Greencastle Options Historic Mayflower Gold Property in Emerging Rainy River Mining District, NW Ontario

TORONTO, Dec. 02, 2020 (GLOBE NEWSWIRE) -- Greencastle Resources Ltd. (“Greencastle” or ‘the Company”) (TSXV: “VGN”) today announces the Company has entered into an option agreement to earn an undivided 100% interest in the Mayflower Gold Property 35 km west of Atikokan, Northwestern Ontario.

The Mayflower property consists of 64 claims covering the historic Mayflower gold mine workings in the emerging Rainy River - Atikokan gold district. Historic work between 1899 and 1928 resulted in the sinking of a 30 metre shaft and approximately 50 metres of underground workings on two levels. Grab samples collected by the Ontario Department of Mines in 1981 returned values ranging from nil up to 0.95 oz/t gold and 5.17 oz/t silver. Additional historic exploration included about 1,000 metres of near-surface drilling in 12 holes. The Mayflower has seen little modern exploration and has excellent infrastructure, located close to the former iron ore mining town of Atikokan, some 200 km west of Thunder Bay, Ontario as shown in Figure 1 below.

Anthony Roodenburg, CEO of Greencastle commented, “We are excited to add another strategic gold project to our mineral portfolio in Ontario and Nevada. The Mayflower has seen limited modern exploration for a variety of reasons. The Property's location in the prolific Rainy River – Atikokan region suggests there may be tremendous exploration upside.”

Several large gold deposits are located in the Atikokan - Rainy River region. The Hammond Reef gold deposit, situated 55 km northeast of the Mayflower property, contains NI 43-101 Measured and Indicated resources of 4.5 million ounces of gold contained in 208 million tonnes grading 0.67 g/t Au and Inferred resources of 12,000 ounces of gold (0.5 million tonnes grading 0.74 g/t Au.), using a cut-off gold grade of 0.32 g/t, as of December 31, 2019 (as per www.agnicoeagle.com). The Rainy River producing mine, located about 140 km to the west of the Mayflower property, has NI 43-101 Reserves of 2.6 million ounces gold and 6.3 million ounces silver, and Resources of 1.9 million ounces gold and 5.1 million ounces silver (as per www.newgold.com)

The terms of the agreement call for Greencastle to pay the vendors a total of $100,000 cash, issue a total of 600,000 shares of Greencastle subject to TSX Venture Exchange approval, and complete a total of $250,000 in Exploration Expenditures to earn a 100% interest in the Property, subject to a 2% Net Smelter Return (NSR) Royalty. Greencastle retains the option to purchase sole rights to half of the 2% NSR Royalty from the vendors for a payment of $1,000,000.