In the news release, CSR Targets High-grade Cobalt and Silver at Castle, Closes Second
Tranche and Increases Financing to $1.2
Million, issued 26-May-2017
over CNW, the source was incorrectly attributed to Granada Gold
Mine Inc., rather than Castle Silver Resources Inc., as originally
issued inadvertently. The complete, corrected release follows:
CSR Targets High-grade Cobalt and Silver at Castle, Closes Second
Tranche and Increases Financing to $1.2 Million
VANCOUVER, May 26, 2017 /CNW/ - Castle Silver Resources
Inc. (TSX.V: CSR, OTC: TAKRF, FRANKFURT: 4T9B) (the "Company" or "CSR") has
closed the second tranche of an over-subscribed private placement
and is pleased to provide an update on developments at its
100%-owned Castle Silver-Cobalt mine in Gowganda, Ontario:
- Additional equipment and personnel have been mobilized to the
mine site in preparation for a fully funded Phase 1 underground
drilling and sampling program from the first level, commencing
shortly;
- A high-grade cobalt vein structure featuring black sulphides
and cobalt "bloom" has been identified on the first level and is
the initial target of upcoming extraction that will utilize the
company's Re-2OX process to produce value added high-purity cobalt
powder test samples for end users in the battery sector;
- A 3D underground model is being produced using extensive
historical data from all levels that includes silver assays and
many references of visible cobalt (no drill holes were assayed for
cobalt). As an example of Castle's exceedingly high silver values,
12 historical drill holes on the first level feature weighted
average grades of 100 oz/ton silver (3,428 g/tonne)
or better over 1-foot intervals (9 holes with one such interval
each, two holes with two such intervals, and one hole with 3 such
intervals).
Frank Basa, CSR President and
CEO, commented: "Given a treasure chest of historical data, and
visual analysis of the entire first level which requires just minor
rehabilitation, we are very confident in our ability to target
high-grade cobalt and silver mineralization in vein structures that
were either overlooked or left untouched by Agnico Eagle in the
1980's. Their focus, along with previous operators going back to
the early 1900's, was only on silver and at exceptionally high
grades."
Castle Mine Features 11 Levels
Historical data features silver assays for hundreds of drill
holes in addition to locations of drifts and certain stopes
throughout the 11 levels of the Castle mine. The total footprint of
the underground workings extends as much as 2,400 feet (727 meters)
east-west, 1,500 feet (455 meters) north-south, and 850 feet (258
meters) to depth.
Considerable exploration potential exists outside of the mined
area at the property and the Company eagerly anticipates results
from a recently completed IP program designed to expand drill
targets.
The mine site includes easy year-round road access, buildings,
core shack, water and power, with the community of Gowganda just a few kilometers away.
CSR Closes Second Tranche, Increases Financing to
$1.2 Million
CSR has closed a second tranche of $466,500 in its recently announced private
placement, bringing total gross proceeds to $966,500. Due to investor demand, CSR has
increased this over-subscribed financing to $1.2 million.
The Company will be issuing 2,332,500 units in the second
tranche closing. Each unit comprises one common share and one share
purchase warrant. Each warrant will entitle the holder thereof to
purchase one additional common share of the Company at an exercise
price of $0.30 per share for a period
of two years from closing, subject to TSX Venture Exchange
("Exchange") approval.
All securities issued in connection with the private placement
are subject to a four-month and a day hold period expiring on
September 27, 2017, in accordance
with applicable Securities Laws.
Qualified Person
The technical information in this news release was prepared
under the supervision of Frank J.
Basa, P.Eng., Castle's President and CEO who is a member of
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-Cobalt 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.