Castle Resources NI 43-101 Resource Estimate for Granduc Copper Project Exceeds Expectations
February 28 2011 - 9:44AM
Marketwired Canada
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
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(millions of
(Cu %) tonnes) (Cu %) (millions of lbs)
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0.5 4.04 1.52 % 135.7
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0.8 3.75 1.59 % 131.4
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1.0 3.35 1.67 % 123.2
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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
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0.8 15.8 1.36 % 471.5
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1.0 13.1 1.45 % 418.6
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1.2 9.2 1.59 % 323.1
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1.4 5.9 1.76 % 228.4
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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
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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.
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