Castle Gold Corporation

Castle Gold Corporation

March 02, 2009 08:00 ET

Castle Gold Commences Drill Program to Test Gold Resource Expansion Potential at El Castillo Mine

TORONTO, ONTARIO--(Marketwire - March 2, 2009) - CASTLE GOLD CORPORATION (Castle Gold, the Company) (TSX VENTURE:CSG) is pleased to announce that it will begin the first phase of a reverse circulation drill program to test the potential to expand oxide gold mineralization at the Company's 100 percent owned El Castillo Mine, Durango state, Mexico. The focus of this program is to test the areas to the south and the east of the El Castillo pit where based on historic drilling on the deposit by Battle Mountain Gold, recent geological mapping and a historical geochemical survey the Company believes there is good potential to discover additional gold mineralization.

Thomas Atkins, President and CEO of Castle Gold commented on the drill program stating: "We're excited to begin this program! For Castle Gold, this is the first time we've put some drills in the ground to test the resource expansion potential at El Castillo. The Company's geological team, led by Manager of Exploration, Miguel Cardona, have mapped the geology and structures and evaluated geochemical data in the target areas. We believe the product of this work provides good evidence of the potential for these areas to host additional gold. If gold mineralization is of economic grade and width, we would hope to quickly enhance the resources of the area thereby enabling us to bring this material into the mine plan. What is exciting about this work is it is the first step in a process which could result in additional reserves and if sufficient, result in a scenario whereby gold production may be further expanded beyond our current objective of in excess of 50,000 oz per year at El Castillo."

The program has been designed to efficiently test extensions to the geology and structures that have hosted gold mineralization in the El Castillo open pit reserve. The program will consist of an initial 14 to 18 hole reverse circulation program totalling approximately 2,200 metres (refer to attached Figure 1 - Phase 1 Exploration Drill Program, El Castillo Resource Expansion Drilling). If the first phase drill program is successful, an in-fill drill program to bring this material into the mineral resource of the mine is planned to follow. The drill program is expected to take from 4 to 6 weeks to complete with results from drill chip sampling, mapping and assaying to follow the advancement of the program. It is expected that complete results from the program will be available approximately four weeks following conclusion of the program.

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.

For further information visit our website:

Figure 1 - Phase 1 Exploration Drill Program, El Castillo Resource Expansion Drilling can be viewed at the following link:

(Drill locations projected over satellite Image of site and overlay of geochemical survey results)

TSX-V Trading Symbol: CSG
Total Shares Outstanding: 75.3MM
Fully Diluted: 83.8MM
52-Week Trading Range: C$0.15 - $0.63

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news 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)