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Tuesday, 5 February 2013
Newcastle Minerals finds at-surface mineralized gold horizon at Pickle Lake project
Newcastle Minerals (CVE: NCM) (USOTC: NCMBF) has found a mineralized gold horizon at surface on its Fault Creek project in northwestern Ontario, which it says is consistent with past-producing mines in the region.
Results from four grab samples and eight channel samples returned gold values of up to 7.14 grams per tonne (g/t) gold.
The company said prospecting and channel sampling was done to test an iron formation along strike from a historical gold showing that was found earlier last year.
"The discovery of gold mineralization within iron formation at Fault Creek is consistent with the past-producing gold mines of the Pickle Lake Greenstone Belt, where gold mineralization was associated with deformed and contorted sulphide iron formation," said the company's president, Michael Romanik.
Newcastle noted that "the most successful channels", which were not closed off, were those cut across the porphyry dyke, which "strongly suggests" that this is a controlling feature and perhaps the original gold source.
The implications of this are that further mineralization may await in the material that lies next to this dyke further along its strike, the junior mineral explorer said, adding that the dyke appears to correlate with gold mineralization in a previous operator's drill holes.
The discovery represents the first time, Newcastle said, that a continuous gold mineralized iron formation has been identified at surface. Further stripping and sampling along the strike of the mineralized intercepts could extend the gold horizon, with the company saying that additional exploration is recommended.
Fault Creek is an area in the southern portion of Newcastle's 15,500 hectare Pickle Lake property, which is located within the Pickle Lake Greenstone Belt, where over 2.2 million ounces of gold has been produced.
The Pickle Lake property ties on to both ends of PC Gold's Pickle Crow Mine Trend and the past-producing Pickle Crow Mine, which produced 1.45 million ounces of gold from 1935-1966.
Last month, Newcastle announced a planned restructuring that will include a share consolidation, name change, trading symbol change and financing, to better position the company for long-term growth.
Its proposed share consolidation would exchange one new common share for every five old shares, with its issued and outstanding shares to be reduced to 20.7 million from 103.6 million. At the same time, the company is planning to change its name to GoldON Resources, and alter its trading symbol to "GLD".
The aim of the restructuring is to position the company for long term growth, and ensure it has enough funding to pursue its goals this year. The name change and consolidation are subject to shareholder approval, for which a special general meeting will be held on February 18.
The company's focus will remain on gold exploration, with all of its projects strategically located in key mining jurisdictions in Ontario. It recently hired MPH Consulting to complete an NI 43-101 compliant technical report on its Swayze Belt properties, which adjoinIAMGOLD's (TSE:IMG) (NYSE:IAG) multi-million ounce Cote gold project halfway between Timmins and Sudbury in Ontario.
Separately, Newcastle said Tuesday that it is terminating its option to buy the 120-hectare Carscallen property in the West Timmins area of Ontario. The non-core asset is being dropped as part of the company's strategy to focus its exploration efforts on the Swayze and Pickle Lake gold projects.