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Castle Mountain Initiates 9 Hole Drill Program

Castle Mountain Mining Company Limited is pleased to announce the initiation of a 9 hole drill program to follow-up on the recently press released high-grade results in holes CMM-060 and CMM-054. The Company has also shipped two run-of-mine samples as part of an ongoing metallurgical test program designed to assess the optimal approach to mineral processing.

President & CEO Gordon McCreary commented "We are pleased to be able to follow-up on these excellent intersections so quickly with funding from our current treasury."

2015 Drill Campaign

The Company plans to drill 9 holes for a total of 3,490 metres, potentially offsetting and extending the high grade mineralization encountered in the 2014 drill program1. We anticipate drilling to begin in February, and take approximately five to six weeks to complete. The holes will be collared with Reverse Circulation ("RC"), and completed with HQ sized core drilling.

Six holes will target the mineralization identified in hole CMM-0601, which intersected 74m of 9.11g/t including 35m of 18.97g/t, beginning at depths of approximately 280m. This mineralization is deeper, and higher grade over thicker widths than previous high grade sections, and bottomed in 2+ g/t material. We intend to test the extent of this mineralization laterally and at depth, to further understand structural controls, and the potential extent of this new high grade discovery.

Three holes will target mineralization identified in hole CMM-0541, which intersected 33m of 30.31g/t including 10m of 94.04g/t beginning at depths of approximately 100m. Mineralization appears to be an extension of the high grade Lucky John zone along a structural corridor towards previously mined high grade mineralization in the JSLA pit.

Run-of-Mine Samples

The Company has shipped two run-of-mine samples to McClelland Laboratories as part of the ongoing metallurgical test work program. We are encouraged by preliminary results from in-process column testing, and strongly believe that there is potential for decreasing the crushing requirements of the operation, and decreasing the modeled cut-off grade and strip ratio.

The Company has shipped from two locations:

  • 15 tonnes from the bottom of the Oro Belle pit; and
  • 10 tonnes from the back-fill contained in the previously mined JSLA pit

Both of these run-of-mine samples are uncrushed, blast-sized material. The Company expects the tests to start imminently and to take three to four months, with results therefore available by Q3 of 2015. The Company also expects to release preliminary results from the currently in-progress column tests at various size fractions in mid to late February 2015, with ongoing updates through Q2.

Kevin Kunkel CPG Project Manager and Geologist for the Company, is a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the contents of this press release.

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