Castle Resources Inc.

June 05, 2007 19:48 ET

Castle Resources Inc. Announces 4000 Metre Drill Program at Its San Ramon Silver Project in Zacatecas, Mexico

Drilling Rig Contracted Through Landdrill International

TORONTO, ONTARIO--(Marketwire - June 5, 2007) -


Castle Resources Inc. (TSX VENTURE:CRI) ("Castle", or the "Company") is pleased to announce the start of a detailed exploration program on the 100% owned San Ramon silver and base metals project in Zacatecas, Mexico.

The surface exploration phase of this program began on May 8, 2007 in preparation for the diamond drill phase set to begin in mid-June 2007. The contract for the 4000 metre, 23 diamond drill hole program has been signed with Landdrill International Mexico S.A. de C.V. based in Hermosillo, Mexico, a subsidiary of Landdrill International Inc. of Moncton, New Brunswick, Canada. This program was outlined in the October 10, 2006 technical report (the "Behre Dolbear Report") prepared by Behre Dolbear in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"), which included surface mapping, sampling and the drill program on the five identified vein systems in the northern section of the San Ramon Claim Group.

The San Ramon Claim Group, located approximately five kilometres northeast of the city of Zacatecas in the Zacatecas mining district, is composed of eight concessions totalling 312.2 hectares. Over the last 450 years this region of Mexico has been one of the most prolific silver producing areas in the world. Capstone Mining Corp. continued with this trend in 2006 with the opening of its Cozamin mine on concessions directly adjacent to Castle's properties.

Castle's drill program is designed to:

- Complete definition drilling in the San Ramon and Los Gatos zones;

- Test the continuity between the San Ramon and Los Gatos zones;

- Test to the southeast of Los Gatos along strike;

- Test the depth of the San Ramon and Los Gatos zones;

- Drill test the San Fernando and San Miguel veins;

- Conduct geological mapping and sampling of the El Salvador vein;

- Conduct reconnaissance mapping and sampling of all claims; and

- Provide data for 3D model and planning of future exploration and development.

Currently five vein systems have been identified in the northern portion of the Claim Group. These are known as La Platosa, Veta Fuerte, San Fernando, San Miguel and El Salvador. The principal mine workings within these claims are located in two main areas, San Ramon and Los Gatos, covering approximately 300 metres of the La Platosa and Veta Fuerte veins. This area will be the focus for detailed drilling, testing both vertical and horizontal extensions of the underground workings and providing information for future resource calculations. (See attached map link:

The drilling of the San Fernando and San Miguel veins will test possible mineralization at depth in a systematic approach. Three evenly spaced diamond drill holes will be completed on each vein to intersect at depth between 100 and 200 metres. The El Salvador vein will be mapped and, if results warrant, additional drilling will be added to the program to test this vein. This work will provide geological data to better understand these veins and to be used as the starting point for future exploration.

The detailed portion of the exploration program covers three of the eight concessions: Se los Dije, La Concordia and Miguel Angel. Reconnaissance geological mapping and sampling will be carried out on the remaining five claims. It is expected this program will take six to eight months to complete and compile. Periodic public updates will be provided throughout the program.

The exploration program is designed to verify and expand on the historical resources estimate quoted in the Behre Dolbear Report. A resource estimate of 640,000 tonnes of oxide ore with 0.5 g/t gold and 246 g/t silver and 1.2 Mtonnes at 1.3 g/t gold and 274 g/t silver of sulphide ore was calculated in 1994 by Minera Portree de Zacatecas S.A. de C.V. ("Portree"), based on Portree's findings in combination with data from a 1991 study by the Consejo de Resursos Minerales de Mexico. All resource estimates quoted herein are based on prior data and reports obtained and prepared by previous operators. The Company has not completed the work necessary to verify the classification of the mineral resource estimates. The Company is not treating the mineral resource estimates as NI 43-101 defined resources verified by a qualified person. The historical estimates should not be relied upon. These properties will require considerable further evaluation which Castle's management and consultants intend to carry out in due course.

"We are excited to initiate our Phase I drill program at San Ramon project," said Stephen Wallace, President and Chief Executive Officer of Castle. "By strategically targeting the five vein systems of the San Ramon Claim Group, we seek to enhance our understanding of the mineralization and in the process delineate future drill targets."

Grant of Stock Options

In addition, Castle announces that, pursuant to the Company's stock option plan and the policies of TSX Venture Exchange Inc. (the "Exchange"), the board of directors has approved the grant, effective June 4, 2007, of stock options to directors and officers of the Company to acquire an aggregate of 316,500 common shares of the Company ("Shares"). The options will be exercisable at $0.35 per Share (being the closing price of the Shares on the Exchange as of the date of grant), for a period of five years.

About the Company

Castle is a Toronto-based junior mineral exploration company focusing on high-quality advanced exploration projects in Mexico. The Company's initial focus is on silver exploration and development in Zacatecas, Mexico, one of the most prolific silver camps in Mexico and the world. Management's goal is to quickly advance current projects and to seek additional opportunities to continue to add value for shareholders.

This news release has been reviewed and approved by Stephen Wallace, P.Geo., a qualified person under NI 43-101.

Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Factors that might cause a difference include, but are not limited to: changes in the worldwide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. The Company will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect the financial results is included in documents filed from time to time with Canadian securities regulatory authorities by the Company.

The Exchange has neither approved nor disapproved the contents of this press release.

Contact Information

  • Castle Resources Inc.
    Stephen Wallace
    President and Chief Executive Officer
    (416) 619-0801
    Castle Resources Inc.
    Maurizio Fava
    Vice-President, Corporate Development
    (416) 917-1812