BALLARAT GOLD PROJECT Sulieman-Britannia lode extended to

CASTLEMAINE GOLDFIELDS LIMITED Sulieman- Britannia extended to +85m – Feb 2011

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BALLARAT GOLD PROJECT

Sulieman-Britannia lode extended to 85 metres with very high gold grades

Castlemaine Goldfields Limited (ASX:CGT) announces exploration drill results from the Sulieman Line of Mineralisation which has now extended the Sulieman-Britannia lode to over 85 metres in strike length.

HIGHLIGHTS

High gold grades from Sulieman-Britannia at the Ballarat East Mine:-

7.8 m at 13.8 g/t Au from 155.0 m in CBU033

including 0.4 m at 22.4 g/t Au,

and 0.8 m at 15.1 g/t Au,

and 0.6 m at 64.2 g/t Au,

and 0.3 m at 102.5 g/t Au.


including 1.4 m at 75.7 g/t Au,

and 1.0 m at 230.7 g/t Au.

1.4m at 7.8 g/t Au from 137.0 m and 6.7m at 3.9 g/t Au in CBU045 Managing Director Mr. Matthew Gill commented “These results give encouragement that this drilling will ultimately define further gold mineralisation that can be added to our current mine development schedules and provide future mill feed. An underground drill rig is currently dedicated to continuing this exploration in the anticipation of adding to our current success in this area.”

This gold target, also known as the Sulieman “Up-holes” requires drilling directly above the upper underground decline in contrast to other nearby recent positive results from holes drilled downwards into the Basking Fault Zone.

These assay results are from a 3 hole cross section testing the northern end of the target and a single hole to follow up the initial positive results achieved last year (ASX Release dated 17 September 2010). These sections are the first from a concerted diamond drilling program of at least 14 holes to test the Sulieman-Britannia for continuity of quartz veining and gold grades both along strike and up and down the west dipping faults which control vein location and geometries.

With continued success the Sulieman-Britannia Prospect can be added to the already identified near term sources for the Ballarat mill in future years.

COMPANY DETAILS

Principal and Registered Office: Castlemaine Goldfields Ltd 10 Woolshed Gully Drive Mount Clear, VICTORIA, Australia 3350

Postal Address: PO Box 98 Mount Clear, VIC, 3350

Website: www.cgt.net.au Email: [email protected] Phone: (03) 5327 2555

Facsimile: (03) 5327 2556

ABN: 45 073 531 325

ASX CODE: CGT Corporate Information:

Shareholders ~1,400

Shares on Issue 1,020 million

Options (unlisted) 4.15 million Directors:

Non-Executive Chairman: Gary Scanlan

Managing Director: Matthew Gill

Non-Executive Directors: John (Ian) Goudie Peter McCarthy

ASX Release – 18 February 2011

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http://www.cgt.net.au/

mailto:[email protected]


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SULIEMAN LINE OF MINERALISATION

The 2010 underground drilling program which commenced in May 2010 prioritised the First Chance line of mineralisation in the Llanberris and subsequently Britannia compartments. The successful outcome from this drilling resulted in the recent announcement of the decision to recommence mining (ASX Release 14 February 2011). Approximately 200 metres to the west of the First Chance Line of mineralisation is the Sulieman Line of mine workings and gold mineralisation. With success on this western Sulieman line, the company has the potential to add gold resources to the project which lie close to the existing mine underground infrastructure.

The gold intersections of highest resource potential are located approximately 120 metres to 150 metres above the existing Sulieman Decline with a number of adjacent less consequential spur veins which contain sporadic, and sometimes high, gold grades. The results in CBU033 along with CBU040 are greater than 6 metres in vertical height which is significant considering that the quartz contents are above 90% of each interval. Horizontal widths and continuity of veining is harder to establish without further drilling.

Interpretation is that the most massive gold bearing quartz veining is associated with a series of relatively low displacement west dipping faults with random spur veins occurring between the faults. The highest quartz vein volumes and gold grades occur at the upper most of these faults with extremely coarse gold occurrences as evidenced by logged visible occurrences and gold grades over 100g/t Au.

Figure 1. Long section (looking west) of the Sulieman Line showing holes drilled by CGT

for inset see Figure 2

Sulieman Line of Mineralisation

“Uphole” drill program

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Drilling is continuing with one of the 2 rigs in the mine to define the down dip western extensions to intercepts received thus far. Continued success on these new sections will see additional step out sections drilled along strike as indicated in Figure 2. Recently drilled hole CBU045 has intersected gold bearing quartz veining at predicted depths which were extrapolated down dip from the best intersections in CBU040. A best assay for CBU045 is 1.4m at 7.8g/t Au which includes a number of spur veins above the faulted quartz including a 0.7m vein with grade of 34.3g/t Au.

Proximity to existing underground mine development and the relatively shallow historical mining make the Sulieman line of mineralisation an attractive target for ongoing exploration aimed to define additional gold mineralisation to add to that already identified for production.

