Toronto, Ontario, February 22, 2017 − NewCastle Gold Ltd. (NCA:TSX) (NewCastle Gold or the “Company”) is pleased to report additional assay results from ongoing angled drilling on the South Domes target (“South Domes”) at the Castle Mountain gold project (the “Project”) located in San Bernardino County, California. This work is part of the 40,000 metre Phase II definition and exploration drill program (“the program”) that commenced November 1, 2016.
Results are from 30-metre spaced cross-sections 10600N, 10570N and 10540N at South Domes to follow up on previously reported results. Assays from six (6) new drill holes support the advancement of this exciting target with the longest intercept reported to date by the Company in hole CMM-129. New drilling continues to push the extent of gold mineralization beyond currently modeled mineral resources and pit limits, with hole CMM-129 ending in mineralization 100 metres below the modeled pit shell. The South Domes target remains open along strike to the north and south and at depth.
Assay highlights from two (2) core and four (4) reverse circulation (“RC”) drill holes include:
Gerald Panneton, President and CEO commented: “The South Domes area continues to demonstrate the open potential of this exciting target with gold mineralization well above average resource grade. Gold mineralization is being intersected both outside modeled pit limits and at depth. South Domes continues to be our prime exploration target as the deposit is open in all directions. We have added a core drill to the South Domes area to continue expanding the deposit.”
There are seven (7) rigs actively drilling at the Castle Mountain project. The current drill program is approximately 50% complete with 20,000 metres of core and RC drilling as of February 20, 2017. Eighty percent (80%) of the program is focused on bringing the South Oro Belle pit to the mineral reserve category after completion of the ongoing pre-feasibility study work. The remainder is focused on the growth of the South Domes area, and further exploration on the property.
Gold mineralization at South Domes is characterized by broad, shallow east-dipping zones within felsic flows, pyroclastic and intrusive units, with narrower steeply-dipping higher grade zones associated with hydrothermal breccias and quartz-feldspar porphyry intrusive bodies.
All new exploration holes were drilled at 290 degrees azimuth, with dips of -60 degrees and to an average depth of 250 to 600 metres.
Reverse circulation drill samples from hole CMM-133 were submitted to ALS Minerals in Reno, Nevada for crushing until 70% of the sample is finer than a nominal two millimeters in size. A 250 gram (“g”) sub-sample is taken from the crushed material and pulverized until 85% passes a 200 mesh (75 µm) screen (ALS Method PREP-31). A 30 g portion of pulverized material (pulp) is then sampled and subjected to fire assay (“FA”) with atomic absorption (“AA”) finish (ALS Method AuAA-23). Any gold assays greater than 10 g/t Au are re-analyzed where a 30 g portion is taken from the pulp and assayed by FA with a gravimetric finish (ALS Method Au 30 g FA – GRAV). All samples that yield greater than 0.2 ppm assay are also analyzed for gold cyanide solubility (ALS Method AuAA-13).
Half-sawn core and reverse circulation drill samples from holes CMM-122C/126/129/131/134C were submitted to Inspectorate America Corporation in Sparks, Nevada for crushing until 70% of the sample is finer than a nominal two millimeters in size. A 250 g sub-sample is taken from the crushed material and pulverized until 85% passes a 200 mesh (75 µm) screen (Method PRP70-250). A 30 g portion of pulverized material (pulp) is then sampled and subjected to fire assay (“FA”) with atomic absorption (“AAS”) finish (Method FA430). Any gold assays greater than 10 g/t Au are re-analyzed where a 30 g portion is taken from the pulp and assayed by FA with a gravimetric finish. All samples that yield greater than 0.2 ppm assay are also analyzed for gold cyanide solubility (Method CN403).
The Company employs an industry-standard QA/QC program consisting of standard pulps, coarse blanks and rig duplicates.
About NewCastle Gold
NewCastle Gold (an augustagroup company) has a 100% interest in the Castle Mountain property in San Bernardino County, California. The Castle Mountain heap leach gold mine produced over one million ounces of gold from 1992 to 2004. The Mine and Reclamation Plan, under which the mine operated, was authorized by the County of San Bernardino as the Lead Agency and remains in effect. Water for the drill programs was accessed from existing patented wells on the Project.
An updated NI 43-101 resource for the project was announced December 2, 2015 which includes Measured Mineral Resources of 17.4 million tonnes grading 0.86 g/t gold containing 0.48 million gold ounces, Indicated Mineral Resources of 202.5 million tonnes grading 0.57 g/t gold containing 3.71 million gold ounces along with Inferred Mineral Resources of 40.8 million tonnes grading 0.58 g/t gold and containing 0.76 million gold ounces. The Project hosts a disseminated low sulphidation epithermal system. Gold is primarily hosted by late-stage rhyolite volcanic units within zones of silicification and brecciation associated with northeast-southwest trending/southeast dipping fault structures which are interpreted to have developed within a collapsed caldera environment. Eleven gold domains are represented by both steep and shallow-dipping orientations.
Ian R. Cunningham-Dunlop, P. Eng., the Company’s Senior Vice President Technical Services, is the designated Qualified Person for this news release within the meaning of NI 43-101. He has reviewed and verified that the technical information contained in this release is accurate and has approved of the written disclosure of the same.
For further information, please contact:
NewCastle Gold Ltd.
Vice President, Investor Relations and Corporate Communications
Neither the 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 news release.
This news release contains “forward-looking statements” and “forward-looking information” (collectively, “forward-looking information”) within the meaning of applicable Canadian securities legislation. Forward-looking information includes information that relates to, among other things, statements with respect to the completion of the proposed drill program at Castle Mountain, the mineral resource expansion at Castle Mountain and the identification of future expansion targets at Castle Mountain. Forward-looking information is not, and cannot be, a guarantee of future results or events.
Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by us at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results and events to be materially different from those expressed or implied by the forward-looking information. The material factors or assumptions that we identified and were applied by us in drawing conclusions or making forecasts or projections set out in the forward looking information include, but are not limited to that the Company is able to procure personnel, equipment and supplies required for its exploration and development activities in sufficient quantities and on a timely basis and that actual results will be consistent with management’s expectations.
The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information may include, but are not limited to, the risks discussed under the heading “Risks” in general to the business of NewCastle in documents filed (or to be filed) with Canadian regulatory authorities. Should one or more risk, uncertainty, contingency or other factor materialize or should any factor or assumption prove incorrect, actual results could vary materially from those expressed or implied in the forward-looking information. Accordingly, the reader should not place undue reliance on forward-looking information. NewCastle does not assume any obligation to update or revise any forward-looking information after the date of this news release or to explain any material difference between subsequent actual events and any forward-looking information, except as required by applicable law.