Castle Resources Inc. (TSX VENTURE: CRI) ("Castle" or the
"Company") is pleased to provide shareholders and investors with a
new NI 43-101 resource estimate for the past producing Granduc
Copper Mine near Stewart B.C.
Mike Sylvestre, President & COO, stated, "This initial
resource estimate and the defined exploration potential
conclusively demonstrates the exciting potential for the Granduc.
Based on significant historical data and a limited 8,300 metre
drill program completed in Castle's first drill program last year,
we have begun the process of building a large high grade copper
resource with excellent operating infrastructure already in
place."
Mr. Sylvestre continued, "This exciting initial resource clearly
justifies management's determination to aggressively drill the
numerous exploration targets at the Granduc this year. Our primary
focus now is to upgrade much of the initial resource from the
inferred to the indicated category and grow the resource by
drilling new zones down dip and along strike so as to expand the
Granduc resource estimate later this year."
The mineral resource estimate was prepared by SRK Consulting
(Canada) Inc. (SRK) of Vancouver B.C., an independent,
international consulting practice that provides focused advice and
solutions to clients, mainly from the earth and water resource
industries.
Granduc Copper Project, Indicated Mineral Resource, Feb 28, 2011
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Cut-off Quantity Cu Grade Contained Copper
----------------------------------------------------------------------------
(millions of
(Cu %) tonnes) (Cu %) (millions of lbs)
----------------------------------------------------------------------------
0.5 4.04 1.52 % 135.7
----------------------------------------------------------------------------
0.8 3.75 1.59 % 131.4
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1.0 3.35 1.67 % 123.2
----------------------------------------------------------------------------
1.2 2.75 1.79 % 108.7
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1.4 2.12 1.94 % 90.8
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Granduc Copper Project, Inferred Mineral Resource, Feb 28, 2011
----------------------------------------------------------------------------
Cut-off Quantity Cu Grade Contained Copper
----------------------------------------------------------------------------
(millions of
(Cu %) tonnes) (Cu %) (millions of lbs)
----------------------------------------------------------------------------
0.5 17.7 1.28 % 500.8
----------------------------------------------------------------------------
0.8 15.8 1.36 % 471.5
----------------------------------------------------------------------------
1.0 13.1 1.45 % 418.6
----------------------------------------------------------------------------
1.2 9.2 1.59 % 323.1
----------------------------------------------------------------------------
1.4 5.9 1.76 % 228.4
----------------------------------------------------------------------------
SRK believes the Mineral Resource is most accurately represented
at a 0.8% cut-off. Mineral resources that are not mineral reserves
do not have demonstrated economic viability. All figures have been
rounded to reflect the relative accuracy of the estimates. SRK is
not aware of any environmental, permitting, legal, title, taxation,
socio-political or marking issues that would materially affect the
mineral resource. The resource estimate was completed under the
supervision of independent Qualified Person Marek Nowak, P.Eng and
Principle Geostatistician with SRK.
The resource estimate is based on a database containing
approximately 2000 drillholes and 40,000 assays. Historical data
was verified wherever possible against mine records including logs,
sections and plans, however not all survey or assay data could be
verified. Assays from the 2010 drillholes and re-sampling of
historical core were used to further validate the data. All assays
from the 2010 drilling were independently verified by SRK. SRK
completed a site visit to the property in September 2010 during the
Castle drill program but did not complete any independent sampling.
SRK believes the data of sufficient quality for the definition of
the mineral resource.
The Granduc copper deposit is a volcanogenic massive sulphide
deposit ("VMS") with tabular, stratified mineralization zones which
have been deformed by several phases of folding. SRK created grade
shell models at a 0.7% cut-off for 13 domains, using historical
sections and plans as a guide. Eleven of these domains lie within
the Main Zone where historical mining took place and two zones were
defined within the North Zone, approximately 1 km north of the Main
Zone. All domains were modelled at a minimum width of 1.5 m.
Mineralized domains at the extents of the deposits are open
down-dip as well as along strike.
For the Main Zone, the blocks were estimate by ordinary kriging
into blocks of 2 m by 10 m by 10 m. The North Zone was estimated
using inverse distance squared methods into similar sized blocks.
For volumetric accuracy, blocks were sub-blocked to 0.5m by 2.5m by
2.5m. Average bulk density values were applied to all blocks within
the mineralized domains.
Estimated blocks were categorized into indicated and inferred
classes based upon the density of drilling information available as
well as overall confidence in the available data for domain
interpretation. Blocks immediately below the lower limits of the
underground mining where density of underground drilling was
highest, were classed as indicated. Blocks further away from the
mining levels where drillhole spacing was wider and there is less
certainty in correlating between mineralized intercepts, was
classed as inferred.
