TORONTO, ON–(Marketwired – June 06, 2017) – NewCastle Gold Ltd. (TSX: NCA) (NewCastle Gold or the “Company”) is pleased to report the latest assay results on the southern portion of the main Oro Belle Trend (“OBT”) within the region of the historic JSLA pit at the Castle Mountain gold project (the “Project”) in San Bernardino County, California.
The results from CMM-161 are very encouraging, returning 2.77 grams per tonne gold (“g/t Au”) over a large interval of 103.6 metres including 16.47 g/t Au over 15.2 metres, below the modeled pit bottom and approximately 100 metres up-dip from CMM-031Ext (1.63 g/t Au over 27.1 metres, including 9.50 g/t Au over 3.0 metres in the September 6, 2016 press release). The OB-2 and OB-3 Zones, and the intervening corridor which hosts the bulk of felsic intrusive activity and brecciation, remains open along strike to the north and south, as well as at depth.
Gerald Panneton, President and CEO commented, “The Company’s definition drilling program continues to generate high-grade mineralization intercepts outside the previously announced 2015 mineral resource. The current program has definitely achieved its objective to demonstrate that the deposit is still open in all directions and that the average grade of the resource could be significantly increased.”
New assay results have been received from a total of 30 core and reverse circulation (“RC”) drill holes located south of the historic JSLA backfilled pit area (“JSLA South”). These holes were targeting portions of the 2015 mineral resource classified as inferred or waste inside the US$1,100 modeled Whittle pit, on approximately 100 to 200 foot centers. Selected drill holes also tested the modeled structural corridors (“OB-1/2/3 Zones”) for areas of higher grade gold and were drilled well into the footwall sequence. These results form part of the Phase II definition and exploration drill program (“the Program”) that took place from November 1, 2016 to March 31, 2017, totaling 121 holes/44,500 metres of RC and diamond core drilling, using seven drill rigs. Complete or partial assay results have now been reported for 85 holes with an additional 36 holes remaining in Phase II. Significant assay highlights from the 30 completed holes can be found below, and in Table 1, Figure 1 and 2, and cross-section 11550N. Results include:
- 0.81 g/t Au over 67.1 metres, in CMM-170
- Including 2.71 g/t Au over 9.1 metres, and
- 0.42 g/t Au over 123.4 metres, in CMM-170
- 1.64 g/t Au over 9.1 metres
- 1.43 g/t Au over 50.3 metres, in CMM-165
- Including 4.55 g/t Au over 12.2 metres
- Including 12.54 g/t Au over 3.0 metres
- 0.78 g/t Au over 53.3 metres, in CMM-166
- including 1.91 g/t Au over 9.1 metres, and
- 1.52 g/t Au over 18.3 meters, in CMM-166
- 2.77 g/t Au (uncut)/ 1.60 g/t Au (cut) over 103.6 metres, in CMM-161
- including 16.47 g/t Au (uncut)/ 8.53 g/t Au (cut) over 15.2 metres
- including 73.95 g/t Au (uncut)/34.29 g/t Au (cut) over 3.0 metres
- 0.81 g/t Au over 76.2 metres, in CMM-152
- including 1.89 g/t Au over 15.2 metres
- 1.28 g/t Au over 36.6 metres, in CMM-148
- including 2.09 g/t Au over 12.2 metres, and
- 1.10 g/t Au over 22.9 metres, in CMM-148
- 3.94 g/t Au over 4.6 metres
- 0.48 g/t Au over 50.3 metres, in CMM-137
- Including 1.64 g/t Au over 6.1 metres
All new core and RC holes were drilled at 290 degrees azimuth, with dips of -50 or -60 degrees and to a range of depths from 213 to 457 metres. True widths of the intercepted intervals are estimated to be 70% to 90% of intersected widths based on available geological information.
The Company remains on target to revise its current mineral resource statement by the end of September 2017.
