Duncastle Gold Corp.

Duncastle Gold Corp.

February 22, 2011 14:09 ET

Duncastle Updates Projects, Plans 2011

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 22, 2011) - Duncastle Gold Corp. (TSX VENTURE:DUN)(FRANKFURT:5D3) provided a project update today for its Porphyry Creek project located 20 kilometers northwest of Smithers in northwest British Columbia and also updated plans for the past-producing Yankee-Dundee mine 50 kilometers from Trail in southeast BC.

Porphyry Creek Project

The Porphyry Creek project covers over 130 square kilometers of mineral claims with 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. 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).

Work in 2010 included a 500 line-kilometer airborne geophysical survey, a ground reconnaissance geology program, and a 1,330 meter three-hole drill program that confirmed the presence of a copper-molybdenum porphyry system at the Sultana mine on the southeast portion of the Porphyry Creek project. Work in 2011 will include drill follow up on the Sultana discovery and will also advance other priority targets.

Sultana Mine

The Sultana mine is the most developed target on the property and is expected to be the focus of work in 2011. Following the discovery of a new copper-molybdenum porphyry system at Sultana (see news release December 16, 2010), the 2011 program is expected to consist of over 2,400 meters of core drilling targeting a 800 meter by 1,200 meter area south and west of the 2010 drill pads based on the apparent relationship between grade and geophysical (magnetic) response wherein the last 30 meters of hole PC10-01 returned 0.20% copper while approaching the magnetic low that encircles the Sultana area. The approximately two kilometer diameter annular magnetic low anomaly seen at Sultana is a geophysical signature often associated with porphyry mineralization (figure at http://www.duncastlegoldcorp.com/uploads/tinymce/2010_results_for_web_large.jpg).

IOCG/Skarn Target

Detailed analyses of the geophysical data, surface geological results and compilation of historical information by Duncastle has identified five additional high priority exploration targets which will be the focus of continued surface work in 2011. Of these, the highest priority is a potential IOCG/skarn target on the northwest corner of the claim block where the 2010 airborne geophysical survey shows coincident geophysical anomalies that are consistent with an IOCG target, including: magnetic anomalies and linears depicting potential fault structures which could localize mineralization; a large area with an anomalous low Th/K ratio; and electromagnetic high anomalies (conductive highs) suggesting possible mineralized areas. The strongest conductors (anomalies) identified in the 2010 geophysical survey were noted in this area. In addition, a 2001 BC Government report lists a stream in this area at >95th percentile for major IOCG indicator minerals (Cu, Au, La and Fe), and elevated IOCG indicator minerals are noted in several streams in the area in the provincial Regional Geochemical Survey (RGS) database(1).

A reconnaissance ground geological and geochemical survey program is planned for spring 2011 with potential ground geophysics and drilling to follow. A figure summarizing the other targets at Porphyry Creek is available at http://www.duncastlegoldcorp.com/uploads/tinymce/other_targets_large.jpg.

Other Targets

Reconnaissance ground geological work is also planned for spring 2011 on four other targets areas on the project, with potential ground geophysics and drilling to follow. These include the areas of the Brian Boru prospect and Brunswick Mine which are currently interpreted as distal, high-grade polymetallic veins. The area of the historic Brunswick Mine features co-incident geophysical anomalies including a strong EM response (conductive high). Dump and talus samples returned 2,566g/t Ag, 11.1% Pb and 19.4% Zn in one sample and 1,131g/t Ag, 4.9% Pb and 4.1% Zn in a second from the Brunswick Adit area in Duncastle's 2008 geological program. In addition, stream sediment sampling in the area returned anomalous copper, gold and silver values in the 2008 program.

The Brian Boru prospect area shows a strong conductive high (EM anomaly) co-incident with highly mineralized samples from the 2008 program (including 152g/t Ag and 22% Zn from a massive sulphide boulder), and anomalous copper and silver values in stream sediment sampling (also from the 2008 program).

The MT showing located two kilometers south of Sultana has a more muted geophysical response but features high-grade historic rock select chip samples including 5,187g/t Ag and 2.34% Cu in one sample, 23.0g/t Au, 1,817g/t Ag and 1.09% Cu in a second, and 5.1g/t Au, 2,846g/t Ag and 3.65% Cu in a third(1).

Other targets include Tina West, Tina North, and Porphyry East targets which will be prioritized as additional surface data is acquired.

Yankee-Dundee Project

In Southeast BC, 50 km from Teck Corp.'s Trail smelter, Duncastle controls most of the historic Ymir Camp which was for a time in the 1930s the largest silver producing camp in the British Commonwealth (BC MEMPR Bulletin 109, 2001). Today the camp is known more for gold value as it produced over $500 million in mineral wealth at today's prices, primarily in gold with 883,000 tonnes mined at an average 9.9 g/t gold(1). Duncastle has focused to date on the largest mine in the camp, the Yankee-Dundee mine, which is located in the southwest corner of the large 74 square kilometer claim block that includes over a dozen other historic mines.

Duncastle has identified five exploration target areas of similar or greater dimension at the Yankee Girl mine, with the historic mine itself occupying much of one of the areas. Work for 2011 is planned to focus on two target areas where high-grade mineralization has been identified near existing workings. The first is located above the main haulage tunnel used during production, the 1235 adit, and is the result of more than 6,900 meters of drilling in 45 holes by Duncastle to date. This zone, called the Yankee Girl West zone, is a high-grade mineralized extension of the Yankee Girl structure extending approximately 285 meters along strike to the west along the Yankee Girl structure with a vertical depth of 280 meters. The Yankee West zone is open at depth, to the west, and to the east towards the historic mine.

Work is also planned for a second area in 2011 where historic records report high-grade mineralization beneath the historic mine. Work done in 1961 identified an area 200 foot high by 4 foot wide averaging 8.68 g/t gold and 74.4g/t silver with 6.9% Pb/Zn (1) above the Wildhorse adit, which was inspected by Duncastle personnel in 2006 and found to be in apparent very good condition structurally.

Planned work includes engineering, scoping and environmental baseline work towards re-opening the underground to enable underground drilling and a potential bulk sample (test production) program. Significant costs savings are expected because of the existing workings, and possible revenues from a potential bulk sample program may further benefit the project budget. The Company is now looking for a partner for underground development of the project and has inspected mine workings and completed preliminary metallurgical testing (announced May 26, 2010) and a preliminary study on potential development strategies (August 3, 2010) to assist in demonstrating the potential of the project.

President Michael Rowley commented: "The Yankee-Dundee project has existing access and is located in an area with excellent infrastructure and a terrific mining legacy. With favorable preliminary metallurgical and strategic engineering studies completed in 2010 we are now looking for an operating and/or financing partner to re-open the underground with the aim of significantly expanding the mineralized zones and completing scoping work towards a potential bulk sample program."

(1) Historical results are compiled from government databases and predate NI 43-101. Duncastle has not independently verified past exploration results.

Website Updates

The Company has updated its website at http://duncastlegoldcorp.com.

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 205 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.

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