Celtic Minerals Announces Dawson Gold Project Update and Closing of Private Placement

CNSX-CWE

TORONTO, Feb. 17, 2012 /CNW/ - Celtic Minerals Ltd. (CNSX:CWE) ("Celtic" or the "Corporation") is pleased to announce that it has engaged Mercator Geological Services Ltd. of Halifax, Nova Scotia to undertake a National Instrument 43-101 compliant resource estimate on its Dawson gold deposit in Colorado, U.S.A.  The Dawson deposit was the subject of a number of historical resource estimates between 1986 and 1992. A historical estimate in 1986 by U.S. Borax and Chemical Corporation Ltd. reported a resource of 155,000 ounces of gold (937,000 t grading 5.1 g/t gold) based on a cut-off of 1.4 g/t over a minimum true width of 3.0 metres.  The average true width was reported to be 14.6 metre. These resources are not NI 43-101 compliant and as such cannot be relied upon.

Celtic acquired a 70% interest in the Dawson gold property in 1995 and the balance of 30% in 2011, such that it now owns a 100% interest subject to a third party royalty.  No work has been conducted on this property since 1992.

In addition to initiating an updated resource estimate, Celtic has commenced the necessary permitting process to enable it to undertake an underground development program that will include drilling and bulk sampling.  The permits for this underground program are anticipated to be in hand by September 30, 2012.

Celtic controls approximately 2.6 km of the favourable stratigraphy hosting the Dawson deposit and the nearby, gold mineralized Windy Gulch and Windy Point segments, thus providing excellent potential for growing the gold resource.

Closing of Private Placement

Celtic is pleased to announce the closing of its previously announced private placement (the "Private Placement") of 102,000 common shares of the Corporation ("Common Shares") at a purchase price of $0.07 per Common Shares for gross proceeds of $7,140.  The net proceeds of the Private Placement were used by the Corporation to effect payment for previously provided geological services on Celtic's Dawson gold property.  The Common Shares are subject to a hold period of four months plus one day from the date of issue.

Advisories:

The estimates provided are not necessarily in compliance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and the Corporation provides no assurance that such estimates should be relied upon. Moreover, work required to verify and classify the resource and reserve estimates as current mineral resources or minerals reserves in accordance with NI 43-101 has not been carried out by the Corporation and the Corporation is not treating these estimates as current mineral resources or mineral reserves as defined in sections 1.2 and 1.3 of NI 43-101.  Finally, the Corporation does not make any representation or warranties as to the accuracy of such estimates. Dr. Wayne Ewert, Ph.D., P.Geo is the qualified person who has reviewed the technical contents of this news release. Dr. Ewert has not verified the data disclosed, including sampling, analytical and test data underlying the information or opinions contained in the written disclosure.  Dr. Wayne Ewert is a qualified person who is not independent as Dr. Ewert is a director of the Company.

Forward Looking Statements:

Certain information set forth in this news release contains forward-looking statements or information ("forward-looking statements"). Although the forward-looking statements contained in this press release reflect management's current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, the Corporation cannot be certain that actual results will be consistent with these forward-looking statements. In particular, this release contains forward looking information relating to the initiation of the National Instrument 43-101 report, the commencement of the underground development program and timing of the related permit application.  A number of factors could cause events and achievements to differ materially from the results expressed or implied in the forward-looking statements. Forward-looking statements necessarily involve significant known and unknown risks, assumptions and uncertainties that may cause the Corporation's actual results, event, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although the Corporation has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that the forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Any forward-looking statements are made as of the date of this press release, and the Corporation assumes no obligation to update or revise them to reflect new events or circumstances, unless otherwise required by law.

Additional information regarding Celtic Minerals Ltd. is available on the company's website at www.celticminerals.com.

 

Paul Cullingham, President and Chief Executive Officer 
Celtic Minerals Ltd.
Phone: [phone]
Fax: [phone]
Email:  [email protected]

Garth Douglas, Investor Relations
Phone:  [phone]
Fax:  [phone]
Email:   [email protected]

Additional information regarding Celtic Minerals Ltd. is available on the company's website at www.celticminerals.com.