Newcastle Minerals Ltd.
TSX VENTURE : NCM

Newcastle Minerals Ltd.

November 24, 2010 08:57 ET

Newcastle Provides Exploration Update on Its Pickle Lake Property

VICTORIA, BRITISH COLUMBIA--(Marketwire - Nov. 24, 2010) - Newcastle Minerals Ltd. (TSX VENTURE:NCM) is pleased to provide an update on its exploration activities from its Pickle Lake Property in northwestern Ontario, as the initial field program nears completion.

The program consists of: a nine-hole diamond drill program; an aeromagnetic gradient and VLF-EM survey program carried out on Newcastle's primary claim block, the northeastern extension, and the ground between the two; a review and compilation of the extensive historical exploration data available on the claims; and a geophysical interpretation of existing government airborne data on one claim area.

Diamond Drilling Program

Newcastle recently completed a nine-hole diamond drilling program on the northeast portion of its primary claim block concentrated on the Field Zone, which borders PC Gold Inc.'s property near its recent No. 20 Vein discovery, and the Southwest Powderhouse Zone, explored most recently in 2004 by the former holder of the property with incomplete historical disclosure.

NCM-10-01

Hole NCM-10-01 was collared to the south of the postulated No. 20 Vein extension to investigate gold mineralization reported in drilling completed in the 1980s. Approximately 73 feet of banded iron formation was intersected that was brecciated at times, silicified and occasionally mineralized with disseminated and clots of pyrite and pyrrhotite. A total of 27 samples were selected from this hole and assay results are pending.

NCM-10-02

Hole NCM-10-02 was collared to test for the extension of the vein systems from the PC Gold Inc. property onto Newcastle's ground in the area of the northern boundary proximal to the Pickle Crow access gate. Several narrow quartz veins and altered zones that were silicified, brecciated with abundant chlorite and carbonate alteration at times were intersected. Well to the south of where the No. 20 Vein was expected, an interesting silicified and brecciated zone with significant evidence of fluid movement was intersected, possibly representing a stockwork zone. This area of the core was mineralized with disseminated and clots of pyrite, chalcopyrite and pyrrhotite. A total of 23 samples were selected from this hole and anomalous gold values were reported from these samples.

NCM-10-03

Hole NCM-10-03 was collared approximately 50 metres to the east of Hole NCM-10-02 and was intended to further explore quartz veining and silicified zones intersected in the second hole towards the PC Gold Inc. boundary. Interesting areas were intersected which may correspond to the silicification and mineralized sections seen in the previous hole. A total of 20 samples were selected from this hole and assay results are pending.

NCM-10-04

Hole NCM-10-04 was collared to the south of Hole NCM-10-02 along the same line to provide a significant stratigraphic section from the northern boundary to well south of the mine access road, and to check for any parallel vein systems that may not have been uncovered. A sericite altered zone with minor sulfide stringers and disseminations of pyrite and pyrrhotite was intersected from approximately 160 to 180 feet downhole.

OVERVIEW OF NCM-10-05 TO NCM-10-09

Holes NCM-10-05 through NCM-10-09 were collared in the area of the Southwest Powderhouse Zone. A significant amount of historic drilling has been carried out there; however no modeling of continuous mineralized zones has been successful to date. There are a number of coincident east-west trending VLF anomalies along the northern and southern contacts of mag highs which, at times, exhibit offsets that were targeted in this area.

NCM-10-05

Hole NCM-10-05 was collared on the southern part of a banded iron formation / mafic volcanic outcrop. The target was a VLF axis to the south. Two white quartz veinlets were intersected with minor sulfides. Detailed logging and sampling is underway on this hole.

NCM-10-06

Hole NCM-10-06 was drilled north of the same outcrop on the same line as NCM-10-05. A sequence of very interesting silica-flooded volcanics well-mineralized with pyrite was intersected. A narrow band of banded iron formation followed the silicified zone that is well-mineralized with 3% pyrite and pyrrhotite near the southern edge that decreased to visually barren closer to the mafic volcanic contact to the north. This hole is currently being logged and sampled.

NCM-10-07

Hole NCM-10-07 was drilled at a dip of -65 degrees undercutting Hole NCM-10-06. Although it is currently being logged, it is another interesting hole in which the silicified zone intersected above was found to be much wider. The banded iron formation was also much wider and well-mineralized at times.

