VICTORIA, BRITISH COLUMBIA, Dec. 22, 2009 (Marketwire) -- Newcastle Minerals Ltd. (TSX VENTURE:NCM) is pleased to announce that it has, subject to regulatory acceptance, negotiated an option to purchase a 100% interest in nine property patents covering approximately 120 hectares in Carscallen Township adjacent to Highway 101, 21 kilometres southwest of Timmins, Ontario.
The property is located in the West Timmins district, which is the western extension of the Timmins gold camp, and is bisected by the Bristol Fault. The Timmins gold camp has been in production since 1909 and has produced over 70 million ounces of gold. There are several active mines and advanced exploration and development projects - including an estimated 40 to 50 drill projects - currently underway in the Timmins camp.
The property is surrounded by Lake Shore Gold Corp.'s 130-square kilometre Timmins West Gold Mine Complex, which includes its Thunder Creek project and its Timmins Mine, with reported probable reserves of 3.4 million tonnes bearing 7.52 grams of gold per tonne. The property is also approximately three kilometres east of Melkior Resources' Carscallen project which recently reported drilling results of 60.27 grams of gold per tonne over 1.8 metres and 19.8 grams of gold per tonne over 3.3 metres, and approximately 4.5 kilometres northeast of Nebu Resources' recently drilled West Timmins project which reported 98.4 grams of gold per tonne over 4.7 metres, according to their respective websites. There is no certainty that similar results will be obtained from the Company's property.
Newcastle's President, Michael Romanik, stated, "We are extremely pleased to have acquired a property of this strategic nature in the middle of the emerging West Timmins Camp. Newcastle feels that the West Timmins Camp is the most exciting and sustainable exploration and mining camp in Canada. This newly-acquired property is completely surrounded by Lake Shore Gold's claims. We look forward to aggressively exploring this property in the New Year."
To exercise its option, Newcastle must pay the optionor, Timmins Forest Products Ltd., a total of $325,000 and issue a total of 3,750,000 shares in five stages over three years and grant the optionor a 2% net smelter returns royalty, of which Newcastle may repurchase half for $1,000,000. In addition, Newcastle will issue the optionor up to an additional 900,000 shares based on future exploration results. The optionor will retain the property's timber rights.
The Company has also agreed to pay a finder's fee in respect of the option to Mr. Nick Horsley and 2125930 Ontario Ltd., both of whom deal at arm's length with the Company.
ON BEHALF OF THE BOARD
Signed "Michael Romanik"
Caution Regarding Forward-Looking Information. Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the British Columbia Securities Act and Alberta Securities Act. This includes the mineral potential of the West Timmins district, which is subject to uncertainties, including uncertainty in connection with evaluating deposits until the deposits have been extensively drilled on closely spaced centres. Actual results may vary materially from those described in forward-looking statements.
Forward-looking statements contained herein also include the Company's plans at its mineral properties, which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Forward-looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the ability of the Company to continue to be able to access the capital markets for the funding necessary to acquire and maintain exploration properties and to carry out its desired exploration programs; difficulties in executing exploration programs on the Company's proposed schedules and within its cost estimates, whether due to weather conditions in the areas where it operates, increasingly stringent environmental regulations and other permitting restrictions, or the availability of essential supplies and services; and factors beyond the capacity of the Company to anticipate and control, such as the marketability of minerals, government regulations relating to health, safety and the environment, and the scale and scope of royalties and taxes on production. Should one or more of these risks or uncertainties materialize, actual results may vary materially from those described in forward-looking statements.
Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.