COQUITLAM, BC, Oct. 31, 2017 /CNW/ - Castle Silver Resources
Inc. (TSX.V: CSR, OTC: TAKRF, FRANKFURT: 4T9B) (the "Company" or "CSR") is
pleased to announce it has signed a provisional milling agreement
with Granada Gold Mine Inc. The provisional milling agreement
permits the development of a flowsheet for the mill that can
equally process the gold-bearing ore from Granada Gold Mine near
Rouyn-Noranda in Quebec as well cobalt-silver-bearing
mineralization from the advanced Castle Silver Resources' property
in Gowganda, Ontario. The terms of
the milling agreement provide batch processing a minimum of 600,000
tonnes of 4.0 grams per tonne gold ore from the open pit of the
Granada Gold Mine over a three-year period with an option to treat
a further 1.4 million tonnes of pre-concentrated waste rock.
Initial metallurgical test work on the Granada Gold Mine's waste
rock, using a conventional coarse gravity process, recovered 70
percent of the gold from 0.5 gram per tonne waste rock to produce
4.5 grams per tonne gravity concentrate which will be further
processed at the mill at Castle Silver Resources' historic mill
site.
The funding for the mill, which is to be installed at the
historic Castle Silver Mine, will be financed by debt in the
amount of US$20 million, which debt
raise will be facilitated by a family office in the UK.
Processing of the Granada Gold Mine ore off-site will be treated
as a custom milling agreement with a third party and will work
within the parameters of the PFS completed June 19, 2014 whereby Castle Silver Resources
will be the operator of the Mill. Granada Gold Mine and Castle
Silver Resources share common directors and therefore are related
parties.
Qualified Person
Frank J. Basa, P. Eng., President
and Chief Executive Officer of Castle, is a Qualified Person in
accordance with National Instrument 43-101, and has reviewed and
approved the contents of this news release.
About Castle Silver Resources Inc.
Castle Silver Resources Inc. is a TSX Venture-listed junior
natural resource company focusing on the exploration and
development of former silver and cobalt mine properties in northern
Ontario including the Castle
Silver mine near Gowganda and the
Beaver and Violet mines near Cobalt. Additional information
on the Company's properties is available by visiting its website at
www.CastleSilverResources.com.
"Frank J. Basa"
Frank J. Basa P. Eng.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Service
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. This news release may contain
forward-looking statements including but not limited to comments
regarding the timing and content of upcoming work programs,
geological interpretations, receipt of property titles, potential
mineral recovery processes, etc. Forward-looking statements address
future events and conditions and therefore, involve inherent risks
and uncertainties. Actual results may differ materially from those
currently anticipated in such statements.
SOURCE Castle Silver Resources Inc.