VANCOUVER, Aug. 16, 2016 /CNW/ - NewCastle Gold Ltd.
(NCA:TSX-V, the "Company" or "NewCastle") is pleased to report
initial assay results from the first four holes from the Company's
2016 Phase I drill campaign at the Castle Mountain Gold Project
(the "Project") located in San Bernardino
County, California.
The drill program (the "Program") started in mid-June 2016, and has initially focused on the
southern portion of the Project known as "South Domes". This
target area hosts a significant portion of the mineral resource
that historically had been quantified by shallow vertical
reverse-circulation drill holes, rarely extending below 250 metres
vertical depth. The current Program uses angled diamond core
holes designed to cross-cut the known resource and modeled steep
fault structures trending NE-SW.
Assay highlights from the four-hole cross-section (10600N)
across the South Domes target area include:
- 1.09 grams per tonne gold ("g/t Au") over 213.70 metres in
hole CMM-079,
- including 4.14 g/t Au over 16.00 metres;
- 0.72 g/t Au over 55.2 metres in hole CMM-080;
and
- 0.72 g/t Au over 16.80 metres in hole CMM-078 (outside
the current pit shell)
President and CEO, Gerald
Panneton commented, "Our first cross section has
confirmed the geological interpretation that the controls on gold
mineralization are mainly vertical, and better assessed with angled
drilling. Hole CMM-079 is showing us a wider and deeper structure
than previously outlined, with higher grades than the modeled
resource grade, and with 40% of the intersection outside the
current 2015 measured and indicated resources. Further
step-outs and infill drilling are now required at South Domes,
which remains open at depth and along strike."
A total of 9,600 metres and 21 holes have been completed to the
end of July with three rigs (one reverse circulation ("RC") drill
rig and two diamond core rigs). The program has been
increased to 22,000 metres in 54 drill holes and a second RC rig
has been added to focus on the Oro Belle mine trend and the East
Ridge target.
Mineralization encountered in CMM-079 and CMM-080 is associated
with vertical hydrothermal breccia on the flanks of a previously
unrecognized rhyolite plug and QFP. This setting is very
similar to the original Mine Trend
area which was the focus of drilling in 2014 and 2015. New
mineralization outside the pit shell was also intersected in hole
CMM-078 which opens up a new parallel target to the South Domes
target.
Table 1: Summary of Significant 2016 Core Hole Intercepts at
South Domes
Hole_ID
|
From
(metres)
|
To
(metres)
|
Interval
(metres)
|
Au
(g/t)
|
CMM-078
|
299.30
|
316.10
|
16.80
|
0.72
|
and
|
328.30
|
331.30
|
3.00
|
0.41
|
and
|
338.90
|
346.50
|
7.60
|
0.30
|
CMM-079
|
171.00
|
188.10
|
17.10
|
0.76
|
and
|
196.90
|
410.60
|
213.70
|
1.09
|
including
|
270.50
|
286.50
|
16.00
|
4.14
|
and
including
|
327.10
|
345.60
|
18.50
|
1.54
|
and
|
421.20
|
436.50
|
15.30
|
0.34
|
and
|
450.20
|
462.40
|
12.20
|
0.28
|
and
|
479.60
|
482.60
|
3.00
|
0.22
|
and
|
521.80
|
524.80
|
3.00
|
0.89
|
CMM-080
|
77.10
|
90.80
|
13.70
|
0.35
|
and
|
132.30
|
187.50
|
55.20
|
0.72
|
and
|
221.30
|
241.10
|
19.80
|
0.30
|
and
|
279.50
|
296.30
|
16.80
|
0.31
|
and
|
367.00
|
375.50
|
8.50
|
0.28
|
CMM-081
|
No significant
values
|
All new exploration holes were drilled at 110 degrees or 290
degrees azimuth, with dips of either -60 or -70 degrees, and to an
average depth of 450 metres. True widths are estimated to be 70% to
90% of the intersected widths.
All diamond core samples are submitted to ALS Minerals in
Reno, Nevada for splitting and
then crushing until 70% of the sample is finer than a nominal two
millimeter 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 30g FA – GRAV). All samples that yield greater than
0.2 ppm assay are also analyzed for gold cyanide solubility (ALS
Method AuAA-13). NewCastle
employs an industry standard QA/QC program consisting of standard
pulps, coarse blanks and rig duplicates.
About NewCastle
NewCastle has 100% of the
right, title and beneficial interest in and to the Castle Mountain
Venture, a California general
partnership, which owns 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 2001, when mining was suspended due to
low gold prices. 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 Vice President Exploration, 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.
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.
Forward-Looking Statements
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.
SOURCE NewCastle Gold Ltd.