Castle Resources Inc.
TSX VENTURE : CRI

July 27, 2011 06:30 ET

Castle Resources' Exploration Results Significantly Extends Mineralized Strike Length at the Granduc Copper Project

- High grade copper drill assays confirm Granduc mineralization extends over 600 meters to the south of the historical production zone

TORONTO, ONTARIO--(Marketwire - July 27, 2011) - Castle Resources Inc. (TSX VENTURE:CRI) ("Castle" or the "Company") is excited to release its first set of drill assay results from the 2011 30,000 meter surface exploration program at the Granduc Copper Project located near Stewart, B.C.

"These initial results go a long way in confirming that the South Zone is a copper rich environment which doubles the known strike length of the Granduc," stated Mr. Mike Sylvestre, President & CEO of Castle Resources. "These new results coupled with Bell Copper drilling on the South Zone in 2005 and 2006 confirm historical assumptions that the Granduc Main zones continue to the south and notably increase in grade and width."

Drill Highlights:

GD2011-02 18.65 meters of 1.41 % Cu
inc. 9.7 meters of 1.85 % Cu
GD2011-03 11.6 meters of 1.74 % Cu
inc. 5 meters of 3 % Cu
GD2011-06 13.75 meters of 1.27 % Cu
inc. 5 meters of 1.81 % Cu

Please refer to the attached image which shows the location of our new South Zone drill holes and Bell Copper holes from 2005/06 and their relative position on strike with the Granduc Main Zone. These results clearly demonstrate the continuity of copper mineralization to the south on strike. It is Castle's goal to continue to drill the South Zone as part of the overall objective of significantly growing the inferred copper resource (SRK Consulting NI 43-101 compliant) in addition to drilling downdip on the Granduc Main zone beneath the 1600 foot horizon.

Granduc Drilling Results - 2011 Surface Program
Complete Assays for GD11-02, GD11-03 and GD11-04
Partial Assays for GD11-06, GD11-07 and GD11-09
Note: all widths are downhole thickness

Hole Start (m) End (m) Width (m) % Cu Au (g/t) Ag (g/t) %Fe
Complete Assays
GD11-02 248 276.6 28.6 0.50 0.06 3.00 11.84
inc 250 256 6 1.00 0.11 5.80 28.80
and 286.8 290.8 4 4.79 0.35 15.50 19.30
and 415.35 434 18.65 1.41 0.19 16.35 14.75
inc 424.35 434 9.7 1.85 0.23 23.90 11.65
Complete Assays
GD11-03 463.79 483 19.21 0.48 0.07 3.50 9.42
and * 513.55 526.15 11.6 1.74 0.22 11.65 27.80
inc 513.55 518.55 5 3.00 0.29 13.00 19.70
and 540.3 550.15 9.85 0.70 0.10 9.50 33.50
and 555.9 566.2 10.3 1.32 0.12 10.60 9.80
inc 555.9 562.8 6.9 1.62 0.18 12.00 13.15
* one meter referee sample not included
Complete Assays
GD11-04 521 532 11 1.15 0.14 7.07 10.18
inc 523 528 5 1.72 0.21 4.40 11.01
and 555 577 22 0.43 0.09 6.60 19.10
Partial Assays
GD11-06 173.25 187 13.75 1.27 0.13 7.27 16.10
inc 178.25 183.25 5 1.81 0.18 9.68 18.58
and 199.9 203.9 4 2.50 0.25 9.60 16.10
Partial Assays
GD11-07 233.25 241.25 8 1.21 0.14 6.75 20.45
inc 233.25 237.25 4 1.96 0.22 9.90 23.35
Partial Assays
GD11-09 415.5 426 9.5 1.11 0.14 7.29 13.78

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.

Granduc Resource Estimate:

  • SRK Consultants completed a NI 43-101 compliant resource estimate using a 0.8% Cu cut-off grade: Indicated Resources of 3.75 million tonnes grading 1.59% Cu, containing 131.4 million pounds of copper; Inferred Resources of 15.8 million tonnes grading 1.36%, containing 471.5 million pounds of copper

  • Exploration Potential is estimated to contain an additional 17 to 23 million tonnes grading between 1.3% Cu to 1.6% Cu. The potential quantity and grade of the exploration potential is conceptual in nature and there has been insufficient exploration to define a NI 43-101 compliant mineral resource. It is uncertain if further exploration will result in the exploration targets being delineated as a mineral resource

  • See Castle press release dated February 28, 2011 for complete NI 43-101 Granduc resource, including Cu cut-off sensitivity, and identified exploration potential on the Main and North Zones

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 and Castle has engaged Procon Mining & Tunneling Ltd. to rehabilitate

  • 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 along a 4+ km trend, with the main Granduc mineralization centrally located within the trend

  • Castle has begun a 30,000 metre surface drill program June 2011; 4 diamond drills are currently in operation

About Castle Resources

Castle is a Toronto-based junior mineral development company focusing on high-quality, advanced projects. Management's goal is to continue 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. Castle currently has $14 million in its treasury and has issued and outstanding shares of 106 million.

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.

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