43-101 2008 Technical Report On The La Fortuna Project, Durango ...

7.0 EXPLORATION
In 2006, Castle Gold collected 413 rock chip samples on the Property. Castle Gold uses these rock chip
samples to identify additional targets outside the main area as well as to understand controls on
mineralization within the known area of mineralization.
Castle Gold established an on-site sample preparation and laboratory facility in 2006 whereby all of the
rock chip samples were analyzed for gold at this facility. During a previous site visit carried out by Howe
in 2006 (Priesmeyer et al, 2006), Castle Gold had indicated that as of the date of Howe report 896, results
obtained from this laboratory were intended for internal use only as a tool for short term mine planning
purposes. As a result of this, and the fact that this facility was uncertified, none of the results from Castle
Gold’s 2006 exploration work were presented in Howe’s report #896. As of the date of this new report,
the majority of the resource which was drilled as part of the 2006 program has now been mined and
therefore this data has also not been incorporated into the present resource estimations.
Since 2006, there has been no systematic exploration work carried out by Castle Gold within the El
Castillo permit area (i.e. trenching, pitting, drilling). However, as a result of increasing gold prices (which
permit a reduction in cut-off grade for determining mineral resources), there are now a number of areas
inside the in-pit minable reserves that have been considered as waste in the model due to the absence of
sufficient drill data. Castle Gold should complete infill RC and/or core drilling in these areas in order to
convert these areas into Measured-Indicated resources prior to completing revised reserve estimates.
Furthermore, according to the existing resource database, the El Castillo deposit appears to have the
potential to remain open to the west and south. It is recommended for Castle Gold to plan additional
drilling in these areas with the intention of expanding the known resource.
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