Castle Gold Corporation
TSX VENTURE : CSG

Castle Gold Corporation

June 09, 2009 15:44 ET

Castle Gold Intersects 42.7 Metres Grading 0.7 Grams Per Tonne Gold as Part of El Castillo Mine Resource Expansion Program

TORONTO, ONTARIO--(Marketwire - June 9, 2009) - CASTLE GOLD CORPORATION (Castle Gold, the Company) (TSX VENTURE:CSG) is pleased to announce initial assay results from the remaining 13 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 second set of drill holes was in drill hole CA - 231 which intersected 42.7 metres grading 0.72 grams per tonne gold from 54.9 metres to 97.5 metres drill hole depth. All but two of the 13 remaining drill holes from the program intersected gold mineralized intervals from surface to depths of as much as 146.3 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. It should be noted that drill holes CA - 228 and CA - 229 were condemnation drill holes drilled for mine planning purposes, bringing the total number of holes drilled under this combined program to 21 drill holes.

Thomas Atkins, President and CEO of Castle Gold commented on the drill results stating: "Results from the remaining holes from this program continue to provide encouragement that the Company can expand the resources, and possibly the reserves, in the area to the south and south-east of the currently planned open pit reserves. Drill hole CA - 231 was another good intersection that combines with a terrific intersection in hole CA - 216 from the first round of drilling. With all the results now having been received, our technical team will now include this data into our mine drill database and recalculate the mineral resources. Once we've seen what this new resource looks like, we'll be better positioned to determine how much additional work may be required to further expand resources and ultimately to bring this material into the mine plan. We continue to consider the results of this drill program within the context of an overall resource expansion program underway, including additional definition of work towards better defining the metallurgical characteristics of the Transition-Sulphide Zone below the currently designed open pit. We expect to continue to be able to report on these exciting value adding developments over the coming months and quarters."

The Company drilled a total of 21 reverse circulation drill holes for a total of 2,170.2 metres in the Phase 1 Program, including 2 holes totalling 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 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 - 223 15.2 25.9 10.7 0.28
56.4 68.6 12.2 0.25
CA - 224 3.0 64.0 61.0 0.21
including 3.0 9.1 6.1 0.33
including 53.3 64.0 10.7 0.27
CA - 225 0.0 30.5 30.5 0.53
CA - 226 3.0 33.5 30.5 0.23
including 3.0 18.3 15.3 0.31
CA - 227 47.2 68.6 21.4 0.16
80.8 89.9 9.1 0.21
CA - 228 73.2 146.3 73.2 0.28
including 74.6 85.3 10.7 0.39
including 91.4 111.2 19.8 0.36
CA - 229 No significant results
CA - 230 9.1 51.8 42.7 0.32
including 9.1 27.0 19.8 0.35
including 35.0 50.3 15.3 0.41
CA - 231 54.9 97.5 42.7 0.73
CA - 232 0.0 65.5 65.5 0.42
including 13.7 48.8 35.1 0.53
including 59.4 65.5 6.1 0.70
CA - 233 6.1 117.3 111.2 0.35
including 51.8 65.5 13.7 0.39
including 80.8 105.2 24.4 0.47

CA - 234 No significant results
CA - 235 0.0 9.1 9.1 0.22
----------------------------------------------------
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, as are being advanced by this drilling 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.

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 a comparative purposes only and are not reported in this summary.

Corporate Development

The Company would also like to make mention that it has granted 45,000 options to purchase shares of Castle Gold to Agoracom, an online investor relations services provider. The terms of the engagement are for a minimum period of 6 months and include a monthly fee of CDN$4,000 per month. The options are exercisable at a price of C$0.68 per share for a period of five years and vest quarterly over 4 quarters commencing the issuance date of June 2, 2009.

AGORACOM services have been retained to add to Castle Gold's investor relations program by including Castle Gold in their internet platform, including a Castle Gold investor relations 'IR Hub' at: http://www.agoracom.com/IR/castlegold where interested parties can post questions and receive answers from the Company in addition to browse through various sources of information on the Company and its projects.

In a press release dated May 21, 2009 an announcement regarding issuance of options to Darren Koningen erroneously made reference to a three year exercise period, however in fact the options issued are exercisable over a five year period. All other details regarding the issuance of these options are as stated in this earlier press release.

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: 82.8MM
52-Week Trading Range: C$0.15 - $0.71


Image 1: El Castillo Mine Drill Hole Location Map is available at the following web link: http://media3.marketwire.com/docs/csg0609img1.pdf.

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