Castillian starts Mangabal project drilling in Brazil
2007-02-15 09:33 ET - News Release
Mr. David Gower reports
CASTILLIAN ASSUMES OPERATOR-SHIP OF THE MANGABAL PROJECT IN BRAZIL FROM XSTRATA AND INITIATES US$2.5 MILLION EXPLORATION PROGRAM
Castillian Resources Corp. and Xstrata Nickel have agreed to transfer operatorship of the Mangabal project in Brazil from Xstrata to Castillian. Castillian acknowledges the support provided by its partner, Xstrata, in affecting a smooth transfer by providing continuing support while Castillian establishes a Brazilian subsidiary and a local operating team. According to David Gower, PGeo, president and chief executive officer, this is an important step for Castillian as it allows the joint venture to continue the search for a major nickel discovery, but also provides for Castillian to advance smaller deposits that are of less interest to a company of the size of Xstrata. Castillian is earning an interest in the project under an option-joint venture agreement with Xstrata (see news in Stockwatch dated Oct. 10, 2006, for details).
Fieldwork is commencing on a $2.5-million (U.S.) exploration program, operated from the company's field office in the town of Anicuns near the project. The objectives of the exploration program are listed below.
Castillian will delineate and extend the Metago zone with sufficient diamond drilling to establish a resource and determine the limits of the deposit down plunge. This portion of the program will require approximately 20 drill holes totalling 3,000 metres of diamond drilling. Drill holes will be completed on sections spaced 50 metres apart and because the zone is very shallow (generally less than 100 metres deep), detailed drilling from surface is warranted. Nickel sulphide mineralization was identified along a 300-metre strike length by a combination of diamond drilling and EM surveys by Falconbridge (now Xstrata) in late 2005. The best intersections from that program included hole FLMS-05-001 which intersected 9.95 metres grading 1.67 per cent nickel and 0.39 per cent copper and hole FLMS-05-007 which intersected 5.63 metres grading 1.54 per cent nickel and 0.46 per cent copper (see news in Stockwatch dated Oct. 10, 2006, for details). Drill hole spacing is currently insufficient to calculate a resource that would be compliant with National Instrument 43-101 standards.
Castillian will complete 3,500 line kilometres of VTEM airborne surveys over five key areas within the large joint venture land package, including detailed surveys over the Mangabal intrusion. The airborne survey is scheduled to commence in late February.
Castillian will diamond drill six additional priority targets associated with the Mangabal intrusion which hosts the Metago zone, upon completion of the Metago zone drilling and airborne surveys. Five thousand metres of drilling have been budgeted for this part of the program. The total amount of drilling required will be contingent upon results. At normal drilling rates the drilling at Metago can be completed in approximately two to three months during which time refinement of these drill targets will be completed.
Castillian will conduct field follow-up of the airborne survey with focus on the Mangabal intrusion and the extensions of the Americano intrusion where the Americano do Brasil nickel-copper sulphide mine was recently commissioned.
The company is in the final stages of establishing a Brazilian subsidiary and an office in Belo Horizonte. The process is expected to be concluded within approximately one week and drill contracts which have already been negotiated will be executed immediately upon conclusion of that process.
Quality control |
