Castle Peak Plans Drilling on Strong Sampling Results

Castle Peak Mining is out with results from its recently completed summer sampling program at its Akorade Project in Ghana. The company was encouraged by its sampling results at the POW A1/3 and DO_New prospects and drilling is proposed to be initiated in the near future on these targets. The objectives of the proposed program are to confirm the presence of a mineralizing system creating the anomalous signatures, provide geological information for directing follow-up programs and to provide support for an expanded exploration program.

 

CASTLE PEAK PLANS DRILLING ON STRONG SAMPLING RESULTS

Vancouver, B.C., August 30, 2016 – Castle Peak Mining Ltd. (“Castle Peak” or the “Company”, TSX.V: CAP), is pleased to announce that based on the results of the recently completed sampling program at the Akorade Project the Directors of the Company support initial drill evaluation of three prospects. The prospects of interest are within the Akorade Project located in the southern Ashanti Belt, Ghana. The results of the sampling are summarized below along with the objectives of the proposed drill program.

Highlights:

• Dansuom North: Of the 49 sample sites, 14% returned >70 parts per billion (“ppb”) gold (“Au”), with a range of <10 to 200ppb Au, forming a 400m x 90m anomaly within the targeted induced polarization anomaly; anomaly is open to the north. The geochemistry confirms the use of gradient induced polarization as an exploration tool.

• POW A1/3: Of the 56 sample sites, 35% returned >100ppb Au, with a range of <10 to 330ppb Au, forming a 600m long by 150m wide target zone within a larger anomalous zone (+1000m by 200m). Recent sampling expanded the main prospect target area. This main anomaly is open on strike and a second potential zone will require additional sampling follow-up.

• DO_New: From the 46 samples sites, 37% returned >100ppb Au, with a range of <10 to 920ppb Au, forming a broad 300m by 80m anomaly taking a curvilinear shape around and over a topographic high. This anomaly is open in all directions.

Drilling is proposed to be initiated in the near future on the POWA1/3 and DO_New prospects with the evaluation of the Dansuom North prospect on hold pending the renewal of the forestry permit. The objectives of the proposed program are to confirm the presence of a mineralizing system creating the anomalous signatures, provide geological information for directing follow-up programs and to provide support for an expanded exploration program.

Dansuom North. The sampling results confirmed the use of auger sampling and gradient induced polarization as exploration tools in this area. Drilling will be the ultimate proof of concept for this exploration methodology. Previous drilling on Dansuom Central returned a best intercept of 11 meters (“m”) of 2.9 grams per tonne (“g/t”) (NR Nov.15, 2011) and a road chip sample of 26m of 1.7 g/t Au (NR Dec. 5, 2012); neither of these mineralized features have been followed-up. Additionally a third target area Dansuom South also occurs within this structural corridor.

The sampling results from POW A1/3 surpassed our expectations of refining the existing prospect. The sampling expanded the main anomalous zone from 300m x 75m to 600m x 150m which coincides with a ridge line with an approximate height of 30m. Additional anomalous samples (240, 205, 160 ppb Au) at the northeastern edge of the auger grid will require follow-up to define another potential prospect. The main anomaly occurs at an intersection of a strong linear magnetic break and an inferred fault. See Figure 1.

The Dompem New (DO_New) prospect sampling forms a strong curvilinear anomaly across a hill top. Rock units inferred/observed include sandstones and conglomerates west of the prospect, medium and coarse grained feldspar and quartz-phyric intrusive units and rare altered and unaltered mafic volcanic units east of the prospect and abundant quartz cobbles and boulders within the main anomaly of the prospect. The anomaly is open in all directions. See Figure 2.

The objectives of sampling Akoko Trend were not attained; narrow, discontinuous anomalous trends resulted from the sampling with 18% of the samples returning >50ppb Au (85 samples, range <10 to 360ppb Au). The best coherent results (50, 80, 205 ppb Au) were from the very southern portion of the sampling immediately on trend of the Akoko resource forming a 200m x 50m zone; a second zone of interest is defined by eight samples (10 to 315ppb Au) over 600m x 50m. Infill sampling or trenching is required to further evaluate continuity and areas of focus for these potential targets.

Earlier stage prospect K4, on trend between the Asheba and Kanyankaw areas of historic production, did not return any samples forming coherent anomalies. Target evaluation for this prospect will have to be re-evaluated. Only 13% of the samples (29 samples, range <10 to 45ppb Au) returned values about the base anomalous level of 30ppb Au.

