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NewCastle Gold Announces Preliminary Results from Castle Mountain Project

NewCastle Gold Ltd. is pleased to report the preliminary results from the second water well drilled as part of the water supply drilling program on its Castle Mountain gold project, located in San Bernardino County, California.

The second well was completed on August 4th, 2017, with another 12-inch diameter hole. The Program forms part of the ongoing hydrogeological investigations aimed at identifying additional sources of water as part of the pre-feasibility study scheduled for release at the end of 2017, and in support of potentially restarting the Run of Mine (ROM), operation in 2018.

Water well CMM-W-01, located 1.6 km north of CMM-W-02 (preliminary results reported on July 25, 2017) was completed to a total depth of 1,586 feet below ground surface, and intersected the water table at a depth of 570 feet.  The target for this well was a deeply fractured area of bedrock identified by our geological team and tested in the previous program of April 2017. CMM-W-01 showed an average pumping rate of 169 gallons per minute (“gpm”) during the drilling of the last 250 feet of the hole, and up to 236 gpm locally during the drilling of the well using the ‘airlift’ capacity of the drill rig. As with CMM-W-02, the pumping rate was limited by the compressor capacity of the drill, rather than the potential yield of the well, which indicates that the ultimate long-term capacity of the well has the potential to be higher.  Additionally, during this preliminary evaluation, the water level in the well showed negligible drawdown.  The well location can be seen on the attached map and cross-section (Figures 1 and 2).

Gerald Panneton, President and CEO commented: “We have now been able to demonstrate with two (2) large diameter potential production wells, that are 1.6 km apart, excellent airlift pumping capacity averaging 169 gpm, in each well. Both holes have also achieved an average of more than 200 gpm and up to 236 gpm over a vertical section of 300 feet in the second hole W-01. With the completion of this well, we have now moved immediately onto the pump testing phase of the Program, where we will determine the long-term sustainable yield of our new wells over a period of 5 days.  These two (2) new wells, along with our existing wells, could potentially provide us with enough water for the ROM restart project in 2018.” 

Both water wells CMM-W-01 and CMM-W-02 were drilled along a 10 km, north-south trending regional structure identified through satellite imagery, gravity surveys and surface geological mapping.  Areas of highest groundwater water flow appear to coincide with this deep-seated feature.  CMM-W-01 is located on northeast side of the JSLA backfilled open pit, approximately 5,300 feet (1,600 m) (Figure 2) from CMM-W-02 at South Domes, which returned initial water flow rates exceeding 200 gpm, with an airlift average of 169 gpm during the final five (5) hour development test

Well CMM-W-01 was drilled using a truck-mounted drill rig, and reverse circulation drilling techniques.   The diameter of the hole was 12 inches, and the hole was drilled vertically to a maximum depth of over 1,612 feet with the ultimate completion of the casing and screen to 1,586 feet.  Water flow rates were measured by performing industry standard “airlift” tests by injecting air from the rig’s compressor.  Discharge water from the well head was measured by timing the flow of air/water discharge as it exited the rig’s cyclone into a 55-gallon barrel.  Hydrological consulting is provided by Geo-Logic Associates based in Tucson, Arizona and representatives were present on site for the drilling and testing of the well.

Following a full analysis of the pump test results, the Company will be in a position to forecast the long-term productive capacity of these wells.  The goal of the Program is to find new wells that will meet the needs for the restart of the Project.  The Company currently maintains ten active water rights with three production water wells on the Project.   Total production from wells W-14, W-18 and W-45 located in the NW Wellfield is approximately 150 gpm.

Qualified Person

Marc Leduc, P. Eng., the Company’s Chief Operating Officer, 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.


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