Newcastle Gold drills 18.3 m of 1.95 g/t Au at Castle

2017-01-12 06:43 ET - News Release

Mr. Gerald Panneton reports

NEWCASTLE GOLD REPORTS EXPLORATION DRILL RESULTS FROM THE EAST RIDGE AREA AT THE CASTLE MOUNTAIN PROJECT 1.95 G/T GOLD OVER 18.3 METRES

Newcastle Gold Ltd. has released assay results from the remaining 10 reverse circulation drill holes from the 2016 exploration phase I drill program at the Castle Mountain gold project, located in San Bernardino county, California. The holes tested the East Ridge target, located 100 to 300 metres east of the historic Oro Belle open pit and the main Oro Belle trend (OBT).

East Ridge target

Ten holes tested the extent of gold mineralization over a strike length of 300 metres from Section 12600N to 12900N along the eastern margin of the known mineral resource. All holes were angled to the northwest to test sparsely drilled regions with the 2015 resource block model and also to assess near-surface expressions of gold mineralization. All holes returned encouraging intercepts within the pit model and up to 200 metres below modelled pit limits and collectively define a broad northeast-southwest-trending corridor parallel to the main structural trends which control mineralization at Castle Mountain. The East Ridge target is open to the north, south, east and at depth. Assay highlights follow.

Section 12750 N

• 1.95 grams per tonne gold over 18.3 metres, including 3.08 g/t Au over 10.7 metres, in hole CMM-109.

Section 12800 N

• 0.48 g/t Au over 56.4 metres in hole CMM-112.

Section 12900 N

• 0.66 g/t Au over 50.3 metres in hole CMM-115;
• Including 3.23 g/t Au over 6.1 metres;
• 0.47 g/t Au over 12.2 metres in hole CMM-114 near surface.

Gerald Panneton, president and chief executive officer, commented: "The 2016 East Ridge drill program has demonstrated excellent continuity along this parallel structure to the main Oro Belle trend, with greater widths of gold mineralization than anticipated. The East Ridge target, combined with the main Oro Belle trend, shows that the gold-mineralizing system is still very strong on the northern portion of the Castle Mountain project."

The 2016 phase 1 drill program was completed in mid-October with a total of 20,200 metres in 49 drill holes. The company currently has six rigs drilling on its plus-40,000-metre program (see press release dated Nov. 1, 2016), completing definition and expansion drilling in Oro Belle South and extending gold mineralization at South Domes.

   SUMMARY OF SIGNIFICANT 2016 INTERCEPTS AT THE EAST RIDGE TARGET
                                                                                  
Hole               From             To            Interval         Au
                     (m)            (m)                 (m)      (g/t)

CMM-105            61.0          114.3                53.3       0.28
and               185.9          193.5                 7.6       0.38
and               394.7          399.3                 4.6       0.33
and               410.0          417.6                 7.6       0.42
and               426.7          431.3                 4.6       0.28
CMM-106             4.6           16.8                12.2       0.30
and               373.4          405.4                32.0       0.31
and               411.5          417.6                 6.1       0.29
CMM-107           283.5          333.8                50.3       0.32
CMM-108            48.8           53.3                 4.6       0.38
and                77.7           93.0                15.2       0.37
and               179.8          182.9                 3.0       0.34
and               236.2          240.8                 4.6       0.30
and               257.6          262.1                 4.6       0.82
and               300.2          313.9                13.7       0.27
and               358.1          378.0                19.8       0.31
and               400.8          406.9                 6.1       0.61
CMM-109             1.5           12.2                10.7       0.29
and                76.2           93.0                16.8       0.31
and               105.2          108.2                 3.0       0.52
and               128.0          141.7                13.7       0.27
and               196.6          225.6                29.0       0.34
and               387.1          405.4                18.3       1.95
including         391.7          402.3                10.7       3.08
and               437.4          440.4                 3.0       0.60
and               448.1          452.6                 4.6       0.43
CMM-110           185.9          198.1                12.2       0.69
including         187.5          190.5                 3.0       1.72
and               411.5          416.1                 4.6       0.43
CMM-112            32.0           88.4                56.4       0.48
including          41.1           45.7                 4.6       2.49
and               106.7          111.3                 4.6       0.40
CMM-113             7.6           22.9                15.2       0.32
and                96.0          100.6                 4.6       0.30
and               303.3          307.8                 4.6       0.48
and               317.0          321.6                 4.6       0.40
and               396.2          405.4                 9.1       0.40
and               451.1          458.7                 7.6       0.29
CMM-114            18.3           30.5                12.2       0.47
and                47.2           50.3                 3.0       0.28
and                59.4           86.9                27.4       0.29
and               132.6          135.6                 3.0       0.44
and               275.8          278.9                 3.0       0.28
and               304.8          324.6                19.8       0.28
and               373.4          382.5                 9.1       0.29
CMM-115           103.6          114.3                10.7       0.92
and               123.4          134.1                10.7       0.33
and               324.6          374.9                50.3       0.66
including         324.6          330.7                 6.1       3.23
and               403.9          410.0                 6.1       0.41

All new exploration holes were drilled at the northwest at 290-degree azimuth, with dips of minus-60 to minus-80 degrees, and to a depth range of 150 to 460 metres. True widths of the intercepted intervals are estimated to be 70 per cent to 90 per cent of intersected widths based on the available geological information.

Widespread epithermal gold mineralization is present along the East Ridge target where it is hosted within a complex, shallow-dipping sequence of Miocene-age rhyolite flows and lesser tuffaceous units cut by steep northeast-trending/southeast-dipping fault structures with associated zones of silicification, hydrothermal brecciation and near-vertical latite dikes.

About Newcastle Gold

Newcastle has a 100-per-cent interest in the Castle Mountain property in San Bernardino county, California. An updated National Instrument 43-101 resource for the project was announced Dec. 2, 2015, which includes measured mineral resources of 17.4 million tonnes grading 0.86 gram per tonne gold containing 480,000 gold ounces, indicated mineral resources of 202.5 million tonnes grading 0.57 g/t gold containing 3.71 million gold ounces along with inferred mineral resources of 40.8 million tonnes grading 0.58 g/t gold and containing 760,000 gold ounces.

All drill samples are submitted to ALS Minerals in Reno, Nev., for splitting and then crushing until 70 per cent of the sample is finer than a nominal two millimetres in size. A 250-gram subsample is taken from the crushed material and pulverized until 85 per cent passes a 200-mesh (75 micrometres) screen (ALS method PREP-31). A 30 g portion of pulverized material (pulp) is then sampled and subjected to fire assay with atomic absorption finish (ALS method AuAA-23). Any gold assays greater than 10 g/t Au are reanalyzed where a 30 g portion is taken from the pulp and assayed by FA with a gravimetric finish (ALS method Au 30 g FA-GRAV). All samples that yield greater than 0.2 part per million assay are also analyzed for gold cyanide solubility (ALS method AuAA-13). The company employs an industry-standard quality assurance/quality control program consisting of standard pulps, coarse blanks and rig duplicates.

Ian R. Cunningham-Dunlop, PEng, the company's senior vice-president, technical services, is the designated qualified person for this news release within the meaning of National Instrument 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.

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