- Akorade Project
Castle Peak Looks To Move High-Grade Apankrah Target Area Toward Development
Vancouver, B.C., April 2, 2013 - Castle Peak Mining Ltd. ('Castle Peak' or the 'Company', TSX.V: CAP), is pleased to report it is seeking to move toward development at the high-grade Apankrah Target Area in the southern Ashanti belt, Ghana, West Africa. In 2012, the Company completed 4,470 metres ('m') of drilling at the Apankrah Target Area, to define the high-potential Apankrah Shoot and further test the associated Nana and Scorpio targets. Drilling highlights included numerous high grade intercepts, notably hole NKDDH022 returning 6.0m of 80 grams per tonne ('g/t') gold ('Au') (uncut) including 1.6m of 296 g/t Au, and hole NKDDH030 returning 5.0m of 8.5 g/t gold. The initial testing of the Scorpio target indicated shoot potential with visible gold in the core and drill results of 16.5m of 1.1 g/t Au, including 4m of 4.1 g/t Au.
As previously announced in the January 14, 2013 news release, the Apankrah Shoot has been intersected by 12 drill holes with an average intercept length of 6.6m and an average intercept grade of 5.7 g/t Au [bonanza grades in hole NKD022 capped to 50 g/t Au]. In comparison, the average grade of these drill intercepts is akin only to two other deposits currently being mined in Ghana. After internally modeling the Apankrah target, the Company is now working to complete a preliminary resource estimate expected in the coming weeks.
The Company has also been working towards completing preliminary metallurgical analysis in an effort to initiate a preliminary economic assessment for developing the Apankrah Target Area. The samples needed for this work are currently being held in the Geological Survey Branch in Ghana due to government control on sample exports. Castle Peak is working through this delay and expects a 4-6 week turnaround time once the samples are moved to South Africa for assessment.
The Company is also prioritizing targets with potential to become additional shoots in close proximity to the known Apankrah Shoot. Higher priority targets include: (1) limited testing of the area surrounding the visible gold intercepted during the 2012 evaluation of the Scorpio structure; and (2) evaluation of the geophysical anomaly that is similar to that of the known high-grade Apankrah Shoot (see figure 1).
Castle Peak has built a solid approach to understanding the two key structural trends on our 225 square kilometer land package - the mineralized corridors and higher grade portions within those corridors on the Asuogya-Ayiem-Dansuom trend, and the Birimian-Tarkwaian structural corridor.
The Company is continuing field work for target generation, evaluating inferred structure and geology by mapping, prospecting, trenching and soil and channel sampling. The exploration team continues to explore high potential targets with focus on identifying larger, lower grade systems to compliment the known higher grade Apankrah area. Given the current market environment, Castle Peak is also considering strategic alternatives such as joint venture partners for earlier stage targets to reduce exploration risk for shareholders.
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; drill and road cut channel 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 with visible gold or returning greater than 5 g/t Au from fire assay are subject to analysis using screen metallic assay. Multi-element soils survey samples are placed in sealed bags and are delivered to ALS Minerals in Kumasi, Ghana, for routine aqua regia ICPMS multi-element analysis. 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, putting Ghana as the second largest gold producer in Africa with past production of >150 million ounces. The investment inflow for Ghana's mining sector was $2.5 billion from 2009 to 2011, with increasing annual production reaching 3.6 million ounces in 2011 (source: Ghana Business News, November 11, 2012).
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:
Marlo Hamer-Jackson, 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; statements concerning the anticipated results of that exploration, sampling and drilling, including statements relating to the timing and publication of a mineral resource estimate in 2013; and statements relating to the anticipated timing of any preliminary economic assessment. 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 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.
FIGURE 1: An induced polarization geophysical survey reveals a similar signature approximately 250 metres to the south of the high-grade Apankrah discovery (shown here to the right).