- Discovery cost approximately $10 per resource ounce
- Considerable potential to upgrade and expand resources and outline new zones along strike
- Exploration drilling to recommence at Hope Brook during the third week of February
- Preliminary Economic Assessment (PEA) to commence in Q2
February 14, 2012, Toronto, Ontario: Castillian Resources Corp. (“Castillian” or the “Company”) is pleased to announce its first National Instrument 43-101 (“NI 43-101”) compliant mineral resource estimate for its Hope Brook Gold Project in southwestern Newfoundland. The mineral resource estimate presented in Table 1 below is based on 631 diamond drill holes totaling 124,801 metres of historic and recent drilling, including 77 surface diamond drill holes totaling 24,857 metres completed by Castillian in 2010 and 2011. Mineral resources have been estimated within a constraining pit shell at a cutoff grade of 0.50 grams gold per tonne (g Au/t) and below this shell at a cutoff grade of 2.0 g Au/t.
Highlights are as follows:
- Total indicated mineral resources are estimated at 290,000 ounces of gold and total inferred mineral resources are estimated at 740,000 ounces of gold
- Within constraining shell at 0.50 g Au/t cutoff grade:
- indicated mineral resource of 4.0 million tonnes grading 1.11 g Au/t containing 140,000 ounces of gold
- Inferred mineral resource of 11.2 million tonnes grading 1.57 g Au/t containing 570,000 ounces of gold
- Below constraining shell at 2.0 g Au/t cutoff grade:
- Indicated mineral resource of 1.5 million tonnes grading 3.04 g Au/t containing 150,000 ounces of gold
- Inferred mineral resource of 2.0 million tonnes grading 2.65 g Au/t containing 170,000 ounces of gold
- Constraining shell incorporates essentially all of the remaining historic resources in the former Hope Brook mine in addition to new areas of resource defined by Castillian including the Pit Zone, Hanging Wall Zone and Mine Zone Extension
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Dr. Bill Pearson, P.Geo., President & CEO of Castillian, stated: “We are delighted with the results of this resource estimate, which establishes Hope Brook as a major gold deposit. This has been achieved by our exploration team in only 16 months of diamond drilling at an overall cost of approximately $10 per resource ounce. The deposit is open along strike in both directions and downdip. There is considerable potential to upgrade and expand these mineral resources within the current model, which extends some 2.7 kilometres along strike. In addition there is excellent potential to outline new zones along the more than eight kilometres of underexplored mineralized structure that has been identified to date.
Dr. Pearson continued: “We will recommence exploration drilling at Hope Brook during the third week of February, initially targeting the potential northeast extension area and the 240 Zone. Geophysical surveys have already been completed to aid in identifying potential drill hole locations. The mineral resource estimate will be used as the basis for a Preliminary Economic Assessment (PEA), which we plan to commence in the second quarter of 2012.”
The Company will be holding a conference call on Wednesday February 15, 2012 at 8:30 a.m. EST. To participate on this call, Canadian callers may dial toll-free 1-866-226-1793 and international callers may dial direct +1-416-340-2218. A replay of the call will be available on Castillian’s web site.