Constitution Mining Discovers Third Channel at Gold Sands Project
Lima, Peru - October 26 - Constitution Mining Corp. (CMIN.OB)
is pleased to announce further preliminary data following completion of the
Company's Phase II Drill (100-hole drill) program. The drilling confirmed
the presence of three large auriferous fluvial channels that meander near
the surface.
Drilling at Constitution's Peruvian Gold Sands project has confirmed a
third channel returning values as high as 286.5 mg/m3 over a width of 60m
and a thickness of 2.0 meters. This third channel lies within the area of
the company's Phase II drill program. It lies near the surface and contains
ore with gold grades over 5 times higher than the Company's targeted
50mg/cubic meter cutoff standard for economic consideration. These results
are encouraging as CMIN is working to develop plans for the implementation
of a test gold mining program in this Phase II drill area.
The Phase II Drill program sampled a 6.8 square kilometer east facing
meander containing three promising gold bearing channels. During the
execution of this Phase II Drill program, the Company applied close
interval drilling to define the dimensions and grades of these channels.
Jim Prudden V.P. Exploration states "Preliminary development
drilling to date on the Second Channel has outlined a potential Pilot
Mining size dredgable fluvial channel. Preliminary calculations from 21
holes within the contoured values indicate a volume of 140,500 CM at an
average grade of 161.5 mg/CM using a 50 mg/CM cut off. However, these
preliminary calculations should not be relied upon as further drilling is
required to bring this potential dredgable channel to the reserve category."
Reconnaissance in 2009 and work during the current 2010 Phase II drill
program discovered a third channel with a length of about 1,000 meters and
open on both ends. Select channel sampling in the northwestern portion of
this third channel in the informal mine pit walls averaged 224.5 mg/CM for
a depth of 2.4 meters in the vicinity of a drill hole that averaged 147.5
mg/CM over 2.0 meters. In addition, 2009 drilling in the southeastern
portion of the channel disclosed the channel width of 60 meters recording
values to 286.5 mg/CM over width of 2.0 meters.
In a detailed report prepared for Constitution Mining by MTI Holland/IHC
Merwede in 2009, it was estimated at the time of that report that the cost
of gold production would be US$1.60 - US$2.40 per cubic meter once
full-scale production was underway. Based on the Company's current
preliminary modeling results and a gold price of $1,200/ounce, gold values
from the HBD-33 channel, to the extent they are recoverable, are estimated
to be approximately $6.15 per cubic meter.
Constitution Mining CEO Michael Stocker states, "We are very
pleased with the preliminary data collected during of our Phase II drill
program. The confirmation of a third channel appears to offer greater gold
values than identified in the first two channels discovered. We are now
discussing, with various dredging contractors, the possible implementation
of a test gold production program."
About Constitution Mining Corp. (CMIN.OB)
The Company's goal is to locate large-scale commercially viable gold
deposits and continuously increase the amount of gold underlying its
outstanding shares. The Company is interested primarily in geographical
areas that are home to several significant proven gold deposits, including
highly prospective districts likely to hold further large deposits.
Peru
The first and most active project is in the Gold Sands region of Peru
where the Company holds options on 461 square kilometers (178 square miles)
of mining property, the largest such block in the district. These Gold
Sands were laid down by eons of alluvial erosion. For millions of years,
the waters of the Santiago and the Mara��n rivers have been carving their
way through the gold-rich mountain canyons of the Andes, carrying off vast
amounts of gold and depositing it in the loose gravels and sands - Gold
Sands - in the area the Company now controls.
Results from test holes drilled during CMIN's 26-hole Phase I
exploratory drill program indicate the presence of significant alluvial
gold. The Company is now actively engaged in conducting a Phase II drill
program focused on grid drilling a 2.5 square kilometer region. While the
results from the Phase I drill program and the initial results of the Phase
II, 100-hole drill program are highly favorable, the Company cautions that
these results do not yet indicate the presence of a commercially viable
mineral deposit and further exploration is needed to determine the full
feasibility of the project.
The full implementation of these programs will require the Company to
secure additional financing.
Further information about Constitution Mining Corp may be found at:
http://www.ConstitutionMining.com.
On behalf of the Board:
Dr. Michael Stocker - CEO
Constitution Mining Corp. (CMIN.OB)
Investor Inquiries:
North America Toll Free : 800-215-0811
Direct Dial: 360-339-7309
Email: Info@ConstitutionMining.com
Disclaimer
This release contains forward-looking
statements that are based on beliefs of Constitution Mining Corp.
management and reflect Constitution Mining Corp's current expectations as
contemplated under section 27A of the Securities Act of 1933, as amended,
and section 21E of the Securities and Exchange Act of 1934, as amended.
When we use in this release, the words "estimate,"
"project," "believe," "anticipate,"
"intend," "expect," "plan,"
"predict," "may," "should," "will,"
"can," the negative of these words , or such other variations
thereon, or comparable terminology, are all intended to identify forward
looking statements. Such statements reflect the current views of
Constitution Mining Corp. with respect to future events based on currently
available information and are subject to numerous assumptions, risks and
uncertainties, including but not limited to, risks and uncertainties
pertaining to development of mining properties, changes in economic
conditions and other risks, uncertainties and factors, which may cause the
actual results, performance , or achievement expressed or implied by such
forward looking statements to differ materially from the forward looking
statements. The information contained in this press release is historical
in nature, has not been updated, and is current only to the date shown in
this press release. This information may no longer be accurate and therefore
you should not rely on the information contained in this press release. To
the extent permitted by law, Constitution Mining Corp. and its employees,
agents and consultants exclude all liability for any loss or damage arising
from the use of, or reliance on, any such information, whether or not
caused by any negligent act or omission.
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