Castle Gold Corporation
TSX VENTURE : CSG

Castle Gold Corporation

May 21, 2009 10:33 ET

Castle Gold Intersects 109.7 Metres Grading 0.7 Grams Per Tonne Gold as Part of El Castillo Mine Resource Expansion Drilling Program

TORONTO, ONTARIO--(Marketwire - May 21, 2009) - CASTLE GOLD CORPORATION (Castle Gold, the Company)(TSX VENTURE:CSG) is pleased to announce initial assay results from the first eight of its 19 hole Phase 1 reverse circulation drill program aimed at expanding the gold resource to the south and south-east of the open pit at its 100 percent owned El Castillo gold mine in Durango State, Mexico.

The best intersection of this program was in hole CA - 216 which intersected 109.7 metres grading 0.70 grams per tonne gold from 16.8 metres to 126.5 metres drill hole depth, including: 65.5 metres grading 1.02 grams per tonne gold from 61.0 metres to 126.5 metres. All but one of the initial eight drill holes intersected gold mineralized intervals of from 7.6 metres up to 109.7 metres intersection length at gold grades above the resource cut-off grade (0.15 grams per tonne gold) used to calculate the El Castillo mine gold resource and reserves (refer to table 1 - Summary Assay Results - El Castillo Mine Phase 1 Resource Expansion Drill Program), and are comparable or better than the historic assay results in the vicinity of these Phase 1 drill holes, the locations of which are illustrated in Image 1 - El Castillo Mine Drill Hole Location Map. Additional assay results are pending on eleven of a total of 19 reverse circulation drill holes designed to test the potential for resource grade mineralization in the area immediately to the south and south east of the designed El Castillo open pit mine.

Thomas Atkins, President and CEO of Castle Gold commented on the drill results stating: "We're very encouraged by these results. Drill hole CA - 216 is fantastic! Great work from our geological team led by the Company's Exploration Manager, Miguel Cardona. These initial results enhance our confidence that there may well be potential to expand the open pit resources in the area to the south and south-east of the current El Castillo open pit. We'll wait until all results are received from the Phase 1 program and then look at these in the context of the historic drilling and the potential that the recent drilling can add to the mineral resource. Once we've a better understanding of this potential, we'll consider the next phase of drilling to further enhance the confidence in this area. These results fit well with the recently announced metallurgical results from the Transition-Sulphide Zone below the currently designed open pit. Should future drill results, plus additional metallurgical test-work, continue to demonstrate the potential to expand resources in these areas, the Company may well be in a position to calculate a new expanded resource, consider expanded reserves and reconsider an upward revision to mine production levels going forward, as had been our objective from these programs."



Table 1
Summary Assay Results - El Castillo Mine Phase 1 Resource Expansion Drill
Program

---------------------------------------------
Drill Hole From To Length Gold Grade
Number (m) (m) (m) (gpt)

CA - 215 7.6 82.3 74.7 0.25
including 13.7 50.3 36.6 0.31
including 13.7 24.4 10.7 0.53
CA - 216 16.8 126.5 109.7 0.70
including 16.8 57.9 41.1 0.24
including 61.0 126.5 65.5 1.02
CA - 217 29.0 80.8 51.8 0.25
30.5 50.3 19.8 0.33
CA - 218 64.0 71.6 7.6 0.33
CA - 219 13.7 24.4 10.7 0.25
CA - 220 No significant results
CA - 221 19.8 42.7 22.9 0.28
19.8 30.5 10.7 0.39
CA - 222 30.5 51.8 21.3 0.23
---------------------------------------------
Note: Reported drill hole intersection lengths are indicated in the table
above and are not true width. Drill holes are drilled at 60 degree angle to
horizontal in a generally perpendicular direction to interpreted mineralized
structures. More information is required regarding orientation of
mineralized structures relative to the drill hole angle prior to being able
to determine true intersection width.


Subsequent stages in the exploration and potential development of the mineral resources to the south and south-east of the currently designed El Castillo open pit are intended to include:

1. Evaluation of all Phase 1 drill hole data taking into account geology, structures and assay results;

2. Consideration of an updated resource calculation based on the addition of the results from Phase 1 drilling combined with the historic drilling; and

3. Consideration of a Phase II drill program to further define resource potential in the area.

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

The Company drilled a total of 19 reverse circulation drill holes for a total of 2,170.2 metres in the Phase 1 Program, plus 2 holes for a total of 301.8 metres as part of a condemnation program for mine planning purposes. Historic drilling in the south and south-east area includes a total of 4,973 metres in 21 drill holes (refer to Table 2 - Summary Assay Results - El Castillo Mine Historic Resource Drill Results).



Table 2
Summary Assay Results - El Castillo Mine Historic Resource Drilling

-----------------------------------------------
Drill Hole From To Length Gold Grade
Number (m) (m) (m) (gpt)

CA - 14 24.0 34.5 10.5 0.22
CA - 44 0.0 24.0 24.0 0.53
45.0 126.0 81.0 0.34
CA - 46 16.5 45.0 28.5 0.43
102.0 144.0 42.0 0.34
CA - 49 22.5 30.0 7.5 0.24
CA - 51 0.0 42.0 42.0 0.32
CA - 56 No significant results
CA - 101 No significant results
CA - 103 0.0 37.5 37.5 0.22
CA - 105 13.5 40.5 27.0 0.25
54.0 72.0 18.0 0.32
CA - 112 70.5 84.0 13.5 0.35
CA - 141 54.0 73.5 19.5 0.23
112.5 136.5 24.0 0.48
CA - 143 7.5 70.5 63.0 0.30
CA - 144 54.0 124.5 70.5 0.46
CA - 147 111.0 127.5 16.5 0.40
CA - 149 106.5 141.0 34.5 0.26
CA - 164 25.5 145.0 120.0 0.40
CA - 181 28.5 51.0 22.5 0.61
67.5 78.0 10.5 0.25
CA - 189 13.5 84.0 70.5 0.41
CA - 193 1.5 16.5 15.0 0.20
24.0 42.0 18.0 0.20
57.0 118.5 61.5 0.43
CA - 199 72.0 108.0 36.0 0.39
CA - 214 No significant results
----------------------------------------------


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 reverse circulation drill program and on-site sample preparation procedures were supervised by Miguel Cardona, Castle Gold's Exploration Manager a BSc geological engineer with over 20 years experience in mineral exploration, project development and resource calculation.

All drill hole samples were composited at site into 1.5 meter intervals and split with half the sample sent for preparation and analysis to ALS-Chemex Laboratories in Vancouver, Canada using gold fire assays with an Atomic Absorption Spectroscopy ("AAS") finish. The remainder of the samples were then split again at site with half kept as the final sample reject and half assayed by Castle Gold at their on-site laboratory facilities according to hot cyanide-shake procedures. The assays from the Castle Gold laboratory were used for comparative purposes only and are not reported in this summary.

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.

The Company would also like to make mention that it has granted 250,000 options to purchase shares of the Company to Darren Koningen, Vice President New Projects for Castle Gold Corp. The options are exercisable at a price of C$0.65 per share for a period of three years and vest quarterly over 12 quarters commencing the issuance date of May 11, 2009.

To view an image of the El Castillo Mine Drill Hole Location Map, please visit the following link: http://media3.marketwire.com/docs/ElCastillomine.pdf

TSX-V Trading Symbol: CSG

Total Shares Outstanding: 75.3MM

Fully Diluted: 82.3MM

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

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)
    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)
    info@castlegoldcorp.com
    www.castlegoldcorp.com