Greencastle Resources Ltd.
TSX VENTURE : VGN

Greencastle Resources Ltd.

May 01, 2007 16:53 ET

Greencastle Reports Net Profit for 2006, Drilling to Begin at Jewel Ridge, Nevada

TORONTO, ONTARIO--(CCNMatthews - May 1, 2007) - Greencastle Resources Ltd (TSX VENTURE:VGN) reports that for the full year 2006, the Company declared a net profit of $1,003,963 versus a net loss of $211,560 for the previous year. For the full year 2006, revenues were $1,965,666 versus $466,381 for fiscal 2005. The improvement was largely due to royalty income derived from heavy oil production on the Primate property in Saskatchewan.

At the Jewel Ridge property, near Eureka, Nevada, drilling is expected to begin in mid May to follow up on encouraging values in the vicinity of the old Hamburg Mine and to evaluate a number of other gold targets across the extensive property. Previously, Greencastle conducted a 22 hole reconnaissance RC drill program at Jewel Ridge. In the Hamburg area, a total of 1,818 metres were drilled in 13 holes to test several northeast trending structures along approximately 400 metres of the contact between the Cambrian Hamburg Dolomite and the Dunderberg Shale. Two holes, drilled down dip from the old Hamburg Mine workings, returned interesting gold values. Hole HRC-11 returned 2.1 grams per tonne gold (g/t Au) over 39.6 metres (m), from 94.5 m to 134.1 m, including 2.7 g/t Au over 19.8 m. The hole is sub-parallel to and within about 15 m of the Hamburg-Dunderberg contact. Hole HRC-13, drilled normal to the above contact returned 1.07 g/t Au over 15.2 m. The mineralized material occurs as oxidized sulphide veinlets and disseminations in bleached, decalcified Hamburg dolomite.

Jewel Ridge is located adjacent to, and south of the former Ruby Hill gold property, which was operated by Homestake Mining Company from 1997 until 2002 and produced some 680,000 ounces of gold from the Archimedes open pit. In February 2007, Barrick Gold Corp. commenced production on a 1.1 million ounce gold resource from the adjoining East Archimedes deposit. The Jewel Ridge property contains a number of historic small gold mines which align along a north-south trending stratigraphic contact of Lower Paleozoic sedimentary rocks as well as several other gold mineralized zones with a variety of structural and lithological controls. In the early 1990s, Homestake drilled 31 holes on a number of gold mineralized targets with the most encouraging values in three holes along the Jewel Ridge zone containing 7.7 g/t Au over 4.5 m, 6.3 g/t Au over 9.1 m and 6.7 g/t over 9.1 m.

The Company has amended terms in its option agreement with Nevada Eagle Resources LLC ("Nevada Eagle") to acquire the Indian Creek Property, comprising 20 claims in Lander County, Nevada. Greencastle can now acquire 100% of the property by paying US$30,000 and issuing 150,000 shares, subject to TSX Venture Exchange approval. Nevada Eagle will retain 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.

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