Toronto, Ontario, April 10, 2017 − NewCastle Gold Ltd. (NCA:TSX) (NewCastle Gold or the “Company”) is pleased to report material assay results from definition drilling of the JSLA pit on the southern portion of the Oro Belle Trend (“OBT”) at the Castle Mountain gold project (the “Project”), located in San Bernardino County, California. These results form part of the Phase II definition and exploration drill program (“the Program”) that commenced November 1, 2016.
Reverse circulation (“RC”) drill hole CMM-195 was planned to follow up on high-grade gold mineralization at the Lucky John Zone, initially discovered by the Company in 2014, which returned encouraging values in RC drill holes CMM-054 (30.31 grams per tonne gold (“g/t Au”) over 33.3 metres) and CMM-060 (18.97 g/t Au over 35.1 metres) (see press release dated January 19, 2015).
CMM-195 intersected 31.19 g/t Au over 29.0 metres while targeting the steeply dipping OB-2 fault structure (“OB-2”), approximately 65 metres down-dip from CMM-054 and approximately 150 metres north of CMM-060. The hole was successful in extending the Lucky John Zone high-grade mineralization to depth.
CMM-195 also intersected a new zone of gold mineralization at depth with 2.26 g/t Au over 126.5 metres. This new discovery, the Footwall Zone (“FW Zone”), is located within the underlying footwall sequence of OB-2, and for the first time the host rock is dominated by the underlying andesite volcanic flows which are located below the felsic volcanoclastic sequence.
The Lucky John Zone/OB-2 area is open along strike to the north and south and at depth, while the new FW Zone lies well outside and start 50m below the 2015 modeled mineral resource and pit shell in an area of very sparse drilling, and is open in all directions.
Assay highlights from CMM-195 are shown in Table 1, a plan map, and a cross-section of 11750N. Due to the high grade nature of the Lucky John Zone/OB-2 intersection, assay values are reported both as uncut and cut to 1 ounce per tonne (or 34.286 g/t) and include:
Section 11750N – CMM-195
OB-2 Sub vertical Structure – Lucky John Zone
Gerald Panneton, President and CEO commented: “Our focused definition/exploration strategy has been extremely effective in demonstrating that the higher grade near-vertical zones are more predictable than anticipated, and could be an important component of the significant upside potential of this deposit. In addition, the new Footwall discovery opens up new possibilities to expand the deposit immediately below and along strike from the JSLA pit and Oro Belle South. Due to the nature of this new discovery, and the OB-2 sub-vertical structure at Lucky John, we are expanding our drilling immediately to follow up on these exciting new targets.”
Table 1: Summary of Significant Assay Intercepts from RC Hole CMM-195 (Lucky John Zone/OB-2)1
¹ Drill hole CMM-195 was drilled using reverse circulation drilling techniques at azimuth 290 degrees/dip -60 degrees to total depth of 451.1 metres (1,480 feet). True widths of the intercepted intervals are estimated to be 70% to 85% of intersected widths based on the available geological information.
CMM-195 also intersected 0.41 g/t Au over 68.6 metres (from surface) within the backfill material in the JSLA mined pit. This complements the results of the recent preliminary surface drill testing program across the surface of the JSLA backfilled pit reported in the press release of April 3, 2017.
The Phase II definition and exploration drill program is now complete with 44,500 metres of core and RC drilling as of March 31, 2017. An additional follow-up drill program is starting immediately with the focus on both the OB-2 sub-vertical structure and the FW Zone outside the current pit limit.
Assays and Quality Assurance/Quality Control
Rotary drill samples 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).
The Company employs an industry-standard QA/QC program consisting of standard pulps, coarse blanks and rig duplicates.
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.
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 1991 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.
For further information, please contact:
NewCastle Gold Ltd.
Vice President, Investor Relations and Corporate Communications
Neither the TSX Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX 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 drill program at Castle Mountain, the mineral resource expansion at Castle Mountain, the identification of future expansion targets at Castle Mountain and the restart of operation using Run of Mine (ROM) material from the JSLA pit. 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.
Figure 2 – Cross-Section A-A’ – 11750N (Looking Northeast)