Duncastle Gold Corp. (TSX VENTURE: DUN)(FRANKFURT: 5D3) provided a
project update today for its Porphyry Creek project located 20
kilometers northwest of Smithers in northwest British Columbia and
also updated plans for the past-producing Yankee-Dundee mine 50
kilometers from Trail in southeast BC.
Porphyry Creek Project
The Porphyry Creek project covers over 130 square kilometers of
mineral claims with historic workings and numerous high-grade gold,
silver and polymetallic showings around a distinct 10 kilometer
long magnetic high with coincident copper, lead and zinc
geochemical anomalies. There are over 20 porphyry discoveries in
the region including Berg, Bell, Huckleberry, Mt Milligan, and
Galore Creek among others, plus other deposit types (eg Eskay
Creek).
Work in 2010 included a 500 line-kilometer airborne geophysical
survey, a ground reconnaissance geology program, and a 1,330 meter
three-hole drill program that confirmed the presence of a
copper-molybdenum porphyry system at the Sultana mine on the
southeast portion of the Porphyry Creek project. Work in 2011 will
include drill follow up on the Sultana discovery and will also
advance other priority targets.
Sultana Mine
The Sultana mine is the most developed target on the property
and is expected to be the focus of work in 2011. Following the
discovery of a new copper-molybdenum porphyry system at Sultana
(see news release December 16, 2010), the 2011 program is expected
to consist of over 2,400 meters of core drilling targeting a 800
meter by 1,200 meter area south and west of the 2010 drill pads
based on the apparent relationship between grade and geophysical
(magnetic) response wherein the last 30 meters of hole PC10-01
returned 0.20% copper while approaching the magnetic low that
encircles the Sultana area. The approximately two kilometer
diameter annular magnetic low anomaly seen at Sultana is a
geophysical signature often associated with porphyry mineralization
(figure at
http://www.duncastlegoldcorp.com/uploads/tinymce/2010_results_for_web_large.jpg).
IOCG/Skarn Target
Detailed analyses of the geophysical data, surface geological
results and compilation of historical information by Duncastle has
identified five additional high priority exploration targets which
will be the focus of continued surface work in 2011. Of these, the
highest priority is a potential IOCG/skarn target on the northwest
corner of the claim block where the 2010 airborne geophysical
survey shows coincident geophysical anomalies that are consistent
with an IOCG target, including: magnetic anomalies and linears
depicting potential fault structures which could localize
mineralization; a large area with an anomalous low Th/K ratio; and
electromagnetic high anomalies (conductive highs) suggesting
possible mineralized areas. The strongest conductors (anomalies)
identified in the 2010 geophysical survey were noted in this area.
In addition, a 2001 BC Government report lists a stream in this
area at greater than 95th percentile for major IOCG indicator
minerals (Cu, Au, La and Fe), and elevated IOCG indicator minerals
are noted in several streams in the area in the provincial Regional
Geochemical Survey (RGS) database(1).
A reconnaissance ground geological and geochemical survey
program is planned for spring 2011 with potential ground geophysics
and drilling to follow. A figure summarizing the other targets at
Porphyry Creek is available at
http://www.duncastlegoldcorp.com/uploads/tinymce/other_targets_large.jpg.
Other Targets
Reconnaissance ground geological work is also planned for spring
2011 on four other targets areas on the project, with potential
ground geophysics and drilling to follow. These include the areas
of the Brian Boru prospect and Brunswick Mine which are currently
interpreted as distal, high-grade polymetallic veins. The area of
the historic Brunswick Mine features co-incident geophysical
anomalies including a strong EM response (conductive high). Dump
and talus samples returned 2,566g/t Ag, 11.1% Pb and 19.4% Zn in
one sample and 1,131g/t Ag, 4.9% Pb and 4.1% Zn in a second from
the Brunswick Adit area in Duncastle's 2008 geological program. In
addition, stream sediment sampling in the area returned anomalous
copper, gold and silver values in the 2008 program.
The Brian Boru prospect area shows a strong conductive high (EM
anomaly) co-incident with highly mineralized samples from the 2008
program (including 152g/t Ag and 22% Zn from a massive sulphide
boulder), and anomalous copper and silver values in stream sediment
sampling (also from the 2008 program).
The MT showing located two kilometers south of Sultana has a
more muted geophysical response but features high-grade historic
rock select chip samples including 5,187g/t Ag and 2.34% Cu in one
sample, 23.0g/t Au, 1,817g/t Ag and 1.09% Cu in a second, and
5.1g/t Au, 2,846g/t Ag and 3.65% Cu in a third(1).
Other targets include Tina West, Tina North, and Porphyry East
targets which will be prioritized as additional surface data is
acquired.
