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Newcastle Minerals Ltd. (TSX-V: NCM)

       Newcastle Minerals Ltd. is a Canadian-based mineral exploration mining company listed on the TSX Venture Exchange (ticker symbol NCM) (US Listing: NCMBF.PK). The Company has come to our attention due, in part, to the exceptional opportunity afforded shareholders as NCM.V develops its strategic presence in the Timmins gold camp adjacent to Lake Shore Gold Corp. and also in the highly prolific Pickle Lake Greenstone Belt of Ontario Canada. 

Newcastle Mineral's Timmins Gold Property Adjoining Lake Shore Gold, Ontario - Option to purchase 100%

Completely ring staked by Lake Shore Gold Corp.

Newcastle's Timmins Gold Property consists of ~120 hectares of patent claims that are surrounded by Lake Shore Gold Corp.’s 130-square kilometer Timmins West Gold Mine Complex, which includes its Thunder Creek project and its Timmins Mine, with reported probable reserves of 3.4 million tonnes bearing 7.52 grams of gold per tonne. The property is also approximately three kilometers east of Melkior Resources’ Carscallen project which recently reported drilling results of 60.27 grams of gold per tonne over 1.8 meters and 19.8 grams of gold per tonne over 3.3 meters, and approximately 4.5 kilometers northeast of Nebu Resources’ recently drilled West Timmins project which reported 98.4 grams of gold per tonne over 4.7 meters, according to their respective websites.

The property is located in the West Timmins district, which is the western extension of the Timmins gold camp, and is bisected by the Bristol Fault. The Timmins gold camp has been in production since 1909 and has produced over 70 million ounces of gold. There are several active mines and advanced exploration and development projects – including an estimated 40 to 50 drill projects – currently underway in the Timmins camp.
 
At the January 2010 Resource Conference Mining MarketWatch Journal was able to interview a variety of mining professionals active in the Timmins Gold Camp that were extremely impressed with the acquisition of this highly coveted property by Newcastle. The former owners were longstanding holdouts in the area with forestry interests. Newcastle allowed the former owners to keep the timber. Both the surface and mineral rights were conveyed to NCM.V, making the claim even more valuable should Lake Shore look to expand in that direction. It is important to note that Melkior Resources has already been approached by Lake Shore for a joint venture and that offer was rejected -- Newcastle is directly in line between Lake Shore and Melkior. There is no doubt Newcastle will be the subject of exciting activity given the strategic nature of the property and the fact it has been void of exploration to date. Newcastle is strategically positioned and highly prospective for major gold discovery.

Newcastle’s President, Michael Romanik, has issued the following statement surrounding this acquisition, “We are extremely pleased to have acquired a property of this strategic nature in the middle of the emerging West Timmins Camp. Newcastle feels that the West Timmins Camp is the most exciting and sustainable exploration and mining camp in Canada. This newly-acquired property is completely surrounded by Lake Shore Gold’s claims. We look forward to aggressively exploring this property in the New Year.”

8,000m drilling program now underway at neighbor Melkior

Melkior has had good reason to reject a joint venture offer from Lake Shore Gold Corp. as Melkior has encountered significant gold values of of late and has initiated a Q1 2010 drill program to build on these numbers. The drilling will occur on the southeastern part of their Carscallen Project which abuts close to Newcastle. To date Melkior has only drilled shallow and will this time drill deeper, below 500m. In raising funds for their 2010 activities there was such interest to participate that Melkior raised more than double the amount they were originally looking for, testimony to the exceptional risk-reward scenario knowledgeable investors understand to exist on key ground the West Timmins region and this bodes well for Newcastle Minerals.
 

We contacted Newcastle Minerals' President, Michael Romanik, for an interview and he offered the following synopsis: "We have an excellent location only ~3 kilometers from the actual Melkior gold discoveries to the west and Lake Shore Gold Corp. with their gold mill and mine complex encircling us and to the east -- the geology is permissive for something being there and we will explore this in a logical fashion." Mr. Romanik reviewed a handful of other Juniors in the area that are getting very good results.

 
Newcastle Minerals will exercise its option to ensure 100% ownership; Newcastle has made arrangements to pay the optionor, Timmins Forest Products Ltd., a total of $325,000 and issue a total of 3,750,000 shares in five stages over three years and grant the optionor a 2% net smelter returns royalty, of which Newcastle may repurchase half for $1,000,000. In addition, Newcastle will issue the optionor up to an additional 900,000 shares based on future exploration results. The optionor will retain the property’s timber rights.

