Castillian Files NI 43-101 Technical Report for Updated Mineral Resource at Hope Brook Gold Project, Newfoundland

Castillian Resources Corp. CT
11/19/2012 6:41:49 PM
Castillian Files NI 43-101 Technical Report for Updated Mineral Resource at Hope Brook Gold Project, Newfoundland

TORONTO, ONTARIO--(Marketwire - Nov. 19, 2012) -Castillian Resources Corp. (TSX VENTURE:CT)(OTCQX:CTIIF) ("Castillian" or the "Company") has filed a National Instrument 43-101 ("NI 43-101") compliant technical report related to its press release issued on October 1, 2012 announcing an updated mineral resource estimate for the Hope Brook Gold Project in southwest Newfoundland.

The independent technical report entitled "Updated Mineral Resource Estimate Technical Report, Hope Brook Gold Project, Newfoundland and Labrador, Canada" (the "Technical Report"), dated October 1, 2012, was prepared for Castillian by AGP Mining Consultants Inc. and Mercator Geological Services Limited. The Technical Report is available under the Company's profile on SEDAR at www.sedar.com and on the Company's website at www.castillian.ca.

Dr. Bill Pearson, P.Geo., President & CEO of Castillian, commented: "The updated NI 43-101 mineral resource estimate is another important step in further advancing the Hope Brook Gold Project. This updated resource was accomplished with a limited, but highly targeted, drilling program. Our technical understanding of the deposit continues to grow and the mineral resources remain open along strike and downdip. We are proceeding with the Phase I exploration drilling program recommended in the Technical Report. Drilling of 6,000 metres at Hope Brook has already commenced with three drills now operating. This program will test six major target areas over a 3.4 kilometre strike length southwest of the former mine."

The updated NI 43-101 compliant mineral resources on the Company's Hope Brook Gold Project, as reported in the press release issued on October 1, 2012, are estimated to contain 590,000 indicated ounces of gold and 548,000 inferred ounces of gold as set out in Table 1 below.

Table 1: Hope Brook Gold Project as at October 1, 2012 (see press release dated October 1, 2012)*,**
  Within constraining shell
@ 0.50 g Au/t cut-off
  Below constraining shell
@ 2.0 g Au/t cut-off
  Total  
Category Tonnes Gold
g/t
Gold
(Oz
) Tonnes Gold
(g/t
) Gold
(Oz
) Tonnes Gold g/t Gold
(Oz
)
Indicated 10,624,000 1.24 422,000   1,743,000 2.99   168,000   12,367,000 1.48 590,000  
Inferred 6,458,000 1.91 397,000   1,792,000 2.62   151,000   8,251,000 2.07 548,000  
* Rounding of tonnes as required by NI 43-101 reporting guidelines may result in apparent differences between tonnes, grade and contained ounces. Mineral resources that are not mineral reserves do not have demonstrated economic viability. This estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing or other relevant issues.
 
** There is a possible copper credit that is not included in the mineral resource estimate due to missing copper assays for the historical drill holes.

The Technical Report makes a number of recommendations for further work at Hope Brook including:

  • Phase I
    • Diamond Drilling 6,500 metres
       
  • Phase II
     
  • Diamond Drilling 9,450 metres
     
  • Metallurgical work, acid base accounting, preliminary environmental and geotechnical evaluations, tailings deposit assessment and updated mineral resource estimate
     
  • Wireframe model update and Preliminary Economic Assessment (PEA) study

A 6,000 metre Phase I diamond drilling program that will test six priority target areas over a 3.4 kilometre mineralized trend between the past producing Hope Brook Mine and the Chetwynd South Prospect is now in progress. Eighty percent of the planned drilling is outside the current mineral resource (see press release November 5, 2012).

SAMPLING, ASSAYING AND QUALITY CONTROL

All drill core in the Castillian diamond drilling program (NQ (47.6 mm), BQTK (40.6mm) and BQ (36.4mm)) was logged, photographed and then sawn in half with one-half sent to the laboratory for analysis and the other half retained and stored on site. All core samples were prepared and assayed at ALS Chemex, with sample preparation done in Sudbury and analytical work done in Vancouver. All locations of ALS Chemex are ISO 9001:2000 certified. The entire sample received is weighed and crushed to ≥ 70% passing 2mm (10 mesh). A sample split of up to 1000g is then pulverized to ≥ 85% passing 75 microns (200 mesh) to produce a homogenized sample. A 50g aliquot is used for fire assaying with an atomic absorption (AA) finish to determine gold concentration. Copper is initially analyzed using a four acid digestion ICP (inductively coupled plasma-atomic emission spectrometry) method. Any results for copper greater than 10,000 ppm are assayed further by a four acid digestion and "ore grade" ICP method. Internal quality control includes the use of blanks, duplicates and standards in every batch of samples. The Company also conducts internal check assaying using certified external reference standards and blanks. Regular external check assays are performed at a second certified Canadian commercial laboratory. Castillian also inserts external reference standards as well as blank granite drill core in each sample batch as a further external check.

QUALIFIED PERSONS

Dr. Bill Pearson, P.Geo., President and CEO of Castillian, who is a qualified person as defined by NI 43-101, has reviewed and approved the scientific and technical content of this press release. Pierre Desautels, P.Eng., Principal Resource Geologist, and Jay Melnyk, P.Eng., Principal Mining Engineer, both of AGP Mining Consultants and Qualified Persons under NI 43-101 who are independent of the Company, have prepared and authorized the release of the mineral resource estimates presented herein. The Castillian and historical diamond drill hole databases and geological model developed by Castillian were reviewed and validated by Michael Cullen, P.Geo., of Mercator Geological Services, a Qualified Person as defined under NI 43-101 who is independent of the Company.

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