Greencastle Resources Ltd.

Greencastle Resources Ltd.

November 03, 2011 08:30 ET

Greencastle Identifies Priority Targets on Nechako Property, Blackwater Gold Area, BC

TORONTO, ONTARIO--(Marketwire - Nov. 3, 2011) - Greencastle Resources Ltd. (TSX VENTURE:VGN) ("Greencastle" or the "Company") is pleased to provide an update on progress at its Nechako property located in the Blackwater gold camp approximately 100 kilometres southwest of Vanderhoof, central BC. Greencastle has an option agreement to acquire a 100% interest in the property, covering approximately 13,000 ha (28 claims), on the Nechako Plateau.

The property is located in the same general Blackwater area where, in 2010, Richfield Ventures Corp. discovered a significant bulk tonnage gold deposit. In June 2011, Richfield was acquired by New Gold Inc. ("New Gold") for approximately $550 million. In a release dated September 16, 2011, New Gold estimated that, from drilling results to date, the discovery contained resources of some 6.6 million ounces of gold. On October 17, 2011, New Gold announced the acquisition of Silver Quest Resources Ltd. and Geo Minerals Ltd., further consolidating its position at Blackwater to the west and northwest. Greencastle's Nechako property is geologically on trend to the north of New Gold's Blackwater property.

A detailed heli-borne magnetic and EM geophysical survey has been completed by Fugro Airborne Surveys Corp. ("Fugro") to define targets for follow-up exploration on the Company's property. The airborne survey covered 1,487 line-kilometres, including tie lines. Flight lines were flown east-west with a line separation of 100 metres. The initial Fugro report has identified some 73 'high-priority' AEM anomalies based on favourable structure, magnetic association, conductance, length, width, or depth extent, as well as several more extensive conductive zones. Although some of these could reflect sulphide-type targets, most are considered to be of lesser priority, given the non-conductive nature of the expected auriferous target mineralization at Blackwater.

Due to the complexity of interpreting this style of gold mineralization from geophysical data, Greencastle engaged the services of Intrepid Geophysics Ltd. ("Intrepid") of North Vancouver, BC, to undertake a more detailed analysis of data collected by Fugro. This interpretation was based on an integrated analysis using a combination of GEOSOFT's integrated editors (spreadsheet and flight path), advanced Fourier filtering and multi-scale edge detection, ER MAPPER's image enhancements and MAPINFO's GIS capability. The Intrepid interpretation attempted to further discriminate these targets into a smaller grouping.

As a result of this work, a total of thirteen areas have been recommended for further investigation, initially by prospecting, geological mapping, rock and soil sampling.

James Pirie P. Eng. is a Qualified Person as defined by National Instrument 43-101 and prepared or reviewed the preparation of the scientific and technical information in this press release.

This news release includes certain "forward looking statements" within the meaning of that phrase under Canadian securities laws. 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. Forward-looking statements reflect management's current views with respect to possible future events and conditions and, by their nature, are based on management's beliefs and assumptions and subject to known and unknown risks and uncertainties, both general and specific to the Company. Although the Company believes the expectations expressed in such forward-looking statements are reasonable, such statements are not guarantees of future performance and actual results or developments may differ materially from those in our forward-looking statements. 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. Additional information regarding the material factors and assumptions that were applied in making these forward looking statements as well as the various risks and uncertainties we face are described in greater detail in the "Risk Factors" section of our annual and interim Management's Discussion and Analysis of our financial results and other continuous disclosure documents and financial statements we file with the Canadian securities regulatory authorities which are available at The Company undertakes no obligation to update this forward-looking information except as required by applicable law. The Company relies on litigation protection for forward looking statements.

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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