Castle Peak Mining Ltd. Announces Entering into a Definitive Agreement with Wononuo Investment Limited to Purchase Kunsu Prospecting License
Vancouver, February 20, 2019 - Castle Peak Mining Ltd. ("Castle Peak" or the "Company") (TSXV: CAP) is pleased to announce that on February 15, 2019, it has entered into an Definitive Agreement with Wononuo Investment Limited ("Wononuo"), a Ghana based company, to purchase a prospecting license from Wononuo for a mineral deposit located in Ghana (the "Kunsu PL") for $2,000,000 USD.
Completion of the transaction is subject to a number of conditions including, but not limited to: completion of satisfactory due diligence by Castle Peak; completion of satisfactory exploration exercises by Castle Peak; acceptance of the transaction by the TSX Venture Exchange; approval of the transaction by the shareholders of Castle Peak; and other actions necessary to complete the transaction.
On successful completion of the transaction, Castle Peak will pay a finder's fee of $90,000 USD (the "Finder's Fee") to JDS & Associates Limited. Payment of the Finder's Fee is subject to acceptance by the TSX Venture Exchange.
ON THE KUNSU PROPERTY
The Kunsu PL is located approximately 35 Km Northwest of Kumasi and 240 Km Northwest of Accra. The property which is situated in close proximity to the Sefwi gold belt is strategically placed on the Asankragua Manso Nkwanta gold belt. The Kunsu concession is about 27 Km north of Asanko Gold's mine, and even closer to the Asanko Esaase gold prospect, all of which are inferred to be underlain by similar geology regionally as Kunsu.
336 line-kilometres of geophysics made up of Induced Polarization (IP) and Resistivity geophysics as well as 3,600 soil geochemical samples collected over a combined strike length of about 18 km revealed four (4) major NE-SW trending anomalies;
- North Grid Anomaly - strike length of about 3.5km
- Central Grid Anomaly - strike length of about 4km
- South East Grid Anomaly - strike length of about 1km
- South West Grid Anomaly- strike length of about 0.5km
NORTH GRID ANOMALY
Historic reconnaissance drilling within the North grid anomaly, followed-up by limited supplemental due diligence field work as carried out by Geoman Consult include:
- 4m @ 2.68g/t from 62m in KUDD0002, 2.4m @ 2.41g/t from 37.6m in KUDD0005, 28m @ 5.5g/t from 62m in KURC0021, 20m @ 2.16g/t from 18m in KURC0023 and 36m @ 4.08g/t from 86m in KURC0029;
- 318.8 m of core diamond drilling of two historical drillhole sites reported Au grades of 3 m @ 1.32 g/t from 88.5 m, 6 m @ 0.45 g/t from 109.5 m including 1.47 g/t at 115.5 m and 1m @24.80g/t at 154.5m in GKUDD001. 5.5 m @ 0.93 g/t from 62 m including 2.34 g/t at 63.5 m and 12.8 m @ 0.42 g/t from 80.5 m including 2m @ 1.35 g/t from 85.5 m in GKUDD002
- Reopening of 211.9 m of two old trenches from Newmont's work, of which a total of 178 m sections were sampled, and the excavation of 94.4 m of one new trench (GKUTR003). The notable and significant intersections in the trenches (GKUTR001 and GKUTR002) are: GKUTR001: 16m @ 0.35g/t including 1 m @ 1.30 g/t, and GKUTR002: 65m @ 0.22g/t including 1m @ 5.06 g/t. The new trench results confirm Newmont's reported results, with even some improvement.
The approved 145 days follow-up staged exploration exercise will comprise a geophysical survey, trenching and drilling work program that focuses on the North Grid zone of the property. The exercise has been designed to in the end deliver to CAP information on the extent and prospectivity of gold mineralization and to provide reliable and sufficient data to define an inferred resource base.
Commenting on the update, Allan Green, Chairman and CEO, said: "The high potential Kunsu prospecting license provides an exciting new exploration target for the business. By signing the Definitive Agreement and approving a follow-up staged exploration exercise we show our commitment to further explore for new gold opportunities in Ghana."
Castle Peak's technical disclosure in this news release has been reviewed and approved by Prof. Prosper Mckenzie Nude, P.Geo., who serves as a Qualified Person under the definition in National Instrument 43-101 ('NI 43-101').
ABOUT CASTLE PEAK
Castle Peak Mining Ltd. is a Canadian-based junior exploration company focused on advancing greenfields and early stage gold projects. Castle Peak has successfully discovered and sold the high grade Apankrah deposit with an associated strategic land package. The Company is in process of acquiring the Kunsu prospecting license strategically placed on the Asankragua Manso Nkwanta gold belt in Ghana, West Africa.
For additional information contact:
Chief Financial Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
FORWARD-LOOKING AND OTHER CAUTIONARY INFORMATION
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts,that address the planned operations are forward-looking statements. Although the Company believes the forward-looking statements are based on reasonable assumptions, such statements should not be in any way construed as guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices for metals, the conclusions of detailed feasibility and technical analyses, the timely renewal of key permits, lower than expected grades and quantities of resources, mining rates and recovery rates and the lack of availability of necessary capital, which may not be available to the Company on terms acceptable to it or at all. The Company is subject to the specific risks inherent in the mining business as well as general economic and business conditions. For more information on the Company, Investors should review the Company's Annual Form 40-F filing with the United States Securities Commission and its home jurisdiction filings that are available at www.sedar.com.
Figure 1: Location of the Kunsu PL
To view an enhanced version of Figure 1, please visit:
Figure 2: The four identified anomalies on the Kunsu property
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/42947