Castle Resources Inc.

April 28, 2011 07:01 ET

Castle Resources Provides Operations Update for the Granduc Copper Project

- 30,000 metre drill program to begin mid May

- Tunnel rehabilitation planned; currently reviewing tenders

- Conceptual Study initiated to lead to PEA later this year

TORONTO, ONTARIO--(Marketwire - April 28, 2011) - Castle Resources Inc. (TSX VENTURE:CRI) ("Castle" or the "Company") is pleased to announce it will soon restart comprehensive exploration and development activity at the Granduc Copper Project located near Stewart B.C.

"All the pieces are in place to begin our 2011 field season at the Granduc," stated Mr. Mike Sylvestre, President & COO of Castle Resources. "We are well financed and set to begin a very aggressive drill program with the goal of further increasing our already sizable copper resource. In addition, we continue to press forward on numerous infrastructure and permitting fronts as part of our goal to restart the past producing Granduc Copper mine."

Drilling To Commence:

  • Exploration camp to be mobilized to support 30,000 metre infill and exploration drill program set to begin mid May

  • Four (4) surface diamond drills to target the Granduc resource zones with the goal of upgrading the initial resource from the inferred to the indicated category; also graduate exploration potential identified by SRK Consulting (Canada) Inc. in their recent NI 43-101 resource estimate dated February 28, 2011 into a resource category

  • Surface drilling program to transition underground later this year in anticipation of the successful rehabilitation of the access tunnel and underground workings

Conceptual Study Underway:

  • Conceptual Study commissioned to provide comprehensive economic analysis of mining methodology and potential production model

  • Study to be authored by Mr. David Penswick P. Eng., a highly regarded mining engineer and industry specialist, in conjunction with SRK Consulting (Canada) Inc.

  • The Conceptual Study will establish the preferred development alternative(s) that will then be advanced with a Preliminary Economic Assessment (PEA) to be completed later in 2011

General Update:

  • Discussions have begun and will be ongoing this year with First Nations and provincial environmental permitting agencies

  • Discussions are well underway with B.C. Hydro and their conceptual review has concluded connection to the grid is feasible. B.C. Hydro has initiated a system impact study (SIS) on Castle's behalf

  • Team assembled to begin environmental baseline studies in May 2011

Granduc Resource Estimate:

  • SRK Consulting (Canada) Inc. 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

  • 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 within 4 km to the north and south of the main Granduc orebody

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.

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 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 $15 million in treasury and has issued and outstanding shares of 102 million.

For more information please visit the Castle Resources' website at


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