Resource estimate fortifies Castle

THE BOURSE WHISPERER: Africa-focused Castle Minerals has announced a total Mineral Resource Estimate for its Kandia gold prospect located in north-west Ghana.

The total Mineral Resource Estimate for the Kandia gold prospect stands at:

–    3.3 million tonnes at 1.0 gram per tonne gold for 107,500 ounces of gold.

The Kandia prospect forms part of Castle’s large Wa project.

Castle first discovery of gold mineralisation on the Kandia prospect came in 2010.

This was followed by the company’s first program of resource drilling at the prospect in 2011.

Castle has completed soil sampling, airborne geophysical surveys and completed 264 RC drill holes for 19,541m.

The Resource estimate for Kandia was completed for two mineralised zones named the “4000 Zone”and “8000 Zone”.

“The definition of a shallow gold resource at Kandia is an excellent outcome being achieved less than 10 months since our RC drilling first commenced in this area and clearly demonstrates that outcropping gold deposits are still capable of being discovered in Ghana,” Castle Minerals managing director Mike Ivey said in the company’s announcement to the Australian Securities Exchange.

“Our exploration program has recommenced and we look forward to defining more gold resources in 2012.”

Castle claims this latest discovery to be the fourth greenfields gold occurrence it has uncovered since 2008 within the Wa project.

All these deposits are spaced over 40 kilometres in different stratigraphic sequences, which the company said confirms the Wa project has been subject to a variety of gold mineralising episodes and styles.

The total gold resource for the Wa project now totals 163,700 ounces and total gold resources for Castle in Ghana total 267,000 ounces.

All gold resources have been discovered by Castle through carrying out exploration activities involving geochemical soil programs and following up anomalous areas with RC and/or diamond drilling.