Castle Peak Mining successfully completed its summer sampling program with encouraging results. The company is now committed to moving forward with a fall drill program focused on its two most promising targets. We connected with Castle Peak CEO Darren Lindsay and got an update on some specifics of the summer sampling program and the company’s plans for the remainder of 2016.
Scott Armstrong: Can you update us on the summer sampling program?
Darren Lindsay: The summer auger sampling program was a mixed bag, some targets met or exceeded expectations , POW_Dansuom, POW_A1, and a new target Dompem New (DO_New), while others didn’t, the Akoko Trend and K-4.
Scott Armstrong: With those prospects generating some promising results do you have a plan for going forward with the drill program? How large will it be?
Darren Lindsay: We’re going to use the funds we recently raised for an initial drill test focusing on POW_A1 and DO_New with a limited drill program that will be about 500 meters. With POW_A1 our goal was to refine a 300m section of a 2,000m anomalous trend and what happened for us is that we defined a strong 200+ parts per billion gold soil anomaly that is about 600 meters long and 200 meters wide. So that area is highlighted as a drill target.
At DO_New a similar sort of target is developing, so far it is a little bit smaller than POW_A1, however, it is located on a major structure defining the edge of the Tarkwaian basin. It’s actually a very strong anomaly with almost 40% of the samples coming back over 100 parts per billion gold with several over 300 ppb. So far it’s about half the length and width of POW_A1 but it’s open in all directions including along the structure.
Both of those targets are ready for initial drilling to prove up the mineralization system and determine what the controls on the mineralization are. After this initial drill program provides us with some answers we can then expand upon it with a much larger drill program. So we’re going to use the funds we’ve already raised back in July to do some initial drill testing of the two strongest anomalies, POW_A1 and DO_New, to try and unravel the controls a little bit. And then once we have initial success on those targets we will be going back to raise additional funds for an expanded drill program. In addition, perhaps the initial drill testing could be attractive enough to pull in a local partner.
CEO Technician: So to be clear the plan is to do a larger capital raise in a couple months once the initial drill program proves up the mineralization in these two targets? What kind of a timeframe are we looking at here for the initial drilling at these two targets?
Darren Lindsay: That is correct. We are looking to confirm that these are mineralizing systems that we want to go after. So let’s say we get the drilling program done in the next couple of weeks and then the results back a couple of weeks after that we will then be able to do a larger capital raise sometime after that (6-8 weeks from now), if we decide that there is a strong mineralizing system(s) that we want to further define. We are essentially trying to prove up where mineralization may be on some of these larger structures.
In addition we are waiting on a permit on another target, POW_Dansoum, that is also ready for drilling as well. The long dry season in Ghana runs from October through April/May so that’s really when we want to be doing our bigger programs. The timing for us might work out here pretty good.
CEO Technician: Which target are you most excited about drilling?
Darren Lindsay: The POW_A1 targets looks very promising. The geology has fallen into place really well with the geophysics and the geochemistry. We essentially selected a 1,000 meter section to look at and then focused in on a 300 meter section of that – the sampling essentially doubled the length and the width of what we were chasing in our minds so the anomaly is a lot stronger than we anticipated.
There is also a possibility that this anomaly extends to the south of our property onto land owned by a local whom we have had dealings with previously. So if the drilling proves out mineralization we may look to extend POW_A1 both further onto our property and off to the south. We may need to raise funds to add to our land package.
CAP.V (Daily)
CAP shares continue to exhibit signs of accumulation in recent months as the company continues its exploration program at its Akorade Gold Project in Ghana.
Castle Peak is uniquely positioned in the heart of one of the most prolific gold mining districts in Africa with significant infrastructure including operating mills and roads within 50 km of its properties:
With several substantially producing gold mines within 50km of Castle Peak’s Akorade Project it wouldn’t take much to potentially vault Castle Peak into position to partner with a mid-tier producer already operating in the area. Mr. Lindsay also mentioned the possibility that Akorade could serve as a feeder pit for a nearby mill with ore being trucked to a mill for processing.
The POW_A1 target in particular appears to have significant potential with 600 meters out of 2,000 meters already demonstrating strong anomalous mineralization. Moreover, this structure extends a couple of kilometers in either direction on Castle Peak’s property. Mr. Lindsay was optimistic with regard to the upcoming drill program and we look forward to the results in October.
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