Castle Resources Inc.
TSX VENTURE : CRI

December 06, 2010 11:42 ET

Castle Resources 2010 Drilling Results Confirm Significant Copper Below Mined-Out Orebodies and Extends Known Strike

- Complete Drill Results Demonstrate Significant Copper Mineralization Beneath Mined-Out Orebodies of Past Producing Mine

- Drilling to the Southern End of the Historic Orebody Successfully Links Up With Positive 2005/06 Bell Copper Drill Results; Extending Known Strike South of the Historic Mine by 600+ Metres

- SRK Engaged to Prepare Initial NI 43-101 Resources Estimate

TORONTO, ONTARIO--(Marketwire - Dec. 6, 2010) - Castle Resources Inc. ("Castle" or the "Company") (TSX VENTURE:CRI) is pleased to update investors regarding its Granduc Project and provide the balance of drill results from the recently completed 8,300 metre, 18 hole drill program at the Granduc Copper Project ('Granduc') near Stewart, B.C.

"Drill results to date have confirmed there is significant copper mineralization at Granduc," commented Mr. Mike Sylvestre, President and COO of Castle Resources. "Intersections show a strong pattern of increasing copper grade and lens thickness in both downdip and southwest directions, demonstrating the potential for a much larger copper zone than the Company initially anticipated."

The objective of Castle's 2010 drill program at Granduc was to test the down dip extent of the historical deposit as well as replicate certain Newmont and Esso drill results. This goal was achieved as all holes have encountered visible copper mineralization along a 1,000 metre strike. These initial results indicate that the historical in-situ Newmont and Esso resource estimates appear to be reliable; the larger objective is to continue this process and target the balance of the downdip mineralization and extend the strike to the south through a comprehensive drill campaign next field season.

The development strategy at Granduc is now focused on generating a NI 43-101 resource estimate based on this year's drilling as well as historic drilling and then moving quickly to commission a Preliminary Economic Assessment. In tandem, management is preparing a detailed exploration and mine rehabilitation plan that will focus on the balance of targets not yet drilled downdip and along strike. This will entail the partial rehabilitation of the 17 km long tunnel connecting the Granduc underground workings with the former millsite and parts of the mine infrastructure, including ramps and exploration drifts originally developed by Newmont and Esso. This development strategy is already underway and will be implemented starting in the spring of 2011.

Based on this year's successful drill results targeting the downdip extent of the historic Granduc orebody, management is now focusing on the potential for additional strike length to the south. Bell Copper, the previous owners of the Granduc Project, tested the along-strike continuity of the known mineralization to the south of the mine workings in 2005 and 2006 and demonstrated that the 'South Zone' was likely an extension of geophysical anomalies with the historic mine. Given the proximity of several of this year's drill holes to Bell's drilling, management aims to further test the 'South Zone' next field season.

Complete 2010 Drill Results & Select Bell Copper 2005/06 Drill Results
                   
Includes new drill results from Holes 11, 14, 15, 16, 17 & 18
                   
Listed by section from north to south
                   
All holes are reported as downhole thickness
                   
Company Section Hole   Start End Width (m) % Cu Au (g/t) Ag (g/t)
                   
Castle 2010 11,600 N GD10-11   610.47 617 6.53 0.79 0.30 5.66
Newly released                  
      and 622.8 625 2.2 0.76 0.21 8.45
                   
      and 651 657 6 1.01 0.24 9.02
                   
                   
Castle 2010 11,400 N GD10-10   562 567 5 2.14 0.27 12.30
                   
      and 597 599 2 1.44 0.11 4.20
                   
                   
Castle 2010 11,200 N GD10-03   488.5 508.65 20.15 1.38 0.16 12.90
      inc 488.5 491.5 3 2.54 0.43 14.40
                   
      and 499.5 504.5 5 1.37 0.13 21.10
                   
                   
Castle 2010 11,200 N GD10-06   587.55 636.5 48.95 0.46 0.12 5.30
      inc 589.55 592.55 3 1.47 0.14 7.70
                   
                   
Castle 2010 11,000 N GD10-18   383 390 7 1.53 0.17 21.10
                   
                   
Castle 2010 11,000 N GD10-16   499 501.2 2.3 0.75 0.13 5.77
Newly released                  
                   
                   
Castle 2010 10,800 N GD10-13   485 495 10 1.09 0.13 15.40
      inc 491.3 493.5 2.2 1.71 0.28 23.50
                   
                   
Castle 2010 10,700 N GD10-04   341 349 8 1.32 0.13 7.40
                   
                   
Castle 2010 10,700 N GD10-05   354.95 368 14.5 1.26 0.15 12.10
      inc 360.5 366.5 6 1.62 0.17 14.70
                   
