Greencastle Resources Ltd.

Greencastle Resources Ltd.

June 19, 2008 18:14 ET

Greencastle Enters Saskatchewan Coal Hunt

TORONTO, ONTARIO--(Marketwire - June 19, 2008) - Greencastle Resources Ltd. ("Greencastle," or the "Company,") (TSX VENTURE:VGN) is pleased to report that in early May, the Company applied to the government of Manitoba for a coal exploration permit on the Manitoba / Saskatchewan border.

The recent coal discovery in Saskatchewan by Goldsource Mines Inc. (TSX VENTURE:GXS) has resulted in a rush of permit application activity, covering a large area of eastern Saskatchewan. In April, Goldsource announced that, while drill testing geophysical anomalies for kimberlite, it had intersected coal (at a depth of about 80 metres) in two core holes located 1.64 kilometres apart and represent 26 metres and 32.5 metres, respectively, of coal seam, including 22.6 metres of continuous coal in each hole. The two core drill holes are located approximately 50 kilometres north of Hudson Bay, Saskatchewan. In May, Goldsource announced that most of the coal from the two intercepts was ranked as High Volatile Bituminous C and Sub-Bituminous A and was believed to be from the Mannville/Swan River Group of Cretaceous age. On June 17, 2008, Goldsource announced that it had been granted 55 coal permits and a further 179 were expected soon. It now plans a drill program to evaluate an area of 17 km by 9 km which Goldsource says could conceptually have the potential to contain 2 to 4 billion tonnes of coal.

The Greencastle permit application covers approximately 1,600 hectares on the Manitoba side of the Saskatchewan border some 12 km from the Goldsource permit area. The geological map of the Manitoba Geological Survey indicates the area to be underlain by the Swan River Formation of the same Cretaceous age as the Goldsource coal discovery.

Commenting on the recent coal initiatives, Anthony Roodenburg, Greencastle CEO stated: "Acquiring permits in Manitoba is somewhat more expensive and the process more cumbersome than in Saskatchewan, however, coal beds can extend for significant distances. For example, a 4 metre intercept of coal at a similar stratigraphic horizon to the Goldsource discovery has been observed in a hole drilled by Adamas Minerals Corp. over 100 km to the northwest. This information when considered in light of regional topography and the Goldsource coal bed elevation suggests that, if the coal bearing stratigraphy extends into western Manitoba, it may well be nearer to the surface."

James Pirie, a professional engineer registered with the Association of Professional Engineers of the Province of Ontario, is designated as the Qualified Person under National Instrument 43-101 and has approved the technical contents of this release.

In his Stock Talk Late Edition on June 18, 2008, Canaccord's David Pescod noted: "It was just roughly two weeks ago that the Coffin brothers of the Hard Rock Analyst did a piece on Goldsource ..." When asked at the recent Cambridge Mining Conference in Vancouver if he could only buy one stock today, what would it be? Eric Coffin said he would like to pick two, but one would definitely be Bitterroot Resources (TSX VENTURE:BTT). Mr. Coffin notes that Bitterroot has filed coal permit applications on the Manitoba side of the border, but within 10 km of the Goldsource permits. He further pointed out that being on the Manitoba border due east of Goldsource is "as close as you're going get for tag-ons to the main play."

Cautionary statements for Goldsource conceptual resource: The potential quantity and grade is conceptual in nature and there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in discovery of a mineral resource.

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 commodities, general market conditions, risks inherent in exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. The Company relies on litigation protection for forward looking statements.

No Stock Exchange has reviewed nor accepted responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Greencastle Resources Ltd.
    Anthony Roodenburg
    (416) 367-4571