NewCastle Gold intersects 1.63 g/t gold over 27.1 metres on Oro Belle Trend at Castle Mountain

VANCOUVER, Sept. 6, 2016 /CNW/ - NewCastle Gold Ltd. (TSX-V: NCA) ("NewCastle" or the "Company") is pleased to report additional assay results from the Company's ongoing 22,000 metre Phase I drill campaign at the Castle Mountain Gold Project (the "Project") located in San Bernardino County, California.  The drill program (the "Program"), which started in mid-June 2016, has now shifted focus to the Oro Belle Trend ("OBT") which hosts the main mineral resource and is underpinned by the past-producing Oro Belle, Jumbo and JSLA open pits. The Oro Belle Trend is 1 kilometre wide and at least 2 kilometres long as it is still open to the northeast (Section 11500N to 13500N).

OBT - BC Target

Assay highlights have been received for six holes, including a five-hole diamond core cross-section (11550N) across the southern end of the OBT, and include:

  • 1.63 grams per tonne gold ("g/t Au") over 27.1 metres, in hole CMM-031Ext*;
    • including 9.50 g/t Au over 3.0 metres;
  • 1.07 g/t Au over 56.4 metres, in hole CMM-095;
    • including 2.31 g/t Au over 10.7 metres
  • 0.77 g/t Au over 28.5 metres, in hole CMM-093;
    • including 1.79 g/t Au over 7.3 metres
  • 0.49 g/t Au over 30.3 metres and 0.51 g/t Au over 21.3 metres, in hole CMM-094

* Hole CMM-031Ext is a re-entry and extension of CMM-031 which was completed in 2013 to a depth of 313.6 metres.

President and CEO, Gerald Panneton commented: "Extending hole CMM-031 proved to be very positive as we extended gold mineralization some 200 metres below the currently modeled 2015 pit bottom.  We also continued to return gold intercepts at better than resource grade, such as in hole CMM-095."

Gold mineralization encountered in the five core holes on Section 11550N through the BC Target supports the geological model of the alignment of near-vertical intrusive quart-feldspar porphyry bodies along major northeast-southwest structural corridors, with proximal hydrothermal breccias and associated disseminated gold mineralization.  Hole CMM-031Ext traced the development of these breccias into the underlying basement Precambrian metamorphic rocks, 2000 feet (600 metres) below surface, with anomalous gold values.

Table 1: Summary of Significant 2016 Drill Hole Intercepts from the Oro Belle Trend - BC Target1

Hole_ID

Type

From
(metres)

To
(metres)

Interval
(metres)

Au
(g/t)



Oro Belle Trend - BC Target

CMM-31Ext

Core

313.6

340.7

27.1

1.63

including


325.5

328.5

3.0

9.50

and


359.0

365.1

6.1

0.29

and


371.3

385.0

13.7

0.82

and


430.7

473.4

42.7

0.40

and


514.2

518.8

4.6

0.35

and


680.3

685.9

5.6

0.83

CMM-093

Core

73.0

101.5

28.5

0.77

including


89.8

97.1

7.3

1.79

CMM-094

Core

89.3

92.4

3.0

0.55

and


191.4

194.5

3.0

0.31

and


208.2

238.5

30.3

0.49

and


247.5

268.8

21.3

0.51

and


363.6

378.9

15.2

0.30

and


402.2

409.3

7.2

0.34

and


417.0

436.8

19.8

0.22

and


442.9

449.0

6.1

0.22

CMM-095

Core

131.7

141.1

9.4

0.24

and


151.8

208.2

56.4

1.07

including


185.3

196.0

10.7

2.31

CMM-096A

Core

96.6

100.0

3.4

0.88

CMM-100

RC

96.0

111.3

15.2

0.28

1 All new reported exploration holes were drilled at 110 degrees or 290 degrees azimuth, with dips of -55 to -78 degrees, and to an average depth of 450 to 500 metres. True widths of the intercepted intervals cannot be determined from the available geological information.

 

OBT- Southwest Extension

Five reverse circulation (RC) holes  ̶  CMM-084/085/086/088/092  ̶  tested the southwest extension for the main OBT but returned only anomalous results.  The OBT may not be closed off as it is possible that the trend is shifting to the southeast and continues through the South Domes mineral resource area (see press release dated August 16, 2016).

