Greencastle Resources Ltd.
TSX VENTURE : VGN

Greencastle Resources Ltd.

March 20, 2006 10:42 ET

Greencastle Acquires Fourth Property on Battle Mountain Trend, Nevada, Receives $250,000 From Early Warrant Exercise

TORONTO, ONTARIO--(CCNMatthews - March 20, 2006) - Greencastle Resources Ltd. ("Greencastle"), (TSX VENTURE:VGN), is pleased to announce that the Company has entered into an option agreement to acquire the Indian Creek Property comprising 20 claims in Lander County, Nevada. The property is located in the heart of the highly productive Battle Mountain-Eureka Trend, approximately 5 miles north of the Pipeline open pit gold mine operated by the Cortez Joint Venture of Barrick/Kennecott.

In 1988, Newmont Exploration Limited carried out a reverse circulation drill program in the area with one hole on the Property returning values of 17.7 g/t gold and 130 g/t silver over 1.52 m at a depth of 169 m, close to the NNW trending Gold Quartz Fault which crosses the property. Highly anomalous arsenic and antimony values occur with these precious metal values.

Greencastle can earn a 100% interest in the Property by paying a total of US$250,000 and issuing 150,000 shares over four years. The vendor retains a 3% net smelter return royalty, with Greencastle having the right to purchase up to one third (1%) of the royalty for US$1 million.

Additionally, Greencastle has received proceeds of $250,000 from the early exercise of warrants. These funds, combined with existing capital and royalty income, will be sufficient to finance Greencastle's 2006 exploration programs, including drill campaigns at Coal Canyon and Jewel Ridge.

The Jewel Ridge property is located between the former Ruby Hill gold mine and the Lookout Mountain gold deposit, currently under exploration by Staccato Gold Resources Ltd. Following its 2004 exploration program at Jewel Ridge, Greencastle reported hole HRC-11, which returned 2.1 g/t Au over 39.6 metres from 94.5 metres to 134.1 metres, including 2.7 g/t Au over 19.8 metres from 94.5 metres to 114.3 metres.

At the Coal Canyon property, south of Cortez, a drill program is planned to test a zone in the Grouse Creek Fault. Earlier work identified anomalous gold values within a zone of hydrothermally altered sedimentary rocks, thought to be lower plate rocks below the Roberts Mountain thrust. The Grouse Creek Fault is part of set of regional structures which trend northwest under pediment cover through the area of the ET Blue and Cortez Hills projects of the Barrick/Kennecott Cortez Joint Venture.

To find out more about Greencastle Resources Ltd (TSX VENTURE:VGN), visit our website at www.greencastleresources.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release. This news release includes certain "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.

Contact Information

  • Greencastle Resources Ltd.
    Anthony Roodenburg
    CEO
    (416) 485 1327