Apankrah Deposit

Castle Peak's inferred mineral resource estimate is based on results from 20 of 33 drill holes totaling 4,253 metres ('m') of drilling. Subsequently an additional 10 infill drill holes, 1,084m, have been completed in the shallowest portion of the Apankrah Shoot. The current resource models a single shoot on the Apankrah Structure, with potential to increase the resource base by exploration on strike and on parallel structures within the Nkwanta Prospecting Licence. Castle Peak has also completed initial metallurgical analysis on assay sample rejects resulting in >97% gold recovery using gravity and CIL recovery processes; gravity test work captured 85% of the gold in 1% of the mass. The maiden mineral resource estimate was prepared by Simon Meadows Smith of SEMS Exploration, an independent Qualified Person as defined by NI 43-101 and is summarized below:

Zone Category Tonnes Grade (g/t Au) Contained Ounces
Apankrah Shoot Inferred 275,000 8.6 76,000

*Mineral resources are reported with an effective date of June 1, 2013 at a cut-off grade of 2 grams per tonne ('g/t') gold ('Au'). Cut-off grades are based on a price of $1,400 USD/oz Au. All figures are rounded to reflect the relative accuracy of the estimate. Mineral resources are not mineral reserves and do not have demonstrated economic viability. Mineral resources have been classified according to CIM Standards on Mineral Resources and Reserves. There are no known environmental, political, legal or other risks that could materially affect the potential development of the mineral resource at this time.

Report on Metallurgical Testwork Completed on the Apankrah Shoot, Akorade Project

Drill Highlights
A total of 30 holes totaling ~5,337m have been drilled at the Apankrah Deposit; drill highlights include:

Apankrah Deposit:

  • 6.0m of 80 g/t Au, incl. 1.6m of 296 g/t Au
  • 3.0m of 11.6 g/t Au, incl. 1.1m of 30.5 g/t Au
  • 5.0m of 8.5 g/t Au, incl. 1.5m of 10.2 g/t Au
  • 10.0m of 6.7 g/t Au incl. 2.5m of 10.2 g/t Au
  • 9.8m of 6.8 g/t Au incl. 1.0m of 51.8 g/t Au
  • 20m of 3.2 g/t Au, incl. 2.8m of 17.4 g/t Au
  • 7.5m of 7.2 g/t Au, incl. 2.2m of 24.2 g/t Au
  • 19.0 m of 1.5 g/t incl. 6.0m of 3.2 g/t Au

Expansion Potential Of The Apankrah Deposit

Step out targets exist immediately on-strike and around the partially defined Apankrah Deposit that could add incremental ounces to the initial resource base.

Two parallel structures located immediately north of the Apankrah Deposit known respectively as Scorpio and Nana have had limited drill testing with each showing local high grade mineralization with visible gold. Both the Nana and Scorpio structures require further drilling to confirm their potential to host mineral resources.

Drill Highlights
A total of 13 holes totaling ~2,247m to evaluate additional resource potential; drill highlights include:

Nana Structure:

  • 3.0m of 1.9 g/t Au
  • 0.5m of 10.3 g/t Au

Scorpio Structure:

  • 13.0m of 1.0 g/t Au
  • 4.0m of 4.1 g/t Au

Castle Peak is using geophysical interpretation of the ground magnetics and induced polarization surveys to enhance target generation by providing a more detailed understanding of the underlying geology and structure of this high potential target area. Preliminary interpretations indicate that the Apankrah target area exhibits anomalous signatures defining generally ENE trending structures approximately 300m in length. The results also highlight a coincident NNE trending high chargeability and moderate resistivity anomaly in what has been considered to be the secondary control orientation for the high grade intercepts returned from previous drilling.