Greencastle Options Zinc/Graphite Property to Deveron

TORONTO, ONTARIO--(Marketwired - Oct. 29, 2014) - Greencastle Resources Ltd. (TSX VENTURE:VGN) ("Greencastle" or "the Company"), is pleased to report that the Company has entered into an option agreement with Deveron Resources Ltd. (TSX VENTURE:DVR) ("Deveron") relating to Greencastle's Rockstone Zinc / Graphite property some 40 km west of Thunder Bay, in north-west Ontario.

Under the terms of the Agreement, Deveron will pay total cash consideration of $150,000 and incur $2,000,000 in exploration expenditures over a three year period to earn a 60% interest in the property. Deveron can elect to earn 100% interest in the property by incurring all expenditures required to produce a full bankable feasibility and Greencastle will retain a 3% net smelter return royalty.

The Rockstone property covers a number of geophysical anomalies generated from an earlier, more extensive airborne electromagnetic (VTEM) survey covering an area of some 270 square kilometres. Rock outcrop on the property is sparse but the geology is interpreted to be typical Archean greenstone belt rocks comprising mafic to felsic metavolcanics with iron formation and clastic metasediments. Earlier geochemical exploration work in the general area, including till and humus sampling, outlined broad areas which are anomalous in zinc.

In 2012, Greencastle carried out an initial four hole drill program to test four separate conductive targets for the presence of base metal massive sulphides and provide information from which to further interpret the large number of geophysical anomalies in the database. All the holes intersected a sequence of intermediate to felsic pyroclastic volcanic rocks and metasediments containing common stringers and disseminations of pyrite and pyrrhotite with locally minor chalcopyrite and sphalerite. In addition, some sections of the metasediments contain significant amounts of graphitic argillite, and graphite is also commonly observed coating planar surfaces in varying amounts throughout most rock types. The combination of graphite-rich zones and pyrite-pyrrhotite stringer zones in the volcanic stratigraphy targeted by the drilling could explain the airborne geophysical anomalies tested to date.