The news came after Monday’s closing bell and has catalyzed shares of NewCastle Gold Ltd. (TSX:NCA) in Tuesday morning action. The Toronto-based company said that the latest assay results from definition drilling at its Castle Mountain gold project in San Bernardino County, California delivered high-grade mineralization.
Drill hold CMM-195 intersected 31.19 grams per tonne (g/t) gold over 29.0 metres, effectively extending the Lucky John Zone high-grade mineralization to depth. Further, the hole intersected 2.26 g/t gold over 126.5 metres, representing a new discovery called the Footwall Zone.
The latest results expand upon promising drill results from 2014 and 2015, which included cuts of 30.31 g/t gold over 33.3 metres and 18.97 g/t gold over 35.1 metres.
Castle Mountain was a heap leach gold mine that produced over one million ounces of gold from 1991 to 2004. The latest NI 43-101 report suggests that there is still millions of ounces of gold in the ground. (0.48 million ounces measured, 3.71 million ounces indicated, 0.76 million ounces inferred).
Shares of NCA have shot ahead 14.8% to 93 cents on the highest volume in years, with over 2.8 million shares already traded Tuesday morning. Shares are at their highest point since November 9, 2015 and crossed over their 200 day moving average for the first time since February 23.
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