Castle Peak Reports Initial Auger Sampling On Enyinase Concession; To Complete Phase I Drilling At Apankrah Target
Vancouver, B.C., December 20, 2011 -- Castle Peak Mining Ltd. - ('Castle Peak' or the 'Company', TSX.V: CAP) reports auger sampling exploration results on the Enyinase concession; which is host to the inferred intersection between a mineralized north-south structural corridor and the high potential north-east Birimian-Tarkwaian structural corridor. Additionally, an initial follow up drill hole will be completed on the Apankrah Structure. After completion of three additional holes on the Dansuom target, the drill rig has been demobilized due to a need for access road upgrades for safety purposes. Once the upgrades have been completed, follow up drilling is planned to define the mineralized structure highlighted by the strong intercept in POWDDH004 of 10.8 metres ('m') of 2.9 grams per tonne ('g/t') gold ('Au'), previously reported November 15, 2011. Castle Peak would also like to announce the appointment of J.David Mason to the Advisory Committee.
The original plan was to drill the remaining holes at the Dansuom target on the POW concession, however deteriorating road conditions and safety concerns led Castle Peak to move back to the high grade Apankrah target for initial follow up drilling. The Company is currently working with the Ghana Forestry Commission to improve road conditions in preparation for a return to the Dansuom target in 2012. In the meantime, Castle Peak will complete the adjusted Phase I drill program on the Apankrah target located on the Nkwanta concession. The Apankrah target was host to initial Phase I drill holes and returned positive intercepts of 7.5m of 7.2 g/t Au including 2.2m of 24.2 g/t Au and 5.0m of 1.4 g/t Au including 1.0m of 6.0 g/t Au, previously reported June 6 and July 18, 2011.
President and CEO Darren Lindsay comments as follows, "Although we anticipated drilling additional holes on the key Dansuom target, having safe access is a priority so we are working with the Forestry Commission to upgrade our access permit as quickly as possible. Fortunately, we have the high quality Apankrah target available for initial follow up drilling. This is expected to be a steep high grade shoot with additional shoot potential on this structure and on proximal parallel structures. Also, results from the Enyinase target generation program are very encouraging, indicating that our targeting of cross structures within the Birimian-Tarkwaian structural corridor offer high potential for discovery."
Target generation on the Enyinase concession has identified two key north-northeast to northeast trending gold in auger sampling anomalies coincident with the inferred Birimian-Tarkwaian boundary zone. Numerous northerly trending anomalies, including the Akoko North structural trend on an adjacent property, are interpreted to intersect these key trends as observed by wide spaced (400m x 50m) auger sampling. All results from the program have now been received indicating a number of distinct higher grade trends (>100 parts per billion ('ppb') Au) within larger geochemical anomalies (>30ppb Au). Anomalies are defined by gold values >30ppb and range from detection limit to 4,010 ppb Au (Figure 1). Infill auger sampling is planned to further define the stronger trends for additional follow up activities.
Castle Peak Mining is pleased to announce the appointment of J.David Mason to the Advisory Committee. David brings additional value to the team with his experience in the resource sector and capital markets. He has raised over $500 million CDN in his career, primarily in the emerging resource company sector and is the founder of three public companies: resource investment banking (Augen Capital), uranium development (Energy Fuels), and gold exploration (Augen Gold). Augen Capital assisted in the financing of over 300 public companies during the period 1996 to 2008. As a portfolio manager, he was ranked in the top 3 for this type of fund, which raises several billion dollars annually. David holds a Bachelor of Applied Science in Applied Geology and a Master of Engineering degree (Mining - with a specialty in business and mineral economics). He has worked over 35 years in the investment business and passed all exams including Partners and Directors Exam.
Castle Peak's technical disclosure in this news release has been reviewed and approved by Darren Lindsay, P.Geo., Castle Peak's President and CEO, who serves as a Qualified Person under the definition in National Instrument 43-101 ('NI 43-101'). The procedures include the systematic insertion of blanks, standards and duplicates into the sample stream both in the field and at the lab; samples are placed in sealed bags and are delivered to SGS Laboratory Services GH Ltd. in Tarkwa, Ghana, for routine gold analysis by 50g charge fire assay with atomic absorption finish. The Akorade project is an early stage exploration project and does not contain any mineral resources as defined by NI 43-101. The potential quantities and grades disclosed herein are conceptual in nature and there has been insufficient exploration to define a mineral resource for the targets disclosed herein. It is uncertain if further exploration will result in these targets being delineated as a mineral resource. Further information is available in the NI 43-101 compliant technical report dated February 14, 2011 and entitled "NI 43-101 Technical Evaluation Report on Nkwanta & Ayiem Concessions, Wassa-West District, Republic of Ghana, West Africa", a copy of which is filed under the Company's profile on www.sedar.com.
About Castle Peak
Castle Peak Mining Ltd. is a Canadian-based exploration and development company focused on advancing greenfields and early stage gold projects. The Company holds a strategic land package in the Ashanti belt adjacent to several producing gold mines in Ghana, West Africa. The Ashanti belt is known as one of the most prolific gold belts in the world with over 150 million proven ounces uncovered and current investment in excess of $2.5 B USD. Castle Peak is now executing an aggressive Phase I exploration program on identified gold targets.
On behalf of the Board of Castle Peak Mining Ltd.:
President and Chief Executive Officer
Except for statements of historical fact, this news release contains certain 'forward-looking information' and 'forward-looking statements' within the meaning of applicable securities laws including statements regarding proposed exploration and drilling programs. Such forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to known and unknown risks, uncertainties and assumptions that could cause actual results to vary materially from the anticipated results or events predicted in these forward-looking statements, including those risk factors identified in the Company's Filing Statement filed under the Company's SEDAR profile. As a result, readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this release. Except as required by applicable law, Castle Peak disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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