Castle Resources Inc.
TSX VENTURE : CRI

March 07, 2011 08:30 ET

Castle Resources Targets 30,000 Metre Drill Program in 2011 at the Granduc Copper Project, Stewart, British Columbia

TORONTO, ONTARIO--(Marketwire - March 7, 2011) - Castle Resources Inc. (TSX VENTURE:CRI) ("Castle" or the "Company") is pleased to announce it will launch a 30,000 metre drill program beginning this May at the Granduc Copper Project near Stewart, B.C. The objective of the drill program is to move the existing resources from the inferred to the indicated category as well as to allow the previously reported significant exploration potential tonnage to be upgraded and reported as a NI 43-101 compliant mineral resource.

Drilling Highlights:

  • Infill drill the Granduc resource zones to upgrade the initial resource from inferred to the indicated category; also progress exploration potential identified by SRK in their recent NI 43-101 resource estimate dated February 28, 2011 into a resource category
  • Drill downdip on the main Granduc zone beneath the 1600 foot horizon identified as a historical non NI 43-101 compliant resource of 24 million tons grading 1.82% Cu (see Granduc Technical Report dated July 5, 2010)
  • Target the South Zone that Bell Copper successfully drilled in 2005/06 to delineate mineralized zones and potential resource (see Bell Copper release dated Dec 14, 2005)
  • Infill drill the North Zone resource to bring NI 43-101 inferred resource into the indicated category; graduate exploration potential identified by SRK in their recent NI 43-101 resource estimate dated February 28, 2011 into a resource category

"Castle's drill program this year will be very aggressive and will further delineate the downdip extent of the known Granduc mineralized zones," stated Mr. Mike Sylvestre, President & COO. "It is our goal to continue to demonstrate to our shareholders the potential for increasing copper resources at the Granduc."

Granduc Resource Estimate:

  • SRK Consultants provided the following 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
  • View the Castle press release dated February 28, 2011 for the 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.

PDAC Booth

Castle Resources is an exhibitor at the Prospectors and Developers Association of Canada 2011 Convention this year in Toronto, Ontario. Please visit the booth #2319 to learn more about the Granduc Copper Project and meet management.

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 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.

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.

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