Newcastle Gold Ltd.

Newcastle drills 50.3 m of 3.7 g/t Au at Castle Mtn

2016-09-22 06:44 ET - News Release

Mr. Gerald Panneton reports

NEWCASTLE GOLD INTERSECTS HIGH-GRADE AT ORO BELLE SOUTH, CASTLE MOUNTAIN PROJECT

Newcastle Gold Ltd. has released additional assay results from seven reverse circulation drill holes from the company's continuing 22,000-metre phase I drill campaign at the Castle Mountain oxide gold project located in San Bernardino county, California. The drill program continues to target the strike and depth extensions to the main mineral resource along the Oro Belle trend (OBT). The OBT is one kilometre wide by two kilometres long and remains open to the northeast and at depth (sections 11400N to 13500N).

Oro Belle South -- BC target

Assay highlights have been received for seven additional RC holes located 150 metres north and 150 metres south of the previously released, northwest-southeast-oriented, 11550N core cross-section across the BC target (see press release dated Sept. 6, 2016). New results from Oro Belle South include:

• 3.70 grams per tonne gold over 50.3 metres in hole CMM-087;
• Including 17.59 g/t Au over 9.1 metres;
• 1.54 g/t Au over 37.8 metres in hole CMM-098;
• Including 2.72 g/t Au over 18.9 metres;
• And including 15.41 g/t Au over 2.1 metres;
• 1.01 g/t Au over 54.9 metres in hole CMM-088;
• Including 6.43 g/t Au over three metres;
• 0.74 g/t Au over 48.8 metres and 0.37 g/t Au over 56.4 metres in hole CMM-097;
• 0.43 g/t Au over 45.7 metres in hole CMM-099 (within JSLA pit backfill).

President and chief executive officer Gerald Panneton commented: "Another round of very good drill results is indicating that the geological model developed by our technical team has been highly successful. The presence of high-grade gold mineralization 100 metres below the currently modelled pit will have a positive impact in the follow-up drill program planned for our prefeasibility study, which will focus on the southern part of the OBT. The current program is indicative of the excellent potential to improve the grade and continuity, and also to increase the resource potential near the current pit limits for future planning."

The presence of disseminated and fracture-controlled gold mineralization in the seven RC holes at the BC target continues to support the association of gold within near-vertical quartz-feldspar porphyry intrusive bodies aligned along major structural corridors, with proximal hydrothermal fluid breccias that host the gold mineralization. Hole CMM-087 was designed to test the depth extension of the modelled northeast-trending/southeast-dipping OB-3 structural domain below the modelled resource pit and intersected 17.59 g/t Au over 9.1 metres along this structure, approximately 100 metres below the pit bottom within brecciated rhyolite. The OB-3 structure remains open in all directions.

              SIGNIFICANT 2016 DRILL HOLE INTERCEPTS   
  
Hole                 From          To          Interval      Au
                       (m)         (m)               (m)   (g/t)

CMM-087              32.0        35.1               3.0    0.33
and                  47.2        56.4               9.1    0.24
and                 342.9       393.2              50.3    3.70
including           362.7       371.9               9.1   17.59
including           362.7       367.3               4.6   33.19
including           362.7       364.2               1.5   73.40
CMM-089             125.0       128.0               3.0    0.28
and                 147.8       150.9               3.0    0.25
and                 411.5       420.6               9.1    0.13
CMM-090              89.9       144.8              54.9    1.01
including            96.0        99.1               3.0    6.43
and including       111.3       114.3               3.0    6.43
and including       140.2       141.7               1.5    1.40
CMM-091            306.32      309.37               3.0    0.51
CMM-097             141.7       146.3               4.6    3.43
and                 172.2       221.0              48.8    0.74
including           172.2       185.9              13.7    1.13
and                 236.2       243.8               7.6    0.48
and                 252.1       308.5              56.4    0.37
and                 348.1       363.3              15.2    0.47
CMM-098             205.1       208.2               3.0    0.34
and                 214.3       247.8              33.5    0.37
and                 226.5       247.8              21.3    0.47
and                 260.6       271.4              10.8    0.30
and                 297.3       304.5               7.2    0.20
and                 421.8       459.6              37.8    1.54
including           421.8       440.7              18.9    2.72
including           421.8       427.0               5.2    8.74
including           424.9       427.0               2.1   15.41
CMM-099*              0.0        45.7              45.7    0.43
including*           30.5        44.2              13.7    0.91
and                 128.0       140.2              12.2    0.22

* Intercept is in backfill material within historic JSLA open 
pit.        

For a location map of recent drill holes, a cross-section of recent drill holes and a long section of recent drill holes, please visit the company's website.

All new reported exploration holes were drilled at 290-degree azimuth, with dips of minus-65 to minus-75 degrees, and to an average depth of 350 to 600 metres. True widths of the intercepted intervals cannot be determined from the available geological information. Approximately 18,500 metres have been completed to date in 44 core and RC holes.

All drill samples are submitted to ALS Minerals in Reno, Nev., for splitting and then crushing until 70 per cent of the sample is finer than a nominal two millimetres in size. A 250-gram subsample is taken from the crushed material and pulverized until 85 per cent passes a 200-mesh (75 micrometres) screen (ALS method PREP-31). A 30 g sample of pulverized material (pulp) is then sampled and subjected to fire assay with atomic absorption finish (ALS method AuAA-23). Any gold assays greater than 10 g/t Au are reanalyzed where a 30 g sample is taken from the pulp and assayed by FA with a gravimetric finish (ALS method Au 30g FA -- GRAV). All samples that yield greater than 0.2 part per million are also analyzed for gold cyanide solubility (ALS method AuAA-13). The company employs an industry-standard quality assurance/quality control program consisting of standard pulps, coarse blanks and rig duplicates.

Newcastle has a 100-per-cent interest in the Castle Mountain property in San Bernardino county, California, for which an updated National Instrument 43-101 resource for the project was announced Dec. 2, 2015, which includes measured mineral resources of 17.4 million tonnes grading 0.86 g/t gold containing 480,000 gold ounces, indicated mineral resources of 202.5 million tonnes grading 0.57 g/t gold containing 3.71 million gold ounces along with inferred mineral resources of 40.8 million tonnes grading 0.58 g/t gold and containing 760,000 gold ounces.

Ian R. Cunningham-Dunlop, PEng, the company's vice-president, exploration, 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.