Apr 6 2013
Greencastle Resources Ltd. ("Greencastle") subsidiary Deveron Resources Ltd. ("Deveron") has reported very encouraging results from a recent exploration program, carried out late in the 2012 field season on Deveron's 100% owned Nechako Property (see Deveron press release dated April 5, 2013). Greencastle holds 7,569,505 Deveron shares or approximately 64% of Deveron's 11,794,505 common shares outstanding.
The Nechako Property, with an area of approximately 13,000 hectares (28 claims), is covered by a veneer of glacial overburden and is located approximately 100 kilometres southwest of Vanderhoof, central British Columbia, in the developing Blackwater gold camp, where New Gold Inc. has recently delineated an open pit resource of over 10 million ounces of gold.
The exploration program was designed to follow up on a number of conductive targets selected from an earlier heli-borne magnetic and electromagnetic survey which covered the Property, as well as to carry out reconnaissance geology and stream sediment sampling where possible. Following ground investigation of eleven areas with anomalous conductivity interpreted from the geophysical data, six areas were gridded and soil samples collected.
In grid area 10, close to the identified anomalous conductors, recent road building has exposed mid-Jurassic greywacke & volcaniclastic rocks cut by two dacitic, sub-volcanic, one to four metre wide, NW trending, sub-vertical dykes. Sulphide mineralization with variable amounts of pyrite, chalcopyrite, and sphalerite occur as late stage fracture filling, associated with quartz-carbonate-ankerite vein material that cut the older greywacke as well as sub-volcanic dykes. Two grab samples from the vein material returned 1.54 g/t gold, 85.7 g/t silver and 0.59 g/t gold, 51.2 g/t silver, along with anomalous copper and zinc values. Soil samples from the area around the showing contain anomalous gold, silver copper and zinc. The nearest stream sediment sample, about one kilometre downstream from the showing, also returned significantly anomalous gold. This epithermal style mineralization associated with sub-volcanic felsic intrusions is similar to other deposits in the Blackwater region.
This gold-silver discovery from the initial reconnaissance exploration program is extremely encouraging and a detailed follow-up program is being planned for the surrounding area. Detailed evaluation will be carried out on other areas with anomalous gold, silver, copper and zinc in several of the soil grids. Careful follow-up exploration will be required to assess several locations where anomalous gold values were identified in stream sediment samples.
In addition, the Property has been expanded by a further 732 hectares to cover adjoining anomalous areas.
"These results are extremely encouraging. We continue to work closely with Deveron management to maximize value at Nechako and evaluate new project opportunities. Deveron's closely held capital structure and strong financial partners give it a distinct competitive advantage in these challenging markets," commented Anthony Roodenburg, Greencastle CEO.