Castillian Resources Corporation
Wednesday, July 4th, 2007
Castillian Resources Corporation has commenced a 6,000 to 7,000 meter diamond drilling program at the Las Aguilas nickel-copper-PGE deposit (PGE – Platinum Group Elements). The objectives of the drill campaign are to a) complete a 43-101 compliant resource estimate by the end of 2007 to support economic evaluations and metallurgical testing of the deposit; b) complete required drilling to determine the PGE grades of the deposit (PGEs were not analyzed during historical drilling); c) expand the Las Aguilas resource. Several drill holes will test regional geophysical targets and a separate program will be budgeted to test targets generated by the VTEM airborne survey scheduled for August, 2007.
David Gower, President and CEO stated “Castillian is very excited to be starting the drill campaign at Las Aguilas. With this project Castillian will be one of very few companies in the world outside of the major companies, that are currently drilling off two nickel sulphide deposits, Mangabal Brazil and Las Aguilas, Argentina. These projects are in very good mining and development jurisdictions with the added advantage of excellent infrastructure and qualified technical people.”
A single drill started on July 2nd and a second rig will be mobilized approximately one week later in order to efficiently complete the program. The initial budget is C$3.4 million with potential to increase the budget and scope of work for positive results. The project is an option/joint venture with Marifil Mines Ltd. (Marifil) where Castillian may earn up to a 65% interest in the Project (see press release dated March 5, 2007).
A previous resource calculation was conducted at Las Aguilas in 1986 by Fabricationes Militares (F.M.). Measured and indicated resources, at that time, for both the East and West deposit were calculated as 2.2 Million tons grading 0.52% Ni and 0.51% Cu (at 0.3% Ni cut-off). This resource estimate has not been confirmed by Castillian and predates the establishment of NI 43-101 standards. It has been provided for background information only. No analyses were completed for PGEs during the original drilling. Recently two mineralized intersections in addition to several isolated samples have been re-analyzed for nickel, copper, cobalt, platinum and palladium and results indicate significant PGE values occur in the deposits (see press release dated March 5, 2007). Values up to 17.8 g/t platinum have been identified in selective grab samples from core analysed by Marifil. A review of the drill data indicates there a number of areas where the deposits may be open for expansion by additional drilling.
The Las Aguilas East and West Ni-Cu-PGE deposits are associated with dyke-like mafic to ultramafic intrusive rocks that contain disseminated, net-textured and locally semi massive sulphides associated with pyroxenites and peridotites. They form part of the San Luis mafic to ultramafic trend that is recognized over a distance of 80 to 100 km and in which several other intrusions have been documented to contain nickel sulphides. The Castillian and Marifil joint venture land package covers essentially all of the prospective mafic/ultramafic rocks that occur in the belt. Select areas of this land package will be flown using the VTEM system with B-Field as soon as the system becomes available in Argentina (expected in August). Identification of drill targets associated with mineralized intrusive complexes in the belt and the extension of mineralization at Las Aguilas will be the initial focus for the VTEM survey.
Major Perforaciones SA (a subsidiary of Major Drilling Group International Inc.) based in Mendoza, has been awarded the contract for the drilling.