Duncastle Gold Corp.
TSX VENTURE : DUN

Duncastle Gold Corp.

May 20, 2009 13:10 ET

Duncastle Arranges Non Brokered Private Placements

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 20, 2009) - Duncastle Gold Corp. (TSX VENTURE:DUN) reported today that the company has agreed to issue a total of 15.0 million common shares in two non-brokered private placements for total gross proceeds of C$1,450,000.

Combination Flow-through and non Flow-through Unit

The company has agreed to issue 5.0 million units in a non brokered private placement at a price of C$0.20 per unit to raise C$1.0 million. Each unit offering will consist of one flow-through common share at $0.11 per share and one non flow-through share at $0.09 per share with one share purchase warrant exercisable to purchase one additional non flow-through common share at an exercise price of C$0.15 per share for a period of two years.

Non Flow-through Unit

The company has also agreed to issue 5.0 million units in a non-brokered private placement at a price of C$0.09 per unit to raise C$450,000. Each unit offering will consist of one non flow-through common share and one share purchase warrant exercisable to purchase one additional non flow-through common share at an exercise price of C$0.15 per common share for a period of two years.

Finder's fees may be payable for both offerings.

The proceeds from both private placements will be for working capital and the advancement of the company's projects in SE British Columbia. The private placements and finder's fees are subject to regulatory approval.

Proposed Exploration for 2009

Duncastle said it plans an early summer 1,500-2,000 meter drill program to follow up on recommendations for 3,050 metres of surface drilling at numerous targets including continued work at the Yukon Shoot in the Yankee Girl structure, as well as an expansion to recently developed targets at the Goodenough mine, Bonus vein and 1235 adit.

Later in the year the company plans to commence a recommended rehabilitation of the Wildhorse Adit, consisting of minimal timber and drainage work as a prelude to 2,300 metres of drilling on numerous targets from underground. The Wildhorse Adit is a 1,417 metre exploration adit built during the period 1928 to 1954 that intersects the Bonus vein and meets the Yankee Girl vein 110 metres below the old mine workings.

2008 Results

A 2008 Summary Report on Exploration on the Yankee-Dundee Project recommends a multi-stage exploration program comprising +5,300 metres of surface and underground diamond drilling on the Yankee Girl and adjacent vein systems and continued surface exploration of several precious-metal-rich mineral showings throughout the 5,987 ha property located three kilometres northeast of Ymir, BC in the Nelson Mining District.

The report details the 2008 results from a 19-hole 3,003 metre core drill program, a 571 line-km DIGHEM EM/Magnetic airborne geophysical survey and surface mapping and sampling.

Results from drilling on the Yankee Girl structure indicate that the Yukon Shoot (thickest and most continuous portion of the vein) persists to a depth of some 280 metres. Higher grade intervals within the core of the Yukon Shoot assay up to 14.14 g/t Au, 281 g/t Ag, 11.13% Pb and 12.58% Zn over an estimated true thickness of 3.23 metres. Within the area of the Yukon Shoot, the Yankee Girl structure remains largely untested for over 240 metres to the east (toward the historic workings) and down plunge beneath its occurrence in the deepest workings of the Yankee Girl Mine. The entire mineral system remains open along strike to the west.

About Duncastle Gold

Duncastle Gold Corp. is a mineral exploration company based in British Columbia, Canada with projects in both central and southeastern BC. The Yankee Dundee project comprises 26 crown grants under a 100% option agreement and 95 tenured mineral claims totaling approximately 5,987 hectares in the Nelson Mining District, located three kilometres northeast of the town of Ymir in southeastern British Columbia. Gold mineralization was first reported near Ymir in the late 1800s, with much of the mining taking place at the Yankee Girl, Dundee and Ymir mines during the period 1907 to 1951. Historical records indicate that a total of 375,000 tonnes grading 9.9 g/t Au and 57 g/t Ag were mined from the Yankee Girl vein during this time. Exploration by the company is targeting high-grade Au-quartz veins throughout the Ymir district which historically, together with the adjacent Sheep Creek district is reported to have produced more than one million ounces of gold(1). In central B.C. the company has the 7,624 hectare Porphyry Creek property in the Rocher Deboule Mountains near Smithers, with a porphyry or IOCG copper-gold target. Duncastle Gold Corp. is a Manex Resource Group company.

Rob Macdonald, (P.Geo.), is the Qualified Person responsible for reviewing the technical results reported in this release.

On behalf of the Board of Directors,

Lawrence Page, Q.C., President, Director, Duncastle Gold Corp.

(1) Production data was obtained from historical government records and has not been independently verified by the current operators of the project.

This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Duncastle Gold Corp. relies upon 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.

Contact Information