Duncastle Gold Corp.

Duncastle Gold Corp.

March 31, 2009 12:29 ET

Duncastle Reports on 2008 Yankee-Dundee Results and Plans 2009 Season

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 31, 2009) - Duncastle Gold Corp. (TSX VENTURE:DUN) reported today that 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 5,544 ha property located three kilometres northeast of Ymir, BC in the Nelson Mining District.

Duncastle is focused on developing the potential of SE British Columbia, a region that has produced in excess of $70 billion worth of minerals starting in the late 1800s but remains relatively underexplored in contrast with other parts of BC today. Approximately five million ounces of gold were produced from the SE region, which benefits from excellent infrastructure, a favorable climate, and close proximity to the Teck-Cominco smelter in Trail, BC.

The company has consolidated most of the successful Ymir camp which historically, together with the adjacent Sheep Creek district, is reported to have produced more than one million ounces of gold1. The company continues to make acquisitions to further consolidate the area, and is currently evaluating new projects in the Kootenays.

The recently completed summary strongly recommends continued surface drilling along sections of the Yankee Girl structure as well as drilling of recently developed targets at the adjacent Goodenough Mine. 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. Underground drilling targeting two specific targets is recommended from the existing Wildhorse Adit which accesses the deepest and previously untested portions of the Yankee Girl and adjacent mineralized structures.

2008 Results

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. This shoot consists of a massive sulphide portion ranging up to one metre thick which is underlain by a well developed one to two metre thick footwall quartz breccia zone containing stringers and clots of sphalerite, galena, pyrite and locally pyrrhotite. Higher grade intervals within the core of the Yukon Shoot assay up to 14.14g/t Au, 281g/t Ag, 11.13% Pb and 12.58% Zn over an estimated true thickness of 3.23 metres. The average grade of the shoot as defined by seven holes to date is 7.00g/t Au, 40.19g/t Ag, 1.79% Pb and 2.00% Zn with an estimated average thickness of 3.90 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.

Other holes in 2008 tested the interval between the Yankee Girl, Spur and Bonus veins at the Yankee Girl mine site (three holes), highly anomalous gold values from trenches in the Lakeview structure (six holes) and the Oscar structure (one hole). The Bonus vein returned 3.31g/t Au, 71.09g/t Ag, 2.39% Pb and 3.29% Zn over 0.16 metres and its structure remains open along strike and at depth. Further drilling of the Bonus vein is recommended from surface and underground in the Wildhorse adit as it appears to narrow near surface similar to the successful Yankee Girl vein. Drilling of the Lakeview structure indicates that the structure is dominantly silver rich.

Surface work in 2008 included collection of 103 silt and 57 rock samples. Eleven drainages contain silt samples with anomalous gold coincident with various anomalous base metal and indicator elements. A further 14 drainages contain anomalous base metals with coincident path finder elements. Prospecting and rock sampling results confirmed that material from the old Arizona, Wilcox, Blackcock and Goodenough mine sites contain highly anomalous precious and base metal values. Rock grab samples from the Arizona waste dump of mineralized quartz vein material contain up to 154.56g/t Au and 353g/t Ag. Grab samples of mineralized quartz vein material from outcrop at the Wilcox mine site returned up to 6.89g/t Au and 56.37g/t Ag. Blackcock mineralized quartz vein material from waste dump and tramline terminal contain up to 64.01g/t Au and 96.9g/t Ag. Rock grab samples from waste dumps at the Goodenough mine site contain up to 14.55g/t Au and 681g/t Ag.

Proposed Exploration for 2009

The report recommends 3,050 meters 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.

Rehabilitation of the Wildhorse Adit, consisting of minimal timber and drainage work, is recommended to allow up to 2,300 metres of drilling on numerous targets from underground. The Wildhorse Adit is a 1,417 metres 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. The adit was inspected by Duncastle personnel in 2006 and appears to be in excellent shape structurally. Duncastle anticipates that the adit will be of use and is a significant asset for further exploration and potential production.

Underground drilling to expand the Bonus vein is strongly recommended. The Bonus vein is parallel to the Yankee Girl and, like the Yankee Girl is essentially invisible at surface. Underground drilling below the known mineralized zones is also recommended.

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 94 tenured mineral claims totaling approximately 5,544 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 9.9g/t Au and 57g/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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management.

Contact Information