Castillian Positive Tailings Results Have Potential to Increase NI 43-101 Resource Estimate at Hope Brook
24.04.2012 | Marketwired
- Overall average grade of the 58 samples is 0.96 grams gold per tonne (g Au/t) and 0.10% copper (Cu).- Average grade of 37 samples in the main tailings pond is 0.99 g Au/t and 0.12% Cu. Gold values range from a low of 0.31 g Au/t to a high of 1.72 g Au/t with copper values from 0.05% Cu to a high of 0.33% Cu.
- Average grade of 21 samples in the secondary tailings pond is 0.90 g Au/t and 0.06% Cu. Gold values range from a low of 0.18 g Au/t to a high of 2.10 g Au/t with copper values from 0.02% Cu to a high of 0.10% Cu.
TORONTO, ONTARIO -- (Marketwire - April 24, 2012) - Castillian Resources Corp. ("Castillian" or the "Company") (TSX VENTURE:CT) (OTCQX:CTIIF) is pleased to announce positive results from the expanded tailings sampling program carried out at its Hope Brook Gold Project ("Hope Brook"), located in southwestern Newfoundland. These results, along with additional testing of the tailings planned, have the potential to increase Hope Brook's current National Instrument 43-101 ("NI 43-101") mineral resource estimate (see February 14, 2012 press release for details).
Samples for this program were taken from both the main and secondary tailings ponds on an approximately 100 metre square grid using a piston corer. A total of 58 samples were collected of which 37 were from the main tailings pond and 21 were from secondary tailings pond. Of the total 58 holes, 39 reached the bottom of the tailings ponds. Results are listed in Table 1 and shown in Figures 1 and 3 for the main tailings pond and in Figures 2 and 4 for the secondary tailings pond, set out below.
Dr. Bill Pearson, P.Geo., President & CEO of Castillian, commented, "The results from our systematic tailings sampling program have returned an average grade in the order of one gram gold per tonne, which is almost double that of the calculated grade based on historical production data. We plan to carry out additional closer spaced piston core sampling to improve data density as well as a sonic drilling program to sample the deeper parts of the tailings ponds that the piston corer did not reach. The sonic drilling along with the piston corer results will provide sufficient data upon which to complete a NI 43-101 compliant mineral resource estimate for the tailings. In addition we plan to carry out preliminary bottle roll tests to determine potential recovery of both gold and copper."
Historical production data from the former Hope Brook Mine indicates that approximately 7.9 million tonnes of ore were processed in the mine with 752,163 ounces of gold recovered. The calculated grade of the tailings based on the historical production data is 0.54 g Au/t (see the NI 43-101 Technical Report entitled "Mineral Resource Estimate Technical Report, Hope Brook Gold Project, Newfoundland and Labrador, Canada", which is available under the Company's profile on SEDAR and at www.castillian.ca). The reader is cautioned that such results are historical in nature and should not be relied upon.
ABOUT CASTILLIAN
Castillian Resources Corp. is a Canadian mineral exploration company listed on the TSX Venture Exchange under the symbol "CT" which has gold and base metal properties in Canada and South America. Castillian's flag ship property is the Hope Brook Gold Project located in southwestern Newfoundland, which has 290,000 ounces of NI 43-101 compliant indicated mineral resources and 740,000 ounces of inferred mineral resources. Castillian has also outlined an extensive new Gold-in-Soil anomaly trend on its Canadian Creek property in the Yukon that is adjacent to Kaminak's Sugar Gold-in-Soil trend.
Cautionary Note Regarding Forward-looking Information
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements regarding exploration prospects and timing of future exploration. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; future prices of mineral prices; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and shortages and other risks of the mining industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Information Concerning Estimates of Indicated and Inferred Resources
This news release uses the terms "indicated resources" and "inferred resources". Castillian advises investors that although these terms are recognized and required by Canadian regulations (under NI 43-101), the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into mineral reserves. In addition, inferred resources have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for preliminary economic assessments as defined under NI 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.
