Newcastle drills 204.2 m of 2.05 g/t Au at Castle Mtn

2017-02-22 17:23 ET - News Release

Mr. Gerald Panneton reports

NEWCASTLE GOLD DRILLING RETURNS HIGHER GRADE RESULTS AT SOUTH DOMES - 2.05 G/T GOLD OVER 204.2 METRES -

Newcastle Gold Ltd. has released additional assay results from continuing angled drilling on the South Domes target at the Castle Mountain gold project located in San Bernardino county, California. This work is part of the 40,000-metre phase II definition and exploration drill program that commenced Nov. 1, 2016.

Results are from 30-metre-spaced cross-sections 10600N, 10570N and 10540N at South Domes to follow up on previously reported results. Assays from six new drill holes support the advancement of this exciting target with the longest intercept reported to date by the company in hole CMM-129. New drilling continues to push the extent of gold mineralization beyond currently modelled mineral resources and pit limits, with hole CMM-129 ending in mineralization 100 metres below the modelled pit shell. The South Domes target remains open along strike to the north and south, and at depth.

Assay highlights from two core and four reverse-circulation (RC) drill holes include:

• Section 10540N: 1.07 grams per tonne gold over 192.9 metres in hole CMM-122C:
  • Including 1.98 g/t Au over 77.3 metres;
  • Including 20.10 g/t Au over 4.6 metres;
• Section 10570N: 1.63 g/t Au over 275.8 metres in hole CMM-129:
  • Including 2.05 g/t Au over 204.2 metres;
  • Including 5.43 g/t Au over 48.8 metres;
• Section 10600N: 0.55 g/t Au over 135.6 metres in hole CMM-133:
  • Including 4.04 g/t Au over 9.1 metres and 2.10 g/t Au over 38.1 metres in hole CMM-133;
  • Including 5.03 g/t Au over 9.1 metres and 0.74 g/t Au over 113.7 metres in hole CMM-134C;
  • Including 2.59 g/t Au over 19.7 metres;
  • Including 10.08 g/t Au over 3.0 metres.

Gerald Panneton, president and chief executive officer, commented: "The South Domes area continues to demonstrate the open potential of this exciting target with gold mineralization well above average resource grade. Gold mineralization is being intersected both outside modelled pit limits and at depth. South Domes continues to be our prime exploration target as the deposit is open in all directions. We have added a core drill to the South Domes area to continue expanding the deposit."

There are seven rigs actively drilling at the Castle Mountain project. The current drill program is approximately 50 per cent complete with 20,000 metres of core and RC drilling as of Feb. 20, 2017. Eighty per cent of the program is focused on bringing the South Oro Belle pit to the mineral reserve category after completion of the continuing prefeasibility study work. The remainder is focused on the growth of the South Domes area and further exploration on the property.

Gold mineralization at South Domes is characterized by broad, shallow, east-dipping zones within felsic flows, pyroclastic and intrusive units, with narrower steeply dipping higher-grade zones associated with hydrothermal breccias and quartz-feldspar porphyry intrusive bodies.

 
                            SUMMARY OF SIGNIFICANT 2017 CORE HOLE INTERCEPTS AT SOUTH DOMES
  
Hole ID       Section    From (metres)   To (metres)   Interval (metres)            Au (g/t)      Au x true thickness
                                                                                                   (1) (80%) (g/t x m)

CMM-122C       10540N           204.0         396.8               192.9                1.07                    165.79
including                       276.6         383.0               106.4                1.68                    143.09
including                       298.2         375.5                77.3                1.98                    122.61
including                       370.9         375.5                 4.6               20.10                     73.53
and                             444.2         459.3                15.1                0.28                      3.37
                                605.6                Terminal depth (TD)
CMM-126        10570N           137.2         210.3                73.2                0.51                     29.89
including                       182.9         195.1                12.2                0.84                      8.19
                                445.0            TD
CMM-129        10570N           211.8         487.7               275.8                1.63                    359.51
including                       243.8         448.1               204.2                2.05                    334.36
including                       371.9         420.6                48.8                5.43                    212.00
including                       371.9         381.0                 9.1                7.58                     55.47
including                       378.0         381.0                 3.0               18.65                     45.48
                                487.7           TD*                            *Bottomed in
                                                                             mineralization
CMM-131        10600N           112.8         134.1                21.3                0.76                     12.92
and                             152.4         166.1                13.7                0.55                      5.99
                                248.4            TD
CMM-133        10600N           103.6         239.3               135.6                0.55                     59.24
including                       185.9         195.1                 9.1                4.04                     29.58
and                             263.7         352.0                88.4                0.69                     48.60
including                       327.7         352.0                24.4                1.15                     22.51
and                             387.1         425.2                38.1                2.10                     64.06
including                       402.3         411.5                 9.1                5.03                     36.82
and                             455.7         477.0                21.3                0.50                      8.60
                                477.0           TD*                            *Bottomed in
                                                                             mineralization
CMM-134C       10600N           274.2         318.5                44.3                0.29                     10.44
and                             309.5         318.5                 9.0                0.73                      5.24
and                             367.6         481.3               113.7                0.74                     67.27
including                       418.8         481.3                62.5                1.08                     53.98
including                       447.1         466.8                19.7                2.59                     40.81
including                       453.2         456.3                 3.0               10.08                     24.57
and                             505.1         517.2                12.2                0.47                      4.61
                                              517.2                  TD*       *Bottomed in
                                                                             mineralization

(1)   The grade x thickness column is based on 80% true thickness. Thicknesses do not represent true width.
      True widths of the intercepted intervals are estimated to be 70% to 90% of intersected widths based
      on the available geological information.

All new exploration holes were drilled at 290 degrees azimuth, with dips of -60 degrees and to an average depth of 250 to 600 metres.

Reverse circulation drill samples from hole CMM-133 were submitted to ALS Minerals in Reno, Nevada for crushing until 70% of the sample is finer than a nominal two millimeters in size. A 250 gram ("g") sub-sample is taken from the crushed material and pulverized until 85% passes a 200 mesh (75 microm) 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 re-analyzed 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 ppm assay are also analyzed for gold cyanide solubility (ALS Method AuAA-13).

Half-sawn core and reverse circulation drill samples from holes CMM-122C/126/129/131/134C were submitted to Inspectorate America Corporation in Sparks, Nevada for crushing until 70% of the sample is finer than a nominal two millimeters in size. A 250 g sub-sample is taken from the crushed material and pulverized until 85% passes a 200 mesh (75 microm) screen (Method PRP70-250). A 30 g portion of pulverized material (pulp) is then sampled and subjected to fire assay ("FA") with atomic absorption ("AAS") finish (Method FA430). Any gold assays greater than 10 g/t Au are re-analyzed 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 QA/QC program consisting of standard pulps, coarse blanks and rig duplicates.

About NewCastle Gold

NewCastle Gold (an augustagroup company) has a 100% interest in the Castle Mountain property in San Bernardino County, California. The Castle Mountain heap leach gold mine produced over one million ounces of gold from 1992 to 2004. The Mine and Reclamation Plan, under which the mine operated, was authorized by the County of San Bernardino as the Lead Agency and remains in effect. Water for the drill programs was accessed from existing patented wells on the Project.

Ian R. Cunningham-Dunlop, P. Eng., the Company's Senior Vice President Technical Services, is the designated Qualified Person for this news release within the meaning of NI 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.