NewCastle Gold Intersects High-Grade at Oro Belle South, Castle Mountain Project

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Sep 22, 2016, 06:30 ET

- 17.59 g/t gold over 9.1 metres - below current in-pit resources –

VANCOUVER, Sept. 22, 2016 /PRNewswire/ - NewCastle Gold Ltd. (TSX-V: NCA) ("NewCastle" or the "Company") is pleased to report additional assay results from seven reverse circulation ("RC") drill holes from the Company's ongoing 22,000 metre Phase I drill campaign at the Castle Mountain oxide gold project (the "Project") located in San Bernardino County, California. The drill program (the "Program") continues to target the strike and depth extensions to the main mineral resource along the Oro Belle Trend ("OBT"). The OBT is one kilometre wide by two kilometres long and remains open to the northeast and at depth (Sections 11400N to 13500N).

(Photo: http://photos.prnewswire.com/prnh/20160921/410440)

Oro Belle South - BC Target

Assay highlights have been received for seven additional RC holes located 150 metres north and 150 metres south of the previously released, northwest-southeast oriented, 11550N core cross-section across the BC Target (see press release dated September 6, 2016). New results from Oro Belle South include:

3.70 grams per tonne gold ("g/t Au") over 50.3 metres, in hole CMM-087
- including 17.59 g/t Au over 9.1 metres
1.54 g/t Au over 37.8 metres, in hole CMM-098
- including 2.72 g/t Au over 18.9 metres, and
- including 15.41 g/t Au over 2.1 metres
1.01 g/t Au over 54.9 metres, in hole CMM-088
- including 6.43 g/t Au over 3.0 metres
0.74 g/t Au over 48.8 metres and 0.37 g/t Au over 56.4 metres, in hole CMM-097
0.43 g/t Au over 45.7 metres, in hole CMM-099 (within JSLA pit back-fill)

President and CEO Gerald Panneton commented "Another round of very good drill results is indicating that the geological model developed by our technical team has been highly successful. The presence of high-grade gold mineralization 100 metres below the currently modeled pit will have a positive impact in the follow-up drill program planned for our pre-feasibility study, which will focus on the southern part of the OBT. The current program is indicative of the excellent potential to improve the grade and continuity, and also to increase the resource potential near the current pit limits for future planning."

The presence of disseminated and fracture-controlled gold mineralization in the seven RC holes at the BC Target continues to support the association of gold within near-vertical quartz-feldspar porphyry intrusive bodies aligned along major structural corridors, with proximal hydrothermal fluid breccias that host the gold mineralization. Hole CMM-087 was designed to test the depth extension of the modeled northeast trending/southeast dipping OB-3 structural domain below the modeled resource pit and intersected 17.59 g/t Au over 9.1 metres along this structure, approximately 100 metres below the pit bottom within brecciated rhyolite. The OB-3 structure remains open in all directions.

Table 1: Summary of Significant 2016 Drill Hole Intercepts from the Oro Belle South - BC Target


Hole_ID	Section	From (metres)	To (metres	Interval (metres)	Au (g/t)
CMM-087	11400N	32.0	35.1	3.0	0.33
and		47.2	56.4	9.1	0.24
and		342.9	393.2	50.3	3.70
including		362.7	371.9	9.1	17.59
including		362.7	367.3	4.6	33.19
including		362.7	364.2	1.5	73.40
CMM-089	11450N	125.0	128.0	3.0	0.28
and		147.8	150.9	3.0	0.25
and		411.5	420.6	9.1	0.13
CMM-090	11450N	89.9	144.8	54.9	1.01
including		96.0	99.1	3.0	6.43
and including		111.3	114.3	3.0	6.43
and including		140.2	141.7	1.5	1.40
CMM-091	11450N	306.32	309.37	3.0	0.51
CMM-097	15575N	141.7	146.3	4.6	3.43
and		172.2	221.0	48.8	0.74
including		172.2	185.9	13.7	1.13
and		236.2	243.8	7.6	0.48
and		252.1	308.5	56.4	0.37
and		348.1	363.3	15.2	0.47
CMM-098	11600N	205.1	208.2	3.0	0.34
and		214.3	247.8	33.5	0.37
and		226.5	247.8	21.3	0.47
and		260.6	271.4	10.8	0.30
and		297.3	304.5	7.2	0.20
and		421.8	459.6	37.8	1.54
including		421.8	440.7	18.9	2.72
including		421.8	427.0	5.2	8.74
including		424.9	427.0	2.1	15.41
CMM-099*	11700N	0.0	45.7	45.7	0.43
including*		30.5	44.2	13.7	0.91
and		128.0	140.2	12.2	0.22
* Intercept is in backfill material within historic JSLA open pit.