For a drill hole location map of recent drill holes, please click this link: https://www.newcastlegold.ca

For a drill hole cross-section of recent drill holes, please click on this link: https://www.newcastlegold.ca

A total of 16,900 metres in 39 drill holes have been completed to August 31 with two RC drill rigs and two diamond core drill rigs.

All diamond core samples are submitted to ALS Minerals in Reno, Nevada for splitting and then crushing until 70% of the sample is finer than a nominal two millimetre in size. A 250 gram ("g") sub-sample is taken from the crushed material and pulverized until 85% passes a 200 mesh (75 µm) screen (ALS Method PREP-31).  A 30 g portion of pulverized material (pulp) is then sampled and subjected to fire assay ("FA") with atomic absorption ("AA") finish (ALS Method AuAA-23). Any gold assays greater than 10 g/t Au are re-analyzed where a 30 g portion is taken from the pulp and assayed by FA with a gravimetric finish (ALS Method Au 30g FA – GRAV). All samples that yield greater than 0.2 ppm assay are also analyzed for gold cyanide solubility (ALS Method AuAA-13).  The Company employs an industry standard QA/QC program consisting of standard pulps, coarse blanks and rig duplicates.

About NewCastle

NewCastle has a 100% interest in the Castle Mountain property in San Bernardino County, California. The Castle Mountain heap leach gold mine produced over one million ounces of gold from 1992 to 2004. The Mine and Reclamation Plan, under which the mine operated, was authorized by the County of San Bernardino as the Lead Agency and remains in effect. Water for the drill programs was accessed from existing patented wells on the Project. An updated NI 43-101 resource for the project was announced December 2, 2015 which includes Measured Mineral Resources of 17.4 million tonnes grading 0.86 g/t gold and containing 0.48 million gold ounces, Indicated Mineral Resources of 202.5 million tonnes grading 0.57 g/t gold and containing 3.71 million gold ounces, along with Inferred Mineral Resources of 40.8 million tonnes grading 0.58 g/t gold and containing 0.76 million gold ounces.

The Project hosts a disseminated low sulphidation epithermal system. Gold is primarily hosted by late-stage rhyolite volcanic units within zones of silicification and brecciation associated with northeast-southwest trending/southeast dipping fault structures which are interpreted to have developed within a collapsed caldera environment. Eleven gold domains are represented by both steep and shallow-dipping orientations. 

Ian R. Cunningham-Dunlop, P. Eng., the Company's Vice President Exploration, is the designated Qualified Person for this news release within the meaning of NI 43-101. He has reviewed and verified that the technical information contained in this release is accurate and has approved of the written disclosure of the same.

Neither the 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 news release.

Forward-Looking Statements

This news release contains "forward-looking statements" and "forward-looking information" (collectively, "forward-looking information") within the meaning of applicable Canadian securities legislation. Forward-looking information includes information that relates to, among other things, statements with respect to the completion of the proposed drill program at Castle Mountain, the mineral resource expansion at Castle Mountain and the identification of future expansion targets at Castle Mountain. Forward-looking information is not, and cannot be, a guarantee of future results or events.

Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by us at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results and events to be materially different from those expressed or implied by the forward-looking information. The material factors or assumptions that we identified and were applied by us in drawing conclusions or making forecasts or projections set out in the forward looking information include, but are not limited to that the Company is able to procure personnel, equipment and supplies required for its exploration and development activities in sufficient quantities and on a timely basis and that actual results will be consistent with management's expectations.

The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information may include, but are not limited to, the risks discussed under the heading "Risks" in general to the business of NewCastle in documents filed (or to be filed) with Canadian regulatory authorities. Should one or more risk, uncertainty, contingency or other factor materialize or should any factor or assumption prove incorrect, actual results could vary materially from those expressed or implied in the forward-looking information. Accordingly, the reader should not place undue reliance on forward-looking information. NewCastle does not assume any obligation to update or revise any forward-looking information after the date of this news release or to explain any material difference between subsequent actual events and any forward-looking information, except as required by applicable law.

SOURCE NewCastle Gold Ltd.

For further information: NewCastle Gold Ltd., Susan Muir, Vice President, Investor Relations & Corporate Communications, Telephone: 416-505-7606, Email: smuir@newcastlegold.ca

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