Newcastle Begins Geophysical Survey of West Timmins Property

NCM.V has commenced a geophysical survey of its 120-hectare West Timmins property. A 15 line-kilometre magnetometer and induced polarization survey will assist in identifying drill targets.

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Newcastle Minerals’ Pickle Lake Greenstone Belt Gold Properties, Ontario

Newcastle Minerals’ Pickle Lake Greenstone Belt gold properties comprise 24 mineral claims covering approximately 11,560 acres in Ontario’s Dona Lake Township and Ponsford Townships. The properties are located in the Pickle Lake Greenstone Belt, a belt of rocks well known for its rich gold deposits, part of the prolific Uchi Geological Subprovince having historically produced over 30 million ounces of gold. The 5 claims are adjacent to PC Gold’s (TSX:PKL) Pickle Crow property and are on strike to the south-west. And 19 claims are adjoins the past-producing Central Patricia Mine property (650,000 ounces of gold) and extends to the past-producing Dona Lake Mine property (225,000 ounces of gold). Over 2.2 million ounces of gold were extracted from three mines in the immediate region between 1934 and 1996. The property hosts several gold showings identified by previous exploration.   Active exploration at the neighboring PC Gold Inc. will provide a steady news flow from the area over the next few months. On January 7 PC Gold announced they plan to add a third drilling rig to their work program.   Details on Newcastle's option to own 100% interest available here and here, the properties were acquired in two separate transaction.   Figure 4. Location Map (left) Location of Newcastle Minerals' Pickle Lake Properties circled.   NCM.V is expected to release assay results from exploration work on the Pickle Crow program over the next few months.

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NOTE: Newcastle Mineral's focus and efforts are on its Ontario projects located in the Timmins Gold Belt and Pickle Lake Greenstone Belt (featured above). The following Iskut Gold Camp claims in BC are reference in this article as holding properties and they possess significant inherent value built up over the years. The Iskut Gold Camp claims provide a tangible material asset that may be negotiated with when the right partner or purchaser materializes.

Iskut River, British Columbia, Canada - Holding properties of significance, 100% owned

Porphyry gold-copper-molybdenum deposit

Iskut Gold Camp lies within the Liard Mining Division in the "Golden Triangle" of northwestern BC, Canada. Newcastle has added value to the project for two decades.

Snip North Property

Newcastle's 100% owned Snip North Property (BC Mineral Claim Tenure Number 392387 totaling approximately 300 hectares), hosting the Iskut porphyry gold-copper-molybdenum deposit, is located in Northwestern British Columbia 112 km northwest of Stewart, B.C., 280 km northwest of Terrace, B.C., and 80 km east of Wrangell, Alaska. Newcastle Minerals Ltd. completed exploration and drilling on the Snip North property during 2006 and 2007. During 2007 Newcastle completed a six-hole 1158.8 meter-drilling program.
 
Widespread mineralization and alteration consisting of pyrite, chalcopyrite, molybdenite, magnetite, calcite, chlorite, and quartz are found in veins, veinlets, fractures, and stockworks, minor breccias, and as disseminations. Pyrite is found in vein/veinlets and as disseminations and can vary from 1-10%. The rocks are locally silicified and have calcite flooding and also contain in the groundmass, pyrite, magnetite, carbonate, chlorite, biotite, hematite, and epidote. Quartz-carbonate and quartz veins and veinlets, associated with pyrite and chalcopyrite and molybdenite are the most prominent style of alteration. Magnetite veinlets are also common, as well, as disseminations. The veins and veinlets can vary from 1 to 30 mm but can be up to 50 cm thick. Closer to surface or within fault zones, limonite and manganese dioxide are found. The alteration package consists of both phyllic and propylitic phases. All of these alteration packages discussed above are found in fine-grained sedimentary and probable tuffaceous rocks that have a general east-west strike and dip steeply south. The copper and gold grades may vary with the degree of silicification and the amount of quartz-pyrite-chalcopyrite veining.
 
