TORONTO, ONTARIO, Sep 14, 2010 — Castillian Resources Corporation (“Castillian” or the “Company”) announces that it commenced diamond drilling on Monday, September 13th at its Hope Brook Gold Project on the southwest coast of Newfoundland. As previously announced (see press release August 18, 2010) the exploration program will include at least 5,000 metres of drilling focused on testing the prime target areas in the historic mine area and in the 240 Zone approximately one kilometre south of the mine. The attached longitudinal section shows the location of drill hole HB10-001 currently in progress to test the area of historic resource below the old mine workings as well as several of the first series of planned holes. All holes will be surveyed by down-hole induced polarization (I.P.). Re-establishment of the surface grid is being carried out to enable surface IP surveys as well as geological mapping and sampling. Compilation of all historical exploration data is continuing.
Bill Pearson, President & CEO of Castillian commented “We are delighted to start drilling at Hope Brook. We have completed a detailed compilation of all historical drilling data in the general mine area. This work has identified a number of excellent drill targets and also highlights how much of this extensive alteration system has not been explored. We have an excellent team on site under the direction of Mr. Dan Lee, P.Geo. who has over 20 years experience in managing major exploration drilling programs.”
Dan Lee, P.Geo. Chief Geologist and Project Manager for Hope Brook commented: We have a very good camp set up on site and the drill program is now moving ahead strongly. The potential of this belt is remarkable and I’m thrilled to be part of the team. I am confident that with the technical ability of our field crew and support staff that we will see this program through in a timely and successful manner.”
The Hope Brook deposit, discovered in 1983 by BP-Selco Inc., was mined from 1987 to 1997 with total production reported to be 752,163 ounces of gold plus a copper concentrate. Preproduction historical resources are reported have to have been 11.2 million tonnes grading 4.54 grams gold per tonne (g Au/t) at a 2.5 g Au/t cutoff (approx.1.60 million ounces of gold). Note that the historic gold production figures previously reported by the Company from a publication of the Geological Survey, Newfoundland and Labrador was found to be slightly in error as outlined in the National Instrument 43-101 (“NI 43-101”) Technical report (“Technical Report) on the Hope Brook property to be filed under the profile of the Company on Sedar that was prepared by Mr. Michael Cullen M.Sc., P.Geo. of Mercator Geological Services Limited. Mr. Cullen is an independent, qualified person as defined by NI 43-101 (see press release August 18, 2010). The stated resource is historical in nature and is not NI 43-101 compliant. Castillian has not done the work necessary to verify this resource and hence cautions that this estimate should not be relied upon.
Five priority target areas have been identified in the Technical Report by Mr. Cullen for exploration diamond drilling. These are outlined below and shown on the attached longitudinal section (all intersections horizontal width in metres):
— Unmined historical resource areas and possible extensions to these that
occur immediately adjacent to underground mine workings, particularly
below the 4,800 Level (approximately 340 metres below surface).
Historical surface drill hole intersections in this area include 3.37 g
Au/t over 10m (CW-051), 3.26 g Au/t over 16.4m (CW-094) and 2.38 g Au/t
over 27.9m (CW-052) in addition to underground definition drill holes
not shown on the longitudinal section;
— The Northeast Extension area, located adjacent to and east of the mine
(east of Line 12,000 East on the grid), where potential exists for
discovery of a displaced, subsurface extension of the Hope Brook
alteration zone and associated gold mineralization, based on
interpretation of the 2008 airborne survey results;
— The near-surface mineralized zone located immediately southwest of the
open pit, between Line 11,000 East and Line 11,350 East, where potential
exists for definition of gold mineralization extending from the limits
of the historical open pit. Historical drill intersections in this area
include 2.88 g Au/t over 10.3m (CW-246) 1.28 g Au/t over 24.5m (CW-243),
4.64 g Au/t over 14.9m (CW-235), 2.06 over 13.6m (CW-012) and 3.11 over
— Plunge extensions of the unmined 240 Zone, located 1 km southwest of the
open pit. Historical drill intersections in this zone include 3.88 g
Au/t over 41.0m (CE-246), 2.71 g Au/t over 43.4m (CE-283A) and 6.98 g
Au/t over 5.8m (CE-240);
— The Chetwynd Prospect area, located 2 km southwest of the mine, where
extensions to mineralized historic drilling intercepts warrant follow-
The Company has re-launched its website with an updated presentation and expanded information on the Hope Brook project which will be regularly updated.
The Company also announces that it has granted a total of 400,000 stock options to a director and consultants of the Company pursuant to the stock option plan of the Company. The options shall vest immediately and are exercisable at $0.10 per option. The options will expire on September 13, 2015 and remain subject to receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.
Mr. Michael Cullen, M.Sc., P. Geo., an independent qualified person as set out in National Instrument 43-101 (“NI 43-101) and the author of the NI 43-101 technical report entitled “Technical Report on the Hope Brook Gold Project, Newfoundland and Labrador, Canada”, has reviewed and approved this press release. Mr. Dan Lee, P.Geo., Chief Geologist and Project Manager for Hope Brook and a qualified person as set out in National Instrument 43-101 has reviewed and approved this press release.
Castillian Resources Corp. is a Canadian mineral exploration company listed on the TSX Venture Exchange under the symbol “CT” which has gold and base metal properties in Canada and South America.
Cautionary Note Regarding Forward-looking Information
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the exploration program and anticipating timing with respect to the exploration program, future financial or operating performance of the Company, its subsidiaries and its projects, statements regarding exploration prospects, the identification of mineral reserves and resources, costs of and capital for exploration projects, exploration expenditures, timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; future prices of mineral prices; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and shortages and other risks of the mining industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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