Castle Peak Provides Exploration Update - Potential Development Path for the Apankrah Deposit, southern Ashanti Belt, Ghana
Vancouver, B.C., November 19, 2013 - Castle Peak Mining Ltd. ("Castle Peak" or the "Company", TSX.V: CAP) is pleased to provide an update of our activities during this extended period of capital conservation which include consideration of a potential development path for the Apankrah Deposit, southern Ashanti Belt, Ghana.
Highlights of this announcement:
- Internally-prepared conceptual studies indicate the potential to develop the high grade Apankrah Deposit using open pit and underground mining methodologies.
- Next steps in the Apankrah development path to include limited drilling, preparation of a preliminary economic assessment to confirm the conceptual studies, stripping and bulk sampling of a shallow portion of the deposit.
- Environmental and community work initiated and increased, respectively, in order to support the potential path to development.
- Regional survey data all received and currently being compiled into a revised prospectivity map for the Akorade Project.
"We are excited about having identified a potential path towards the development of the Apankrah high grade resource that works effectively with the permitting processes within Ghana. Our conceptual studies indicate that if we undertake a limited drill program that confirms the resource and grade of the shallow portion of the deposit, it will allow us to move the Apankrah Deposit forward toward a preliminary economic assessment ("PEA"). That PEA could contemplate an open pit mining approach that transitions to an underground mining approach to access the deeper higher grade portions of the resource."
The Apankrah Deposit
The Apankrah Deposit is located on the Nkwanta prospecting license in the southeastern portion of the Castle Peak land package. The deposit is located approximately 2.5km from the main Takoradi-Tarkwa highway and approximately 1km from grid power.
Upon completing the Apankrah 43-101 inferred mineral resource estimate of 275,000 tonnes at 8.6 grams/tonne gold ("g/t Au") (NR April 30, 2013) followed by the receipt of the report on the preliminary metallurgical test work, overall gold recovery of 98% with 85% recovery in a gravity concentrate (NR August 01, 2013), Castle Peak undertook a conceptual level study in order to define a potential path forward for the development of the Apankrah Deposit. Conceptual mining methodology was reviewed to consider the potential to develop this deposit using mechanised and conventional underground mining methods. Based on these results, the conceptual study was expanded to include the potential to access the shallowest portions of the deposit using open pit mining methodology.
Based on the results of the internal studies Castle Peak has prepared a path towards development of the high grade Apankrah Deposit:
- Reduce risk of shallow ounces with a limited drill program.
- Complete a revised resource estimate and preliminary economic assessment.
- Undertake a stripping program for bedrock mapping and sampling;
- Collect a bulk sample.
Limited 'blue sky' evaluation in the immediate vicinity of the Apankrah Deposit has been undertaken by way of low cost auger sampling across the IP Target located immediately south of the Apankrah structure. This target is defined by an induced polarisation signature similar to that of the known Apankrah resource. Geochemical vectors are being sought in order to better refine a starting location for drill evaluation along this anomaly.
Additional work recently completed includes the data acquisition from the property wide gravity survey completed by a third party at no cost to Castle Peak. And the completion and receipt of data from the property wide multi-element soil survey. This new information is currently being compiled with our previously collected VTEM and magnetics surveys, our geological fact map and the historical soil survey data in order to generate a revised prospectivity map for the Apankrah Project.
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 Akorade Project represents early stage exploration properties which include a mineral resource on the Apankrah Deposit with an effective date of June 1, 2013, as described in the "NI 43-101 Technical Report on The Apankrah Project, Western Region, Ghana", dated June 1, 2013, authored by Andrew Netherwood (AusIMM), Joe Amanor (AusIMM), Simon Meadows Smith (IOM3) and John Coates as fulltime employees of SEMS, all of whom act as independent consultants to the Company. Mr Netherwood prepared the mineral resource estimate and is an independent Qualified Person as defined by NI 43-101. A copy of the report is filed under the Company's profile on SEDAR at www.sedar.com and the Castle Peak website.
About Castle Peak
Castle Peak Mining Ltd. is a Canadian-based mineral exploration company focused on advancing greenfields and early stage gold projects. The Company holds a large, 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 since 1983 has been about $12.5 billion, with production the highest in the history of the country at 4.2 million ounces in 2012 (source: Ghana Business News, April 8, 2013).
On behalf of the Board of Castle Peak Mining Ltd.:
President and Chief Executive Officer
For additional information please contact:
Stephen Muir, Investor Relations Assistant
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 future exploration and development at the Akorade Project, the preparation and publication of the revised resource estimate and PEA, the completion of an Environmental Impact Assessment, statements relating to obtaining a mining license, as well as the potential results of additional exploration on the Company's 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 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.