Greencastle receives Manitoba coal permit

2008-11-07 08:06 ET - News Release

Mr. Anthony Roodenburg reports

GREENCASTLE GRANTED COAL PERMIT IN MANITOBA

The government of Manitoba has issued to Greencastle Resources Ltd. a coal exploration permit located on the Manitoba/Saskatchewan border. This initial permit adjoins the eastern boundary of the block of coal exploration permits held by Goldsource Mines Inc. in Saskatchewan. A second permit application remains pending.

In April, 2008, Goldsource announced that it had intersected coal (at a depth of about 80 metres) in two core holes located 1.64 kilometres apart and represent 26 metres and 32.5 metres, respectively, of coal seam, including 22.6 metres of continuous coal in each hole. The two core drill holes are located approximately 50 kilometres north of Hudson Bay, Saskatchewan. Most of the coal from the two intercepts was ranked as high volatile bituminous C and subbituminous A and was believed to be from the Mannville/Swan River group of Cretaceous age. Goldsource plans to carry out a major drill program on its permit area this coming winter.

The Greencastle permit application covers approximately 1,586 hectares on the Manitoba side of the Saskatchewan border about 25 kilometres southeast of the Goldsource discovery drill holes. The geological map of the Manitoba Geological Survey indicates the area to be underlain by the Swan River formation of the same Cretaceous age as the Goldsource coal discovery, although all bedrock in the area is covered by glacial overburden.

Commenting on the recent coal initiative, Anthony Roodenburg, Greencastle chief executive officer, stated, "We are pleased to have received final approval from Manitoba on our first application and will monitor exploration activity in the area closely, particularly the Goldsource winter exploration program, while assessing our options for advancing the project."

We seek Safe Harbor.