History

Castle Peak Achievement Summary (since March 2011)

  • Secured ~225 km2 land tenure covering two major structural corridors in the southern Ashanti belt in March 2011 - continue to maintain land package in good standing
  • Performed project wide geophysical VTEM survey:
    • Geotech Airborne Services completed a 3,425 km airborne survey (VTEM, magnetics, radiometrics) over the entire land package
    • First modern compilation of the geology at a concession and prospect level
    • Confirmed initial interpretations of controls, specifically, flexures on the inferred north-south structure and cross structures on north-east structure (Birimian-Tarkwaian boundary) resemble similar controls for deposits currently being mined in the area
  • Compiled and reviewed all historical streams, soil, auger sampling and trenching
    • 335 historical stream samples taken across complete land package to identify key exploration areas
    • More than 12,355 historical soil samples on 200m x 50m grid completed
    • Largest anomaly 9500m x 1000m on Asuogya-Ayiem trend
    • Two to three strong anomalies per concession and many more moderate anomalies
  • Completed 43-101 technical reports on the Nkwanta, POW, Asuogya and Ayiem Concessions
  • Completed 11,400m of phase one drilling on three different target areas to define the high grade Apankrah Shoot, as well as confirm high grade visible gold in structure at Scorpio and Nana
  • Built access road to Dansuom in order to advance target through selective gradient IP and pole-dipole surveys, which indicated strong N-S structure and E-W stratigraphy
  • Upgraded regional geological understanding via creation of a fact map focused on Apankrah and high priority targets
  • Announced preliminary resource estimate of 275,000 tonnes @ 8.6 g/t Au for 76,000 contained ounces of gold within the Apankrah Shoot

Property History (prior to March 2011)

Artisanal workings in the area have been reported as early as the 1930's. The Kedadwen concession includes old European mine workings. These workings occur in the east of the property and are referred to as the Kalu mine by the locals. They consist of a vertical shaft and an adit with rail entrance. No quantitative data is available for these workings.

In the early 1990's reconnaissance mapping, stream sediment and soil sampling were undertaken by Netas Mining Company. At this time old workings including shafts, adits and pits were reported in and around the artisanal Apankrah Mine site. Similar workings were observed at the Mile Five site located on the eastern Ayiem boundary. Exploration around this time included a VLF-EM survey over an area of 2x2 kilometres with lines spaced at 100 metres on the Nkwanta concession. This survey highlighted five conductive zones labelled A-E that were followed up by ground visits only.

In the late 1990's additional stream sediments, soils, rock samples and pitting were completed by Foremost Mining Company Ltd. There are reports of drilling (type unconfirmed) at the Apankrah Mine site the assumed target being quartz veins within the metavolcanics. As reported in available quarterly progress reports some drill holes made very economic intersections although the actual values are not cited and no data is available.

In the late 2000's a joint venture was entered into by Canterbury Mining Company with the concession holders. At this time significant gridding at 200 metre by 50 metre spacing was completed for systematic soil sampling. Castle Peak acquired the property through a takeover of Canterbury Mining and has expanded the stream sediment sampling and the systematic soil sampling over the stream sediment anomalies. More recently detailed auger drilling was undertaken over select soil anomalies while a detailed magnetic, EM and induced polarization survey was completed over the anomalies located on the Nkwanta concession. Foremost mining carried out a limited soil geochemical sampling program on the property in 1996 which led to the delineation of a number of weakly anomalous areas with gold values ranging from 200 to 660 parts per billion.

Prior to Castle Peak's involvement on the POW prospecting license, there was recorded work by Klair Star in 1996 (historical showings named BGC and Cherikuntumpor were also known). This early work indicated potential mineralized zones on POW and adjoining properties that trended in N-S and NNW-SSE orientations. A basic, systematic exploration approach was undertaken to better evaluate the concession.

The initial evaluation included the collection of 72 stream sediment samples across the property which broadly outlined three areas of interest called Klair Star West, East, and NorthWest Anomalies. Follow up work focused on these areas included reconnaissance mapping and sampling, prospect mapping, gridding with soil sampling and geophysical (VLF) surveying, with subsequent test pitting and trenching. The bulk of this work occurred in 2005 and 2006, establishing an approximate 210 kilometres (km) grid used for soil sampling (200m line spacing, 25m stations) and conducting a magnetics/VLF survey (100m line spacing, 25m stations). A total of 2,531 soil samples were collected across the grids which focused on strongest portions of the anomalies. These included the Dasuom-BGC-Pataho trend within the east anomaly and on the Kofi Amozen trend located in the west anomaly. Approximately 200m of hand trenching was completed at the Dansuom prospect identifying a silicified structural trend with a strike length of 1.5km that returned chip sample intercepts of: 7m of 1.4 g/t Au, 5m of 3.47 g/t Au, 2m of 2.3 g/t Au, 6m of 1.7 g/t Au.

Immediately following this work a dispute between the parties involved resulted in the property being tied up in legal proceedings that were not concluded until early 2010. The assignment to POW International Ltd is now completed and all previously 'frozen' permits have been renewed.