Duncastle Gold Corp.
TSX VENTURE : DUN
FRANKFURT : 5D3

Duncastle Gold Corp.

September 28, 2011 11:18 ET

Duncastle Reports Ubiquitous Mineralization at Sultana, Porphyry Creek

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 28, 2011) - Duncastle Gold Corp. ("Duncastle") (TSX VENTURE:DUN)(FRANKFURT:5D3) reported today that assay results from the final four of six core holes, totaling 2,583 meters, from its Porphyry Creek project, continue to outline thick and strongly anomalous intervals of copper and molybdenum mineralization which remain open laterally and at depth. The 2011 drilling was conducted on the Sultana mine, one of six high priority targets located on the 136 square kilometer Porphyry Creek property.

Drilling encountered several significant intervals of >0.1% copper including:

  • a 31.0 meter interval averaging 0.14% copper and 0.02% molybdenum (0.24% CuEq) within an overall 226 meter interval averaging 0.09% copper and 0.01% molybdenum (0.14% CuEq) from PC11-06; and
  • a 28.0 meter interval averaging 0.05% copper and 0.06% molybdenum (0.34% CuEq) within an overall 397 meter interval averaging 0.05% copper and 0.01% molybdenum (0.1% CuEq) from PC11-07

The two drill holes tested an area between and to the west of previously reported drilling from holes PC11-04 (51 meters of 0.11% Cu and 0.021% Mo) and PC11-05 (36 meters of 0.11% Cu and 0.029% Mo) and continue to demonstrate both the depth and internal continuity of the mineralized zone.

Anomalous copper and molybdenum mineralization was also identified in holes PC11-08 and PC11-09 which tested to the south and north of the earlier drilling.

The results define a mineralized zone of approximately 400 meters by 500 meters by 500 meters deep containing widespread highly anomalous copper and molybdenum mineralization, with additional values of silver, tungsten and other minerals. Mineralization remains open laterally to the west, south and north, and at depth. Further drilling is required to test and delineate the full extent of the mineralizing system.

Duncastle's geological team includes Peter Ogryzlo, PGeo, as Senior Consulting Geologist. Mr Ogryzlo is a recognized porphyry expert who brings more than 40 years of exploration and mining experience to the team with a focus on the development and operation of porphyry copper deposits in British Columbia. He was Senior Mine Geologist at Huckleberry Mines, located 130 km south of Porphyry Creek, and was part of the team that brought the MZX Pit through exploration, development and into production in three years.

Mr Ogryzlo stated: "The Porphyry Creek Cu-Mo system is large, and only partially tested. Copper and molybdenum are ubiquitous.Duncastle is using innovative processing of the geophysical surveys, and systematic drilling as vectors to direct their search for economic concentrations of these metals."

The discovery is appropriate to the area, which is dominated by Cu +/-Mo +/-Au/Ag porphyry projects in various stages of development from development through production, including:

  • Huckleberry Mine - a copper porphyry mine 130km south of Porphyry Creek with historic production from 80Mt of 0.5% Cu and 0.014% Mo from 1997 to 2008, current reserves of 14Mt at 0.362% Cu and 0.005% Mo, plus current resources of 94.4Mt at 0.339% Cu (measured), 88.6Mt at 0.301% Cu (indicated) and 45.4Mt at 0.288% Cu (inferred).
  • Berg Project - a copper-molybdenum porphyry 120km south of Porphyry Creek with resources of 53.3Mt at 0.48% Cu and 0.03% Mo (measured), 452.7Mt at 0.28% Cu and 0.038% Mo (indicated), and 144.6Mt at 0.23% Cu and 0.033% Mo (inferred), plus Ag values.
  • Endako Mine – a molybdenum porphyry mine 160km southeast of Porphyry Creek that commenced operation in 1965 and has current reserves of 140.9Mt at 0.047% Mo (measured) and 199.3Mt at 0.045% Mo (indicated), plus additional resource estimates.

