Mr. Bill Pearson reports
CASTILLIAN COMMENCES DIAMOND DRILLING PROGRAM AT HOPE BROOK GOLD PROJECT, NEWFOUNDLAND
Castillian Resources Corp. commenced diamond drilling on Monday, Sept. 13, at its Hope Brook gold project on the southwest coast of Newfoundland. As previously announced (see news in Stockwatch Aug. 18, 2010) the exploration program will include at least 5,000 metres of drilling focused on testing the prime target areas in the historic mine area and in the 240 zone approximately one kilometre south of the mine. The longitudinal section shows the location of drill hole HB10-001 currently in progress to test the area of historic resource below the old mine workings as well as several of the first series of planned holes. All holes will be surveyed by down-hole induced polarization. Re-establishment of the surface grid is being carried out to enable surface IP surveys as well as geological mapping and sampling. Compilation of all historical exploration data is continuing.
Bill Pearson, president and chief executive officer of Castillian, commented: "We are delighted to start drilling at Hope Brook. We have completed a detailed compilation of all historical drilling data in the general mine area. This work has identified a number of excellent drill targets and also highlights how much of this extensive alteration system has not been explored. We have an excellent team on site under the direction of Mr. Dan Lee, PGeo, who has over 20 years experience in managing major exploration drilling programs."
Mr. Lee, PGeo, chief geologist and project manager for Hope Brook, commented: "We have a very good camp set-up on site and the drill program is now moving ahead strongly. The potential of this belt is remarkable and I'm thrilled to be part of the team. I am confident that with the technical ability of our field crew and support staff that we will see this program through in a timely and successful manner."
The Hope Brook deposit, discovered in 1983 by BP-Selco Inc., was mined from 1987 to 1997 with total production reported to be 752,163 ounces of gold plus a copper concentrate. Preproduction historical resources are reported have to have been 11.2 million tonnes grading 4.54 grams gold per tonne at a 2.5 g/t Au cut-off (approximately 1.60 million ounces of gold). Note that the historic gold production figures previously reported by the company from a publication of the Geological Survey, Newfoundland and Labrador, was found to be slightly in error as outlined in the National Instrument 43-101 technical report on the Hope Brook property to be filed under the profile of the company on SEDAR that was prepared by Michael Cullen, MSc, PGeo, of Mercator Geological Services Limited. Mr. Cullen is an independent, qualified person as defined by NI 43-101 (see news in Stockwatch Aug. 18, 2010). The stated resource is historical in nature and is not NI 43-101-compliant. Castillian has not done the work necessary to verify this resource and hence cautions that this estimate should not be relied upon.
Five priority target areas have been identified in the technical report by Mr. Cullen for exploration diamond drilling. These are outlined and shown on the longitudinal section (all intersections horizontal width in metres):
- Unmined historical resource areas and possible extensions to these that occur immediately adjacent to underground mine workings, particularly below the 4,800 level (approximately 340 metres below surface). Historical surface drill hole intersections in this area include 3.37 g/t Au over 10 metres (CW-051), 3.26 g/t Au over 16.4m (CW-094) and 2.38 g/t Au over 27.9 m (CW-052) in addition to underground definition drill holes not shown on the longitudinal section;
- The Northeast Extension area, located adjacent to and east of the mine (east of line 12,000 East on the grid), where potential exists for discovery of a displaced, subsurface extension of the Hope Brook alteration zone and associated gold mineralization, based on interpretation of the 2008 airborne survey results;
- The near-surface mineralized zone located immediately southwest of the open pit, between line 11,000 East and line 11,350 East, where potential exists for definition of gold mineralization extending from the limits of the historical open pit. Historical drill intersections in this area include 2.88 g/t Au over 10.3 m (CW-246) 1.28 g/t Au over 24.5 m (CW-243), 4.64 g/t Au over 14.9 m (CW-235), 2.06 over 13.6 m (CW-012) and 3.11 over 18.0 m (CW-212);
- Plunge extensions of the unmined 240 zone, located one kilometre southwest of the open pit. Historical drill intersections in this zone include 3.88 g/t Au over 41.0 m (CE-246), 2.71 g/t Au over 43.4 m (CE-283A) and 6.98 g/t Au over 5.8 m (CE-240);
- The Chetwynd Prospect area, located two km southwest of the mine, where extensions to mineralized historic drilling intercepts warrant follow-up.
The company has relaunched its website with an updated presentation and expanded information on the Hope Brook project which will be regularly updated.
The company also announces that it has granted a total of 400,000 stock options to a director and consultants of the company pursuant to the stock option plan of the company. The options shall vest immediately and are exercisable at 10 cents per option. The options will expire on Sept. 13, 2015, and remain subject to receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.
Mr. Cullen, MSc, PGeo, an independent qualified person as set out in National Instrument 43-101 and the author of the NI 43-101 technical report entitled "Technical Report on the Hope Brook Gold Project, Newfoundland and Labrador, Canada," has reviewed and approved this press release. Mr. Lee, PGeo, chief geologist and project manager for Hope Brook, and a qualified person as set out in National Instrument 43-101, has reviewed and approved this press release.
We seek Safe Harbor.