                   
Castle 2010 10,400 N GD10-15   365.5 381.5 16 1.38 0.19 8.71
Newly released     inc 373.5 376.5 3 2.05 0.32 11.91
                   
      and 384.5 396.5 12 0.77 0.11 5.20
      inc 385.5 390.5 5 1.42 0.16 6.49
                   
                   
Castle 2010 10,200 N GD10-17   273 279 6 1.20 0.18 12.82
Newly released                  
      and 287 296 9 1.07 0.16 11.60
                   
      and 298 306 8 1.27 0.17 8.58
                   
      and 310 322 12 1.32 0.28 15.00
      inc 311 316 5 1.73 0.30 17.42
                   
      and 334 348 14 0.84 0.17 9.60
      inc 338 341 3 1.19 0.35 16.37
                   
      and 351 360 9 0.77 0.18 8.07
      inc 353 357 4 1.08 0.20 9.88
                   
                   
Castle 2010 10,000 N GD10-01   126.72 136.5 9.78 2.49 0.21 5.28
      inc 131.2 136.5 5.3 3.00 0.24 6.45
                   
      and 224.2 227.75 3.55 1.82 0.15 21.11
                   
        256 276.5 20.5 1.38 0.13 14.60
      inc 256 263 7 1.71 0.17 14.70
      inc 256 261 5 1.90 0.20 22.00
      inc 267.5 274.5 7 1.79 0.14 14.60
                   
                   
Castle 2010 10,000 N GD10-02   158.3 175.1 16.75 2.15 0.17 6.80
      inc 158.3 163.3 5 3.27 0.22 8.80
                   
      and 277.3 294.7 17.4 1.73 0.23 21.69
      inc 287.2 291.2 4 3.26 0.50 21.50
                   
      and 312.1 321.5 8.5 1.45 0.16 9.30
                   
                   
Castle 2010 10,000 N GD10-14   213 223 10 1.21 0.22 14.16
Newly released                  
      and 229 240 11 1.02 0.16 10.09
                   
      and 268 279 11 1.23 0.15 22.56
      inc 271 274 3 1.82 0.16 23.30
                   
      and 286 294.5 8.5 1.12 0.14 13.89
                   
      and 309.75 334.45 24.7 0.88 0.14 11.55
      inc 323.7 329.4 5.7 1.29 0.21 14.80
                   
      and 349.8 361.9 12.1 1.56 0.17 7.49
      inc 349.8 353.3 3.5 2.04 0.25 15.00
                   
      and 358.5 361.9 3.4 2.36 0.50 18.32
                   
                   
Castle 2010 9,500 N GD10-09   205.7 227.7 17 0.99 0.14 5.20
      inc 205.7 209.7 4 1.70 0.36 9.00
                   
      and 349.5 363.5 15 1.83 0.18 14.60
      inc 360.5 363.5 3 3.36 0.29 17.40
                   
                   
Castle 2010 9,500 N GD10-12   335 358.5 23.5 1.36 0.14 12.80
      inc 343 348.25 5.25 2.88 0.30 17.00
                   
      and 393 426.48 33.48 1.45 0.24 16.50
      inc 396 411 15 1.73 0.24 20.50
                   
      and 417 426.48 9.48 1.75 0.31 19.20
                   
                   
Castle 2010 9,200 N GD10-08   264.18 297.03 32.85 0.82 0.09 7.90
      inc 289 297.03 8.03 1.54 0.11 13.00
      inc 292 296 4 1.88 0.11 13.30
                   
                   
Bell 2005 9,100 N DDH2005-1   92.7 101.8 9.1 2.21 0.16 11.80
                   
                   
Bell 2005 9,100 N DDH2005-3   163.3 169.8 6.5 1.84 0.13 20.70
                   
      and 197 204.7 7.7 1.49 0.10 13.10
                   
                   
Bell 2005 9,100 N DDH2005-5   197.3 200.4 3.1 2.42 0.24 17.40
                   
      and 263 265.7 2.7 3.92 0.25 36.00
                   
      and 416.7 431.2 14.6 2.13 0.24 23.20
                   
                   
Bell 2005 8,700 N DDH2005-4   218.2 229.2 11 2.57 0.16 6.70
                   
        365.5 370 4.6 2.02 0.22 20.30
                   
                   
Castle 2010 8,700 N GD10-07   137 156.58 15.78 0.81 0.09 4.90
                   
        154 156.58 2.58 1.20 0.11 4.40
                   
                   
Bell 2006 7,900 N DDH2006-1   170.5 176 5.5 2.11 0.37 26.10
                   
                   
Bell 2006 7,900 N DDH2006-2   234.6 245.6 11 1.89 0.26 22.80
                   
                   
Bell 2006 7,900 N DDH2006-5   325.3 329.3 4 2.08 0.14 28.40
                   
      and 349.6 354.6 5 1.84 0.29 26.80
                   
                   
Bell 2006 7,100 N DDH2006-4   220.3 226.3 6 2.19 0.19 20.20
                   

Granduc Highlights:

