Castle Peak Mining Ltd.
TSX VENTURE : CAP

Castle Peak Mining Ltd.

August 22, 2012 09:27 ET

Castle Peak Intersects 6m of 80 g/t Gold, Uncut, at the Apankrah Target; Including 1.6m of 296 g/t Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 22, 2012) - Castle Peak Mining Ltd. ('Castle Peak' or the 'Company') (TSX VENTURE:CAP), is pleased to report results for additional diamond drill holes completed at the high grade Apankrah target at the Company's Akorade Project in the southern Ashanti belt in Ghana, West Africa. Drill hole NKDDH022, a down plunge test of the Apankrah Shoot returned, uncut, 80 grams per tonne ('g/t') gold ('Au') across the 6.0 metre ('m') mineralized structural zone within a 17m intersection of lower grade gold mineralization. The Apankrah target is located 15km west of the Mpohor deposits (Golden Star Resources Ltd.), approximately 30km east of the Nzema Mine (Endeavour Mining Corp.) and 25km south of the Iduapriem Mine (Anglogold-Ashanti Ltd.).

Drill hole NKDDH022 was drilled 50m down-plunge of the initial intercepts in the Apankrah Shoot (NKDDH010 and NKDDH016 which returned 7.5m of 7.23 g/t Au and 4.0m of 12.47 g/t Au respectively). The second hole reported from the Apankrah structure, NKDDH023, is located 200m along strike to the east of the Apankrah Shoot; an area interpreted to host the potential for a second shoot in the structural zone. This hole returned 13m of 0.22 g/t Au indicating the structural zone is mineralized with the expected veining and alteration assemblage, however, stronger grades were not present. (See Plan map Figure 1 at http://www.castlepeakmining.com/i/pdf/2012-08-22_NR.pdf for hole locations).

Additionally, two holes evaluating a conceptual shoot on the parallel Nana structure, located 500m north of Apankrah, returned 0.5m of 10.3 g/t Au (NKDDH020) at a sheared contact of a porphyry dyke in the metavolcanic package. The dyke intersection was unexpected and the geological interpretation in this area continues in order to determine high potential targets.

Darren Lindsay, President and CEO, stated, "Castle Peak is pleased to be demonstrating exploration potential, with a shallow higher grade target such as Apankrah, in what we consider to be an overlooked portion of the Ashanti Gold Belt. These results continue to provide encouragement for additional high grade potential in the Apankrah target area in general. And, given the coarse nature of the gold observed, we are modeling the various veins and inferred controlling structures in order to determine additional upside by increasing the drilling density and additional target evaluation."

The initial follow up and target evaluation program of 3,030m is now complete, with 8 of the 14 holes reported. The current drill results represent the continuing evaluation of the higher grade gold distribution in the Apankrah target area, in particular the Apankrah structure, one of a series of parallel east-north-east ('ENE') trending structures across the Nkwanta Concession. Road building delays continue to stall access to the Dansuom Sheer target; meanwhile, field teams are following up on the new road exposures, mapping and sampling, in support of further developing the conceptual POW SVI target in the Dansuom area.

Summary Table of Drill Results:

Hole ID Target From
(m)
To
(m)
Length
(m)
Au
(g/t)
Notes
NKDDH020 Nana 150.0 151.0 1.0 2.36
and 157.5 158.0 0.5 10.23
NKDDH021 Nana 100.0 105.0 5.0 0.10 Cut off 0.05 g/t to observe halo
and 115.0 125.0 10.0 0.07 Cut off 0.05 g/t to observe halo
NKDDH022 Apankrah 193.0 199.0 6.0 79.9 50m step down plunge NKDDH016
includes 195 196.6 1.6 296.4
NKDDH023 Apankrah 111.0 123.0 13.0 0.22 200m step east of NKDDH016
includes 111.0 114.0 3.0 0.5
  1. Lengths are core lengths; true widths are estimated between 75-90% of core length
  2. Composites are uncapped, length weighted averages with a cut off of 0.1 g/t Au and inclusive of up to 3m of assays below the cut off value unless otherwise noted.

Please refer to the Akorade Project section at www.castlepeakmining.com to view complete table of drill results.

Nkwanta

The Nkwanta area is highlighted by a 2,000m x 400m soil anomaly defined by gold values greater than 30 parts per billion. Two initial target areas defined by artisanal workings include the Apankrah and Nana structures which are ENE trending structures approximately 500m apart in the northern portion of the soil anomaly (see Figure 1 Plan Map). A third parallel structure located north of the Nana target is active with artisanal mining. A geophysically anomalous trend and artisanal work area trending north-northeast between the known and inferred shoots is known as the Scorpio target.

