Duncastle Gold Corp.

Duncastle Gold Corp.

November 14, 2013 12:49 ET

Duncastle Further Consolidates Black Lake and Drayton Projects in NW Ontario

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 14, 2013) - Duncastle Gold Corp. ("Duncastle" or the "Company") (TSX VENTURE:DUN) (FRANKFURT:5D3) announced the acquisition of additional mineral claims between its Drayton and Black Lake projects in northwest Ontario, completion of a final agreement for the Black Lake project, and the issuance of shares per the Drayton property agreement.

New Claims

Duncastle announced today the acquisition of additional claims to further consolidate its Drayton and Black Lake projects located 10 kilometres south of Sioux Lookout and 70 kilometres east of Dryden in Northwestern Ontario.

This strategic acquisition adds valuable targets and known mineralized zones while also bringing the combined project to about 7,584 hectares (over 75 square kilometers). The consolidated land position includes over 25km of largely untested strike on the Sioux Lookout Deformation Zone in the rapidly developing Wabigoon Greenstone belt which has added over 14 million ounces gold in the past ten years including the Rainy River Resources deposit, among other significant discoveries.

Under the terms of the agreement Duncastle can acquire 100% of the right and title to six claims covering 1,024 hectares by completing cash payments of $86,000 and issuing 1,000,000 million shares over 4 years. The vendors retain a 2% net smelter royalty with a buy-down to 1% for $1 million. The agreement, and the issuance of shares per the agreement, are subject to acceptance of the TSX Venture Exchange.

Final Black Lake Agreement

Duncastle also announced that it has completed a final agreement for the Black Lake project as contemplated by the Letter of Understanding announced November 21, 2012. The final agreement incorporates amendments which reflect market conditions including:

  • reducing the exploration work requirement due October 28, 2013 to $50,000 from $150,000;
  • deferring the $25,000 cash payment due October 28, 2013 to February 28, 2014, and;
  • issuing 100,000 shares to each of Fortune Tiger Resources Ltd. and Rubicon Minerals Corporation, as the optionor and sub-optionor of the property respectively, in consideration for amending the agreement. The issuance of such additional shares is subject to acceptance of the TSX Venture Exchange.

Drayton Project

Duncastle will issue shares to Bravada Gold as required in the option agreement and reports the project is in good standing. The Drayton project occupies the southwest portion of the now consolidated Drayton-Black Lake project and includes a number of mineralized zones as well as a possible dilational zone identified in a geophysical survey completed in 2013 (see March 6, 2013 press release).

About Duncastle Gold

Duncastle Gold Corp. is a Vancouver-based gold exploration company with projects in Ontario and British Columbia, Canada. In addition to the consolidated Drayton-Black Lake gold project in Ontario and its royalty interest in the past-producing Yankee-Dundee Mine in southeast BC, Duncastle controls the highly prospective polymetallic Porphyry Creek project in northwest BC.

As part of the Manex Resource Group, Duncastle benefits from shared expertise in corporate finance, public company administration and technical and geological services provided for seven public companies active in North America. Since its formation in 1997, the Manex Group companies have raised over $350 million in exploration financing.

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

On behalf of the Board of Directors,

Michael Rowley, President, Director, Duncastle Gold Corp.

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. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general economic conditions, interest rates, commodity markets, regulatory and governmental approvals for the company's projects, and the availability of financing for the company's development projects on reasonable terms. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic, market or business conditions. Duncastle Gold Corp. does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.

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.

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