NCM-10-08

Hole NCM-10-08 was collared approximately 50 metres to the east of Holes NCM-10-06 and NCM-10-07, along the same east-west trending line. The hole was designed to test for an eastward extension of the silicified and mineralized iron formation noted in the previous two holes. It appears that the iron formation was likely cut off and displaced by a north-south fault zone. As such, this entire hole was in visually-barren mafic volcanic with little quartz veining or other notable alteration.

NCM-10-09

Hole NCM-10-09 was collared approximately 50 metres to the east and targeted an interpreted north-south trending fault zone, which may have offset a strong east-west trending VLF conductor sandwiching a roughly oval mag high which may represent banded iron formation. This hole is currently being logged.

Aeromagnetic Gradient VLF-EM Survey

In October 2010, Newcastle contracted Scott Hogg & Associates Ltd. to carry out a helicopter-towed aeromagnetic gradient and VLF-EM survey over its Pickle Lake Property. A total of 1,110 line kilometres of data were collected. The lines were flown at an azimuth of 137 degrees over a 75-metre line spacing. The survey was undertaken to provide detailed information on the complex structures on the property. The iron formation is highly magnetic and easily traced by the survey; crosscutting offsets, folds and other structures are apparent. These types of structures provide an optimum environment for the emplacement of mineralization, as the brittle nature of the rock causes brecciation and other less catastrophic fracturing providing conduits for the flow of mineralizing fluids. Data from the survey is presently being interpreted and studied to identify any structural similarities between Newcastle's property and known gold-bearing structures in the area to assist in future drillhole selection.

Historical Data Compilation

A compilation of available historical records is underway, for the first time, to assist management in focusing its exploration efforts. The area encompassed by the Pickle Lake Property has seen significant activity over the years, most recently in 2004. Sufficient detailed information is available for parts of the property to model the mineralization, which will further assist management's planning. Compilation work to date has identified the following assay values in the area of current drilling:

    Sample     Length  
Hole # Description # From To (ft) Gr/t
PL-07 Southwest Powderhouse Zone 701150 345 350 5 5.778
             
PL-08 Southwest Powderhouse Zone   111 119 8 6.97
Incl.   6414 111 113 2 2.88
Incl. Sample 6433 never released 6433 113 115 1.5 22.389
Incl.   6434 115 115.5 0.5 6.96
Incl.   6409 115.5 117.5 2 6.343
Incl.   6410 117.5 119 1.5 0.206
             
PL-14 Southwest Powderhouse Zone 701512 23 25 2 4.903
             
PL-14 Southwest Powderhouse Zone 701537 243 245 2 6
             
PL-17 Southwest Powderhouse Zone   247 253 6 3.52
PL-17   701676 247 249 2 9.394
PL-17   701677 249 251 2 0.103
PL-17   701678 251 253 2 1.063
             
PL-22 Southwest Powderhouse Zone   140 158 18 3.825
Incl.   701352 140 142.5 2.5 3.429
Incl.   701353 142.5 145 2.5 3.943
Incl.   701354 145 147.5 2.5 3.36
Incl. New sampling C365567 147.5 153 5.5 5.96
Incl. New sampling C365568 153 158 5 1.85
             
PL-22 Southwest Powderhouse Zone   500 529 29 5.48
PL-22 New sampling C365622 500 505 5 2.59
PL-22 New sampling C365623 505 510 5 1.39
PL-22 New sampling C365624 510 515 5 18.2
PL-22 New sampling C365625 515 519.5 4.5 0.05
PL-22 New sampling C365626 519.5 524 4.5 5.24
PL-22 New sampling C365627 524 529 5 4.86

The data identified in the table as "never released" and "new sampling" were not previously reported, while the other data were extracted from 2004 press releases of King's Bay Gold Corporation and verified by crosscheck of drill logs and assay certificates. The "new sampling" was obtained in the field by Billiken Management Services Inc., bagged, tagged and delivered to ALS Chemex in Thunder Bay. The samples underwent ME ICP 41and Au-ICP21 for gold and multi-element.

Interpretation Work

Newcastle conducted a mag inversion on three anomalies in the northeastern corner of its southern claim block to better define these and identify potential drill targets.

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 120-hectare Carscallen Property in the West Timmins area of Ontario, its 11,100-hectare Pickle Lake Property in northwestern 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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