Apankrah Target

A total of 9 core holes have been completed, with 6 being reported to date. This initial follow-up program has partially defined the geometry of the previously inferred higher grade shoot and drilling indicates that the shoot is open on strike at depth to the west, down dip and down plunge. The steeply plunging shoot will be evaluated down dip and down plunge based on knowledge gained from this drilling and discussions with artisanal miners on parallel structures. Drilling has tested to a vertical depth of approximately 200m and based on shoot geometry, the next proposed holes are to expand on strike and test target depths of up to 250m, as shoots on known productive structures in Ghana tend to improve at these depths.

Nana Target

A total of 2 core holes, 368m, have been reported in this campaign. Drilling evaluated an inferred shoot based on previous drill results and the geometry confirmed at the Apankrah target. The results indicate gold grades are controlled by the contacts of an altered porphyry dyke that has intruded the structural zone at this location.

Scorpio Target

A total of 3 core holes, 808m, have been completed on this target during this campaign; with geological work and sampling yet to be completed. Drilling evaluated a northerly-trending, coincident magnetics, resistivity and conductivity anomaly that appear to link the Nana and Apankrah structures. Artisanal mining is active along this target in shallow pits and small shafts.

The 2012 exploration program is two-fold: i) follow up on high priority drill targets to advance to a Phase II definition stage, and ii) continue to generate high quality targets to fill the exploration pipeline including Phase I drill evaluation. As part of Castle Peak's systematic exploration approach and to assist in further targeting, the Company is currently awaiting the final geophysical interpretation and final data on the ground magnetics and induced polarization geophysical surveys completed on the Nkwanta, Asuogya-Ayiem and Great Yorkshire concessions in May. This third-party interpretation is expected in late August, and will enhance target generation and compilation by providing a more detailed interpretation of the underlying geology and structure of this high potential target area in the southern Ashanti gold belt.

Technical Disclosure

Castle Peak's technical disclosure in this news release has been reviewed and approved by Darren Lindsay, P.Geo., Castle Peak's President and CEO, who serves as a Qualified Person under the definition in National Instrument 43-101 ('NI 43-101'). The exploration activities are supervised by Clive Arthur, Castle Peak's Vice President Exploration. The procedures include the systematic insertion of blanks, standards and duplicates into the sample stream both in the field and at the lab; samples are placed in sealed bags and are delivered to SGS Laboratory Services GH Ltd. in Tarkwa, Ghana, for routine gold analysis by 50g charge fire assay with atomic absorption finish. Samples with visible gold or returning greater than 5 g/t Au from fire assay are subject to analysis using screen metallic assay. The Akorade project is an early stage exploration project and does not contain any mineral resources as defined by NI 43-101. The potential quantities and grades disclosed herein are conceptual in nature and there has been insufficient exploration to define a mineral resource for the targets disclosed herein. It is uncertain if further exploration will result in these targets being delineated as a mineral resource. Further information is available in the NI 43-101 compliant technical report dated February 14, 2011 and entitled "NI 43-101 Technical Evaluation Report on Nkwanta & Ayiem concessions, Wassa-West District, Republic of Ghana, West Africa" authored by Daniel Gaudreault, P.Eng. and Alain-Jean Beauregard, P.Geol. of Geologica Groupe-Conseil Inc., and in the NI 43-101 compliant technical report dated January 2, 2012 and entitled "NI 43-101 Technical Report on the Asuogya License, Ghana" authored by Gareth O'Donovan, Corporate Exploration Consultant, of SRK Exploration Services Ltd, copies of which are filed under the Company's profile on SEDAR at www.sedar.com.

About Castle Peak

Castle Peak Mining Ltd. is a Canadian-based exploration and development company focused on advancing greenfields and early stage gold projects. The Company holds a strategic land package in the Ashanti belt adjacent to several producing gold mines in Ghana, West Africa. The Ashanti belt is known as one of the most prolific gold belts in the world with over 150 million proven ounces uncovered and current investment in excess of $3.3 B USD.

On behalf of the Board of Castle Peak Mining Ltd.:

Darren Lindsay, President and Chief Executive Officer

For additional information please visit www.castlepeakmining.com.

FORWARD-LOOKING STATEMENTS

Except for statements of historical fact, this news release contains certain 'forward-looking information' and 'forward-looking statements' within the meaning of applicable securities laws including statements regarding proposed exploration, sampling and drilling at the Akorade Project and statements concerning the anticipated results of that exploration, sampling and drilling. Such forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to known and unknown risks, uncertainties and assumptions that could cause actual results to vary materially from the anticipated results or events predicted in these forward-looking statements, including those risk factors identified in the Company's Annual MD&A and Filing Statement filed under the Company's SEDAR profile. As a result, readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this release. Except as required by applicable law, Castle Peak disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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