Results From First Phase Testing Program At Castle Mountain Gold Project

TORONTO, ON - NewCastle Gold Ltd. reported initial results from the first phase of a water testing program on its Castle Mountain gold project, located in San Bernardino County, California. These results form part of ongoing hydrogeological investigations aimed at identifying additional sources for process water in support of restarting the operation in 2018 and as part of its pre-feasibility study scheduled for release at the end of 2017. Four vertical reverse circulation drill holes were drilled to explore and identify potential bedrock-hosted water sources within the approved area of disturbance of the Company's Mining and Reclamation Plan. 

Gerald Panneton, President and CEO said, "We are very pleased with the results of this first phase of water drilling as it demonstrates there is a considerable amount of water within the fault system around the deposit. We will immediately be installing at least two large diameter water supply wells and performing pump tests on the favorable wells to establish the productive capacity of the bedrock water sources that lie within our permitted disturbance area. It is our hope that the new wells, along with our existing wells, will provide us with enough water to put the Project back into production at the appropriate mining rate in 2018."

Of the four exploratory holes, two holes were completed along the Oro Belle Trend in the vicinity of the JSLA backfilled open pit and two holes were drilled near the southern margin of the South Dump. Results to date are very encouraging, with initial water flow rates exceeding expectations. Areas of highest water flow appear to coincide with a major north-south structural lineament seen in satellite imagery which extends at least 10 kilometers.