Castle Peak Mining Ltd.

TSX VENTURE : CAP


Castle Peak Mining Ltd.

March 26, 2014 09:00 ET

Castle Peak Provides Exploration Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 26, 2014) - Castle Peak Mining Ltd. ("Castle Peak" or the "Company"), (TSX VENTURE:CAP) is pleased to provide a corporate update and an update of our exploration activities at the Akorade Project located in the southern Ashanti Belt, Ghana.

Highlights of this announcement:

  • Update regarding current status of discussions on the Apankrah Deposit; and additional targets identified on the Nkwanta prospecting license;

  • High priority targets identified on structural splays along the Birimian-Tarkwaian structural corridor host to deposits such as Damang, Wassa and Akyem;

  • Western POW targets adjacent to Birimian-Tarkwaian boundary defined by >100ppb gold in soil contour; 2000m x 400m and 1800m x 500m.

Castle Peak is pleased to announce that over the past few months it has been in discussions with various parties interested in the opportunity to the advance the high-grade Apankrah Deposit. The company is diligently continuing these discussions to find the right partner for the Apankrah Deposit. These negotiations contemplate the potential unlocking of potential value of smaller higher grade resources in hand with a continued progressive approach to community relations and environmental activities initiated by the company. The company cautions that there is no guarantee that these negotiations will result in a transaction or if a transaction is undertaken, as to its terms or timing. Further updates will be provided to Castle Peak's shareholders as these negotiations are further advanced.

Darren Lindsay, President and CEO of Castle Peak, commented:

"We are firmly committed to the potential of the high-grade Apankrah Shoot resource and surrounding targets. We have also been compiling our expanding dataset in the prolific southern Ashanti which has resulted in identifying a handful of high potential and high priority targets in both our Apankrah Target Area and in our 'North-East Structure' target corridor. Compilation work is being completed on the 'North-East Corridor' before moving on to the 'North-South Structure' target corridor. Our current efforts are to identify additional high grade targets around the known Apankrah resource, as well as, identify targets on the larger structures nearby. Our next steps for these substantial targets are to complete follow up auger sampling, target prioritisation, and ultimately drill evaluation."

The Apankrah Target Area

Two key structural trends have been identified with one minor trend on the Nkwanta prospecting license ("PL"). Combined, these host five general target areas with the main target area (Nkwanta-Main) hosting the Apankrah high grade inferred mineral resource (Figure 1).

A north-south corridor defined by a magnetic anomaly is host to numerous known and inferred ENE trending structures known to host gold mineralisation (Apankrah, Scorpio, Nana). A limited induced polarisation survey in the area characterised the Apankrah Shoot resource as having a coincident chargeability and resistivity anomaly; an identical anomaly is observed in the data ENE along the Nana structure. To the south of the Apankrah Shoot a strong resistive anomaly occurs very similar to that of the Apankrah Shoot. There are four drill ready targets within 700m of the Apankrah Shoot resource.

Coincident geochemical anomalies on the inferred and known structures provide blue sky targets on the prospecting license. The Nkwanta-A target area is host to a 1000m x 400m area returning greater than 30ppb gold in the multi-element soil survey (values range from 43ppb to 86ppb gold); this is interpreted to be the western extension of the Apankrah and Scorpio structural corridor intersecting the granitoid-metavolcanic boundary, an area of high rock competency contrast and therefore very high potential for gold deposition. The Nkwanta-C target is also focussed on the granitoid boundary where its intersection with the magnetic anomaly is projected to occur.

The Nkwanta-B target area is host to a large area of galamsay activity on a structure parallel or sub-parallel to Apankrah and occurs where the magnetic anomaly occurs within a larger geochemical anomaly, 1600m x 400m of >30ppb Au (ranges from 15ppb to 877ppb gold in multi-element soil survey).

The Nkwanta-D target occurs in a NW orientation along a geophysical inferred structure that is coincident with a 1000m x 200m >30ppb gold in multi-element soil survey anomaly (range of 21ppb to 249 ppb gold).

North-East Structure target corridor

This corridor is comprised of the Enyinase, Great Yorkshire, Dompem prospecting licenses and the western side of the POW prospecting license. To date compilation has occurred on the Great Yorkshire and POW prospecting licenses and is ongoing on the others.

