)
Sulphide 1 206.0 213.5 7.5 13.0 0.76 40.7
Sulphide 2 154.0 159.9 5.9 7.5 1.11 32.2
Sulphide 3 159.5 165.5 6.0 10.9 1.15 10.9
Transition 90.1 95.0 4.8 6.9 0.53 75.6

Note: (i) Extraction is following 21-day coarse ore bottle roll testing on
material crushed to 1/2 inch.

Head grades for the metallurgical samples utilized in the recent testwork program are in the same range as those of the recently calculated inferred resource of 27.9 million tonnes at an average grade of 0.7 grams per tonne gold for a total of 624,712 ounces contained gold delineated within the Transition-Sulphide Zones below the open pit reserves at the El Castillo mine (refer to Table 2, below and press release dated February 28, 2009).

Table 2

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

Cut off Grade Tonnes Grade Contained Gold
(gpt) (000's) (gpt) (ounces)
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
Cut off Grade Cut off Grade Grade Contained Gold
(gpt) (000's) (gpt) (ounces)
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
Cut off Grade Cut off Grade Grade Contained Gold
(gpt) (000's) (gpt) (ounces)
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

Subsequent stages in the metallurgical evaluation of the Transition-Sulphide Zone material will include:

1. Repeat coarse ore bottle roll test work on additional core samples of Transition Zone material from three core holes in different, and to the extent possible widely spaced locations of the known resource. For each hole the sampled material will be divided into three composites by depth of interval (upper/middle/lower Transition zone) to examine the impact of varying sulphide/oxide ratios;

2. Perform coarse ore bottle roll tests at 1/4 inch crush size on six to eight different samples of Sulphide Zone material from at least three different, and to the extent possible widely spaced drill core hole locations of the known resource areas of the deposit to examine recoverability; and

3. Depending on the results of step 2, above, prepare additional test work for Sulphide Zone material to examine other crush sizes and processing techniques.

It is expected that this work will be completed early in the third quarter of 2009.

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 metallurgical test work program was supervised by Mr. Koningen.

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.

Total Shares Outstanding: 75.3MM

Fully Diluted: 82.3MM

52-Week Trading Range: C$0.15 - $0.71

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Contact Information

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