Castillian completes surveys on Kagera project

2008-05-09 07:43 ET - News Release

Ms. Ana Lopes reports

CASTILLIAN COMPLETES VTEM ELECTROMAGNETIC AND MAGNETIC SURVEY ON THE KAGERA PROJECT, TANZANIA

Castillian Resources Corp. has completed approximately 4,450 line kilometres of VTEM airborne magnetic and electromagnetic (EM) surveys on its 100-per-cent-owned Kagera project in Tanzania. The survey was flown by Geotech Airborne Ltd. of South Africa employing the B-field versatile time-domain electromagnetic (VTEM) system. The survey identified several highly conductive multiline anomalies. The highest-priority anomalies are located within an eight-kilometre conductive trend directly along strike from the Kabanga trend. These anomalies are late channel, high-quality anomalies on the trend from Kabanga along the inferred contact between the lithologies, which host the Kabanga deposits. Field checks and ground follow-up are planned to begin immediately on the highlighted anomalies.

Castillian currently has a team working in the field preparing grids over the anomalies for better access and ground geophysics and establishing working relationships within the local community. A base camp is being installed to provide access to focus on the ground follow up of the priority targets.

Castillian's Kagera property is directly north of the Kabanga nickel sulphide deposits, which are owned by Barrick and X-strata Nickel. Based on a September, 2006, Xstrata presentation to analysts, the Kabanga deposits contained resources in all categories in excess of 45 million tonnes grading more than 2.5 per cent nickel at that time. The Kabanga project is currently the focus of a continuing feasibility study by Xstrata Nickel and Barrick. Castillian's key claims are approximately six kilometres directly along the regional geological and geophysical trend northeast of the Kabanga nickel deposits. With the discoveries by Xstrata in 2006 and 2007 of the Tembo deposit and the Safari zone, mineralization at Kabanga now extends for approximately nine kilometres. There are also two known nickel sulphide occurrences within the Luhuma trend to the north and east of Castillian's Kagera property. Castillian believes that the Kagera project is well situated within the mineralized trend.

Quality control

The data collected from the airborne survey were monitored during collection and processed by Dr. Mark Shore, PhD, PGeo. A qualified person as defined by National Instrument 43-101. Dr. Shore is an independent consulting geophysicist who provides services to the company under the direction of Castillian Exploration Manager, Joel Hrominchuk, PGeo. Mr. Hrominchuk has reviewed the scientific and technical information in this news. Mr Hrominchuk is a qualified person as defined by National Instrument 43-101.

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