Aug 30 2013
Greencastle Resources Ltd. ("Greencastle" or the "Company") is pleased to report that Rainbow Resources Inc. ("Rainbow") has completed a comprehensive review of all available technical data associated with the Jewel Ridge property near Eureka, Nevada. This review resulted in several promising drill targets being identified on the property that Rainbow plans to follow up.
Rainbow notes that a number of historic workings exist within the Jewel Ridge property. Some of the larger historic mines in the claim blocks include the Hamburg, Peroni, Croesus and Eureka mines, which historical records indicate, produced approximately 35,000 ounces of gold equivalent during the period 1871 to the 1920s.
A database comprising 383 drill holes with gold assay values was assembled from various past reverse circulation drilling programs on the property and a number of new targets were identified. Based on the technical review performed, Rainbow intends to proceed with further exploration drilling once financing is in place.
Rainbow can earn a 60% interest in the Jewel Ridge Property by paying Greencastle $250,000 cash, issuing 1,500,000 shares of Rainbow (both partially paid) and spending $4.5 million over 4 years. On earning 60% interest in the property, Rainbow can elect to increase its interest to 75% by advancing the property to the stage of a bankable feasibility study.
Jewel Ridge is located on the south end of Nevada's prolific Battle Mountain - Eureka Trend, along strike and contiguous to Barrick Gold's two-million ounce Archimedes / Ruby Hill mine to the north and the advanced-stage Lookout Mountain Project to the south.
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