Castle Gold Corporation

Castle Gold Corporation

September 11, 2008 07:30 ET

Castle Gold Replicates Historic Drilling at Its La Fortuna Gold-Silver-Copper Project, Mexico Thereby Facilitating NI 43-101 Resource Study

TORONTO, ONTARIO--(Marketwire - Sept. 11, 2008) - CASTLE GOLD CORPORATION (Castle Gold, the Company) (TSX VENTURE:CSG) is pleased to announce the results from the company's recent drill program at the La Fortuna project located in Durango, Mexico. According to the Company's independent Qualified Person, the results from the 6 diamond drill holes, positioned to twin historical drill holes, correlated very well with the results from the previous exploration work completed at the site. Consequently, the validity of the historic data base has been confirmed as an adequate representation of the potential mineral resources contained within the deposit. On this basis, the Company is in the process of recalculating the historic mineral resources to National Instrument 43-101 standards. The twin hole drilling program follows recommendations made in a March 2007 Technical Report recommending such drilling to verify the historic data base. The historic database includes 121 diamond drill holes for a total length of 18,900 metres and eight levels of near horizontal underground development for a total of approximately 2,000 metres with each level separated by approximately 20 to 30 metres of vertical relief and five levels accessible by adits.

Darren Koningen, Vice President Mine Development at Castle Gold commented on the results from the recent drilling program stating: "It appears that the results from these holes which were positioned to test different areas and grades of the known mineralization, demonstrate the integrity of the historic exploration work completed at the La Fortuna project. In addition to the information obtained from the twin hole drilling program, we are advancing metallurgical testwork to evaluate methods in which the gold, silver and copper can be recovered. Having confirmed the historic data, we expect to publish an updated mineral resource conforming to NI 43-101 standards in the coming weeks. Based on this work the Company will have the ability to plan activities for the future development of this project. These would include additional drilling for resource expansion, metallurgical testwork and possibly advancing scoping studies on different scenarios for mine development."

A number of attractive intersections were replicated from this 2008 twin hole drill program. These include:

- Drill Hole LF28-08 which intersected 21.2 metres grading 5.59 grams per tonne gold;

- Drill Hole LF30-08 which intersected 42.3 metres grading 3.76 grams per tonne gold; and

- Drill Hole LF61-08 which intersected 31.2 metres grading 5.52 grams per tonne gold.

The results from the diamond drill hole twinning campaign correlate very well with the historical drilling results. Within the 6 recent twin holes, 180.6 meters of ore intercepts were identified versus a corresponding 181.8m of intercepts from the historical holes (variation of 0.7%). When the average gold grades are compared the twin holes averaged 3.58 g/t compared to 3.29 g/t in the original holes. This represents an increase of 8.8%. Given the abundance of visible gold in the mineralization observed at La Fortuna, these variations represent a very good correlation. Refer to Table 1: Comparison of Results - Historic and Twin Hole Drilling 2008 - La Fortuna Project, Durango, Mexico and Figure 1. Drill Hole Location Map - La Fortuna Project, Durango, Mexico, presented below.

It should be noted that within some intercepts there were large variances in both metres and/or gold grade. Most of the large variances in the intercept lengths were within relatively short intervals of mineralisation with the larger length intervals being much closer on a percentage basis. Most of the larger grade variations can be attributed to the nugget effect nature of the gold mineralization.

Table 1

Comparison of Results - Historic and Twin Hole Drilling 2008 -
La Fortuna Project, Durango, Mexico


Twin Holes Original Holes Variance
twin vs
Inter- Inter- Inter-
Interval val Gold Interval val Gold val Gold
From To Length Grade From Grade Length Grade Length Grade
---- -- ------ ----- ---- ----- ------ ----- ------ -----
(m) (m) (m) (g/t) (m) (m) (m) (g/t) (m) (g/t)
LF28-08 43.8 65.0 21.2 5.59 44.5 65.0 20.5 5.31 3.2% 5.0%
LF29-08 28.0 34.0 6.0 2.83 30.3 32.1 1.7 3.45 244.8% -17.9%
and 38.0 76.0 38.0 2.19 38.1 75.3 37.2 3.19 2.2% -31.2%
LF30-08 30.5 72.8 42.3 3.76 33.6 75.7 42.2 2.58 0.3% 45.9%
LF40-08 43.1 46.0 2.9 3.85 42.2 46.2 4.0 0.76 -27.5% 408.6%
and 58.9 60.4 1.5 2.44 62.2 66.2 4.0 4.21 -62.5% -42.1%
and 86.0 100.0 14.0 3.43 86.5 102.5 16.0 3.02 -12.5% 13.4%
LF56-08 64.0 72.0 8.0 1.73 63.3 68.5 5.2 0.91 53.8% 89.5%
and 100.0 103.4 3.4 0.95 100.5 104.5 4.0 9.47 -13.7% -90.0%
and 110.0 118.0 8.0 1.67 108.5 116.5 8.0 1.81 0.0% -7.8%
LF61-08 14.0 16.0 2.0 0.49 15.4 17.4 2.0 0.60 0.0% -17.8%
and 32.0 34.0 2.0 1.35 33.4 35.4 2.0 0.36 0.0% 270.9%
and 70.8 102.0 31.2 5.52 68.2 103.2 35.0 3.68 -10.7% 49.9%
-------------- ---------------------------
-------------- ---------------------------

Total -
Average 180.6 3.58 181.8 3.29 -0.7% 8.8%


Qualified Person Comments/Quality Control Procedures

This press release has been reviewed by Mr. Toren K. Olson, P. Geo an independent consulting geologist and Mr. Darren Koningen, P. Eng., Castle Gold's Vice President Project Development. Both Mssrs. Olson and Koningen are Qualified Persons under National Instrument 43-101. The design of the above described drilling program was supervised by Mr. Olson and the conclusions of the results from this exploration program are those of Mr. Olson.

Where analysed for gold, silver and copper, among other elements, drill core from this program was sawed in half with half of the core sent for preparation to ALS-Chemex in Hermosillo, Mexico and analysis conducted by ALS-Chemex Laboratories in Vancouver, Canada using gold fire assays with either Atomic Absorption Spectroscopy ("AAS") or gravimetric finish. Routine gold assays are by 30 gram fire assays and the repeat analyses have been carried out on pulps stored from the initial analyses.

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 and at its El Sastre and El Arenal project in Guatemala.

To view Figure 1, please visit the following link:

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