
Castillian Commences Exploration Program at Hope
Brook Gold Project, Newfoundland
TORONTO, ONTARIO, Aug. 18, 2010 (Marketwire) -- Castillian
Resources Corporation (TSX VENTURE:CT) ("Castillian" or the
"Company") announces that it has commenced an exploration program
that is designed to include a minimum of 5,000m of diamond drilling
at its Hope Brook Gold Project on the southwest coast of
Newfoundland.
The Hope Brook deposit, discovered in 1983 by BP-Selco Inc., was
mined from 1987 to 1997 with total production reported to be
752,153 ounces of gold plus a copper concentrate. Preproduction
historical resources are reported to have been 10.2 million tonnes
grading 4.54 grams gold per tonne (g Au/t) and 0.12% copper (Cu)
(1.45 million ounces of gold) (Geological Survey, Newfoundland and
Labrador).
These resources are historical in nature and are not National
Instrument 43-101 ("NI 43-101") compliant. Castillian has not done
the work necessary to verify this resource and hence cautions that
this estimate should not be relied upon.
Bill Pearson, President & CEO of Castillian commented "We are
very excited about the potential of Hope Brook and delighted to
start work after our successful financing. Our compilation of
historical data indicates that the gold deposit mined at Hope Brook
appears to have unmined extensions at depth below the old mine, as
well as along strike. In addition, zones of unmined gold
mineralization defined by historic drilling are also present,
including the 240 Zone which is one km south of the mine. Many of
the deeper historic drill holes appear not have been drilled far
enough to fully test the deeper extension potential of the main
mineralized zone. We also believe there is excellent potential for
larger tonnage near surface, bulk mineable mineralization. The camp
is currently being mobilized and field work will commence next
week.
Drilling is expected to start by early September and this
project will be a major focus for the Company."
Mr. Michael Cullen M.Sc., P.Geo. of Mercator Geological Services
Limited, has completed a NI 43-101 Technical Report on the Hope
Brook property (the "Technical Report") and is an independent,
qualified person as defined by NI 43-101. The Technical Report,
which will be filed on Sedar, summarizes and reviews historical
exploration and development work carried out on the property,
focusing particularly on work leading to the discovery of the
deposit in 1983 and the subsequent exploration, development and
mining of the deposit from 1987 to 1997. Castillian has accessed
and relied upon publically available technical information
pertaining to the property and compiled pertinent historic records
of the Hope Brook Mine and area exploration/development programs on
file with the Department of Natural Resources, Newfoundland and
Labrador. This material has been reviewed and incorporated into the
Technical Report by Mr. Cullen.
Five priority target areas have been identified in the Technical
Report for exploration diamond drilling. These are outlined below
and shown on the attached longitudinal section (all intersections
horizontal width in metres):
-- Unmined historical resource areas and possible extensions to
these that
occur immediately adjacent to underground mine workings,
particularly
below the 4,800 Level (approximately 340 metres below surface).
Historical surface drill hole intersections in this area include
3.37 g
Au/t over 10m (CW-051), 3.26 g Au/t over 16.4m (CW-094) and 2.38 g
Au/t
over 27.9m (CW-052) in addition to underground definition drill
holes
not shown on the longitudinal section;
-- The Northeast Extension area, located adjacent to and east of
the mine
(east of Line 12,000 East on the grid), where potential exists
for
discovery of a displaced, subsurface extension of the Hope
Brook
alteration zone and associated gold mineralization, based on
interpretation of the 2008 airborne survey results;
-- The near-surface mineralized zone located immediately southwest
of the
open pit, between Line 11,000 East and Line 11,350 East, where
potential
exists for definition of gold mineralization extending from the
limits
of the historical open pit. Historical drill intersections in this
area
include 2.88 g Au/t over 10.3m (CW-246) 1.28 g Au/t over 24.5m
(CW-243),
4.64 g Au/t over 14.9m (CW-235), 2.06 over 13.6m (CW-012) and 3.11
over
18.0m (CW-212);
-- Plunge extensions of the unmined 240 Zone, located 1 km
southwest of the
open pit. Historical drill intersections in this zone include 3.88
g
Au/t over 41.0m (CE-246), 2.71 g Au/t over 43.4m (CE-283A) and 6.98
g
Au/t over 5.8m (CE-240);
-- The Chetwynd Prospect area, located 2 km southwest of the mine,
where
extensions to mineralized historic drilling intercepts warrant
follow-
up.
Additional exploration targets have also been identified on the
property outside of the general mine area, including areas with
anomalous gold values in soils and rocks; alteration zones
associated with major structures; and targets defined from the 2008
airborne geophysical survey. These targets are described in more
detail in the Technical Report.
A two-phase exploration program is recommended in the Technical
Report: Phase I budgeted at $2.0 million will focus primarily on
the five highest priority target areas and consist of 7,000m of
diamond drilling plus down hole and grid-based Induced Polarization
(IP) surveys and preliminary assessment of areas external to the
main mineralized area. The Phase II program, which is contingent on
success in Phase I, consists of infill and mineralized zone
extension drilling totaling 12,000m with additional IP surveys and
exploration outside of the main mineralized area. On July 22, 2010
Castillian announced completion of a private placement totaling
$2.86 million and hence is fully financed to proceed with the Phase
I program.
The Company also announces that it has granted a total of 4,075,000
options under the share option plan of the Company to certain
officers, directors, employees and consultants of the Company. The
options shall vest immediately, are exercisable at $0.10 per
option, expire on August 16, 2015, and are subject to regulatory
approval.
Mr. Michael Cullen, M.Sc., P. Geo., an independent qualified person
as set out in National Instrument 43-101 ("NI 43-101) and the
author of the NI 43-101 technical report entitled "Technical Report
on the Hope Brook Gold Project, Newfoundland and Labrador, Canada",
has reviewed and approved this press release.
Castillian Resources Corp. is a Canadian mineral exploration
company listed on the TSX Venture Exchange under the symbol "CT"
which has gold and base metal properties in Canada and South
America.
Cautionary Note Regarding Forward-looking Information
This press release contains "forward-looking information" within
the meaning of applicable Canadian securities legislation.
Forward-looking information includes, but is not limited to,
statements with respect to the future financial or operating
performance of the Company, its subsidiaries and its projects,
statements regarding exploration prospects, the identification of
mineral reserves and resources, costs of and capital for
exploration projects, exploration expenditures, timing of future
exploration, requirements for additional capital, government
regulation of mining operations, environmental risks, reclamation
expenses, title disputes or claims, limitations of insurance
coverage and the timing and possible outcome of pending litigation
and regulatory matters. Generally, forward-looking information can
be identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved". Forward-looking information is subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
the Company to be materially different from those expressed or
implied by such forward-looking information, including but not
limited to: general business, economic, competitive, political and
social uncertainties; the actual results of current exploration
activities; future prices of mineral prices; failure of plant,
equipment or processes to operate as anticipated; accidents, labour
disputes and shortages and other risks of the mining industry.
Although the Company has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such information will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking information. The Company does not undertake to
update any forward-looking information, except in accordance with
applicable securities laws.
To view a map of the Hope Brook Gold Project SW Newfoundland
Longitudinal Section (Looking Northwest), please visit the
following link:
http://media3.marketwire.com/docs/ct_0818_hope_brook_gold_project_map.pdf
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.
Bill Pearson Castillian Resources Corporation President & CEO
416-861-2968 info@castillian.ca www.castillian.ca
