- Akorade Project
Castle Peak Mining Ltd. Provides Exploration Update
Vancouver, B.C., May 10, 2012 - Castle Peak Mining Ltd. ("Castle Peak" or "the Company", TSX.V: CAP), is pleased to provide an update to its Target Generation exploration activities at the Akorade Project located in the prolific Ashanti Gold Belt, Ghana. The Company has received preliminary results from its ongoing systematic exploration program, which includes: geophysical surveying, channel and chip sampling and grab sampling. The results of an induced polarization ('IP') survey, completed over the Apankrah and Nana targets, indicate a coincident north-northeast ('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 our previous drilling; 2.8 metres ('m') of 17 grams per tonne ('g/t') gold ('Au') and 2.2m of 24 g/t Au (NR January 2012, June 2011). Signatures over known east-northeast ('ENE') target structures indicate additional potential to the west on the Apankrah target and to the east on Nana target. These results confirm proposed follow up drilling to be initiated later this month, as well as, identify additional exploration targets. The inferred Birimian-Tarwaian structural zone covered by the Enyinase and Great Yorkshire concessions also received initial field work (refer to Projects_updated.pdf for detailed project map).
The current geophysical program includes an approximate 32 kilometres ('km') of IP surveys on a series of four target areas: Apankrah/Nana, Ayiem South, Ayiem North and the Asuogya-Ayiem trend. The first three of which are completed (approximately 22km), with preliminary results available for Apankrah/Nana. Both the Apankrah and Nana targets exhibit anomalous signatures defining generally ENE trending structures, approximately 300m and 500m in length respectively. Both of these features are 'connected' by a strong chargeability, moderate resistivity anomaly in a NNE orientation over 700m in length and open to the north and south (see figure 1). A fourth moderate ENE resistivity anomaly occurs approximately 500m north of the Nana Target. A magnetics survey, approximately 65 km, is also scheduled to be undertaken once the IP surveys are complete.
President & CEO, Darren Lindsay states, "Our systematic approach to exploration allows us to further understand this large underexplored land package, identify new areas of potential mineralization, such as the Great Yorkshire concession, and to reduce the drilling risk in our phase I drill programs. Additionally, identifying which tools work best to refine productive targets should improve our success rate and ultimately allow us to better identify and deliver the best resource to the market."
A systematic program of channel or chip sampling of road cuts on all concessions has returned 342 samples to date. The results range from detection limit (0.01 g/t Au) to 4.4 g/t Au, of which 201 samples (approximately 59%) returned above our anomalous background of 0.03 g/t Au. Of interest are a series of thirty samples located between the Nana and Apankrah targets returning greater than 0.1 g/t Au Additional work is required to determine if these samples are part of a halo around a new ENE trending target structure or if they are reflecting the presence of a NNE link or controlling structure. Additional channel and chip sampling is being completed on the Nkwanta concession, prior to additional samples being collected on the POW concession and expansion of the program to other concessions.
Initial prospecting passes of sampling have been returned with values ranging from detection limit to 6.6 g/t Au. A total of 192 prospecting or 'grab' samples have been collected over the Great Yorkshire, Enyinase, Nkwanta and POW concessions to date. A total of 51 samples returned above our anomalous cut off (0.03 g/t Au), representing approximately 26% of the samples. Of note are: a small cluster of anomalous samples including 0.26 g/t Au within our grid area covering the interpreted Birimian-Tarwaian structural corridor on the Great Yorkshire concession; samples of exposed veins adjacent to our drilled area at the Dansuom target returning up to 2.5 g/t Au; and samples up to 6.5 g/t Au on artisanal mining extensions to the Nana target.
The Great Yorkshire concession has been an area of interest since acquiring the reconnaissance license last fall. The concession is located on prospective Birimian-Tarkwaian boundary which is a structural control for deposits currently being mined by neighbouring companies. The magnetics survey will be expanded to include a 2.5km x 2.0km grid, located in an area of inferred structural complication on the Birimian-Tarkwaian structural corridor. Once established, this grid will be used as a basis for soil sampling, mapping and additional prospecting.
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" authored by Daniel Gaudreault, P.Eng. and Alain-Jean Beauregard, P.Geol. of Geologica Groupe-Conseil Inc., and in the NI 43-101 compliant technical report dated January 2, 2012 and entitled "NI 43-101 Technical Report on the Asuogya License, Ghana" authored by Gareth O'Donovan, Corporate Exploration Consultant, of SRK Exploration Services Ltd, copies of which are filed under the Company's profile on SEDAR at www.sedar.com.
About Castle Peak
Castle Peak Mining Ltd. is a Canadian-based exploration and development company focused on advancing greenfield 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 $3.3B USD.
On behalf of the Board of Castle Peak Mining Ltd.:
President & CEO
For additional information please visit www.castlepeakmining.com or contact:
Ashlee Utterback, Investor Relations Manager
Tel: 604 681 1466 (X225)
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, sampling and drilling at the Akorade Project. 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 Annual MD&A and 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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.