Castle Gold announced it has closed the private placement previously announced on November 6th, 2009. The company issued 3,684,210 common shares at C$1.00 per common share raising aggregate gross proceeds of approximately C$3,684,210. The proceeds from the financing will be used to accelerate enhanced production expansion at El Castillo, Durango, Mexico and to pay one-time expenses associated with Argonaut Gold Inc.’s proposed all cash acquisition of all the shares of Castle Gold as previously announced on 28 October 2009.
Castle Gold Corporation provide an update on the ramp-up in mining and gold production at its 100 percent owned El Castillo Gold Mine in Durango State, Mexico. A new quarterly gold production record of 7,655 ounces of gold was achieved, a 65 percent increase from the year earlier third quarter period of 6.421 ounces and a 19 percent increase from the previous quarter (Q2-2009) of 6,421 ounces of gold produced.
Castle Gold announced initial assay results from the remaining 13 of its 19 hole Phase 1 reverse circulation drill program aimed at expanding the gold resource to the south and south-east of the open pit at the El Castillo gold mine in Durango State, Mexico. The best intersection of this second set of drill holes was in drill hole CA – 231 which intersected 42.7m grading 0.72 g/t Au from 54.9m to 97.5m drill hole depth. All but two of the 13 remaining drill holes from the program intersected gold mineralized intervals from surface to depths of as much as 146.3m intersection length at gold grades above the resource cut-off grade (0.15 g/t Au) used to calculate the El Castillo mine gold resource and reserves
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