Castle Resources Inc.: Castle Resources Options 100% San Ramon Property, Mexico to MAG Silver Corp.

Published in House and Home on Wednesday, July 15th 2009 at 6:05 GMT, Last Modified on 2009-07-15 06:05:47 by Market Wire
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TORONTO, ONTARIO--(Marketwire - July 15, 2009) - Castle Resources Limited (TSX VENTURE:CRI) ("Castle" or the "Company") is pleased to announce that Company has optioned 100% of the San Ramon claim group to MAG Silver Corp (TSX:MAG)(NYSE Amex:MVG). The San Ramon claim group is comprised of eight concessions totaling 312.2 hectares, approximately five kilometers northeast of the city of Zacatecas.

To earn their interest in the San Ramon property, MAG Silver has committed to expenditures of US500,000 during the first year of the option. Following year one and at its option MAG is required to expend US$500,000 during the second year of the option, US$1,000,000 during the third year of the option, and US$1,250,000 during the fourth year of the option for total expenditures of US$3,250,000. Castle will retain a 1.5% NSR in the project. In addition, MAG Silver has agreed to the following payment schedule; US$75,000 upon signing of the option agreement and US$750,000 by the fifth anniversary of the agreement.

The San Ramone claim group is tied onto the western boundary of MAG's Lagartos SE claim group ([ http://www.magsilver.com/s/Lagartos.asp ]) where MAG is exploring for extensions to the prolific Mala Noche and Veta Grande vein systems, which have provided historic production of over 1 billion ounces of sliver ([ www.magsilver.com/s/NewsReleases.asp?ReportID=336202 ]).

During 2007 and 2008 Castle completed approximately 3,400 meters of drilling in 12 holes and prospecting work on the project. Highlights of this work, including; 1) testing depth and continuity of San Ramon and Los Gatos zones; 2) detailed mapping and sampling program undertaken on the Evelin and Mina del Fierro claims. There are also additional untested drill targets on the San Ramon property.

A NI 43-101 report was completed in October 2006 by Behre Dolbear which listed historical resource estimates on the property at 640,000 tones of oxide ore grading 0.5 g/t gold and 246 g/t silver along with 1.2-million tones of sulphide ore grading 1.3 g/t gold and 274 g/t silver. These estimates do not conform with NI 43-101 standards and as such should not be relied upon.

Qualified Person: Brad Leonard, M.Sc., P. Geo., Castle's Exploration Manager, is the Qualified Person responsible for the scientific and technical work discussed as defined under National Instrument 43-101 and has reviewed this press release.

About Castle Resources

Castle Resources Inc. is a Toronto-based junior mineral exploration company focusing on high-quality, advanced exploration gold projects. Management's goal is to quickly advance the new Elmtree option and to seek additional opportunities to continue to add value for shareholders. For more information please visit the Castle Resources' website at [ www.castleresources.com ]

Disclaimer

Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information is identified by words such as "estimates", "intends", "expects", "believes", "may", "will" and include, without limitation, statements regarding the company's plan of business operations (including plans for progressing assets), estimates regarding mineral resources, projections regarding mineralization and projected expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, risks inherent in the mining industry, financing risks, labour risks, uncertainty of mineral resource estimates, equipment and supply risks, title disputes, regulatory risks and environmental concerns. Most of these factors are outside the control of the company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.