Castle Resources Inc. (TSX VENTURE:CRI) has updated investors on its Elmtree Gold Project in Bathurst, New Brunswick.
The Company recently completed a 4,000 metre infill diamond drill program on the West Gabbro Zone ("WGZ") of the Elmtree Property near Bathurst NB from August to September 2010. The objective of the infill diamond drilling program was to ensure the WGZ is drilled at a sufficient spacing in order to graduate the resource estimate previously defined by Mercator Geological Services from indicated and inferred to measured and indicated. Micon International is currently completing a feasibility study on the Elmtree Gold Project set to be released Q1 of 2011.
"Significant progress has been made at the Elmtree Gold project over the past several months," said Mr. Mike Sylvestre, President & Chief Operating Officer of Castle Resources. "We have completed a 4,000 metre infill program and completed key First Nations and local community information sessions. The project has been registered with the New Brunswick Department of Environment and will require a federal environmental assessment as part of the ongoing comprehensive study. It remains our goal to aggressively advance this project towards production in the last quarter of 2011."
Stantec Consulting Ltd. is proceeding through the comprehensive environmental assessment and permitting process for the Elmtree Gold Project. This process addresses environmental components and impacts such as wildlife and aquatic environments, water resources and wetlands, atmospheric considerations, traditional and local use and effects, archaeological and heritage, as well as public and stakeholder involvement, input and aboriginal engagement. Management has already held several First Nation and community meetings in New Brunswick as part of its commitment and responsibility to local involvement as the Elmtree project is advanced towards production.
The Company received a positive Preliminary Economic Assessment from Micon early this year which indicates a pre-tax IRR of 25% using $900 Au/oz and a pre-tax IRR of 63% using $1,100 Au/oz, based on open pit mining and processing of 1.117 million tonnes with an average gold grade of 2.41 g/t Au, a stripping ratio of 6.3 (W/O), and assuming a 90% Au recovery. Management estimates total production from operations will be approximately 100,000 oz. Au over a 1.5 year mine life. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Castle is in the second year of a 3 year option agreement with Stratabound Minerals Corp. to acquire up to a 70% interest in their 100% owned Elmtree Gold Property (see press release dated June 12, 2009). As of the end of September 2010, Castle has met its obligations for the second year under the option agreement. The Elmtree Gold Project is located in a favourable mining jurisdiction with excellent local milling and processing infrastructure, including power, roads and a skilled work force.
QA/QC Protocol
Castle Resources implemented a QA/QC protocol for all its exploration and diamond drilling program on the Elmtree project. All drill core was drilled at NQ diameter. All drill hole locations were spotted using a hand-held Garmin GPS receiver with a 2m to 6m accuracy as well as by means of local grid co-ordinates. Core was delivered to the secure core shack facility located in Bathurst NB. In addition to recovery and RQD (Rock Quality Designation) data, geologic parameters including lithology, alteration, presence and identification of sulphide mineralization along with other geologic parameters are noted and recorded. Core was marked in half meter intervals for splitting, sampling and assaying, unless geologic data indicate a shorter or longer sample interval. Core splitting was done with a diamond saw. Half of the drill core was submitted to Agat Laboratories, a certified facility located in Mississauga, ON, where samples were crushed, pulped and screened to 100 mesh. All pulps and rejects are currently stored with Agat. All samples were analysed through an aqua-regia digest and gold fire assay with an Atomic Absorption (AA) finish. Selected samples were analysesd through a 35 element ICP/MS package and. All sample over-runs through the ICP package automatically were fire assayed with an AA finish.
A QA/QC protocol was followed for the drill core sampling program, which involved inserting sample blanks and standards at regular intervals into the sample stream. Blanks were inserted at the nominal rate of 1 in every 20th sample. The blank material used was sand blasting glass. Sample standards were inserted at the nominal rate of 1 in every 35th sample (alternating between OREAS_18Pb' and OREAS_15Pb). Every 25th sample was selected as a "referee sample" whereby instructions were given to the lab to prepare 3 pulps, analyze two and keep the third to be sent to another credited laboratory for verification of results. Quarter core duplicate samples were selected at the nominal insertion rate of every 40th sample. Sample tags were inserted into each plastic sample bag and securely sealed. The sample tag was a back-up sample number to the unique identifier designed for each hole, whereby the sample number consists of the hole number as well as the "from" value of the sample interval. The sample number along with the sample interval was recorded on the drill log. The sample interval was recorded in the sample tag book. A 3rd sample tag was stapled into the core box at the end of the sample interval. All core is stored at the secure core logging facilities in Bathurst NB.
Brad Leonard, P. Geo., Castle's Exploration Manager, is the Qualified Person responsible for the scientific and technical work discussed as defined under National Instrument 43-101 and has reviewed this press release.
Castle also announces that the TSX VENTURE has approved the conversion of an outstanding debt of $25,000 into 50,000 common shares of Castle. The debt was owing to Teuton Resources Corp. ("Teuton") and was in respect of an advance royalty payment owing to Teuton. Castle issued the common shares effective December 17, 2010 and as a result, the corresponding debt has been extinguished. The common shares issued to Teuton are subject to a four month hold period in accordance with applicable Canadian securities laws.
Source: Castle Resources Inc.