Castle Mountain Gold Project Assay Results Exploration Phase I Drill Program

 

TORONTO, ON - NewCastle Gold Ltd. reported assay results from the remaining 10 reverse circulation (RC) drill holes from the 2016 Exploration Phase I Drill Program at the Castle Mountain gold project located in San Bernardino County, California. The holes tested the East Ridge target, located 100-300 meters east of the historic Oro Belle open pit and the main Oro Belle Trend (OBT).

Ten holes tested the extent of gold mineralization over a strike length of 300 meters from section 12600N to 12900N along the eastern margin of the known mineral resource. All holes were angled to the northwest to test sparsely drilled regions with the 2015 resource block model and also to assess near-surface expressions of gold mineralization. All holes returned encouraging intercepts within the pit model and up to 200 meters below modeled pit limits, and collectively define a broad northeast-southwest trending corridor parallel to the main structural trends which control mineralization at Castle Mountain. The East Ridge target is open to the north, south, east, and at depth. 

Gerald Panneton, President and CEO, commented, "The 2016 East Ridge drill program has demonstrated excellent continuity along this parallel structure to the main Oro Belle Trend, with greater widths of gold mineralization than anticipated. The East Ridge target, combined with the main Oro Belle Trend, shows that the gold mineralizing system is still very strong on the northern portion of the Castle Mountain project."

The 2016 Phase 1 drill program was completed in mid-October with a total of 20,200 meters in 49 drill holes. The Company currently has 6 rigs drilling on its +40,000 meter program (see press release dated November 1st, 2016), completing definition and expansion drilling in Oro Belle South and extending gold mineralization at South Domes.

All new exploration holes were drilled at the northwest at 290 degrees azimuth, with dips of -60 to -80 degrees, and to a depth range of 150 to 460 meters. True widths of the intercepted intervals are estimated to be 70% to 90% of intersected widths based on the available geological information.

Widespread epithermal gold mineralization is present along the East Ridge target where it is hosted within a complex, shallow-dipping sequence of Miocene-age rhyolite flows and lesser tuffaceous units cut by steep northeast trending/southeast dipping fault structures with associated zones of silicification, hydrothermal brecciation and near-vertical latite dikes.

NewCastle Gold has a 100% interest in 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 2004. The Mine and Reclamation Pl an, 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 2nd, 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 calder a environment. Eleven gold domains are represented by both steep and shallow-dipping orientations.