Castle plans drill programs for pair of Mexican properties

Junior Castle Minerals (VSE) is planning a 3,000-metre drill program for its Cerro Agujerado property, and another for its Lajita property. Both projects are in the northwestern Mexican state of Durango.

At the former property, underground channel sampling on the Main zone returned 40 metres grading 3.1 grams gold and 17.2 grams silver per tonne, while a second sample returned 42 metres of 3.3 grams gold and 15.9 grams silver. The Main zone averaged 2.4 grams gold and 16.7 grams silver. The Lajita property hosts two mineralized brecciated contact zones, Guadeloupe and Dos Hermanos. Underground channel sampling returned 93.5 metres averaging better than 2 grams gold from the Guadeloupe zone, while selective sampling of multi-quartz veins in Dos Hermanos recorded 2 metres of 89 grams gold.

Castle Minerals can acquire the properties by making unspecified expenditures over three years.

Meanwhile, in the central state of Hidalgo, the company intends to acquire the Santa Rosa and Trinidad silver-gold properties. Following an initial payment of $15,000, Castle has a 90-day due diligence period in which to assess the properties before entering the full option. A geochemical survey has been carried out, as have geophysics and underground sampling. The prospects cover an 8-km strike length of the Arevalo-Capula structure in the mining district of Pachuca.

A private placement of 600,000 shares will raise $1.4 million for exploration and acquisition costs.