- Akorade Project
Castle Peak Reports 9.8m Of 6.8 G/T Au, Including 1.0m Of 51.8 G/T Au From Apankrah Target
Vancouver, B.C., July 11, 2012 -- Castle Peak Mining Ltd. ('Castle Peak' or the 'Company', TSX.V: CAP), is pleased to report results for initial follow-up diamond drill holes completed at the high grade Apankrah target at the Company's Akorade Project in the southern Ashanti belt in Ghana, West Africa. The follow-up holes, designed to confirm the high grade shoot geometry, returned encouraging values including 10.0 metres ('m') of 6.7 grams per tonne ('g/t') gold ('Au') from hole NKDDH017 and 9.8m of 6.8 g/t Au including 1.0 m of 51.8 g/t Au from hole NKDDH018.
These drill results represent the initial evaluation of the higher grade gold distribution on the Apankrah structure, one of a series of parallel east-north-east ('ENE') trending structures across the Nkwanta Concession (see Figure 1 Plan Map). Based on these results, drill evaluation for expansion of the known shoot and targeting of new inferred shoots and mineralized structures continues. With a total of 8 holes completed to date, the initial 4 holes of the campaign at Apankrah are reported within this release.
Darren Lindsay, President and CEO, stated "These results are a positive starting point for testing the same structural controls in the immediate Apankrah area on the Apankrah, Nana and newly identified parallel structures and provide us confidence to continue follow-up drilling on these targets. The geophysical surveys are also building strong targets that appear to link our higher grade shoot areas; these new targets have the potential to enhance this current area of focus and lead us closer to our goal."
Summary Table of Apankrah Drill Results:
|Hole ID||Target||From (m)||To (m)||Length (m)||Au (g/t)||Notes|
|NKDDH0019||Apankrah||-||-||-||NSI||Shallow test to west|
|NKDDH009ext||Apankrah||126.0||137.0||11.0||1.22||Extension of NKDDH009|
|includes||126.0||126.9||0.90||12.65||Shallow eastern edge of shoot|
- Lengths are core lengths; true widths are unknown and estimated at greater than 80% of core length
- Composites are length weighted averages with a cut off of 0.1 g/t Au and inclusive of up to 3m of assays below the cut off value.
- NSI = no significant intercept
The Nkwanta area is highlighted by a 2,000m x 400m soil anomaly defined by gold values greater than 30 parts per billion ('ppb'). Two initial target areas defined by artisanal workings include the Apankrah and Nana structures which are ENE trending structures approximately 500m apart in the northern portion of the soil anomaly (see Figure 1 Plan Map). A third parallel structure located north of the Nana target is active with artisanal mining. A geophysically anomalous trend and artisanal work area trending NNE between the known and inferred shoots is known as the Scorpio target.
A total of 6 core holes have been completed to date, 4 reported herein, which have partially defined the geometry of the previously inferred higher grade shoot. Drilling indicates that the shoot is still open on strike at depth to the west, down dip and down plunge. The steeply plunging shoot will be evaluated down dip and down plunge based on knowledge gained from this drilling and discussions with artisanal miners on parallel structures. Drilling has tested to a vertical depth of 150m (see Figure 2 Cross Section) and based on shoot geometry the next proposed holes are to test target depths of up to 250m, as shoots on known productive structures in Ghana (Chirano, Subika) tend to improve at these depths. A potential parallel shoot on the Apankrah structure will also be evaluated during this drill campaign.
A total of 2 core holes have been completed in this campaign, for a total of 368m. Drilling evaluated an inferred shoot based on previous drill results and the geometry confirmed at the Apankrah target. Assays are pending.
The 2012 exploration program is two-fold: i) follow up on high priority drill targets to advance to a Phase II definition stage, and ii) continue to generate high quality targets to fill the exploration pipeline including Phase I drill evaluation. As part of Castle Peak's systematic exploration approach and to assist in further targeting, the Company is currently awaiting the geophysical interpretation on the ground magnetics and induced polarization geophysical surveys completed on the Nkwanta, Asuogya-Ayiem and Great Yorkshire concessions in May. This third--party interpretation is expected in early August, and will enhance target generation and compilation by providing a more detailed interpretation of the underlying geology and structure of this high potential target area in the southern Ashanti gold belt.
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 exploration activities are supervised by Clive Arthur, Castle Peak's Vice President Exploration. 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. Samples returning greater than 5 g/t Au from fire assay are subject to re-analysis using screen metallic assay. 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 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 $3.3 B USD.
On behalf of the Board of Castle Peak Mining Ltd.:
President and Chief Executive Officer
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 and statements concerning the anticipated results of that exploration, sampling and drilling. 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.