SB: TSX Venture Exchange
Issued: 62,745,111 shares
CALGARY, Dec. 22 /CNW/ - Stratabound Minerals Corp. (TSX.V:SB) is pleased to report the results of a 4,000 metre drill program completed by Castle Resources Inc. ("Castle") on the West Gabbro Zone (WGZ) of Stratabound's Elmtree Gold property near Bathurst, New Brunswick. Castle has been funding and exploring the Elmtree property under a three-year option agreement with Stratabound. Under terms of the agreement, Castle can earn a 60% interest in the property by issuing 200,000 common shares of Castle to Stratabound on signing, making staged payments of $200,000 by June 1, 2012 and spending $2,500,000 on exploration, including minimum annual exploration expenditures of $750,000. Castle can acquire another 10% by paying Stratabound $1,000,000 within 90 days of acquiring the initial 60%.
The following text is taken from Castle's December 20, 2010 press release:
- Infill drilling completed to move resource to Measured and Indicated as part of ongoing feasibility by Micon International
- Feasibility to be released Q1 2011; Production targeted Q4 2011
- Environmental permitting process underway
"The Company recently completed a 4,000 metre infill diamond drill program on the West Gabbro Zone ("WGZ") of the Elmtree Property near Bathurst NB from August to September 2010. The objective of the infill diamond drilling program was to ensure the WGZ is drilled at a sufficient spacing in order to graduate the resource estimate previously defined by Mercator Geological Services from indicated and inferred to measured and indicated. Micon International is currently completing a feasibility study on the Elmtree Gold Project set to be released Q1 of 2011.
"Significant progress has been made at the Elmtree Gold project over the past several months," said Mr. Mike Sylvestre, President & Chief Operating Officer of Castle Resources. "We have completed a 4,000 metre infill program and completed key First Nations and local community information sessions. The project has been registered with the New Brunswick Department of Environment and will require a federal environmental assessment as part of the ongoing comprehensive study. It remains our goal to aggressively advance this project towards production in the last quarter of 2011."
Stantec Consulting Ltd. is proceeding through the comprehensive environmental assessment and permitting process for the Elmtree Gold Project. This process addresses environmental components and impacts such as wildlife and aquatic environments, water resources and wetlands, atmospheric considerations, traditional and local use and effects, archaeological and heritage, as well as public and stakeholder involvement, input and aboriginal engagement. Management has already held several First Nation and community meetings in New Brunswick as part of its commitment and responsibility to local involvement as the Elmtree project is advanced towards production.
Complete Elmtree 2010 Drilling Results
Note: All holes are downhole thickness
|Hole||Start||End||Width (m)||Au g/t|
|ELM10-87||Nothing of economic significance|
|ELM10-97||Nothing of economic significance|
|ELM10-99||Nothing of economic significance|
|ELM10-100||Nothing of economic significance|
The Company received a positive Preliminary Economic Assessment from Micon early this year which indicates a pre-tax IRR of 25% using $900 Au/oz and a pre-tax IRR of 63% using $1,100 Au/oz, based on open pit mining and processing of 1.117 million tonnes with an average gold grade of 2.41 g/t Au, a stripping ratio of 6.3 (W/O), and assuming a 90% Au recovery. Management estimates total production from operations will be approximately 100,000 oz. over a 1.5 year mine life. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Castle is in the second year of a 3 year option agreement with Stratabound Minerals Corp. to acquire up to a 70% interest in their 100% owned Elmtree Gold Property (see press release dated June 12, 2009). As of the end of September 2010, Castle has met its obligations for the second year under the option agreement. The Elmtree Gold Project is located in a favourable mining jurisdiction with excellent local milling and processing infrastructure, including power, roads and a skilled work force."
The technical information contained in this release has been reviewed by John Duncan, P.Geo. and Stan Stricker, P.Geol., Qualified Persons as defined in National Instrument 43-101.
For full details of QA/QC Protocol implemented by Castle please refer to their news release dated December 20, 2010.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Certain information regarding the Company contained herein may constitute forward looking statements. Forward looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward looking statements. The Company is under no obligation to update or alter any forward looking statement. These risks include operational and geological risks and the ability of the Company to raise necessary funds for exploration. The Company's forward looking statements are expressly qualified in their entirety by this cautionary statement.
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