Castle Minerals Limited (ASX: CDT) ('Castle' or the 'Company') advises that it has entered into agreements to purchase a 100% interest in two quality gold projects, Wanganui and Polelle, located in the prolific Meekatharra gold mining district of Western Australia (Fig 1).

The Wanganui project presents an immediate opportunity to extend shallow mined mineralisation down-plunge and to delineate resources for trucking and sale to one or more regional processing facilities.

Polelle hosts a mainly obscured and minimally explored greenstone belt comprising a combination of prospective lithological units and major structural features, in particular one linked to the Albury Heath deposit immediately adjacent to the east of licence.

The Company has received commitments for a placement of 122,000,000 new ordinary shares at a price of $0.004 each to raise $488,000 (before expenses) which will be completed in two tranches (details below).

Castle Managing Director, Stephen Stone said 'We are very pleased to have secured these two strategically located and prospective gold projects in the Meekatharra region.

'The acquisition increases Castle's exposure to exploration for structurally controlled orogenic gold deposits which can extend to considerable depths, as is the case elsewhere in Western Australia and in West Africa where Castle holds extensive and similarly prospective tenure.

'It also provides broader jurisdictional balance and, given the current operating environment, exposure to more serviceable exploration in Western Australia and hence ultimately improved news flow for shareholders.'

Wanganui

At the Wanganui project (E51/1703, 18.4km2), 33km south-west of the active Meekatharra mining centre and 15km south-west of the operating Bluebird gold mine, the opportunity is to quickly test for down-plunge and along strike extensions to the existing Main Lode North and South deposits. In 2002, when the gold price was much lower than present, these were partially open-pit mined to recover shallow oxide ore to a depth of approximately 30m (Fig 2).

The Main Lode mineralisation, which can be intermittently traced for at least 1km, is one of at least four sub-parallel, northeast striking and structurally analogous mineralised zones. The others are the East Lode, the Far East Lode and the Queenslander reef line where anomalous mineralisation has been confirmed over 1km, 400m and 200m respectively. The plan at all zones is to quickly finesse and drill targets with the similar aim of delineating relatively shallow supergene and then deeper primary mineralisation suitable for open pit and underground extraction.

At East Lode, historical shallow drilling has returned better intercepts of 6m at 3.68g/t Au from 6m (WA058), 7m at 3.52g/t Au from 32m (WA074), 3m at 2.88g/t Au from 45m (WA092), 5m at 2.01g/t Au from 24m (WA093), 6m at 1.33g/t Au from 7m (WA097), 2m at 23.59g/t Au from 4m (WAP116) and 1m at 20.40g/t Au from 8m (WAP129). (Refer Table 1 - JORC for detailed drill hole and rock chip sampling information).

At Far East Lode, limited shallow RAB drilling has returned better intercepts of 2m at 70g/t Au from 4m (WE9), 2m at 5.3g/t Au from 4m (WE4) and 2m at 25g/t Au from surface (WE17) with no follow-up drilling below a vertical depth of 20m. Results from historical drilling at Main Lode are unable to be reported as drill hole collar information cannot be verified.

Within the Wanganui licence there are several historical, untested soil and shallow bedrock RAB drill hole geochemical anomalies coincident with favourable structural settings interpreted from aeromagnetic data interpretation. Broader areas of the licence have also yet to be systematically and effectively geochemically sampled. Mineralisation at Wanganui generally occurs as north-north-east trending sheeted quartz veins associated with laminated mylonitic zones in the local granodiorite - tonalite terrain. Historical mining in the early 1900s comprised a series of small, shallow underground mines that focused on narrow highgrade zones of mineralisation. Whilst there was a revival of exploration in the 1980s, none of the various explorers sought to focus on the possibility of deeper mineralisation below the supergene oxidised zone.

Polelle

At the Polelle project (E51/1843, 144.5km2), 25km south of Meekatharra and 7km southeast of the operating Bluebird Mine, the initial focus will be on exploring for repetitions onto the licence of the Albury Heath gold deposit mineralisation, 1km to the east (Inferred Resource of 528,000t at 2.09g/t Au for 35,479oz Au)(refer Cervantes ASX release 12 March 2019)(Fig 3).

This mineralisation is associated with the regionally dominant, southwest trending Albury Heath shear that runs onto the Polelle project area and, using aeromagnetics, is traceable on it for some 7.5km. Albury Heath was purchased recently by Big Bell Gold Operations Pty Ltd (a subsidiary of Westgold Resources Limited) from Cervantes Corporation Ltd (ASX: CVS)(refer Cervantes ASX release 23 April 2020).

Recent vendor sampling in the vicinity of a quartz vein along the trend of the Albury Heath structure, and where there is also a prominent jog in its orientation, has returned several anomalous values including 1,360ppb Au, 465ppb Au, 202ppb Au and 465ppb Au. Reinforcing the excellent location of Polelle, it is also 12km west of the Gabanintha Mine, 11km east of the Nannine group of gold mines and is easily accessed via sealed and good quality unsealed highways.

