TORONTO, ONTARIO--(Marketwired - Apr 5, 2013) - Greencastle Resources Ltd. (TSX VENTURE:VGN) ("Greencastle") subsidiary Deveron Resources Ltd. (TSX VENTURE:DVR) ("Deveron") has reported very encouraging results from a recent exploration program, carried out late in the 2012 field season on Deveron's 100% owned Nechako Property (see Deveron press release dated April 5, 2013). Greencastle holds 7,569,505 Deveron shares or approximately 64% of Deveron's 11,794,505 common shares outstanding.
The Nechako Property, with an area of approximately 13,000 hectares (28 claims), is covered by a veneer of glacial overburden and is located approximately 100 kilometres southwest of Vanderhoof, central British Columbia, in the developing Blackwater gold camp, where New Gold Inc. has recently delineated an open pit resource of over 10 million ounces of gold.
The exploration program was designed to follow up on a number of conductive targets selected from an earlier heli-borne magnetic and electromagnetic survey which covered the Property, as well as to carry out reconnaissance geology and stream sediment sampling where possible. Following ground investigation of eleven areas with anomalous conductivity interpreted from the geophysical data, six areas were gridded and soil samples collected.
In grid area 10, close to the identified anomalous conductors, recent road building has exposed mid-Jurassic greywacke & volcaniclastic rocks cut by two dacitic, sub-volcanic, one to four metre wide, NW trending, sub-vertical dykes. Sulphide mineralization with variable amounts of pyrite, chalcopyrite, and sphalerite occur as late stage fracture filling, associated with quartz-carbonate-ankerite vein material that cut the older greywacke as well as sub-volcanic dykes. Two grab samples from the vein material returned 1.54 g/t gold, 85.7 g/t silver and 0.59 g/t gold, 51.2 g/t silver, along with anomalous copper and zinc values. Soil samples from the area around the showing contain anomalous gold, silver copper and zinc. The nearest stream sediment sample, about one kilometre downstream from the showing, also returned significantly anomalous gold. This epithermal style mineralization associated with sub-volcanic felsic intrusions is similar to other deposits in the Blackwater region.
This gold-silver discovery from the initial reconnaissance exploration program is extremely encouraging and a detailed follow-up program is being planned for the surrounding area. Detailed evaluation will be carried out on other areas with anomalous gold, silver, copper and zinc in several of the soil grids. Careful follow-up exploration will be required to assess several locations where anomalous gold values were identified in stream sediment samples.
In addition, the Property has been expanded by a further 732 hectares to cover adjoining anomalous areas.
"These results are extremely encouraging. We continue to work closely with Deveron management to maximize value at Nechako and evaluate new project opportunities. Deveron's closely held capital structure and strong financial partners give it a distinct competitive advantage in these challenging markets," commented Anthony Roodenburg, Greencastle CEO.
This news release includes certain "forward looking statements" within the meaning of that phrase under Canadian securities laws. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. Forward-looking statements reflect management's current views with respect to possible future events and conditions and, by their nature, are based on management's beliefs and assumptions and subject to known and unknown risks and uncertainties, both general and specific to the Company. Although the Company believes the expectations expressed in such forward-looking statements are reasonable, such statements are not guarantees of future performance and actual results or developments may differ materially from those in our forward-looking statements. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of commodities, general market conditions, risks inherent in exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. Additional information regarding the material factors and assumptions that were applied in making these forward looking statements as well as the various risks and uncertainties we face are described in greater detail in the "Risk Factors" section of our annual and interim Management's Discussion and Analysis of our financial results and other continuous disclosure documents and financial statements we file with the Canadian securities regulatory authorities which are available at www.sedar.com. The Company undertakes no obligation to update this forward-looking information except as required by applicable law. The Company relies on litigation protection for forward looking statements.