Castle Resources Inc.

July 25, 2011 06:30 ET

Castle Resources Provides Granduc Copper Project Update

- Over 10,000 metres completed of 30,000 metre surface program at the Granduc Copper Project; initial assays results pending

- Procon Tide Tunnel rehabilitation proceeding very well; mining crews have mobilized, established access and services and have completed 1 km rehab of 17 km long haulage tunnel which connects the Granduc Mine to an all season road

- Castle announces creation of Technical Advisory Board; leading industry experts Mark Selby, William Napier and Mark Forsyth appointed

TORONTO, ONTARIO--(Marketwire - July 25, 2011) - Castle Resources Inc. (TSX VENTURE:CRI) ("Castle" or the "Company") is pleased to provide investors an update on ongoing drilling, tunnel rehabilitation and general operations at the Granduc Copper Project near Stewart, British Columbia.

"I am very pleased with the progress at the Granduc towards our 2011 objectives" stated Mr. Mike Sylvestre, President & CEO of Castle Resources Inc. "Significant developments on all operational fronts, notably exploration drilling, tunnel rehabilitation and environmental data collection have well positioned the Granduc Copper Project as we move to expand the footprint of copper mineralization and ultimately the mineral resource inventory. In addition, our technical and mine modeling teams are finalizing the initial conceptual mine design which will eventually form the basis of a preliminary economic analysis, to be completed early 2012."

Granduc Exploration Drilling:

Castle's surface program is focused on significantly expanding the inferred resource initially published by SRK Consulting by drilling downdip on the main Granduc zone and stepping out towards the South Zone. Drilling on the Main Zone is targeting below the 1600 foot horizon identified as an historical non NI 43-101 compliant resource estimate of 24 million tons grading 1.82% Cu (see Granduc Technical Report dated July 5, 2010). Castle is also targeting the South Zone that Bell Copper successfully drilled in 2005/06 to delineate additional copper mineralization (see Bell Copper release dated Dec 14, 2005) and confirm continuity on strike with the Main Zone. The historical estimates above should not be relied upon. A qualified person has not done sufficient work to classify the historical estimates as current mineral resources or reserves and the Company is not treating the historical estimates as current mineral resources or reserves.

To date Castle has completed over 10,000 meters of the targeted 30,000 meter surface drill program. Four (4) diamond drills have been turning since early June and it is anticipated the program will be completed by early September. In addition, a 5th drill is being mobilized to the North Zone where a 5,000 meter drill program will begin August 1st with the goal of expanding known mineralization on strike and down dip of the initial NI 43-101 inferred resource estimate published by SRK Consulting earlier this year.

Tide Tunnel Rehabilitation:

Castle engaged Procon Mining & Tunneling to rehabilitate the 17 km long haulage tunnel in late spring and is pleased to report that Procon has made excellent progress to date. Procon has mobilized men and equipment, reconditioned the tunnel entrance, removed sections of old rail, established ditching, installed ventilation and generators, built a repair shop and has begun advancing into the tunnel, reconditioning as they go.

Northern EM Target:

As part of Castle's overall Granduc exploration strategy, a team of geologists has begun a sampling program on a large, highly prospective electromagnetic (EM) anomaly 3 km to the north of the Granduc mine workings and current drilling activity. Initial sample assay results are expected in August at which point Castle will determine if further exploration activity is warranted. Please view page 12 of Castle's corporate presentation by visiting to view airborne geophysics and see photos of this prospective target.

Environmental Data Collection:

Castle has begun a Phase I environmental data collection program as a first step in a comprehensive environmental process. These baseline studies are focused on geochemistry, water quality, hydrology, hydrogeology, fisheries and aquatic biota, vegetation, wildlife, social, economic, and heritage topics, to name a few. Castle Resources has assembled a team of highly rated technical specialists with proven track records for all necessary environmental disciplines.

Technical Advisory Board:

Castle is pleased to inform investors that it has formed a Technical Advisory Board to oversee the environmental, resource definition and mine planning strategies at the Granduc Copper Project. Castle is excited that Mr. Mark Selby, Mr. William Napier and Mr. Mark Forsyth have joined the Technical Advisory Board and looks forward to working with them on an ongoing basis as the Company advances the Granduc towards feasibility and hopefully full mining operations and production.

Mark Selby is a recognized authority on base metal markets, with over 20 years experience in finance, corporate development and market research. Prior to joining Royal Nickel as Senior Vice-President Business Development in 2010, Mark worked as Vice-President Business Planning & Market Research with Quadra Mining Inc.

Mr. Napier is a career environmental professional with international experience in all aspects of the environmental sciences applicable to the mining industry. In 1996, Bill joined the Voisey's Bay Nickel Company and was responsible for the Environment, Health and Safety matters including the environmental assessment aspects of the project. In 1999, he transferred to the parent company, Inco Limited where he was named Vice-President of Environment, Health and Safety in 2000.

Mark Forsyth has spent 25 years working in commodity trading houses in various locations. He started his career in London in 1986 working for Marc Rich and also Pechiney World Trade. For the past 9 years, he has been based in Zug, Switzerland where he was Head Trader at Marc Rich & Co Investment AG for 7 years and then spent 1 year as a senior trader with the Trafigura Group in Luzern, Switzerland. His insight into the trading world is invaluable for optimizing marketing and operations strategies for mining companies.

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 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


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.

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