Table 1: Summary of Significant Assay Intercepts from Definition Drill Holes at OBT – JSLA South
|Uncut||Cut to 34.29 g/t Au|
|Hole_ID||Section (Metric)||From (metres)||To (metres||Interval (metres)||Au (g/t)||Au (g/t)|
|457.2||TD*||*Bottomed in Minl’n|
*Note “ TD means Terminal Depth
The complete 30-hole result table can be found at the link below:
Assays and Quality Assurance/Quality Control
Half-sawn core and reverse circulation drill samples were submitted to ALS Minerals in Reno, Nevada for crushing until 70% of the sample is finer than a nominal two millimeters in size. A 250 gram (“g”) sub-sample is taken from the crushed material and pulverized until 85% passes a 200 mesh (75 µm) screen (ALS Method PREP-31). A 30 g portion of pulverized material (pulp) is then sampled and subjected to fire assay (“FA”) with atomic absorption (“AA”) finish (ALS Method AuAA-23). Any gold assays greater than 10 g/t Au are re-analyzed where a 30 g portion is taken from the pulp and assayed by FA with a gravimetric finish (ALS Method Au 30 g FA “ GRAV). All samples that yield greater than 0.2 ppm assay are also analyzed for gold cyanide solubility (ALS Method AuAA-13).
Half-sawn core and reverse circulation drill samples drill samples were also submitted to Inspectorate America Corporation in Sparks, Nevada for crushing until 70% of the sample is finer than a nominal two millimeters in size. A 250 g sub-sample is taken from the crushed material and pulverized until 85% passes a 200 mesh (75 µm) screen (Method PRP70-250). A 30 g portion of pulverized material (pulp) is then sampled and subjected to fire assay (“FA”) with atomic absorption (“AAS”) finish (Method FA430). Any gold assays greater than 10 g/t Au are re-analyzed where a 30 g portion is taken from the pulp and assayed by FA with a gravimetric finish. All samples that yield greater than 0.2 ppm assay are also analyzed for gold cyanide solubility (Method CN403).
The Company employs an industry-standard QA/QC program consisting of standard pulps, coarse blanks and rig duplicates.
Ian R. Cunningham-Dunlop, P. Eng., the Company’s Senior Vice President Technical Services, is the designated Qualified Person for this news release within the meaning of NI 43-101. He has reviewed and verified that the technical information contained in this release is accurate and has approved of the written disclosure of the same.
About NewCastle Gold
NewCastle Gold (an augustagroup company) 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 1991 to 2004. The Mine and Reclamation Plan, 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 2, 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 caldera environment. Eleven gold domains are represented by both steep and shallow-dipping orientations.
Neither the TSX Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This news release contains “forward-looking statements” and “forward-looking information” (collectively, “forward-looking information”) within the meaning of applicable Canadian securities legislation. Forward-looking information includes information that relates to, among other things, statements with respect to the drill program at Castle Mountain, the mineral resource expansion at Castle Mountain, the identification of future expansion targets at Castle Mountain and the restart of operation using Run of Mine (ROM) material from the JSLA pit. Forward-looking information is not, and cannot be, a guarantee of future results or events.
Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by us at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results and events to be materially different from those expressed or implied by the forward-looking information. The material factors or assumptions that we identified and were applied by us in drawing conclusions or making forecasts or projections set out in the forward looking information include, but are not limited to that the Company is able to procure personnel, equipment and supplies required for its exploration and development activities in sufficient quantities and on a timely basis and that actual results will be consistent with management’s expectations.
The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information may include, but are not limited to, the risks discussed under the heading “Risks” in general to the business of NewCastle in documents filed (or to be filed) with Canadian regulatory authorities. Should one or more risk, uncertainty, contingency or other factor materialize or should any factor or assumption prove incorrect, actual results could vary materially from those expressed or implied in the forward-looking information. Accordingly, the reader should not place undue reliance on forward-looking information. NewCastle does not assume any obligation to update or revise any forward-looking information after the date of this news release or to explain any material difference between subsequent actual events and any forward-looking information, except as required by applicable law.
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For further information, please contact:
NewCastle Gold Ltd.
Vice President, Investor Relations and Corporate Communications
Email: [email protected]