Maps, descriptions and additional information about these prospects and our other prospects and anomalies will be made available on our website which is currently being refreshed (www.castlepeakmining.com).

Castle Peak continues to evaluate and prioritize targets immediately adjacent to its current high grade Apankrah Deposit, a discovery by Castle Peak consisting of an inferred resource of 275,000 tonnes @ 8.6 g/t Au for 76,000 ounces*. Partners are currently being sought in order to expand and advance this deposit.

*Mineral resources are reported with an effective date of June 1, 2013 at a cut-off grade of 2 grams per tonne (‘g/t’) gold (‘Au’). Cut-off grades are based on a price of $1,400 USD/oz Au. All figures are rounded to reflect the relative accuracy of the estimate. Mineral resources are not mineral reserves and do not have demonstrated economic viability. Mineral resources have been classified according to CIM Standards on Mineral Resources and Reserves. There are no known environmental, political, legal or other risks that could materially affect the potential development of the mineral resource at this time.

Technical Disclosure

Castle Peak’s technical disclosure in this news release has been reviewed and approved by Darren Lindsay, P.Geo., Castle Peak’s President and CEO, who serves as a Qualified Person under the definition in National Instrument 43-101 (‘NI 43-101’). The exploration activities reported in the release were supervised by Henry Sowah, Castle Peak’s Exploration Manager. Auger soil sampling reported herein was collected as approximately 2kg samples at roughly 4m depth at sites located using handheld GPS. One in ten samples was collected as a field duplicate. Samples were analyzed for gold by fire assay and ICP analytical methodologies at SGS Laboratories in Tarkwa, Ghana. SGS undertook a standard QAQC program of reanalyzing one in ten samples, re-splitting one in twenty samples with the regular addition of blanks to the samples stream. The Akorade Project represents early stage exploration properties and as such there is no guarantee mineral resources will be discovered or defined; however, the properties do include an inferred mineral resource, the Apankrah Deposit with an effective date of June 1, 2013, as described in the “NI 43-101 Technical Report on The Apankrah Project, Western Region, Ghana” dated June 1, 2013, prepared by Simon Meadows Smith (IOM3) a Qualified Person as defined by NI 43-101. A copy of the report is filed under the Company’s profile on SEDAR at www.sedar.com and the Castle Peak website.

About Castle Peak

Castle Peak Mining Ltd. is a Canadian-based junior exploration company focused on advancing greenfields and early stage gold projects. Castle Peak has discovered the high grade Apankrah deposit and believes there is potential for additional discovery of gold resources. The Company holds a strategic land package in the Ashanti belt adjacent to several producing gold mines in Ghana, West Africa. The Ashanti belt is known as one of the most prolific gold belts in the world.

 

On behalf of the Board of Castle Peak Mining Ltd.:

For additional information please visit www.castlepeakmining.com or contact:

Darren Lindsay, President and CEO

Tel: 604 345 1926

Email: darrenl@castlepeakmining.com

FORWARD-LOOKING STATEMENTS

Except for statements of historical fact, this news release contains certain ‘forward-looking information’ and ‘forward-looking statements’ within the meaning of applicable securities laws including statements regarding the Offering and the proposed use of proceeds. Such forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to known and unknown risks, uncertainties and assumptions that could cause actual results to vary materially from the anticipated results or events predicted in these forward-looking statements, including those risk factors identified in the Company’s Annual MD&A filed under the Company’s SEDAR profile. As a result, readers are cautioned not to place undue reliance on these forward-looking statements.  The forward-looking statements contained in this news release are made as of the date of this release. Except as required by applicable law, Castle Peak disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

Neither 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 release.

 



Figure 1: Prospect POW-A1/3 located on the POW prospecting licence.

 

Figure 2: Prospect DO_New located on the Dompem prospecting licence.

 

FORWARD-LOOKING STATEMENTS

Except for statements of historical fact, this news release contains certain ‘forward-looking information’ and ‘forward-looking statements’ within the meaning of applicable securities laws including statements regarding the Offering and the proposed use of proceeds. Such forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to known and unknown risks, uncertainties and assumptions that could cause actual results to vary materially from the anticipated results or events predicted in these forward-looking statements, including those risk factors identified in the Company’s Annual MD&A filed under the Company’s SEDAR profile. As a result, readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this release. Except as required by applicable law, Castle Peak disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Neither 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 release.

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