Constitution Mining Sees Encouraging Phase II Drill Indications
Tuesday 15th, June, 2010 - Constitution Mining Corp. (CMIN.OTCBB) announces that early indications and analysis of gold grades from the first 40 drill-holes completed during its current Phase II 100-hole drill program warrant an immediate discussion with IHC Merwede about the economics of implementing a 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 warrant the immediate implementation of a test-dredging production operation. We have scheduled a management meeting with IHC to discuss the economics of putting the gold sands 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 purpose of the meeting was to obtain final legal approval for CMIN to proceed with a regional gold test-production dredging operation and community development plan.
Dr. Stocker, commented on the meeting, "It was an overwhelming success. CMIN has successfully bridged any necessary 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 confident the interim report should be available within the next few 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 of a Colombian-based private gold dredging operation - though smaller in scope and lower in grade than our gold sands project - and to provide investors with an accurate baseline 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 were 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.
Upon closing of the proposed Seabridge Gold / Nevada transaction, CMIN will discuss its strategy for advancing the existing base of measured, indicated and inferred gold resources - 308,000 ounces.
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)
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.