The Snip North Property has been explored by Newcastle, in 2006 and 2007, by surface core drilling where a total of 11 drill holes totaling 2206.7 meters have been drilled. The 2007 drilling program has given in five drill holes significant and relatively long porphyry-style gold-copper-molybdenum mineralization intercepts that are potentially economic. Significant and positive drill hole intercepts from the 2007drilling program are given in Table 1-1. Historically, in 1988 and 1989, extensive soil geochemistry, airborne magnetic and electromagnetic surveys, and extensive diamond drilling was completed on the property by Meridor Resources.
 

The 2006, 2007, and historical drilling has, to date, defined a mineralized porphyry gold-copper-molybdenum system in the order of 500 to 600 meters trend length, 200 to 300 meters in width, and to a depth of 200 meters. The deposit sub crops below a thin cover of overburden and glacial cover. This deposit is located adjacent and on the north side of the Iskut River and parallels the river where defined. Four drill hole sections over an approximate strike distance of 600 meters define the deposit. Eight 2007 and 2006 drill holes and four historical drill holes define the geometry and grade of the deposit. The historical holes have not been used in estimating the potential quantity and grade. Using dimensions of 500 to 600 meters in strike length, a width of 225 meters and a depth of 175 meters along with a specific gravity of 2.90 yields a potential quantity of 57.1 to 68.5 million tonnes. The grade varies from 0.3 to 0.6-g/t gold, 0.09 to 0.17% copper and 0.003 to 0.023 % molybdenum. This estimate of quantity and grade is conceptual in nature and there has been insufficient exploration and drilling to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource.
 

The Iskut deposit is open along trend to the west, possibly to the east, and to depth.
 
In the vicinity of the East Zone, located some 550 meters to the east of the of the Iskut Deposit, exploration in 2007 and historical exploration in 1987 defined an area of rock sampling containing low-grade copper and gold mineralization indicative of porphyry mineralization. A single drill hole of the 2007-drilling program returned an intercept 0.32 g/t gold over 61 meters. Untested areas of ground both to the west and east of this drill site totals approximately 700 meters of favorable trend remain to be evaluated.
 
The Iskut deposit and East Zone are probably contiguous on trend and together are open on strike to the east, west, and depth and have a total potential trend length of 2000 meters. The exploration potential to define extensions and new zones along trend and at depth, down dip, is considered excellent.

Figure 9. Location Map of Iskut Deposit to Operating Mines and Selected Major Exploration Projects in British Columbia, Click to expand [PDF]

Phiz Property

Adjoining Pacific North West Capital's Rock and Roll claims

The Phiz property, which comprises 18 claim units, was staked in 2002 by Newcastle Minerals based on previous work and findings done in the late 1980's. Government records and information from former owners indicates that 3 main showings hosting significant gold mineralization have been identified on the property and include the Phiz, Trapper and 17 zones. Newcastle owns 100% interest.
 

The Phiz Property is located seven kilometers west of the SNIP mine and is underlain by shallow dipping volcanic and sedimentary rocks belonging to the Stuhini Group. A felsic lapilli tuff, which roughly bisects the property, separates a basalt - dominated rock assemblage in the east from a mixed chert, andesite and basalt unit in the west. This sedimentary and volcanic package has been intruded by a sub-volcanic diorite and local felsic dykes. All of these rocks have been subjected to thrust faulting, which has resulted in the repetition of geological units.
 
Previous soil geochemical surveys have outlined several coincident gold, silver, lead and zinc anomalies. These are associated with the Phiz vein but also follow the topography and stratigraphy, suggesting that shallow-dipping rock units or structures may host the mineralization. The mineralized Black Dog volcanogenic massive sulphide horizon has been traced onto the property. The sub-aqueous assemblage of felsic to mafic volcanics and sediments (including chert) is similar to the rock package, which hosts the mineralization at the Eskay Creek Mine.
 
Stripping and trenching exposed the Phiz vein over a 24-metre strike length and an average width of three meters. Surface channel samples assayed 49.7 grams per tonne gold and 135.8 grams per tonne silver over 3.2 meters, 88.0 grams per tonne gold and 87.1 grams per tonne silver across 1.98 meters and 16.9 grams per tonne gold with 44.6 grams per tonne silver across 7.0 meters.
 
Project Geology
The area is underlain by metamorphosed Palaeozoic (Permian and older) rocks of the Stikine Assemblage. These rocks are unconformably overlain by stratified Triassic rocks. This area lies on the eastern margin of the Tertiary-Cretaceous Coast Plutonic Complex.
 