Targets on the western side of the POW PL occur outside of the Forest Reserve; approximately 80% of the PL hosts a geochemical anomaly of >30ppb gold from the multi-element soil sample survey (ranges from below detection limit to 1405ppb gold). Targets were therefore developed using a >100ppb gold contour which highlighted the Dansuom target (best drill hole 10.8m of 2.8 g/t Au; see NR dated November 15, 2011) and a number of other anomalies, two of which are considered high priority due to the inferred geological complexity (Figure 2).

The POW-A target is a >2000m x 400m gold in soil anomaly (range of 64ppb to 1405ppb gold) coincident with an inferred NW trending structure off-setting a NE trending inferred thrust fault, associated with a nearby inferred intrusive body. This target occurs within 3km of the Birimian-Tarkwaian boundary structure ("B-T structure").

The POW-B target is focused on a geophysical based inferred structure that is coincident with a 1800m x 500m >100ppb gold in soil anomaly (range of 108ppb to 521ppb gold).

On the Great Yorkshire PL, similar associations of faults defined by the geophysical surveys are coincident with the geochemical anomalies obtained from the multi element soil survey. The faults appear to be splays off of the main B-T structure that are rooted where the main structure jogs or changes orientation. Other anomalies also exist but are of lower priority at this time.

The Great Yorkshire-Main (GY-Main) and GY-A anomalies appear to be directly associated with the B-T structure and closely associated with late time (deeper) VTEM anomalies from an airborne survey completed in 2011 (NR dated May 30, 2011). GY-Main is an irregular anomaly with maximum length of 2200m and average width of 500m as defined by the >30ppb gold contour (range 21ppb to 555ppb gold) from the multi-element soil survey. This area is broken down into a T1 or northern target and T2 a southern target based on the structural interpretation of the area. GY-A is defined by a 700m x 700m gold in soil anomaly (range 21ppb to 66ppb) that overlays a NNE trending late time VTEM geophysical anomaly.

The GY-B target is similar to those of GY-Main but of lesser areal extent and strength, 1800m x 400m (range 15ppb to 59ppb gold), and has the inferred structure hosted in the metavolcanic sequence approximately 1000m south of the B-T structure.

The GY-C target area is located on the inferred margin of a granitoid intrusion that appears to have intruded near the confluence of the structures that bound the Tarkwaian basin. It is a relatively small anomaly but is of interest due to the geological associations. The anomaly is approximately 700m x 400m with soil samples ranging from 43ppb gold to 80ppb gold.

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 reported in the release were supervised by Clive Arthur, Castle Peak's ex-VP Exploration. Soil sampling reported herein was collected as approximately 2kg samples at roughly 1m depth at sites located using handheld GPS. Castle Peak inserted control samples every tenth sample (one of field duplicate, blank, low grade standard material). Samples were analyzed for gold and an additional 32 elements by fire assay and ICP analytical methodologies, respectively at ALS Chemex Laboratory in Kumasi, Ghana. The Akorade Project represents early stage exploration properties which include a mineral resource on the Apankrah Deposit with an effective date of June 1, 2013, as described in the "NI 43-101 Technical Report on The Apankrah Project, Western Region, Ghana" dated June 1, 2013, prepared by Simon Meadows Smith (IOM3) a Qualified Person as defined by NI 43-101. A copy of the report is filed under the Company's profile on SEDAR at www.sedar.com and the Castle Peak website.

The potential quantities and grades disclosed herein relating to targets outside the Apankrah Deposit are conceptual in nature and there has been insufficient exploration to define a mineral resource for those targets disclosed herein. It is uncertain if further exploration will result in those 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., a copy of which is filed under the Company's profile on SEDAR at www.sedar.com.

About Castle Peak

Castle Peak Mining Ltd. is a Canadian-based mineral exploration company focused on advancing greenfields and early stage gold projects. The Company holds a large, 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, putting Ghana as the second largest gold producer in Africa with past production of >150 million ounces.

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

Darren Lindsay, President and Chief Executive Officer

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 potential exploration and development at the Akorade Project. 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 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.

To view Figure 1: Apankrah Target Area, Nkwanta prospecting license, please visit the following link: http://media3.marketwire.com/docs/Figure1-CAP.pdf.

To view Figure 2: Targets on the POW prospecting license, the western ones discussed in this release, please visit the following link: http://media3.marketwire.com/docs/Figure2-CAP.pdf.

To view Figure 3: Targets on the Great Yorkshire prospecting license, please visit the following link: http://media3.marketwire.com/docs/Figure3-CAP.pdf.

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