The mineral resources are limited to unmined areas based on a
model of the historic mining limits. The historic mining limits
were determined from mine closure records filed with the government
in 1984. At this time SRK has not gained underground access and
therefore cannot directly verify the boundary. SRK believes that
this boundary has been conservatively defined on reliable
records.
In addition to the mineral resources, SRK assessed the
exploration potential defined by wider spaced drilling data. The
exploration potential is based upon approximately 20 Main Zone and
13 North Zone drill holes that have been correlated with the
resource domains, but are too widely spaced to define a resource.
In the main zone, wide spaced drilling has intersect mineralized
intervals down to the 325m (1065 ft) level and the exploration
potential is largely defined by the down-dip extension of the
mineralization from the inferred mineral resource. In the North
Zone, the exploration potential has been defined by correlating
widely space drillholes largely above the mineral resource. The
resource is defined in an area where drilling density from an
exploration drift was high enough to accurately quantify the
resource. Fans of widely spaced surface and underground drillholes
have been used to quantify the exploration potential.
The potential quantity and grade of the exploration potential is
conceptual in nature and there has been insufficient exploration to
define a mineral resource. It is uncertain if further exploration
will result in the exploration targets being delineated as a
mineral resource.
----------------------------------------------------------------------------
Total Exploration Potential
----------------------------------------------------------------------------
Estimated Quantity Range Estimated Grade Range
----------------------------------------------------------------------------
(millions of tonnes) (Cu %)
----------------------------------------------------------------------------
17 to 23 1.3 % to 1.6 %
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Based upon a cut-off grade of 0.8 % Cu
----------------------------------------------------------------------------
Gold and silver grades were not estimated as the historical
assay data for both commodities was unavailable. However, given
that Newmont and Esso reported yearly gold and silver production
figures during the life of mine, and Castle's recent drill results
demonstrated gold and silver mineralization (see press release
dated Dec 6, 2010), it suggests that future resource updates should
include analysis of precious metals where supported by available
data.
Granduc Highlights:
-- Newmont and Esso Minerals operated the Granduc Mine between 1971-1984;
processed over 15 million tonnes of ore grading 1.71% Cu; produced 420
million pounds of copper (plus gold and silver credits); the mine was
closed in 1984 due to low copper prices
-- Operators of the Granduc Mine invested over $115 million from Oct 1965
until start-up operations began in 1971
-- 17 km haulage tunnel remains in good condition today
-- Mining operations at the Granduc Mine consisted of crushing underground
then processing of up to 9000 tpd. The concentrate was trucked on a 54
km all weather road to the year-round deep sea port facility in Stewart
which remains in operation today
-- Bell Copper's exploration activities between 2004 and 2007 have
confirmed mineralization within 4 kms to the north and south of the main
Granduc orebody
Brad Leonard, P. Geo., Castle's Exploration Manager, is the
Qualified Person responsible for the scientific and technical work
(as defined under National Instrument 43-101) discussed in this
press release, and has reviewed this press release.
About Castle Resources
Castle Resources Inc. is a Toronto-based junior mineral
development company focusing on high-quality, advanced projects.
Management's goal is to continue the redevelopment of the 100%
owned past producing Granduc Copper Mine and begin new exploration
activities; as well, management is quickly advancing the Elmtree
Gold Project in New Brunswick toward feasibility in 2011. For more
information please visit the Castle Resources' website at
www.castleresources.com.
Disclaimer
Certain statements contained in this news release may contain
forward-looking information within the meaning of Canadian
securities laws. Such forward-looking information is identified by
words such as "estimates", "intends", "expects", "believes", "may",
"will" and include, without limitation, statements regarding the
company's plan of business operations (including plans for
progressing assets), estimates regarding mineral resources,
projections regarding mineralization and projected expenditures.
There can be no assurance that such statements will prove to be
accurate; actual results and future events could differ materially
from such statements. Factors that could cause actual results to
differ materially include, among others, metal prices, risks
inherent in the mining industry, financing risks, labour risks,
uncertainty of mineral resource estimates, equipment and supply
risks, title disputes, regulatory risks and environmental concerns.
Most of these factors are outside the control of the company.
Investors are cautioned not to put undue reliance on
forward-looking information. Except as otherwise required by
applicable securities statutes or regulation, the company expressly
disclaims any intent or obligation to update publicly
forward-looking information, whether as a result of new
information, future events or otherwise.
This news release does not constitute an offer to sell or
solicitation of an offer to sell any of the securities in the
United States. The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act") or any state securities laws
and may not be offered or sold within the United States or to a
U.S. Person unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such
registration is available.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Castle Resources Inc. Mike Sylvestre President &
Chief Operating Officer 416-366-4100 mike@castleresources.com
Castle Resources Inc. Lenny Foreht VP Corporate Development
416-364-2266 lforeht@hotmail.com
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