Castle Resources Inc.

December 20, 2010 16:39 ET

Castle Resources Completes 4,000 Metre Drill Program at Its Elmtree Gold Project, New Brunswick

- Infill drilling completed to move resource to Measured and Indicated as part of ongoing feasibility by Micon International

- Feasibility to be released Q1 2011; Production targeted Q4 2011

- Environmental permitting process underway

TORONTO, ONTARIO--(Marketwire - Dec. 20, 2010) - Castle Resources Inc. (TSX VENTURE:CRI) ("Castle" or the "Company") is pleased to update investors on its Elmtree Gold Project in Bathurst, New Brunswick.

The Company recently completed a 4,000 metre infill diamond drill program on the West Gabbro Zone ("WGZ") of the Elmtree Property near Bathurst NB from August to September 2010. The objective of the infill diamond drilling program was to ensure the WGZ is drilled at a sufficient spacing in order to graduate the resource estimate previously defined by Mercator Geological Services from indicated and inferred to measured and indicated. Micon International is currently completing a feasibility study on the Elmtree Gold Project set to be released Q1 of 2011.

"Significant progress has been made at the Elmtree Gold project over the past several months," said Mr. Mike Sylvestre, President & Chief Operating Officer of Castle Resources. "We have completed a 4,000 metre infill program and completed key First Nations and local community information sessions. The project has been registered with the New Brunswick Department of Environment and will require a federal environmental assessment as part of the ongoing comprehensive study. It remains our goal to aggressively advance this project towards production in the last quarter of 2011."

Stantec Consulting Ltd. is proceeding through the comprehensive environmental assessment and permitting process for the Elmtree Gold Project. This process addresses environmental components and impacts such as wildlife and aquatic environments, water resources and wetlands, atmospheric considerations, traditional and local use and effects, archaeological and heritage, as well as public and stakeholder involvement, input and aboriginal engagement. Management has already held several First Nation and community meetings in New Brunswick as part of its commitment and responsibility to local involvement as the Elmtree project is advanced towards production.

Complete Elmtree 2010 Drilling Results

Note: All holes are downhole thickness

Hole Start End Width (m) Au g/t
ELM10-77 104.5 111.0 6.5 2.53
ELM10-78 110.5 144.5 34 1.30
inc 111.0 126.5 15.5 1.92
ELM10-79 119.5 143.5 24 1.66
inc 129.0 140.5 11.5 2.84
ELM10-80 152.0 175.5 23.5 2.19
inc 154.5 168.0 13.5 3.45
ELM10-81 102.5 122.5 20 1.57
inc 118.0 122.0 4 2.40
ELM10-82 136.5 154.5 18 1.62
inc 138.5 144 5.5 2.51
and 152.5 154.5 2 4.07
ELM10-83 151.0 165.0 14 3.35
inc 151.0 154.5 3.5 7.07
ELM10-84 150.0 169.0 19 0.84
inc 155.0 158.5 3.5 2.23
and 162.5 165.0 2.5 1.62
ELM10-85 179.0 210.5 31.5 0.49
inc 179.0 183.5 4.5 2.03
ELM10-86 143.0 174.5 31.5 2.39
inc 161.0 172.0 11 5.21
ELM10-87 Nothing of economic significance    
ELM10-88 215.0 255.0 40 1.96
inc 228.0 238.5 10.5 3.40
and 228.0 230.0 2 11.80
ELM10-89 116.5 164.5 48 1.54
inc 116.5 127.5 11 3.07
and 141.0 147.5 6.5 3.92
ELM10-90 115.0 204.0 89 1.794
inc 133.5 158.5 25 4.503
and 133.5 140.0 6.5 6.833
and 152.5 158.5 6 9.943
ELM10-91 93.5 118.0 24.5 1.41
ELM10-92 96.0 114.5 18.5 2.270
inc 98.5 105.0 6.5 5.284
ELM10-93 119.0 137.5 18.5 0.623
ELM10-94 94.0 124.5 30.5 1.48
inc 103.0 124.5 21.5 2.04
and 107.5 115.0 7.5 5.05
ELM10-95 91.0 127.0 36 0.369
inc 122.5 127 4.5 1.628
ELM10-96 95.5 106.5 11 2.059
inc 97.0 100.5 3.5 3.90
ELM10-97 Nothing of economic significance    
ELM10-98 62.0 77.0 15 2.12
inc 66.5 68.0 1.5 7.01
and 72.5 77.0 4.5 3.13
ELM10-99 Nothing of economic significance    
ELM10-100 Nothing of economic significance    

The Company received a positive Preliminary Economic Assessment from Micon early this year which indicates a pre-tax IRR of 25% using $900 Au/oz and a pre-tax IRR of 63% using $1,100 Au/oz, based on open pit mining and processing of 1.117 million tonnes with an average gold grade of 2.41 g/t Au, a stripping ratio of 6.3 (W/O), and assuming a 90% Au recovery. Management estimates total production from operations will be approximately 100,000 oz. Au over a 1.5 year mine life. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Castle is in the second year of a 3 year option agreement with Stratabound Minerals Corp. to acquire up to a 70% interest in their 100% owned Elmtree Gold Property (see press release dated June 12, 2009). As of the end of September 2010, Castle has met its obligations for the second year under the option agreement. The Elmtree Gold Project is located in a favourable mining jurisdiction with excellent local milling and processing infrastructure, including power, roads and a skilled work force.

QA/QC Protocol

Castle Resources implemented a QA/QC protocol for all its exploration and diamond drilling program on the Elmtree project. All drill core was drilled at NQ diameter. All drill hole locations were spotted using a hand-held Garmin GPS receiver with a 2m to 6m accuracy as well as by means of local grid co-ordinates. Core was delivered to the secure core shack facility located in Bathurst NB. 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 half meter intervals for splitting, sampling and assaying, unless geologic data indicate a shorter or longer sample interval. Core splitting was done with a diamond saw. Half of the drill core was submitted to Agat Laboratories, a certified facility located in Mississauga, ON, where samples were crushed, pulped and screened to 100 mesh. All pulps and rejects are currently stored with Agat. All samples were analysed through an aqua-regia digest and gold fire assay with an Atomic Absorption (AA) finish. Selected samples were analysesd through a 35 element ICP/MS package and. 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 20th sample. The blank material used was sand blasting glass. Sample standards were inserted at the nominal rate of 1 in every 35th sample (alternating between OREAS_18Pb' and OREAS_15Pb). Every 25th sample was selected as a "referee sample" whereby instructions were given to the lab to prepare 3 pulps, analyze two and keep the third to be sent to another credited laboratory for verification of results. Quarter core duplicate samples were selected at the nominal insertion rate of every 40th sample. Sample tags were inserted into each plastic sample bag and securely sealed. The sample tag was a back-up sample number to the unique identifier designed for each hole, whereby the sample number consists of the hole number as well as the "from" value of the sample interval. 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 stored at the secure core logging facilities in Bathurst NB.

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

Castle also announces that the TSX VENTURE has approved the conversion of an outstanding debt of $25,000 into 50,000 common shares of Castle. The debt was owing to Teuton Resources Corp. ("Teuton") and was in respect of an advance royalty payment owing to Teuton. Castle issued the common shares effective December 17, 2010 and as a result, the corresponding debt has been extinguished. The common shares issued to Teuton are subject to a four month hold period in accordance with applicable Canadian securities laws. 

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 2011. 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.

Contact Information