Newcastle Minerals Ltd.
TSX VENTURE : NCM

Newcastle Minerals Ltd.

January 13, 2011 08:19 ET

Newcastle Provides Drilling Update From Pickle Lake

VICTORIA, BRITISH COLUMBIA--(Marketwire - Jan. 13, 2011) - Newcastle Minerals Ltd. (TSX VENTURE:NCM) is pleased to provide an exploration update from its Pickle Lake property in northwestern Ontario. Management is encouraged by the results of this initial exploration program covering a small portion of its 11,100-hectare land package. Gold intercepts received demonstrate potential continuity of mineralization in the Field Zone contiguous with PC Gold Inc.'s Pickle Crow property. In the Southwest Powderhouse Zone, gold intercepts obtained at the contact with the Banded Iron Formation are the foundation of an ongoing reinterpretation of the new and known gold occurrences on this property. Highlights of the drilling include:

  From To Length Gold
Hole Number (feet) (feet) (feet) (grams per tonne)
NCM-10-01 367 387 20 0.66
including 377 382 5 1.51
NCM-10-06 39 54 15 2.63
including 44 49 5 6.50
NCM-10-07 99 189 90 0.52
including 119 124 5 4.28
and including 174 189 15 1.39

Samples were selected in the field under the supervision of Brian H. Newton P.Geo, transported by bonded courier to the facilities of Activation Laboratories Ltd. in Thunder Bay, and assayed using Fire Assay ICPOES for gold and Total Digestion ICP (total) for other metals.

The holes drilled in this program are summarized as follows:

Field Zone

Holes NCM-10-01 through NCM-10-04 were exploration holes planned to determine an extension of the No. 20 Vein discovery adjacent to PC Gold Inc.'s property to the east. Each hole reported some level of gold mineralization; in particular NCM-10-01 intersected 1.51 grams of gold per tonne over five feet from 377 feet to 382 feet down the hole as stated above. In addition to the gold results, these holes provide valuable structural and geological information regarding this area, an extensive system of silicified and brecciated veining was uncovered, and a potential offset of the mineralization seen on PC Gold Inc.'s property. This information reveals a structurally complex mineralized system of quartz veined, silicified and brecciated material requiring further exploration to assess fully the potential of the Field Zone.

Southwest Powderhouse Zone

Holes NCM-10-05 through NCM-10-09 were collared in the area of the Southwest Powderhouse Zone. Historically, there was a significant amount of drilling in this area by different operators, but it lacked a consistent approach and comprehensive modeling of the area. This drill program successfully intersected numerous gold occurrences, including a 15-foot section in Hole NCM-10-06, which averaged 2.63 grams of gold per tonne, including five feet of 6.5 grams of gold per tonne. The program targeted VLF anomalies in contact with mag highs that exhibited offsets, and the results of the program suggest to management that the occurrence of better gold grades is coincident with the silicified and often brecciated contact zone between the Banded Iron Formation and the surrounding mafic volcanics. This interpretation requires follow-up exploration, as the Banded Iron Formation is known to be extensive in this area.

Future Exploration

Newcastle is excited by its two areas of ongoing exploration and will continue its efforts in this area. The Field Zone requires further drilling to better define the system and further explore the gold intercept found in Hole NCM-10-01 over five feet. In the Southwest Powderhouse zone, management commenced a compilation study to target further exploration drilling to test the relationship between the Banded Iron Formation and the silicified zone.

To view the map accompanying this press release please click on the following link: http://media3.marketwire.com/docs/0113NCM.gif

In addition, Newcastle will focus on the Central Pat project area located west of the Southwest Powderhouse zone. The historic Central Patricia Gold Mine, located approximately eight kilometres southwest of the project area, operated from 1934 to 1949 and produced 621,000 ounces of gold from 1.7 million tons with an average grade of 0.36 ounces per ton. The mineralization is hosted in Iron Formation which contains stringers and discontinuous lenses of quartz with sulphides in both the quartz and Iron Formation. The mineralized zones appear to plunge to the east-southeast and are interpreted to move onto Newcastle's claims at a depth of approximately 1,000 meters below surface. The property package assembled by Newcastle hosts several gold showings, as well as having approximately 30,000 ounces of historical production reported as coming from our claims adjoining the Central Patricia Mine. Newcastle is planning a program to test the possible extensions of Iron Formation-hosted gold zones interpreted to lie below the limits of the Central Patricia Mine workings. Based on the recent discovery by PC Gold Inc. of a shallow-lying, large-scale gold arsenic system at their Central Pat East project, Newcastle will also conduct appropriate exploration to examine the extensive land package held between the historical Central Patricia Mine and the PC Gold Inc. discovery to identify similar mineralization.

Newcastle's President, Michael Romanik, said, "Based on these results, a more detailed and comprehensive drill program will be designed and implemented once the company has completed the historical data compilation of the Southwest Powderhouse Zone. Newcastle will also shift focus to the Central Patricia Mine project area and will start preliminary work to drill test the possible extension of the Central Patricia Mine onto Newcastle's ground. The company remains committed to the advancement of its flagship Pickle Lake property."

The technical information herein was prepared under the supervision of Mr. Brian Newton, P. Geo., of Billiken Management Services Inc., who acts as Newcastle's Qualified Person as defined by National Instrument 43-101.

Newcastle Minerals Ltd. is a Canadian gold and base metal exploration company trading on the TSX Venture Exchange (TSX VENTURE:NCM). The company is advancing its three key properties: its 11,100-hectare Pickle Lake Property in northwestern Ontario, its 120-hectare Carscallen Property in the West Timmins area of Ontario and its 6,600-hectare property located in the Swayze greenstone belt of Ontario near Trelawney Mining and Exploration Inc.'s Chester Project.

ON BEHALF OF THE BOARD

Michael Romanik, President

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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