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INTERSECTS 31.19 G/T GOLD OVER 29.0 METRES AT ORO BELLE SOUTH AND MAKES A SIGNIFICANT NEW DISCOVERY OUTSIDE THE 2015 MODELED PIT

 

Newcastle Gold Ltd. (NCA.T)  has released material assay results from definition drilling of the JSLA pit on the southern portion of the Oro Belle trend (OBT) at the Castle Mountain gold project, located in San Bernardino county, California. These results form part of the Phase II definition and exploration drill program ("the Program") that commenced November 1, 2016.

Reverse circulation ("RC") drill hole CMM-195 was planned to follow up on high-grade gold mineralization at the Lucky John Zone, initially discovered by the Company in 2014, which returned encouraging values in RC drill holes CMM-054 (30.31 grams per tonne gold ("g/t Au") over 33.3 metres) and CMM-060 (18.97 g/t Au over 35.1 metres) (see press release dated January 19, 2015).

CMM-195 intersected 31.19 g/t Au over 29.0 metres while targeting the steeply dipping OB-2 fault structure ("OB-2"), approximately 65 metres down-dip from CMM-054 and approximately 150 metres north of CMM-060. The hole was successful in extending the Lucky John Zone high-grade mineralization to depth.

CMM-195 also intersected a new zone of gold mineralization at depth with 2.26 g/t Au over 126.5 metres. This new discovery, the Footwall Zone ("FW Zone"), is located within the underlying footwall sequence of OB-2, and for the first time the host rock is dominated by the underlying andesite volcanic flows which are located below the felsic volcanoclastic sequence.

The Lucky John Zone/OB-2 area is open along strike to the north and south and at depth, while the new FW Zone lies well outside and start 50m below the 2015 modeled mineral resource and pit shell in an area of very sparse drilling, and is open in all directions.

Assay highlights from CMM-195 are shown in Table 1, a plan map, and a cross-section of 11750N. Due to the high grade nature of the Lucky John Zone/OB-2 intersection, assay values are reported both as uncut and cut to 1 ounce per tonne (or 34.286 g/t) and include:

  • Section 11750N -- CMM-195 OB-2 Sub vertical Structure -- Lucky John Zone 31.19 g/t Au (uncut)/ 10.63 g/t Au (cut) over 29.0 metres including 93.95 g/t Au (uncut)/ 28.84 g/t Au (cut) over 9.1 metres
  • FW Zone 2.26 g/t Au over 126.5 metres Including 5.98 g/t Au/6.1 metres and 7.50 g/t Au over 6.1 metres

Gerald Panneton, President and CEO commented: "Our focused definition/exploration strategy has been extremely effective in demonstrating that the higher grade near-vertical zones are more predictable than anticipated, and could be an important component of the significant upside potential of this deposit. In addition, the new Footwall discovery opens up new possibilities to expand the deposit immediately below and along strike from the JSLA pit and Oro Belle South. Due to the nature of this new discovery, and the OB-2 sub-vertical structure at Lucky John, we are expanding our drilling immediately to follow up on these exciting new targets."

   Table 1: Summary of Significant Assay Intercepts from RC Hole CMM-195 (Lucky John Zone/OB-2)1
   
  
  Uncut  Cut to 34.29 g/t Au
   Hole_ID       Zone     From (metres)To (metres Interval (metres)Au (g/t)     Au (g/t)      
CMM-195      JSLA Backfill          0.0      68.6              68.6    0.41               0.41
and          HW Zone              150.9     195.1              44.2    0.32               0.32
and          OB-2 Zone            222.5     251.5              29.0   31.19              10.63
    includingOB-2 Zone            224.0     233.2               9.1   93.95              28.84
    includingOB-2 Zone            225.6     230.1               4.6  164.50              34.29
and          FW Zone              298.7     425.2             126.5    2.26               2.26
    includingFW Zone              318.5     405.4              86.9    2.95               2.95
    includingFW Zone              339.9     345.9               6.1    5.98               5.98
and includingFW Zone              379.5     385.6               6.1    7.50               7.50
and          FW Zone              431.3     442.0              10.7    0.94               0.94
                             451.1 Total Depth                                                

Drill hole CMM-195 was drilled using reverse circulation drilling techniques at azimuth 290 degrees/dip -60 degrees to total depth of 451.1 metres (1,480 feet). True widths of the intercepted intervals are estimated to be 70% to 85% of intersected widths based on the available geological information.

CMM-195 also intersected 0.41 g/t Au over 68.6 metres (from surface) within the backfill material in the JSLA mined pit. This complements the results of the recent preliminary surface drill testing program across the surface of the JSLA backfilled pit reported in the press release of April 3, 2017.

The Phase II definition and exploration drill program is now complete with 44,500 metres of core and RC drilling as of March 31, 2017. An additional follow-up drill program is starting immediately with the focus on both the OB-2 sub-vertical structure and the FW Zone outside the current pit limit.

Assays and Quality Assurance/Quality Control

Rotary drill samples 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 {A –} GRAV). All samples that yield greater than 0.2 ppm assay are also analyzed for gold cyanide solubility (ALS Method AuAA-13).

The Company employs an industry-standard QA/QC program consisting of standard pulps, coarse blanks and rig duplicates.

Qualified Person

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.

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 1991 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.