DETAILED COMMENTARY

To the south of the Ballarat East goldfield, the geological fold (historically called the Western Anticline) which contains the prospective Sulieman eastern limb is relatively small, which is a probable reason why no historical workings occurred on the line to the south. However to the north on this line the Sulieman Pasha mine offers good reason why economic mineralisation could be found. Based on historical records gold grades from the few shallow mines on the Sulieman line are higher (~12 g/t Au) yet at lower tonnages than for the First Chance line which averaged about 8.5 g/t Au.

Figure 2. Close up long projection of the Sulieman Britannia drill locations and area of gold intercepts (yellow)

In the 3rd Quarter of 2010 drilling of the Sulieman-North and Sulieman-Britannia exploration targets obtained a number of strong gold intersections and evidenced the potential for gold resources on this line of mineralisation. This included “up-hole” CBU040 which was then reported as 6 metres at 13.3g/t Au including 1.1 metres at 136.9g/t Au (ASX:CGT release of 17th September 2010). Quartz veining containing gold mineralisation with a high nugget effect is interpreted from CBU040 and other holes now reported here as associated with moderately west

85m

Planned drill

holes (blue)

Sulieman Line of Mineralisation

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dipping (40-60o) thrust faults (see Figures 3 & 4) broadly controlling spur and fault reef quartz vein styles with narrow often high grade gold intersections. This interpretation is similar to that concluded from diamond drilling from surface in the 1980’s by Ballarat Goldfields NL which produced 2 sections of drilling using wedge daughter holes off parent holes BDD002 and BDD005 (see Figures 5 & 6). The Sulieman-Britannia mineralisation was at that time called the “Western Leatherjacket” and exhibited thicker vertical intervals of quartz veining than many other areas of mineralisation in the Ballarat East goldfield (up to 9-10m as shown in holes BDD002 and BDD002F).

CGT has now completed 2 new diamond drill sections, each comprising 3 holes spaced 85 metres apart along strike of the Sulieman-Britannia mineralisation. These two sections straddle those drilled over 2 decades ago containing holes with BDD002 and BDD005 prefixes (see Figure 2). Quartz veining containing high gold grades, commonly narrow intervals, is found on both the new sections which have confirmed the gross strike of the lode and the occurrence of west dipping fault structures associated with the veining. Quartz intersections occur within the steeply east dipping eastern fold limb.

Significant results are:-

7.8 m at 13.8 g/t Au from 155.0m in CBU033,


Matthew Gill Managing Director and Chief Executive Officer

Information in this document which relates to Exploration Results, is based on information compiled by Mr. Wessley Edgar, a

full time employee and Exploration Manager for Castlemaine Goldfields Limited, who is a member of the Australasian

Institute of Mining & Metallurgy, and who has the relevant experience as a Competent Person, as defined in the 2004 edition

of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code)’. Mr.

Edgar, has given and has not withdrawn prior to lodgment, his written consent to be named in this Announcement as the

person responsible for the Exploration Results statements and to the inclusion of these statements in the form and context in

which they appear.

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Figure 3. Northern CGT section. Yellow=gold bearing quartz mineralisation, Figure 4. Southern CGT section (~85m from Figure 3) with CBU040 and

pink=fault zone, NSA=no significant assay, blue lines are faults. CBU039 which were drilled and first reported in late 2010

Hole in progress

De-watering hole (oblique to section)

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Figure 5. Existing BDD002 section drilled by Ballarat Goldfields NL in 1986. Figure 6. Existing BDD005 section drilled by Ballarat Goldfields NL in 1988.

These two sections drilled by Ballarat Goldfields NL in the 1980’s and separated by approximately 20metres define what was then called the Western Leatherjacket.

Most intersections by the parent holes are NQ2core size with wedges being BQ core. Logging, sampling and assay information has been audited against core photos

and original hardcopy data and found valid. Surface collar and downhole survey quality is of lower quality due to technologies available at time of drilling with

location errors of possibly 1-5m. Assay technique for BDD002 and BDD005series holes is reported as 25g Fire Assay of -75µm mixermill pulverized splits to

0.01ppm detection limit. Samples were ½ core saw cut on geological boundaries. It is unknown, and considered unlikely that assay quality control samples may have

been used.