Table 1. Results of Detailed Tailings Sampling Program, Hope Brook Gold Project
Sample #
Easting
Northing
Water
Depth Length of
Sample* Au
(g/t) Cu
%
Main Tailings Pond
J424000 418643 5286999 1.50 0.90 0.94 0.10 %
J424001 418685 5286937 1.50 1.10 1.22 0.10 %
J424002 418798 5286756 1.20 0.30 1.90 0.15 %
J424003 418842 5286698 1.50 0.90 0.41 0.08 %
J424004 418842 5286698 1.50 0.90 0.31 0.06 %
J424005 418892 5286622 1.20 0.90 0.56 0.08 %
J424006 418642 5286771 1.40 0.30 0.98 0.11 %
J424007 418591 5286856 1.60 0.50 0.94 0.08 %
J424008 418552 5286915 1.60 0.70 0.76 0.17 %
J424009 418292 5286444 1.60 0.30 1.04 0.05 %
J424011 418495 5286827 1.00 0.40 1.72 0.16 %
J424012 418514 5286786 1.20 0.50 1.71 0.33 %
J424013 418575 5286708 1.50 0.60 1.25 0.06 %
J424014 418630 5286621 1.80 0.90 1.24 0.10 %
J424015 418792 5286370 1.60 1.00 1.32 0.11 %
J424016 418741 5286450 2.30 0.90 0.85 0.30 %
J424017 418741 5286450 2.30 0.90 1.16 0.13 %
J424018 418345 5286553 1.00 0.50 1.38 0.08 %
J424019 418402 5286443 1.80 0.50 0.71 0.05 %
J424020 418472 5286335 1.40 0.30 0.93 0.09 %
J424021 418516 5286276 2.60 0.40 0.90 0.08 %
J424022 418545 5286230 3.50 0.30 0.66 0.25 %
J424023 418425 5286625 1.20 0.50 1.00 0.09 %
J424024 418477 5286537 1.40 0.30 1.20 0.08 %
J424025 418526 5286451 0.80 0.20 1.02 0.09 %
J424026 418581 5286362 2.40 1.10 0.65 0.05 %
J424027 418620 5286298 3.10 0.60 0.69 0.14 %
J424028 418421 5286331 2.40 1.30 0.81 0.26 %
J424029 418421 5286331 2.40 1.30 0.98 0.23 %
J424031 418678 5286384 2.60 1.10 0.61 0.12 %
J424032 418569 5286561 1.70 0.70 0.73 0.09 %
J424033 418512 5286645 1.20 0.70 1.00 0.06 %
J424034 418473 5286713 1.10 0.60 1.50 0.09 %
I632087 418619 5286954 1.60 1.00 0.63 0.26 %
I632088 418619 5286954 1.60 1.00 0.67 0.06 %
I632089 418556 5286703 1.50 0.60 0.86 0.08 %
I632090 418475 5286554 1.20 0.80 1.43 0.09 %
No. of Samples 37 Averages 1.70 0.70 0.99 0.12 %
Secondary Tailings Pond
Sample #
Easting
Northing
Water
Depth Length of
Sample* Au
(g/t ) Cu
%
J424035 419188 5285647 0.60 0.50 1.72 0.10 %
J424036 419248 5285540 1.00 0.70 0.87 0.06 %
J424037 419285 5285447 1.50 0.50 0.69 0.06 %
J424038 419228 5285386 1.60 0.50 0.43 0.08 %
J424039 419251 5285410 1.20 0.90 0.18 0.02 %
J424040 419170 5285474 1.40 0.40 0.97 0.07 %
J424041 419126 5285536 1.70 0.40 1.47 0.08 %
J424042 419080 5285414 1.90 0.50 2.10 0.07 %
J424043 419135 5285333 2.00 0.90 0.78 0.06 %
J424044 419191 5285242 1.90 0.20 0.54 0.09 %
J424045 419009 5285358 2.40 0.40 1.52 0.09 %
J424046 419064 5285281 2.30 0.60 0.45 0.07 %
J424047 419104 5285188 1.40 0.70 0.61 0.03 %
J424048 419158 5285104 1.20 0.70 0.50 0.05 %
J424049 419121 5284968 2.40 0.40 0.63 0.06 %
I632081 418962 5285067 3.50 0.20 1.21 0.09 %
I632082 419071 5285051 1.60 0.60 0.56 0.05 %
I632083 419017 5285141 1.20 0.50 0.81 0.04 %
I632084 418962 5285234 2.80 0.90 0.83 0.08 %
I632091 419174 5285607 0.80 0.80 0.94 0.06 %
I632092 419151 5285478 1.60 1.00 1.15 0.07 %
No. of Samples 21 Averages 1.71 0.59 0.90 0.06 %
OVERALL
No. of Samples 58 Averages 1.70 0.66 0.96 0.10 %
* Sample length is measured from the surface of the tailings down the vertical piston corer and is not necessarily indicative of the full thickness of the tailings.
