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Castle Resources to Acquire 100% Interest in the Granduc Copper Mine, Stewart, B.C.

iconSep 1, 2010 09:55


Castle Resources Inc. (TSX VENTURE: CRI) ("Castle" or the "Company") is
pleased to announce that it has signed a binding letter agreement
("Letter Agreement") with Bell Copper Corporation ("Bell") to acquire a
100% interest in the past producing Granduc Copper Mine located near
Stewart, B.C.

The acquisition of 100% of the Granduc Property from Bell under the
Letter Agreement is a continuation of negotiations that led to the
previously announced option agreement ("Option") between Bell and Castle
(see press release dated July 19, 2010).Upon closing of the formal
agreement ("Formal Agreement") to acquire a 100% interest in the Granduc
Property, to be completed on or before December 1, 2010, the prior option
agreement will be considered null and void. To complete the purchase of
the Granduc, Castle agrees to pay Bell $2 million and issue 2,750,000
shares. The acquisition is conditional upon receipt of TXS Venture

"We are very excited that Castle will, following the acquisition, own a
100% undivided interest in the Granduc Property," commented Mr. Mike
Sylvestre, President & COO of Castle Resources. "The Granduc is a
significant copper asset with excellent infrastructure in place. It is
our intent to commission a NI 43-101 resource estimation by drill testing
the down dip extent of the historical deposit, then determine the
economic feasibility of the project with the aim of ultimately
redeveloping the mine."

Granduc Highlights

--  Newmont and Esso Minerals operated the Granduc Mine between 1971-1984;
    processed over 15 million tonnes of ore grading 1.71% Cu; produced 420
    million pounds of copper (plus gold and silver credits); the mine was
    closed in 1984 due to low copper prices
--  Operators of the Granduc Mine invested over $115 million from Oct 1965
    until start-up operations began in 1971
--  16 km haulage tunnel remains in good condition today
--  Mining operations at the Granduc Mine consisted of crushing underground
    then processing of up to 9000 tpd. The concentrate was trucked 32 miles
    on an all weather road to the year-round deep sea port facility in
    Stewart which remains in operation today
--  Bell Copper's exploration activities between 2004 and 2007 have
    confirmed mineralization within 4 kms to the north and south of the main
    Granduc orebody











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