VANCOUVER, Jan. 31, 2017 /CNW/ - Castle Silver Resources
Inc. (TSXV:CSR, OTC:TAKRF, FRANKFURT:4T9B) (the "Company" or
"Castle") today announced preliminary results from bench-scale
metallurgical flotation and gravity test work carried out at SGS
Canada laboratories in Quebec City,
Canada. The test program is aimed at evaluating the
potential recovery of silver and cobalt from mineralized-material
surface rock samples and tailings collected at the former historic
producing Beaver Mine in Cobalt,
Ontario and tailings from Castle Mine in Gowganda, Ontario.
Highlights include the following:
Silver and cobalt recoveries of 98.5 percent and 70.5 percent
respectively produced an extremely high concentrate grade of 11,876
grams per tonne silver and 10.5 percent cobalt using a simple
flotation process. The mineralized-material surface rock sample was
a composite collected from the waste pile assaying 2,064 grams per
tonne silver and 5.62 percent cobalt at the Beaver Mine.
Silver and cobalt concentrate grades produced from the Beaver
and Castle Mines tailings were 1,379 grams per tonne and 0.04
percent and 308 grams per tonne and 0.08 percent respectively using
a simple gravity process. Head assays were 108 grams per tonne with
0.02 percent and 123 grams per tonne with 0.01 percent
respectively.
"Preliminary test results are excellent, particularly from the
waste rock collected from the Beaver Mine, and assay and gravity
tests that indicate mining at Castle and Beaver in the 1900s left
behind potentially recoverable amounts of silver and cobalt in the
tailings and that may now be extracted using modern metallurgical
methods," said Frank Basa, President
and CEO.
The metallurgical tests were conducted at SGS Canada Inc.
laboratories in Quebec City using
about 100 kilograms of tailings and mineralized rock samples.
Tailings samples from Castle and Beaver were tested using a gravity
separation process. Beaver mineralized material samples were tested
using a flotation process.
"We are very encouraged by these metallurgical results. We
plan to undertake additional metallurgical testing for the
optimization of grind and reagents," Mr. Basa stated.
"Developments in mobile phone use and renewable energy,
including solar and electric car batteries, are strongly supportive
of demand and pricing for cobalt and silver. This opens up an
opportunity to re-evaluate former silver-cobalt producing mine
sites with positive results. Mining at Beaver and Castle took place
in the early 1900s and at Castle again in the 1980s when extraction
processes were not as advanced as they are today. It may now be
economically viable to extract silver and cobalt from what was left
behind, including old mine tailings and waste and other rock piles
on the surface, as a first phase of production at the properties,"
Mr. Basa added.
These latest test results support previous test findings at the
Castle and Beaver mine sites. In 2013, a hand-cobbed 20 kg
geological test sample from the historic waste pile at the Beaver
Silver Mine had an average calculated assay of 7.98% cobalt, 3.98%
nickel and 1,246 grams (g/t) silver. Details were reported when
Granada Gold Mine Inc. (formerly Gold Bullion Development Corp.)
owned the property in a news release February 14, 2013 which can be accessed via the
following
link: http://www.goldbulliondevelopmentcorp.com/Files/2013-02-14-Press-Release.pdf
In addition, the Company received encouraging assay test results
in November 2016 for tailings grab
samples collected at Castle and Beaver. Highlights of the assay
results include: 134.78 g/t silver and 1.124 g/t gold at the Beaver
Silver Mine; and 91.36 g/t silver at the Castle Silver Mine.
Details of the assay results were reported in the November 29, 2016 news release which can be
accessed via the following link:
http://www.castlesilverresources.com/wp-content/uploads/2016/08/CSR-NR-Castle-metallurgy-Nov-29-16.pdf
The samples of these metallurgical tests may not be
representative of the mineralization hosted in the waste and
tailings and further work will be undertaken.
Castle owns a 100% interest in the 20-acre Beaver Silver Mine
property near Cobalt, Ontario. The
mine operated from 1907 to 1940 and produced 7.1 million ounces
(oz) of silver and 139,000 lbs of cobalt. The Beaver property is
adjacent to the historic Temiskaming Silver Mine which was operated
until 1989.
Castle's wholly-owned subsidiary, Castle Silver Mines Inc., owns
a 100% interest in the 33 sq. km Castle Property which includes
three mine shafts. The high-grade silver mine, near Gowganda, Ontario, has operated at various
times between 1917 and 1989 and produced more than 9.5 million oz
of silver and 300,000 lbs of cobalt.
Details of the production history and recent exploration
activity at Castle are available in a report entitled Takara
Resources Inc. Castle Silver Property Gowganda, Ontario, Canada, Ni 43-101 Technical
Report effective date July 9, 2015,
report date August 21, 2015, prepared
by Claude Duplessis, Eng., of GoldMinds Geoservices Inc. and
an independent qualified person in accordance with NI 43-101.
The report can be viewed via the following link:
http://www.castlesilverresources.com/wp-content/uploads/2016/11/Castle-Silver-43-101-Report-Effective-Aug-21-15.pdf
The results of diamond drilling conducted on the property were
initially published in a news release dated August 25, 2011 that can be accessed via the
following link:
http://www.goldbulliondevelopmentcorp.com/documents/press-releases/20110825PressReleaselogo_1aca6.pdf
QA/QC
For QA/QC for the metallurgical testing, the Company relies on
internal QA/QC procedures of SGS Canada Inc., which conducted the
testing.
Qualified Person
The technical information in this news release was prepared
under the supervision of Mr. Frank J.
Basa, P. Eng., Castle's President and CEO, who is a member
of the Professional Engineers Ontario and a qualified person in
accordance with National Instrument 43-101.
About Castle Silver Resources Inc.
Castle Silver Resources Inc. (formerly Takara 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, Ontario and the Beaver and Violet
mines near Cobalt,
Ontario. 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.