SAMPLING, ASSAYING AND QUALITY CONTROL
The tailings samples reported in this press release were collected by Castillian using a piston corer. All samples were prepared and assayed at ALS Chemex, with sample preparation done in Sudbury and analytical work done in Vancouver. All locations of ALS Chemex are ISO 9001:2000 certified. The entire sample received is weighed and crushed to ≥ 70% passing 2mm (10 mesh). A sample split of up to 1000g is then pulverized to ≥ 85% passing 75 microns (200 mesh) to produce a homogenized sample. A 50g aliquot is used for fire assaying with an atomic absorption (AA) finish to determine gold concentration. Copper is initially analyzed using a four acid digestion ICP (inductively coupled plasma-atomic emission spectrometry) method. Any results for copper greater than 10,000 ppm are assayed further by a four acid digestion and "ore grade" ICP method. Internal quality control includes the use of blanks, duplicates and standards in every batch of samples. The Company also conducts internal check assaying using certified external reference standards and blanks. Regular external check assays are performed at a second certified Canadian commercial laboratory. Castillian also inserts external reference standards as well as blank granite drill core in each sample batch as a further external check.
QUALIFIED PERSONS
Dr. Bill Pearson, P.Geo., President and CEO of Castillian, a qualified person as defined by NI 43-101, has reviewed and approved the scientific and technical content of this press release. The systematic tailings sampling program was carried out under the direction of Mr. Dan Lee, P.Geo., Chief Geologist and Project Manager for Hope Brook and a qualified person as defined by NI 43-101.
To view the map associated with this press release, "Figure 1 - Tailing Pond Sample Locations - Main Tailings Pond - Gold (g/t)," please visit the following link:
http://media3.marketwire.com/docs/CT2404fig1.pdf.
To view the map associated with this press release, "Figure 2 - Tailing Pond Sample Locations - Secondary Tailings Pond - Gold (g/t)," please visit the following link:
http://media3.marketwire.com/docs/CT2404fig2.pdf.
To view the map associated with this press release, "Figure 3 - Tailing Pond Sample Locations - Main Tailings Pond - Copper (%)," please visit the following link:
http://media3.marketwire.com/docs/CT2404fig3.pdf.
To view the map associated with this press release, "Figure 4 - Tailing Pond Sample Locations - Secondary Tailings Pond - Copper (%)," please visit the following link:
http://media3.marketwire.com/docs/CT2404fig4.pdf.
NEITHER 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 RELEASE.
Contact Information
Castillian Resources Corp.
Sabina Srubiski, Investor Relations Manager
416-309-2957
ssrubiski@castillian.ca
Castillian Resources Corp.
Bill Pearson, President & CEO
416-861-2968
president@castillian.ca
www.castillian.ca
