TORONTO,ONTARIO-(CCNMatthews - Oct.16,2006) - Greencastle Resources Ltd(TSX VENTURE:VGN) has completed a diamond drill program at its Coal Canyon project, located on the Battle Mountain Trend south of Cortez,
Nevada. The two reconnaissance holes, CC-23 and CC-24, were drilled some
650 feet apart, to depths of 1,366 feet at -65 degrees and 1,264 feet at
-60 degrees respectively, to test the extension at depth and along strike
from anomalous gold values within a mineralized zone of hydrothermal
alteration in the vicinity of the Grouse Creek Fault. The drill holes
intersected silicified Hamburg Dolomite in the immediate hanging wall of
the fault, with CLC-23 encountering geochemically anomalous gold values
up to 0.34 g/t gold over 2.4 feet within 38 feet of silicification
averaging 0.17 g/t gold. Similar values extend for another 50 feet into
footwall carbonaceous shales, mudstones and thin cherts of the Vinini
formation. Gold values range from .05 to 0.34 g/t within the overall
intercept, and true width is estimated to be 70% of the intercept based
on observations of the core. Previous explorers identified gold
mineralization as high as 0.52 g/t over an intercept of 135 feet,
including 20 feet averaging 1.5 g/t in silicified lower plate carbonates
and 0.71 g/t gold over 61 feet in argillized and silicified feldspar
porphyry dikes within the Grouse Creek Fault.
The results confirm that the Grouse Creek Fault was a primary focus of a
gold mineralization event but, to date, no economically significant gold
values have been intersected in drilling. Greencastle plans to continue
to define additional drill targets in the Lower Plate rocks along the
trace of and within the Grouse Creek Fault, as well as to target
potential Lower Plate rocks at depth in the footwall of the fault.
Douglas R. Bowden BSc, MSc, a registered Professional Geologist in the
State of Utah, is designated as the Qualified Person supervising
Greencastle's technical work. All Greencastle's assays were performed by
American Assay or BSI Inspectorate laboratories in Sparks, Nevada, using
Fire/AA and Fire/Gravimetric methods.
In Saskatchewan, development continues at the Primate oil project where
Greencastle holds a gross overriding royalty. Royalty revenue from seven
wells for the quarter ended September 30, 2006 is estimated to be
$600,000. Heavy oil prices are seasonal in nature and tend to be highest
during the second and third quarters.
This news release includes certain "forward looking statements" within
the meaning of the United States Private Securities Litigation Reform Act
of 1995. Without limitation, statements regarding potential
mineralization and resources, exploration results, and future plans and
objectives of the Company are forward looking statements that involve
various degrees of risk. The following are important factors that could
cause the Company's actual results to differ materially from those
expressed or implied by such forward looking statements: changes in the
world wide price of commodities, general market conditions, risks
inherent in exploration, risks associated with development, construction
and mining operations, the uncertainty of future profitability and the
uncertainty of access to additional capital. The Company relies on
litigation protection for forward looking statements.
Issued and Outstanding: 36,182,005
FOR FURTHER INFORMATION PLEASE CONTACT:
Greencastle Resources Ltd.
Anthony Roodenburg
CEO
(416) 485 1327
Website: www.greencastleresources.com
