COQUITLAM, BC, June 12, 2017 /CNW/ - Castle Silver Resources Inc. (TSX.V: CSR, OTC: TAKRF, FRANKFURT: 4T9B) (the "Company" or "CSR") is pleased to announce that chip sampling from the back of a quartz-carbonate vein on the first level of the Company's 100%-owned Castle mine near Gowganda, Ontario, has confirmed the presence of high-grade cobalt and nickel. This is significant as previous mine operators, from the early 1900's to 1990, only assayed for silver in their exclusive focus on exceptionally high-grade silver production.
Highlights of the first five chip sample results, all strongly mineralized, are as follows:
- 1.8% cobalt, 8.6% nickel and 25.2 g/t silver (CSR-17-S03)
- 1.6% cobalt, 7.6% nickel and 32 g/t silver (CSR-17-S04)
- 0.81% cobalt, 5.9% nickel and 4.1 g/t silver (CSR-17-S01)
Underground sampling covering multiple target areas continues at Castle ahead of drilling.
Frank Basa, CSR President and CEO, stated: "We are very pleased with these initial results which demonstrate how Castle features strong upside potential for unmined cobalt and base metal mineralization throughout 11 levels covering a footprint 727 meters east-west, 455 meters north-south and 258 meters deep. Significantly, our proprietary Re-2OX process is designed for high recovery of multiple metals and elements, opening opportunities that simply didn't exist decades ago at this mine or throughout the northern Ontario Silver-Cobalt district.
"We refer investors to our May 1 news release and the importance of the 300-meter thick Nipissing diabase intrusive that underlies a large portion of the property." Basa concluded.
Castle Sampling Details
The first five chip samples (CSR-17-S01 through CSR-17-S05) averaged 1.06% cobalt, 5.3% nickel and 17.5 g/t silver. They were taken along a 4-meter length of a vein as wide as 30 cm a short distance inside the adit. The vein pinches and swells for an estimated 90 meters.
CSR cautions investors that the chip samples are selective samples and should not be considered representative of the mineralization hosted within the target area.
Meanwhile, CSR is completing a series of bulk samples that are being put through the company's proprietary Re-2OX hydrometallurgical process to produce high purity cobalt powders for battery sector end buyer evaluation.
A series of chip samples, totaling approximately 200 kg, were taken along a 4-metre length of the vein. Tarps were placed on the ground under the vein to collect the sampled material which was subsequently placed in 5-gallon pails and rice sacks. A total of 5 composite samples were taken from the 200 kg bulk sample and transported by truck to Swastika Laboratories, an accredited lab, in Swastika, Ontario for assay with analysis by aqua regia digestion and atomic absorption finish. The remainder of that material will be submitted to SGS Laboratories in Lakefield, Ontario to use the Re-2Ox process to develop samples for evaluation for the Asian battery market. Samples at Swastika were crushed to 75% passing 2 mm, split to 250 grams and pulverized to 80% passing 200 mesh. Acid was then applied to a small pulp.
Claude Duplessis, P.Eng., of Goldminds Geoservices Inc., a geological, environmental and mining consultant, is an independent qualified person in accordance with National Instrument 43-101, and has reviewed and approved the contents of this news release.
About Castle Silver Resources Inc.
Castle Silver Resources Inc. (formerly Takara Resources Inc.) is a TSX Venture-listed junior natural resource company focusing on the exploration and development of past producing silver and cobalt mines in northern Ontario including the Castle Silver-Cobalt Project near Gowganda and the Beaver and Violet mines near Cobalt. Additional information on the Company's properties and strategies related to the battery sector are available by visiting its website at www.CastleSilverResources.com.
"Frank J. Basa"
Frank J. Basa, P. Eng.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
SOURCE Castle Silver Resources Inc.
For further information: Frank J. Basa, P. Eng., President and CEO at 1-819-797-4144; or Wayne Cheveldayoff, Investor Relations, [email protected], 416-710-2410