Castle Resources Inc.

April 17, 2012 06:00 ET

Castle Resources Announces 2012 Strategic Objectives

- 40,000 Meter Surface Drilling Program Aims to Significantly Expand Inferred Copper Resource Footprint

- Mine Rehabilitation to Focus on Exploration Drifts in Preparation for Underground Drilling

TORONTO, ONTARIO--(Marketwire - April 17, 2012) - Castle Resources Inc. (TSX VENTURE:CRI) ("Castle" or the "Company") is pleased to provide investors with a strategic overview of all 2012 operations at its 100% owned Granduc Copper Project near Stewart, British Columbia.

Castle's strategic objectives and milestones for 2012 include:

  • 40,000 meter surface drilling program - May till October
  • Underground mine rehabilitation - June till September
  • Preliminary Economic Assessment - Q3
  • Enter the B.C. Environmental Assessment process - Q2

"2012 will be a very busy year for Castle Resources as it ramps up the development of the Granduc Copper Project," stated Mr. Mike Sylvestre, President & CEO of Castle Resources Inc. "A robust drilling program, underground rehabilitation, engineering trade-off studies and a PEA will position Castle to advance the Granduc to the next stage of development. Having doubled our NI 43-101 resource estimate to over 1.3 billion pounds of copper, it is now clear that the Granduc is a significant B.C. copper project with numerous exploration targets and a resource that is open at depth and along strike."

40,000 Meter Drilling Program

Castle will mobilize 2 diamond drills to the Granduc in May, followed by another 3 drills in June with the aim of drilling 40,000 meters through the field season. The primary objective of the drilling will be to increase the inferred resource footprint and demonstrate the upside potential of the copper resource. Initially, the focus will be on the South Zone, targeting high grade mineralization beneath the South Leduc Glacier. Assay results from 2011 drilling on the South Zone were very positive, notably GD11-36 which encountered copper mineralization over a 244 meter block divided into 7 separate lenses; includes 19.32 meters of 2.73% Cu (see press release dated Nov 23, 2011). The North Zone will be targeted by 3 drills with the objective of significantly building on the current inferred copper resource. This inferred resource target is based on past drilling by Castle in 2011 and historic underground drilling, which indicates the strong potential for a large resource block above the main operating level of the mine.

Underground Rehabilitation

In 2011, Castle began and completed the rehabilitation of the Granduc haulage tunnel. The 17 km long Granduc tunnel was constructed in the mid-1960s by Newmont Mining, the developer and initial operator of the Granduc Mine. It was considered an engineering feat, designed for the fast and efficient rail transportation of ore, people and supplies between the underground mine and the mill. In 2012, with safe access to the mine now complete, Castle will begin rehabilitation of specific levels and exploration drifts in the Granduc Mine for the purpose of establishing underground drill stations later in the year.

Preliminary Economic Assessment

Castle has initiated a Preliminary Economic Assessment ('PEA') for the Granduc Copper Project and will aim to publish the PEA in Q3 2012. Focus will be given to trade-off studies on mining method, tailings impoundment and milling process. Considering the Granduc is a past producer that operated for over 13 years in the 1970s and 80s, management believes the upcoming PEA will clearly demonstrate the potential for redeveloping the Granduc and ultimately delineate the path towards production.

Environmental Assessment

Castle management believes it is prudent to enter the B.C. Environmental Assessment process and begin the steps required for full permitting of the project. As such, Castle will be submitting a Project Description to the B.C Environmental Assessment Office in the coming months and continuing its consultation and community engagement program, including consultation with the Nisga'a Nation, Skii km Lax Ha First Nation, government agencies, and stakeholders. These consultations were launched by Castle in 2011 and are fully supported by management.

About Castle Resources

Castle is a Toronto-based junior mineral development company focused on the redevelopment of the 100% owned past producing Granduc Copper Mine in Stewart, B.C. For more information please visit the Castle Resources' website at


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.

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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