For a location map of recent drill holes, please click on this link: http://www.newcastlegold.ca
For a cross-section of recent drill holes, please click on this link: http://www.newcastlegold.ca
For a long section of recent drill holes, please clink on this link: http://www.newcastlegold.ca

All new reported exploration holes were drilled at 290 degrees azimuth, with dips of -65 to -75 degrees, and to an average depth of 350 to 600 metres. True widths of the intercepted intervals cannot be determined from the available geological information. Approximately 18,500 metres have been completed to date in 44 core and RC holes.

All drill samples are submitted to ALS Minerals in Reno, Nevada for splitting and then crushing until 70% of the sample is finer than a nominal two millimeter in size. A 250 g sub-sample is taken from the crushed material and pulverized until 85% passes a 200 mesh (75 µm) screen (ALS Method PREP-31). A 30 g sample of pulverized material (pulp) is then sampled and subjected to fire assay ("FA") with atomic absorption ("AA") finish (ALS Method AuAA-23). Any gold assays greater than 10 g/t Au are re-analyzed where a 30 g sample is taken from the pulp and assayed by FA with a gravimetric finish (ALS Method Au 30g FA – GRAV). All samples that yield greater than 0.2 ppm assay are also analyzed for gold cyanide solubility (ALS Method AuAA-13). The Company employs an industry standard QA/QC program consisting of standard pulps, coarse blanks and rig duplicates.

About NewCastle

NewCastle has a 100% interest in the Castle Mountain property in San Bernardino County, California. The Castle Mountain heap leach gold mine produced over one million ounces of gold from 1992 to 2004. The Mine and Reclamation Plan, under which the mine operated, was authorized by the County of San Bernardino as the Lead Agency and remains in effect until 2025. Water for the drill programs was accessed from existing patented wells on the Project. An updated NI 43-101 resource for the project was announced December 2, 2015 which includes Measured Mineral Resources of 17.4 million tonnes grading 0.86 g/t gold containing 0.48 million gold ounces, Indicated Mineral Resources of 202.5 million tonnes grading 0.57 g/t gold containing 3.71 million gold ounces along with Inferred Mineral Resources of 40.8 million tonnes grading 0.58 g/t gold and containing 0.76 million gold ounces.

The Project hosts a disseminated low sulphidation epithermal system. Gold is primarily hosted by late-stage rhyolite volcanic units within zones of silicification and brecciation associated with northeast-southwest trending/southeast dipping fault structures which are interpreted to have developed within a collapsed caldera environment. Eleven gold domains are represented by both steep and shallow-dipping orientations.

Ian R. Cunningham-Dunlop, P. Eng., the Company's Vice President Exploration, is the designated Qualified Person for this news release within the meaning of NI 43-101. He has reviewed and verified that the technical information contained in this release is accurate and has approved of the written disclosure of the same.

Neither the 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 news release.

Forward-Looking Statements

This news release contains "forward-looking statements" and "forward-looking information" (collectively, "forward-looking information") within the meaning of applicable Canadian securities legislation. Forward-looking information includes information that relates to, among other things, statements with respect to the completion of the proposed drill program at Castle Mountain, the mineral resource expansion at Castle Mountain and the identification of future expansion targets at Castle Mountain. Forward-looking information is not, and cannot be, a guarantee of future results or events.

Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by us at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results and events to be materially different from those expressed or implied by the forward-looking information. The material factors or assumptions that we identified and were applied by us in drawing conclusions or making forecasts or projections set out in the forward looking information include, but are not limited to that the Company is able to procure personnel, equipment and supplies required for its exploration and development activities in sufficient quantities and on a timely basis and that actual results will be consistent with management's expectations.

The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information may include, but are not limited to, the risks discussed under the heading "Risks" in general to the business of NewCastle in documents filed (or to be filed) with Canadian regulatory authorities. Should one or more risk, uncertainty, contingency or other factor materialize or should any factor or assumption prove incorrect, actual results could vary materially from those expressed or implied in the forward-looking information. Accordingly, the reader should not place undue reliance on forward-looking information. NewCastle does not assume any obligation to update or revise any forward-looking information after the date of this news release or to explain any material difference between subsequent actual events and any forward-looking information, except as required by applicable law.

SOURCE NewCastle Gold Ltd.