Newcastle drills 94.5 m of 1.25 g/t Au at Castle Mtn

2017-02-06 17:11 ET - News Release

Mr. Gerald Panneton reports

NEWCASTLE GOLD INTERSECTS 1.25 G/T GOLD OVER 94.5 METRES IN SOUTH DOMES AREA AT CASTLE MOUNTAIN

Newcastle Gold Ltd. has released assay results from new drilling on the South Domes area at the Castle Mountain gold project located in San Bernardino county, Calif. These results are part of a continuing 40,000-metre phase II definition and exploration drill program that commenced Nov. 1, 2016.

To date, 11 drill holes have been completed on South Domes to follow up on the encouraging values returned in core hole CMM-079 (1.09 grams per tonne gold over 213.7 metres -- see press release dated Aug. 16, 2016) and core hole CMM-111 (1.73 g/t Au over 135.9 metres -- see press release dated Oct. 4, 2016) on cross-section 10600N. New drilling is focused around the quartz-feldspar porphyry body and associated mineralized hydrothermal breccias identified on this section during the 2016 phase I drill campaign. The South Domes target remains open along strike to the north and south, and at depth.

Assay highlights from the first four reverse-circulation (RC) drill holes on cross-sections 10600N, 10570N and 10540N across the southern portion of the South Domes target area include:

• Section 10600N: 1.07 g/t Au over 67.1 metres, in hole CMM-132, including 2.91 g/t Au over 12.2 metres;
• Section 10570N: 1.25 g/t Au over 94.5 metres, in hole CMM-128, including 3.37 g/t Au over 15.2 metres.

Gerald Panneton, president and chief executive officer, commented: "I am very encouraged with the ongoing exploration success at South Domes, which already contained in-pit resources of 1.3 million ounces within the 4.2-million-ounce measured and indicated resource (2015 NI 43-101). New drilling continues to confirm the high-grade nature (plus 1.0 g/t Au) of the gold mineralization, and its association with previously unrecognized breccia and intrusive bodies. We will continue to extend this exciting target with additional drilling on trend to the south and north as the mineralization is open in all directions."

The current drill program is approximately one-third complete, with 13,000 metres of core and RC drilling as of Jan. 31, 2017.

   
     SUMMARY OF SIGNIFICANT 2017 CORE HOLE INTERCEPTS AT SOUTH DOMES
  
Hole ID       Section        From (m)     To (m)      Interval (m) Au (g/t)

CMM-117        10540N           74.7      164.6              89.9     0.36
including                       82.3       93.0              10.7     0.89
CMM-123        10570N           97.5      100.6               3.0     0.86
and                            115.8      120.4               4.6     0.32
and                            141.7      146.3               4.6     0.23
CMM-128        10570N          149.4      158.5               9.1     0.45
and                            195.1      387.1             192.0     0.81
including                      285.0      379.5              94.5     1.25
including                      285.0      300.2              15.2     3.37
including                      285.0      288.0               3.0    10.48
and                            402.3      405.4               3.0     0.44
and                            443.5      454.2              10.7     0.48
and                            461.8      478.5              16.8     0.46
CMM-132        10600N           47.2       53.3               6.1     0.31
and                            146.3      172.2              25.9     0.89
including                      150.9      155.4               4.6     1.41
and including                  166.1      170.7               4.6     2.96
and                            216.4      432.8             216.4     0.61
including                      219.5      286.5              67.1     1.07
including                      254.5      262.1               7.6     1.95
and including                  274.3      286.5              12.2     2.91
including                      274.3      278.9               4.6     6.08
and                            481.6      489.2               7.6     1.19
including                      481.6      484.6               3.0     2.58

All new exploration holes were drilled at 290 degrees azimuth, with dips of mminus 60 degrees and to an average depth of 335 to 500 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.

Reverse-circulation drill samples from hole CMM-117/123/128 were submitted to ALS Minerals in Reno, Nev., for crushing until 70 per cent of the sample is finer than 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-micron) 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 reanalyzed, 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 part per million assay are also analyzed for gold cyanide solubility (ALS method AuAA-13).

Reverse circulation drill samples from hole CMM-132 were submitted to Inspectorate America Corp. in Sparks, Nev., for crushing until 70 per cent of the sample is finer than nominal two millimetres in size. A 250 g subsample is taken from the crushed material and pulverized until 85 per cent passes a 200 mesh (75-micron) screen (method PRP70-250). A 30 g portion of pulverized material (pulp) is then sampled and subjected to fire assay with atomic absorption finish (method FA430). 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. All samples that yield greater than 0.2 ppm assay are also analyzed for gold cyanide solubility (method CN403).

The company employs an industry-standard quality assurance/quality control program consisting of standard pulps, coarse blanks and rig duplicates.

About Newcastle Gold Ltd.

Newcastle has a 100-per-cent interest in the Castle Mountain property in San Bernardino county, Calif. The Castle Mountain heap-leach gold mine produced over one million ounces of gold from 1992 to 2004.

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.

We seek Safe Harbor.