TORONTO, ONTARIO--(Marketwire - March 29, 2012) -Castillian Resources Corp. (TSX VENTURE:CT) ("Castillian" or the "Company") is pleased to announce positive results from preliminary tailings sampling carried out at its Hope Brook Gold Project, southwestern Newfoundland. This initial program designed to provide a general characterization of the tailings consisted of 10 samples taken by a piston corer from six wide spaced locations in the two major tailings ponds as shown in Figure 1. Results are listed in Table 1 below. The overall average grade of the 10 samples is 1.05 g Au/t with a range of 0.41 g Au/t to 1.80 g Au/t. One sample from a small pond south of the main tailings pond also returned 0.98% copper (Cu).
| Table 1. Results of Preliminary Tailings Sampling Program, Hope Brook Gold Project |
|
|
|
| Sample # |
Easting |
Northing |
Water Depth |
Length of Sample* |
|
Au (g/t) |
Cu % |
|
| I632064 |
418619 |
5286954 |
1.4m |
15cm (0-15cm |
) |
0.69 |
0.05 |
% |
| I632065 |
418619 |
5286954 |
1.4m |
15cm (30-45cm |
) |
0.74 |
0.07 |
% |
| I632066 |
418619 |
5286954 |
1.4m |
15cm (45-60cm |
) |
0.41 |
0.11 |
% |
| I632067 |
418556 |
5286703 |
1.3m |
30cm |
|
0.91 |
0.07 |
% |
| I632068 |
418475 |
5286554 |
1.1m |
70cm |
|
1.23 |
0.06 |
% |
| I632069 |
419174 |
5285607 |
0.6m |
10cm (1-10cm |
) |
0.89 |
0.07 |
% |
| I632071 |
419174 |
5285607 |
0.6m |
9cm (10-19cm |
) |
1.30 |
0.09 |
% |
| I632072 |
419174 |
5285607 |
0.6m |
5cm (19-24cm |
) |
0.96 |
0.09 |
% |
| I632073 |
419151 |
5285478 |
1.4m |
75cm |
|
1.56 |
0.09 |
% |
| I632074 |
417979 |
5285889 |
0.0m |
15cm |
|
1.80 |
0.98 |
% |
|
|
|
|
Average Grade |
|
1.05 |
|
|
| * Sample length is measured from surface of tailings down the vertical piston corer and is not necessarily indicative of the full thickness of the tailings. |
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. Calculated grade of tailings based on the historical production data is 0.54 grams gold per tonne (see NI 43-101 Technical Report to be filed on Sedar). Castillian has completed an additional tailings sampling program at 56 locations as shown on Figure 1. Results from these samples are pending.
Dr. Bill Pearson, Ph.D., P.Geo., President & CEO of Castillian commented, "While preliminary, the results from the tailings sampling returned an average grade double that of the calculated grade based on historical production data suggesting that there may be significantly more gold in the tailings than previously reported. We believe that there is potential to define a significant tailing resource. Additional sampling over both tailings ponds has been completed this winter to better define the overall grade; results are pending. In addition we plan to carry out preliminary bottle roll tests to determine potential recovery."
SAMPLING, ASSAYING AND QUALITY CONTROL
The tailings samples reported in this press release were collected by Fracflow Consultants Inc. using a piston corer. Results pending are for additional tailings samples collected using the same equipment and procedures by Castillian. 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
Mr. Dan Lee, P.Geo., Chief Geologist and Project Manager for Hope Brook, and Dr. Bill Pearson, P.Geo., President and CEO of Castillian, all of whom are qualified persons as defined by NI 43-101, have reviewed and approved the scientific and technical content of this press release. The preliminary tailings sampling program was carried out under the direction of Dr. John Gale, P.Eng., P.Geo. President of Fracflow Consultants Inc. and Glenn Bursey, P.Geo., Vice President/Principal, Senior Hydrogeologist/Geochemist of Fracflow Consultants Inc. Dr. Gale and Mr. Bursey are independent qualified persons as defined by NI 43-101.
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 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.
To view Figure 1: Hope Brook Gold Project, Tailings Pond Sample Locations, please visit the following link: https://media3.marketwire.com/docs/CT-F1March29.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