Drilling Information
Thirteen holes have been drilled in the vicinity of the vein. Four holes encountered a broad silicified zone with disseminated galena, sphalerite and chalcopyrite mineralization. The zone appears to have a width of up to 12 meters. Drilling about 46 meters to the southeast of the vein intersected a mineralized quartz vein which hosts disseminated galena and pyrite.
 
The strategic location of the property in the vicinity of two producing gold mines together with previous exploration results by former owners warrant detailed further exploration of this property.

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Yukon Gold Property Proximal to Underworld, British Columbia, Canada - 100% owned

Newcastle Minerals Ltd. possesses 25 lode quartz mineral claims located near Underworld Resources’ White Gold property in the Yukon. The claims cover approximately 522.577 hectares and are located about 15 kilometres east of Underworld’s recently-announced discovery of 103 metres of 3.4 grams of gold per tonne.

Newcastle has completed an airborne geophysical survey of its 25 quartz mineral claims
The low-level multi-sensor airborne survey, which comprised 65 line kilometres flown at 100-metre spacings, collected data from magnetic and radiometric instruments using a Bell 206 BIII helicopter equipped with a cesium vapour magnetometer sensor in a nose stringer (with sensitivity better than 0.01 nanoTesla with compensation) and 8.4 litres of NaI gamma radiation detection crystals. Precision GeoSurveys Inc. of Vancouver, BC performed the survey, which was designed to assist in the interpretation of bedrock units, structure and alteration. Survey lines were flown on an east-west orientation (the regional trend is northwest-southeast). Interpretation of the results will be released when available.

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Mr. Romanik has served as a director of the Company since April 2008. He is the Chief Financial Officer and a director of First Lithium Resources and is President of Verenex Capital Corp, a private investment company. Mr. Romanik also provides investor relations services for Pebble Creek Mining and is the President of First India Resources Inc, a private company engaged in identifying mineral projects in India.
  

Jeff Smulders, Chief Financial Officer and Director
Director of Skyline Gold Corporation, a junior resource company listed on the TSX Venture Exchange. In addition, Mr. Smulders holds a B.Sc. in Mathematics from the University of British Columbia, an MBA from City University and a CMA from the Society of Management Accountants. He began his career with one of the large accounting firms in the early 1970s then worked in the mining industry for Placer Development Limited for almost 10 years. For the past 20 years, Mr. Smulders has managed his own financial consulting company assisting a wide variety of businesses including public companies in the areas of financial management, taxation and accounting.

  
James Darcel, Director
XMr. Darcel has over 20 years of experience in the investment industry including several years at the Toronto Stock Exchange. He became an investment counselor and portfolio manager more than ten years ago, and has worked as a financial analyst and consultant. He focused on the energy sector recently as a director and IC/PM with Regenesis Capital Management Inc. of Toronto, and has prepared several independent investment research reports on natural resource exploration companies based in Canada and abroad.

Andrew E. Nevin, Director
Dr. Andrew E. Nevin, Ph.D., P.Eng. was educated at St. Lawrence University, University of California at Berkeley and University of Idaho. He previously worked with Phelps Dodge Corporation, Cannon-Hicks Associates Ltd., Nevin Sadlier-Brown Goodbrand Ltd., and more recently as an independent consultant and developer, and President and CEO of Pebble Creek Mining Ltd. (TSXV:PEB). Dr. Nevin has 44 years of global experience as a geologist and exploration manager. He has contributed to the discovery, development or augmenting of reserves of several mineral deposits around the world, including copper, gold and silver mines in the United States, Canada, Mexico, China and Colombia, and geothermal steam fields in Canada and Indonesia. Dr. Nevin has consulted for many leading companies and governmental agencies, and served on the boards of several junior Canadian companies. He is a Fellow of the Society of Economic Geologists, a member and past director of the Society for Mining, Metallurgy and Exploration of the American Institute of Mining, Metallurgical and Petroleum Engineers, a Professional Engineer in British Columbia, and a Registered Geologist in Idaho.

For more information contact Newcastle Minerals' head office at: Ph 1.250.474.7999
 

E-mail: info@newcastleminerals.com   Company's web site: www.newcastleminerals.com  

SEDAR Filings: URL