VANCOUVER, May 26, 2017 /CNW/ - Castle Silver Resources
Inc. (TSX.V: CSR, OTC: TAKRF, FRANKFURT: 4T9B) (the "Company" or "CSR") has closed the second
tranche of an over-subscribed private placement and is pleased to provide an update on developments at its 100%-owned Castle
Silver-Cobalt mine in Gowganda, Ontario:
- Additional equipment and personnel have been mobilized to the mine site in preparation for a fully funded Phase 1
underground drilling and sampling program from the first level, commencing shortly;
- A high-grade cobalt vein structure featuring black sulphides and cobalt "bloom" has been identified on the first level and
is the initial target of upcoming extraction that will utilize the company's Re-2OX process to produce value added high-purity
cobalt powder test samples for end users in the battery sector;
- A 3D underground model is being produced using extensive historical data from all levels that includes silver assays and
many references of visible cobalt (no drill holes were assayed for cobalt). As an example of Castle's exceedingly high silver
values, 12 historical drill holes on the first level feature weighted average grades of 100 oz/ton silver (3,428
g/tonne) or better over 1-foot intervals (9 holes with one such interval each, two holes with two such intervals, and one hole
with 3 such intervals).
Frank Basa, CSR President and CEO, commented: "Given a treasure chest of historical data, and
visual analysis of the entire first level which requires just minor rehabilitation, we are very confident in our ability to
target high-grade cobalt and silver mineralization in vein structures that were either overlooked or left untouched by Agnico
Eagle in the 1980's. Their focus, along with previous operators going back to the early 1900's, was only on silver and at
exceptionally high grades."
Castle Mine Features 11 Levels
Historical data features silver assays for hundreds of drill holes in addition to locations of drifts and certain stopes
throughout the 11 levels of the Castle mine. The total footprint of the underground workings extends as much as 2,400 feet (727
meters) east-west, 1,500 feet (455 meters) north-south, and 850 feet (258 meters) to depth.
Considerable exploration potential exists outside of the mined area at the property and the Company eagerly anticipates
results from a recently completed IP program designed to expand drill targets.
The mine site includes easy year-round road access, buildings, core shack, water and power, with the community of Gowganda just a few kilometers away.
CSR Closes Second Tranche, Increases Financing to $1.2 Million
CSR has closed a second tranche of $466,500 in its recently announced private placement,
bringing total gross proceeds to $966,500. Due to investor demand, CSR has increased this
over-subscribed financing to $1.2 million.
The Company will be issuing 2,332,500 units in the second tranche closing. Each unit comprises one common share and one share
purchase warrant. Each warrant will entitle the holder thereof to purchase one additional common share of the Company at an
exercise price of $0.30 per share for a period of two years from closing, subject to TSX Venture
Exchange ("Exchange") approval.
All securities issued in connection with the private placement are subject to a four-month and a day hold period expiring on
September 27, 2017, in accordance with applicable Securities Laws.
Qualified Person
The technical information in this news release was prepared under the supervision of Frank J.
Basa, P.Eng., Castle's President and CEO who is a member of Professional Engineers Ontario and a qualified person in
accordance with National Instrument 43-101.
About Castle Silver Resources Inc.
Castle Silver Resources Inc. (formerly Takara Resources Inc.) is a TSX Venture-listed junior natural resource company focusing
on the exploration and development of former silver and cobalt mine properties in northern Ontario including the Castle Silver-Cobalt mine near Gowganda and the
Beaver and Violet mines near Cobalt. Additional information on the Company's properties is
available by visiting its website at www.CastleSilverResources.com.
"Frank J. Basa"
Frank J. Basa, P. Eng.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain
forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs,
geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements
address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ
materially from those currently anticipated in such statements.
SOURCE Granada Gold Mine Inc.
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