Introduction
The Papase Project consists of one granted Reconnaissance Licence situated in central west Ghana 65km south of the 16Moz Ahafo gold project. Castle has an option to acquire a 100% interest in the project from a local Ghanaian company.
The Papase project is located 65km south west of Newmont's 'world class' Ahafo gold operation and is interpreted to contain the Kenyase shear zone and the Bui fault.
The Kenyase shear zone is a major structure that is associated with Newmont's +16 million ounce Ahafo gold project that includes the proposed development of at least 15 open pit mines.
The Kenyase shear zone is one of the most prospective and sought after exploration areas in Ghana. No sampling or drilling is known over the area. It sits over a change in orientation of the Sefwi belt/basin contact that offers a potentially important structural setting for gold mineralisation. The regional scale Bui Fault crosses the north-west portion of the licence and represents another obvious and high priority target.
Castle plans to commence on ground exploration at Papase in July 2008 involving, regolith mapping and soil sampling.
The agreement was executed with a local private mining company to acquire a 100% interest in the Papase licence. The agreement is subject to the approval of the Ghanaian Minister of Mines.