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Constitution Mining Sees Encouraging Phase II Drill Indications
Lima, Peru - June 15, 2010 - Constitution Mining Corp. (CMIN.OB)
reports that early indications and analysis of gold grades from the first
40 drill-holes completed during its current Phase II 100-hole drill program
now being conducted in a 2.5 square kilometer region are cause to have a
discussion with IHC Merwede about the economics of implementing a potential
future test production gold mining operation at CMIN's gold sands project.
Constitution Mining CEO, Dr. Michael Stocker, commented, "Based on
CMIN's previous discussions with IHC, the world's largest manufacturer of
gold dredging and processing machinery, we are optimistic that results
obtained from our Phase II drill program may be sufficient to support the
implementation of a test-dredging production operation in the near future.
We have scheduled a management meeting with IHC to inquire as to the
economics of putting the 2.5 square kilometer region that is subject to the
Phase II 100-hole drill program into production."
CMIN recently hosted a community relations meeting in San Lorenzo (the
nearest village to CMIN's field operations) attended by more than 1,200
dignitaries, community leaders and citizens. The meeting was facilitated as
part of CMIN's efforts to obtain final legal approval to proceed with a
regional gold test-production dredging operation and community development
plan.
Dr. Stocker, commented on the meeting, "We believe it was an
overwhelming success. CMIN made significant strides forward in bridging the
societal gaps of possible misunderstanding about our overall intentions. We
are optimistic that this is not only a major potential win for our
shareholders, but also for the residents of the region."
The Company intends to release a partial resource estimate, based on the
completion of the first 50 holes of its actively-ongoing 100-hole drill
program. With a new hole completed every 1.5 days, CMIN is hopeful the
interim report should be available within the next several weeks.
"We are very encouraged by the efficiency and pace at which our
Phase II drill program is proceeding", Dr. Stocker added. "We
look forward to our upcoming meeting with IHC and to report back the
baseline economics associated with a similar Colombian-based private gold
dredging operation - though smaller in scope and apparently lower in grade
than our gold sands project - in order to provide a benchmark against which
to measure our pending numbers".
About IHC'S Dredge Mining Equipment
IHC companies have been involved in the design and fabrication of dredge
mining equipment since the end of the 19th Century. Most of this equipment
is used in dredge mining projects all around the world, thus generating a
great deal of in-house knowledge, furthering technical development. In
addition to important innovations like the development of the dredging
wheel, dredge mining automation systems, submerged pumping technology and
track chain bucket ladder systems, IHC Merwede is constantly trying to
improve the latest state-of-the-art designs for dredge mining systems, and
their operation.
About Constitution Mining Corp.
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 -
laid down by eons of alluvial erosion. For millions of years, the waters of
the Santiago and the Maranon 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 indicates a potential presence of significant
alluvial gold. The Company is now engaged in implementing a Phase II drill
program that will focus on grid drilling 2.5 square kilometer regions with
an aim to develop gold resource estimates and to gather further data to
determine the feasibility of large-scale mining of this vast resource.
While the results received from the Phase I drill program and the
preliminary results of the Phase II 100 hole drill program are favorable,
these results do not yet indicate the presence of a commercially viable
mineral deposit.
The full implementation of these programs will require the Company to
secure additional financing.
Nevada
On April 1st, 2010 CMIN executed a definitive and binding Asset Purchase
Agreement with Seabridge Gold Inc. to acquire 30 Nevada-based gold projects
comprised of 2,141 claims, primarily located in the heart of Nevada's
prolific Walker Lane gold belt.
The closing of the Agreement, which was initially anticipated to occur
on May 20, 2010, is subject to certain conditions, including, but not
limited to: (1) Seabridge obtaining certain authorizations, approvals and
consents necessary to transfer the assets to the Company; (2) the accuracy
of the parties' representations and warranties; and (3) material
performance of all of the agreements and obligations of the parties. The
agreement contains certain termination rights, including the right of
either party to terminate the Agreement if the closing has not occurred by
June 20, 2010 (as long as the terminating party has performed its
obligations under the Agreement) and to terminate upon a material
misrepresentation or breach by either party. The Agreement may also be
terminated upon mutual consent of the parties.
Further information about Constitution Mining Corp may be found
at: www.ConstitutionMining.com.
On behalf of the Board,
Dr. Michael Stocker - CEO
Constitution Mining Corp. (CMIN.OB)
Investor Inquiries:
Toll Free: 888-906-5656
Direct Dial: +41 (0) 71 791 0080
Email: Info@ConstitutionMining.com
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