  • Newmont and Esso Minerals operated the Granduc Mine between 1971-1984; processed over 15 million tonnes of ore grading 1.71% Cu; produced 420 million pounds of copper (plus gold and silver credits); the mine was closed in 1984 due to low copper prices

  • Operators of the Granduc Mine invested over $115 million from Oct 1965 until start-up operations began in 1971

  • 17 km haulage tunnel remains in good condition today

  • Mining operations at the Granduc Mine consisted of crushing underground then processing of up to 9000 tpd. The concentrate was trucked on a 54 km all weather road to the year-round deep sea port facility in Stewart which remains in operation today

  • Bell Copper's exploration activities between 2004 and 2007 have confirmed mineralization within 4 kms to the north and south of the main Granduc orebody

Independent Quality Control and Analytical Protocol

Castle Resources implemented a QA/QC protocol for all its exploration and diamond drilling program on the Granduc. The drilling contractor was Morecore Drilling Services and core diameter was a combination of NQ and thin wall NQ, enabling the possibility for at least two step-downs if ground conditions should require it. All drill hole locations were spotted using a hand-held Garmin GPS receiver with a 2m to 6m accuracy. Core was delivered to the secure Core Shack facility located on the property. In addition to recovery and RQD (Rock Quality Designation) data, geologic parameters including lithology, alteration, presence and identification of sulphide mineralization along with other geologic parameters are noted and recorded. Core was marked in one meter intervals for splitting, sampling and assaying, unless geologic data indicate a shorter sample interval. Prior to splitting, all core was photographed. Core splitting was done with a diamond core saw or by manual splitter and ½ of the drill core was submitted to EcoTech Laboratories (part of the Stewart Group of Companies), a certified sample preparation facility located in Stewart B.C., where samples were crushed, pulped and screened to 100 mesh. The pulps were then sent by courier to the main EcoTech laboratory facility in Kamloops B.C. for assay, while the rejects are stored at the EcoTech prep facility in Stewart. All samples were analysed through an aqua-regia digest and analysesd through a 35 element ICP/MS package and gold fire assay with an Atomic Absorption (AA) finish. All sample over-runs through the ICP package automatically were fire assayed with an AA finish.

A QA/QC protocol was followed for the drill core sampling program, which involved inserting sample blanks and standards at regular intervals into the sample stream. Blanks were inserted at the nominal rate of 1 in every 35th sample as well as after a sample which contained significant visible sulphides. Sample standards were inserted at the nominal rate of 1 in every 20th sample (alternating between OREAS_93 and OREAS_95). Every 20th sample on odd multiples was selected as a "referee sample" whereby instructions were given to the prep facility to prepare 2 pulps, analyze one and keep the second to be sent to another credited laboratory for verification of results. Three duplicate samples were selected per hole, located in a mineralized zone to assure continuity of higher grade results, where half the core was quartered and sent as a separate sample. Sample tags made of sturdy Tyvek were inserted into each plastic sample bag and securely sealed. The sample number along with the sample interval was recorded on the drill log. The sample interval was recorded in the sample tag book. A 3rd sample tag was stapled into the core box at the end of the sample interval. All core is currently and securely stored in the remote camp location.

Brad Leonard, P. Geo., Castle's Exploration Manager, is the Qualified Person responsible for the scientific and technical work (as defined under National Instrument 43-101) discussed in this press release, and has reviewed this press release.

About Castle Resources

Castle Resources Inc. is a Toronto-based junior mineral development company focusing on high-quality, advanced projects. Management's goal is to begin the redevelopment of the 100% owned past producing Granduc Copper Mine and begin new exploration activities; as well, management is quickly advancing the Elmtree Gold Project in New Brunswick toward feasibility in 2010. For more information please visit the Castle Resources' website at www.castleresources.com.

Disclaimer

Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information is identified by words such as "estimates", "intends", "expects", "believes", "may", "will" and include, without limitation, statements regarding the company's plan of business operations (including plans for progressing assets), estimates regarding mineral resources, projections regarding mineralization and projected expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, risks inherent in the mining industry, financing risks, labour risks, uncertainty of mineral resource estimates, equipment and supply risks, title disputes, regulatory risks and environmental concerns. Most of these factors are outside the control of the company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

This news release does not constitute an offer to sell or solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to a U.S. Person unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

To view Figure 1. Plan view of Granduc orebodies on 2600 ft. level with drill locations, please visit: http://media3.marketwire.com/docs/cri_map1206.pdf.

Neither the 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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