Constitution Mining Acquires Option on Cerro Amarillo Gold Project, Argentina
Tempe, Arizona - January 10, 2008 - Constitution Mining Corp. (CMIN.OB) announces it has acquired an option to purchase a 100% interest in a gold enriched porphyry prospect, known as Cerro Amarillo from Proyectos Mineros S.A.
Cerro Amarillo was initially discovered in the 1970s when stream geochemistry revealed gold mineralization, which suggested that the property's porphyry system could host a substantial polymetallic gold deposit. The project, which has never been fully tested, was subject to exploration by Phelps Dodge, BHP, Billiton, IMA and others. Billiton had interpreted that the porphyry system may contain between 40 - 50 million tonnes of lower grade mineralization per vertical 100 meters with the expectation that the hydrothermal breccias could contain higher grades.
Constitution Chairman, Pat Gorman stated, "Argentina offers potential for the discovery of new gold deposits. Today's option agreement, similar to our previously announced Atena deal, positions us with yet another exploration project in a prolific mining belt."
A number of drill targets have been outlined by the work done to date; however, Constitution Mining intends to conduct a work program to identify additional drill targets before commencing a formal drill program.
About the Cerro Amarillo Gold Project Located in Departamento Malargue, Province of Mendoza, Cerro Amarillo is a 14,222 hectare gold-rich porphyry prospect situated approximately 25 kilometers due east of the Chilean border. The prospect lies at an elevation of about 3,400 meters above sea level in the foothills of the Cordillera and has easy access and excellent local infrastructure to support exploration and development efforts.
Cerro Amarillo is located at the southern end of the highly productive Late Miocene - Pliocene magmatic arc that hosts the El Teniente and Los Bronces porphyry giants in Chile. It forms part of a cluster of intrusions of different age and composition associated with a 60km-long north to northeast-trending, arcuate thrust fault known as the Las Lenas fault. This fault is considered to have formed in Permian to Triassic times and to have been reactivated under a compressive regime during the Miocene. The intrusions include large (6km x 4km) barren bodies of equigranular granodiorite as well as smaller stocks of mostly tonalitic porphyry with which several colour anomalies are associated.
The Cerro Amarillo prospect comprises a large, 3km by 2km, colour anomaly located in a topographic depression approximately 5km west of the Las Lenas fault. The alteration zone is developed over a poorly-outcropping, strongly-leached Cu-Mo-Au porphyry system and associated skarn mineralization. The porphyry system comprises a potassic core, an intermediate phyllic zone, and an outer propylitic zone with a typical chlorite, epidote, pyrite assemblage. The magnetic survey clearly outlines the hydrothermal veining and disseminations (particularly of magnetite) of the potassic core (magnetic high) as well as the phyllic zone of magnetite destructive-alteration (magnetic low).
Alteration of the potassic core consists of strong silicification, moderate secondary biotite development, minor K-feldspar veining, and abundant magnetite, whereas mineralization consists of disseminated magnetite, chalcopyrite, and pyrite. Chip samples from the core gave up to 0.98g/t Au, 1.47% Cu, and 550ppm Mo. Hydrothermal breccias are present, particularly to the north and west of the tonalitic porphyry. Chip samples from the these breccias gave up to 0.5g/t, although an isolated outcrop of breccia some 600 meters to the south-southeast returned the highest gold values of the prospect, ranging from 1 - 57g/t. Hydrothermal breccias are an important feature of the Chilean porphyries providing sweetener to otherwise low grades of the porphyry. Skarn mineralization is also found on the property and occurs along the limestone beds intercalated with hornfelsed pelitic rocks. Limited sampling of poorly-exposed outcrop averaged over 0.15g/t Au, and one sample gave up to 4.75% Cu and 1% Zn.
About Constitution Mining Corp. Our Mission is to consistently increase the amount of honest money - gold and silver - underlying the number of shares we have outstanding. We intend to acquire, explore for, and hold onto deposits of gold and silver. Additional information about Constitution Mining Corporation may be obtained at www.ConstitutionMining.com.
For the full terms of the deal, interested investors are encouraged to review the company's 8-K filing.
On behalf of the Board:
Pat Gorman, Chairman of the Board Constitution Mining Corp.
Disclaimer This release contains forward-looking statements that are based on the beliefs of Constitution Mining Corp. management and reflect Constitution Mining Corp. 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 used 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 indicated 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.