Yankee-Dundee Project
In Southeast BC, 50 km from Teck Corp.'s Trail smelter,
Duncastle controls most of the historic Ymir Camp which was for a
time in the 1930s the largest silver producing camp in the British
Commonwealth (BC MEMPR Bulletin 109, 2001). Today the camp is known
more for gold value as it produced over $500 million in mineral
wealth at today's prices, primarily in gold with 883,000 tonnes
mined at an average 9.9 g/t gold(1). Duncastle has focused to date
on the largest mine in the camp, the Yankee-Dundee mine, which is
located in the southwest corner of the large 74 square kilometer
claim block that includes over a dozen other historic mines.
Duncastle has identified five exploration target areas of
similar or greater dimension at the Yankee Girl mine, with the
historic mine itself occupying much of one of the areas. Work for
2011 is planned to focus on two target areas where high-grade
mineralization has been identified near existing workings. The
first is located above the main haulage tunnel used during
production, the 1235 adit, and is the result of more than 6,900
meters of drilling in 45 holes by Duncastle to date. This zone,
called the Yankee Girl West zone, is a high-grade mineralized
extension of the Yankee Girl structure extending approximately 285
meters along strike to the west along the Yankee Girl structure
with a vertical depth of 280 meters. The Yankee West zone is open
at depth, to the west, and to the east towards the historic
mine.
Work is also planned for a second area in 2011 where historic
records report high-grade mineralization beneath the historic mine.
Work done in 1961 identified an area 200 foot high by 4 foot wide
averaging 8.68 g/t gold and 74.4g/t silver with 6.9% Pb/Zn (1)
above the Wildhorse adit, which was inspected by Duncastle
personnel in 2006 and found to be in apparent very good condition
structurally.
Planned work includes engineering, scoping and environmental
baseline work towards re-opening the underground to enable
underground drilling and a potential bulk sample (test production)
program. Significant costs savings are expected because of the
existing workings, and possible revenues from a potential bulk
sample program may further benefit the project budget. The Company
is now looking for a partner for underground development of the
project and has inspected mine workings and completed preliminary
metallurgical testing (announced May 26, 2010) and a preliminary
study on potential development strategies (August 3, 2010) to
assist in demonstrating the potential of the project.
President Michael Rowley commented: "The Yankee-Dundee project
has existing access and is located in an area with excellent
infrastructure and a terrific mining legacy. With favorable
preliminary metallurgical and strategic engineering studies
completed in 2010 we are now looking for an operating and/or
financing partner to re-open the underground with the aim of
significantly expanding the mineralized zones and completing
scoping work towards a potential bulk sample program."
(1) Historical results are compiled from government databases
and predate NI 43-101. Duncastle has not independently verified
past exploration results.
Website Updates
The Company has updated its website at
http://duncastlegoldcorp.com.
About Duncastle Gold
Duncastle Gold Corp. is a Vancouver-based gold exploration
company with mineral claims covering or surrounding past producing
mines in northwest and southeast British Columbia, Canada.
Duncastle has assembled contiguous claim blocks totaling more than
205 sq km in these two historic and productive regions.
As part of the Manex Resource Group, Duncastle benefits from
shared expertise in corporate finance, public company
administration, investor relations, and technical and geological
services provided for seven public companies active in North
America. Since its formation in 1997, the Manex Group companies
have raised over C$300 million in exploration financing.
Rob Macdonald, (P.Geo.), is the Qualified Person responsible for
reviewing the technical results in this release.
On behalf of the Board of Directors,
Michael Rowley, President, Director, Duncastle Gold Corp.
This News Release may contain forward-looking statements
including but not limited to comments regarding the timing and
content of upcoming work programs, geological interpretations,
receipt of property titles, potential mineral recovery processes,
etc. Forward-looking statements address future events and
conditions and therefore involve inherent risks and uncertainties.
Actual results may differ materially from those currently
anticipated in such statements. These statements are based on a
number of assumptions, including, but not limited to, assumptions
regarding general economic conditions, interest rates, commodity
markets, regulatory and governmental approvals for the company's
projects, and the availability of financing for the company's
development projects on reasonable terms. Factors that could cause
actual results to differ materially from those in forward looking
statements include market prices, exploitation and exploration
successes, the timing and receipt of government and regulatory
approvals, and continued availability of capital and financing and
general economic, market or business conditions. Duncastle Gold
Corp. does not assume any obligation to update or revise its
forward-looking statements, whether as a result of new information,
future events or otherwise, except to the extent required by
applicable law.
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.
Contacts: Duncastle Gold Corp. Michael Rowley 1.888.456.1112 or
604.641.2742 mrowley@mnxltd.com Duncastle Gold Corp. Liana
Shahinian 1.888.456.1112 or 604.641.2773 liana@mnxltd.com
www.duncastlegoldcorp.com