No historical gold workings have been reported on the licence. Whilst historical exploration has generated sporadic shallow RAB drill hole, rock chip and geochemical gold anomalies, the sampling techniques employed are considered unreliable given that 70% of the project area is covered by a veneer of transported cover. The opportunity therefore is for Castle to use a modern understanding of regional and local tectonics, structure and the regolith along with appropriately designed sampling techniques to more effectively test the underlying prospective Archaean greenstone lithologies for gold.

Four broad target areas have been outlined for initial work. This will comprise reprocessing of aeromagnetic data, historical data compilation and review, regolith mapping, geological mapping, sampling of outcrop where available and reconnaissance geochemical sampling. This will be undertaken and completed in coming months so that initial drill testing of any defined anomalies can commence soon after.

Castle has undertaken to complete a minimum 2,000m of drilling at Wanganui within six months of Completion of its purchase. A 1% gross royalty is payable on any gold produced from both projects. A once only milestone payment of $50,000 is payable when either a decision is made to mine ore or an ore reserve of at least 30,000oz gold has been declared on one of the projects.

The purchase is subject to several conditions precedent including but not limited to the simultaneous completion of the purchase of both licences and Castle shareholders approving the issue of the total 30,000,000 consideration shares by 3 July 2020. A date will be set and a notice of meeting will be issued shortly for the shareholder meeting. Completion of the 100% acquisition of the two licences is expected to occur within three days of receiving shareholder approval for the issue of consideration shares at the shareholder meeting which is anticipated to be held on or around 19 June 2020. The vendors have agreed to a six month voluntary escrow on the sale of their consideration shares.

Placement

Castle has received commitments totalling $488,000 (before expenses) for a placement of 122,000,000 new ordinary shares at an issue price of $0.004 each to sophisticated investors and directors of the Company ('Placement'). The Placement will be completed in two tranches:

Tranche 1

Tranche 1 will comprise an issue of 35,584,690 new ordinary shares to raise a total of $142,338 before costs. These shares will be issued shortly under the Company's existing placement capacity pursuant to Listing Rule 7.1. which enables an issue of 15% of the present Castle issued capital.

Tranche 2

Tranche 2 will be issued subject to shareholder approval and will comprise 86,415,310 new ordinary shares to raise an additional $345,661.

Directors participation

Directors of the Company have committed to subscribe for 23,750,000 new ordinary shares ($95,000) which will be included in and issued as part of Tranche 2 ('Director Placement Shares'). The Director Placement Shares require the approval of shareholders pursuant to Listing Rule 10.11. All new shares issued pursuant to the Placement will rank equally with existing fully paid ordinary shares in the Company. Funds raised will be applied to progress exploration on the Company's new Wanganui and Polelle projects (subject to completion), the Beasley Creek gold project in the Pilbara, the Wa Project in Ghana and for general working capital purposes.

Shareholders Meeting

A date will be set and a formal notice will be issued shortly along with the required documentation for the required shareholders meeting to approve the consideration shares for the Wanganui and Polelle projects, the Trance 2 shares and the Director Placement Shares. The meeting is expected to be held on or around 19 June 2020.

Contact:

Stephen Stone

Tel: +61 (0)418 804 564

About Castle Minerals Limited

Castle Minerals is listed on the Australian Stock Exchange (ASX: CDT) and headquartered in Perth, Western Australia. In addition to its interest in the Beasley Creek conglomerate-hosted, paleo-placer style gold project in the Pilbara region of Western Australia, it has a large contiguous tenure position in the Upper West region of Ghana, West Africa, a country with a long history of gold exploration and mining. Its Ghana licence holdings encompass large tracts of highly prospective Birimian geological terrane, the host to many of West Africa's multi-million-ounce gold mines. Castle has recently contracted to acquire two new gold projects in the Meekatharra region of Western Australia

All of Castle's ground in Western Australia and Ghana, whilst at a relatively early stage of exploration, presents a number of targets offering opportunities for discoveries of gold and other minerals.

Cautionary Statement

The Wanganui and Polelle project areas are considered to be of grass roots or of relatively early stage exploration status. There has been insufficient exploration to a define a Mineral Resource. No Competent Person has done sufficient work in accordance with JORC Code 2012 to conclusively determine or to estimate in what quantities gold or other minerals are present. It is possible that following further evaluation and/or exploration work that the confidence in the information used to identify areas of interest may be reduced when reported under JORC Code 2012.

Forward Looking Statement

Statements regarding Castle's plans, forecasts and projections with respect to its mineral properties and programmes are forward-looking statements. There can be no assurance that Castle's plans for development of its mineral properties will proceed as currently expected. There can be no assurance that Castle will be able to confirm the presence of Mineral Resources or Ore Reserves, that any mineralisation will prove to be economic or that a mine will be successfully developed on any of Castle's mineral properties. The performance of Castle may be influenced by a number of factors which are outside the control of the Company, its Directors, staff or contractors.

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