Other large porphyry deposits are located 170km to 270km to the north including Red Chris, Schaft Creek, KSM, Galore Creek among others.

Reference maps for the project can be viewed at:

http://duncastlegoldcorp.com/uploads/projects/16/sultana-2011-for-web.jpg

http://www.duncastlegoldcorp.com/en/projects/porphyry-creek/photo-gallery.php

Table 1: Select Composites from the 2011 Porphyry Creek Drilling at Sultana Prospect

From To Interval Cu Mo CuEq
Hole # (m) (m) (m) % % % Comments
PC11-04 * 5.0 616.7 611.7 0.07 0.009 0.12 Previously released results
inc. 324.0 375.0 51.0 0.11 0.021 0.22
and 402.0 427.0 25.0 0.10 0.017 0.19
and 479.0 616.7 137.7 0.09 0.016 0.17
PC11-05 * 188.0 586.0 398.0 0.07 0.008 0.11 Previously released results
inc. 189.0 217.0 28.0 0.10 0.002 0.11
and 388.0 424.0 36.0 0.11 0.029 0.26
and 554.0 578.0 24.0 0.08 0.005 0.11
PC11-06 4.00 469.01 465.01 0.07 0.01 0.11 New Results
inc. 72.00 298.00 226.00 0.09 0.01 0.14
inc. 141.00 172.00 31.00 0.14 0.02 0.24
inc. 145.00 155.00 10.00 0.16 0.05 0.40
inc. 247.20 263.00 15.80 0.14 0.01 0.19
and 269.00 294.00 25.00 0.12 0.02 0.22
inc. 269.00 276.00 7.00 0.14 0.04 0.35
PC11-07 5.00 402.01 397.01 0.06 0.01 0.10 New Results
inc. 255.00 283.00 28.00 0.05 0.06 0.34
inc. 265.00 268.00 3.00 0.07 0.17 0.91
and 314.00 343.30 29.30 0.13 0.01 0.17
PC11-08 3.74 270.96 267.22 0.05 0.01 0.08 New Results
inc. 226.00 270.96 44.96 0.07 0.02 0.18
inc. 241.00 259.00 18.00 0.07 0.04 0.26
PC11-09 5.00 247.71 242.71 0.03 0.00 0.04 New Results
inc. 45.00 62.00 17.00 0.04 0.02 0.13

The copper equivalent (CuEq) calculation was based on long-term average Mo/Cu metal price to arrive at a ratio of 5 to 1. The CuEq calculations reflect gross metal content and have not been adjusted for relative metal recoveries, or relative processing and smelting costs.

Additional drilling is recommended to the south, west and north of the nine holes completed to date in the 2010 and 2011 drill programs. Only a portion of the target area (1200 meters x 800 meters based on coincident geophysical anomalies) has been tested, and strong copper and molybdenum values occur on the edges of the current drill pattern which project into untested areas. Further surface geological work is also recommended, including a ground-based geophysical survey, in order to more rapidly target geological structures expected to host higher grades of mineralization.

About the Porphyry Creek Project

There are over 20 porphyry discoveries in the region, including Berg, Bell, Huckleberry, Mt Milligan, and Galore Creek among others, plus other deposit types (eg Eskay Creek). The Porphyry Creek claim group includes historic workings and numerous high-grade gold, silver and polymetallic showings around a distinct 10 kilometer long magnetic high with coincident copper, lead and zinc geochemical anomalies shown in government data and Duncastle's work to date.

About Duncastle Gold

Duncastle Gold Corp. is a Vancouver-based gold exploration company with mineral claims covering or surrounding past producing mines in northwest and southeast British Columbia, Canada. Duncastle has assembled contiguous claim blocks totaling more than 210 sq km in these two historic and productive regions.

As part of the Manex Resource Group, Duncastle benefits from shared expertise in corporate finance, public company administration, investor relations, 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 C$300 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.

Contact Information