Castle Minerals Faces Key Milestones as Ghana Investment Hinges on Approvals

Strong Drilling Momentum at Wa Gold Project

Castle Minerals Limited has made significant strides in its flagship Wa Gold Project in Ghana's Upper West Region during the December 2024 quarter. The company completed a 12-hole reverse circulation (RC) drilling program totaling 1,505 meters across the Kandia and Kpali gold prospects. Early results from four holes at Kandia have confirmed continuous mineralisation, with encouraging depth extensions and indications that both grade and mineralised width increase with depth.

Highlights include intercepts of 7 meters at 3.36 grams per tonne (g/t) gold from 149 meters within a broader 24-meter zone grading 1.78 g/t Au, and 5 meters at 3.49 g/t Au from 82 meters. These results reinforce Kandia's potential as a substantial bulk-tonnage gold deposit hosted in Birimian sediments adjacent to a regional granodiorite intrusion. The mineralisation remains open at depth and along strike, with artisanal mining activity further validating the prospectivity of the area.

Kpali Prospect Drilling and Upcoming Results

The Kpali gold prospect, situated at the convergence of two major greenstone belts and three regional structures, also saw extensive drilling activity. Castle anticipates releasing results from an eight-hole RC program at Kpali in early February 2025. The prospect hosts hydrothermal lode-style mineralisation over at least 850 meters of strike and to depths exceeding 100 meters, with geological settings analogous to several world-class gold operations in West Africa.

Transformative Investment in Kambale Graphite Project

In parallel with its gold exploration, Castle secured a landmark non-binding indicative term sheet with Ghana's Minerals Income Investment Fund (MIIF) for a combined investment of approximately A$3 million. This includes a A$750,000 subscription for new ordinary shares in Castle Minerals and a further A$2.25 million investment into Castle's wholly owned Ghanaian subsidiary, Kambale Graphite Limited.

This strategic partnership aims to advance the Kambale Graphite Project through to a pre-feasibility study, focusing on producing natural fine flake graphite concentrates and value-added battery anode materials. The deal positions Castle to capitalize on the growing demand for graphite driven by the global shift to electric vehicles and renewable energy storage, with Ghana poised to become a key player in the battery materials supply chain.

Western Australia Projects and Corporate Update

Castle also revised its option-to-purchase agreement with Great Boulder Resources for the Polelle and Wanganui gold projects near Meekatharra, Western Australia. Great Boulder committed to a minimum $600,000 exploration expenditure, extending the option period and maintaining the potential for future joint exploration.

On the corporate front, Castle raised $1.25 million through a placement of new shares and options to professional and sophisticated investors, bolstering its cash position to approximately $1.19 million at quarter-end. The company continues to manage costs prudently, with directors and management deferring portions of their remuneration to preserve cash.

Outlook and Strategic Focus

Castle Minerals is poised to build on its recent successes with further drilling campaigns planned at the Wa Gold Project, contingent on upcoming assay results. The partnership with MIIF is expected to accelerate development of the Kambale Graphite Project, aligning with Ghana’s ambitions to establish a battery manufacturing hub leveraging local mineral resources.

As Castle navigates the evolving political landscape in Ghana, marked by a smooth presidential transition supportive of mining, the company’s dual exposure to gold and graphite commodities with robust long-term fundamentals offers a compelling growth narrative for investors.