Greencastle Resources Options Zinc Graphite Property to Deveron Resources

Greencastle Resources Ltd. has entered into an option agreement with Deveron Resources Ltd. that could see a change in ownership of Greencastle’s Rockstone Zinc and Graphite property located 40 km west of Thunder Bay, Ontario.

Under the terms of the Agreement, Deveron Resources Ltd will pay $150,000 in total cash consideration and undertake $2,000,000 in exploration expenditures over a three year period to earn a 60% interest in the property. Deveron has the option of acquiring 100 per cent interest in the property by incurring all expenditures required to produce a full bankable feasibility study. Greencastle will retain a 3% net smelter return royalty.

The Rockstone property covers a number of geophysical anomalies generated from an earlier, more extensive airborne electromagnetic (VTEM) survey covering an area of some 270 square kilometres.

In 2012, Greencastle carried out an initial four hole drill program to test four separate conductive targets for the presence of base metal massive sulphides and provide information from which to further interpret the large number of geophysical anomalies in the database.

As reported in August 2012, at the Rockstone property, the Company drill-tested 4 separate airborne electromagnetic (VTEM) anomalies. The anomalies are located several kilometres east, but in the same sequence of volcanic and sedimentary rocks where boulders of zinc-rich base metal mineralization were discovered in Aldina Township in the 1990s. No significant gold and silver values were returned in the this drilling, but in one hole, one section of 24 metres containing 1% combined Zn+Cu was noted within a graphitic argillite unit.

More recently, Greencastle decided to examine the nature of the graphite which commonly occurs in the argillite sedimentary units intersected in the 2012 drilling. Sample pulps from the intersection in drill hole GC-12-01 which contained 1% Zn+Cu over 24 m were assayed for carbon as graphite and returned 25% graphite over the 24 m section, using the graphitic carbon by LECO analytical procedure. The material was then sent for mineralogical studies and currently, preliminary metallurgical work is underway to identify the nature of the graphite and whether it can be processed to form an acceptable concentrate.

Graphite is one of two minerals formed by carbon - the other is diamond. raditionally, graphite is mostly consumed for refractories, batteries, steelmaking, brake linings, foundry facings and lubricants.  A derivative of graphite, graphene, occurs naturally in graphite, is considered one of the strongest substances known. Today graphite and graphene are important components in green industries and high tech product. Companies such as LG, Mitsubishi, Hitachi and LG need graphite for use in lithium batteries that power everything from smartphones to laptops. The development of the electric car will increase the demand for graphite for use in electricity storage batteries.

Canadian graphite miners are angling to be high-end suppliers to the global lithium ion battery market, where companies such as LG, Samsung, Mitsubishi and Hitachi are fuelling growing demand for new technologies ranging from smartphones and laptops to electric cars.

 For additional information, please visit www.greencastleresources.com.