TORONTO, ONTARIO--(Marketwire - Nov. 13, 2012) - Greencastle Resources Ltd. (TSX VENTURE:VGN) ("Greencastle") or (the "Company"), is pleased to announce that Rainbow Resources Inc. has completed the first two holes of a Phase 1 reverse circulation drill program at the Company's Jewel Ridge Property near Eureka, Nevada. This first phase of drilling is focused on the past-producing Hamburg Pit area. Each hole, drilled to depths of approximately 150 metres (500 feet), hit the contact zone between the Hamburg Dolomite and the Dunderberg Shale with intense silicification reported throughout each hole. Drilling is following up on some highly encouraging near-surface historical drill results in this area of Jewel Ridge including 2.1 g/t Au over 39.6 metres.
Jewel Ridge is located on the south end of Nevada's prolific Battle Mountain - Eureka Trend, along strike and contiguous to Barrick Gold's two-million ounce Archimedes / Ruby Hill mine to the north and the advanced-stage Lookout Mountain Project to the south. Jewel Ridge contains several historic small open-pit gold mines which align along a north-south trending stratigraphic contact of Lower Paleozoic sedimentary rocks, as well as several other gold mineralized zones with a variety of structural and lithological controls.
Significant results from recent work by Rainbow included chip samples across 15 metres from the south wall of the Hamburg pit (southern portion of Jewel Ridge) that assayed 0.98 g/t Au, 14.1 g/t Ag and 3.45 per cent zinc. A hematite float sample, believed to have originated from the Dunderberg mine area in the northwest section of the property, graded 3.6 g/t Au, 30.4 g/t Ag and 2.2 per cent lead.
The Jewel Ridge property consists of 96 unpatented lode mining claims and eleven patented claims covering approximately 1,510 acres. Rainbow can earn up to a 75-per-cent interest in Jewel Ridge as part of its option agreement with Greencastle, announced March 29, 2012.
Northwest Ontario Base Metal Properties
As reported in August 2012, at the Rockstone property, west of Thunder Bay, the Company drill-tested 4 separate airborne electromagnetic (VTEM) anomalies. The anomalies are located several kilometres east, but in the same sequence of volcanic and sedimentary rocks where boulders of zinc-rich base metal mineralization were discovered in Aldina Township in the 1990s. No significant gold and silver values were returned in the current drilling, but in one hole, one section of 24 metres containing 1% combined Zn+Cu was noted within a graphitic argillite unit. This intersection is one of the more encouraging found in this sequence of Archean greenstone rocks over the last decade. Late in September, a crew carried out a down-hole pulse EM survey on each of the four drill holes and identified several anomalous features which are currently being evaluated for further exploration.
During the summer at the Stake property, located at the southwest end of the Sturgeon Lake greenstone belt, the Company completed a small soil survey to test an area up-ice from some float boulders of quartz diorite containing disseminated chalcopyrite and pyrite with anomalous gold values. Although some of the soil samples returned anomalous copper and gold values, after further evaluation the property was returned to the vendor.
At the Phyllis property, east of Ignace, prospecting and sampling followed up on anomalous copper and nickel values identified earlier in association with mafic and ultramafic rocks and breccia in the area. Following evaluation of the field work and assay results, the property was returned to the vendor.
All technical information in this press release has been reviewed and approved by James Pirie, P. Eng. who is a Qualified Person ("QP") under National Instrument 43-101.
This news release includes certain "forward looking statements" within the meaning of that phrase under Canadian securities laws. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. Forward-looking statements reflect management's current views with respect to possible future events and conditions and, by their nature, are based on management's beliefs and assumptions and subject to known and unknown risks and uncertainties, both general and specific to the Company. Although the Company believes the expectations expressed in such forward-looking statements are reasonable, such statements are not guarantees of future performance and actual results or developments may differ materially from those in our forward-looking statements. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of commodities, general market conditions, risks inherent in exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. Additional information regarding the material factors and assumptions that were applied in making these forward looking statements as well as the various risks and uncertainties we face are described in greater detail in the "Risk Factors" section of our annual and interim Management's Discussion and Analysis of our financial results and other continuous disclosure documents and financial statements we file with the Canadian securities regulatory authorities which are available at www.sedar.com. The Company undertakes no obligation to update this forward-looking information except as required by applicable law. The Company relies on litigation protection for forward looking statements.
Neither 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.