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Table 1. Significant assay results for CGT Sulieman-Britannia “Up-holes” (downhole lengths)

Drill hole From To m Au Intersection

CBU039* 118.9 120.0 1.1 2.08 1.1m @ 2.1 g/t Au from 118.9m

123.2 124.1 0.9 3.47 0.9m @ 3.5 g/t Au from 123.2m

126.0 126.5 0.5 6.66 0.5m @ 6.7 g/t Au from 126.0m

135.4 135.8 0.4 4.78 0.4m @ 4.8 g/t Au from 135.4m

138.0 138.6 0.6 2.6 0.6m @ 2.6 g/t Au from 138.0m

139.5 140.0 0.5 1.7 0.5m @ 1.7 g/t Au from 139.5m

156.1 156.8 0.7 2.37 0.7m @ 2.4 g/t Au from 156.1m

CBU040* 118.6 125.2 6.6 13.23 6.6m @ 13.2g/t Au from 118.6

0.5 162.81 including 0.5m @ 162.8 g/t Au from 124.7m

135.0 136.8 1.8 74.2 1.8m @ 74.2g/t Au from 135.0m

1.1 119.48 including 1.1m @ 119.5g/t Au from 135.0m

CBU050 NSA

CBU033 90.6 91.1 0.5 1.14 0.5m @1.1g/t Au from 90.6m

94.4 95.2 0.8 6.98 0.8m @ 7.0g/t Au from 94.4m

103.1 104.0 0.9 18.24 0.9m @ 18.2g/t Au from 103.1m

130.0 131.0 1.0 1.57 1.0m @ 1.6g/t Au from 130.0m

150.1 151.0 0.9 20.25 0.9m @ 20.2g/t Au from 150.1m

155.0 162.8 7.8 13.78 7.8m @ 13.8g/t Au from 155.0m

CBU034 62.8 63.8 1.0 1.85 1.0m @ 1.8 g/t Au from 62.8m

CBU043 106.9 110.8 3.9 4.62 3.9m @ 4.6g/t Au from 106.9m

122.0 123.0 1.0 1.15 1.0m @ 1.1g/t Au from 122.0m

144.5 145.0 0.5 4.40 0.5m @ 4.4g/t Au from 144.5m

146.6 152.1 5.5 61.38 5.5m @ 61.4g/t Au from 146.6m

1.4 75.68 including 1.4m @ 75.7g/t Au from 146.6m

1.0 230.73 and 1.0m @ 230.7g/t Au from 150.0m

159.3 159.6 0.3 5.09 0.3m @ 5.1g/t Au from 159.3m 106.9 110.8 3.9 4.62 3.9m @ 4.6g/t Au from 106.9m

CBU045 110.2 120.5 137.0

110.5 127.2 138.4

0.3 6.7 1.4

8.27 3.9

7.83

0.3m @ 8.3g/t Au from 110.2m 6.7m @ 3.9g/t Au from 120.5m 1.4m @ 7.8g/t Au from 137.0m

122.0 123.0 1.0 1.15 1.0m @ 1.1g/t Au from 122.0m

Samples are from NQ2 sized diamond core which is logged and ½ core cut using geological boundaries. Intervals are length

weighted grade averages using nominally >1g/t Au cut, <2m internal dilution although lower grades and greater internal

dilution may be included only where the dilution is predominantly quartz veining (80-100% quartz). No top cut off grade is

used. Minimum sample interval is 0.2m. Core loss or unsampled intervals are ascribed a gold grade of zero.

Individual tension or spur veins are reported separately to larger masses of fault related quartz veining or intercalated fault

and spur vein styles. Spur veins considered to be too distant from fault reef intersections to be reasonably included in potential

economic quantities are not reported.

Except CBU039 & CBU040 all results are Leachwell© cyanide leach 2000g analysis.

* = holes previously reported on 9th

December 2010 as Fire Assay 50g, now reported as more accurate SFA1000g method.

NSA = No significant assay.

A series of external standards and blanks are used to assess laboratory assay quality control.

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ABOUT CASTLEMAINE GOLDFIELDS LIMITED

Castlemaine Goldfields Limited (CGT) holds significant exploration titles encompassing five substantial goldfields in Central Victoria. This land holding gives CGT access to two of the three largest historical gold producing areas in Victoria (totaling some 17 million ounces of gold). CGT has 100% of the Ballarat, Castlemaine, Tarnagulla, Berringa and Sebastian Goldfields, with approved Mining and Exploration Licences over the key areas.

The primary focus is to return the Ballarat Gold project to production at a targeted annual rate of approximately 50,000 ounces per year by the end of 2011. Resumption of mine development is due in March 2011 with first ore accessed mid-year followed by gold production in 3rd Quarter 2011. Results of the successful mining feasibility study were announced on 14th February 2011.

It is anticipated that a similar rate of gold production could also be sourced from the Castlemaine goldfield. Substantial value will be added to the Ballarat project from resource discoveries and development of CGT’s other existing Central Victorian projects.

The inaugural JORC Code Inferred Resource estimate for the Chewton Deposit and Remnants at the Wattle Gully Mine at Castlemaine totals 686,000 ounces of gold and was announced in 2008 (ASX:CGT release 2nd June 2008).

CGT’s five gold projects within the Central Victorian Goldfields shown in blue

with past production for the 3 prominent goldfields.

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Documents

BALLARAT GOLD PROJECT Sulieman-Britannia lode extended to