CMIN Reports Completion of Initial 26-Hole Drill Program at its Gold Sands Project, Northeastern Peru
Lima, Peru - March 26, 2010 - Constitution Mining Corp. (CMIN.OB) reports it has successfully completed a 26-hole exploratory drill program designed to test the company's entire 461 square kilometer (178 square mile) Gold Sands property package - including the recently optioned extensions to the north and south.
CMIN drilled 26 strategically located holes using Banka drills to average depths of 10 - 12 meters (32 - 40 feet). Drill targets were selected by utilizing ground magnetics throughout the district - a tool that has proven to be very effective. Management is pleased to report that gold mineralization was discovered in most of the 26 holes, in many cases, beginning from or near the surface. Three of the holes returned gold grades that exceed levels currently witnessed in several large-scale alluvial dredging locations around the world.
Constitution Mining is developing an extensive plan of exploration with the principal objective of determining whether the minerals that have been found to exist on the property are of sufficient quantity to support commercial production. The drilling to date was conducted for the purposes of developing and refining internal methods of exploration.
Constitution Mining's Senior Technical Consultant James Prudden stated: "The next phase of CMIN's project development will focus on grid drilling in specific regions with an aim to develop resource estimates that can be reported with a high degree of accuracy in measurable ounces per cubic meter. CMIN's senior management is meeting with technical advisors next week in Lima to formalize drill plans and their immediate implementation."
CMIN Anticipates Signing Definitive Agreement for the Seabridge Gold Nevada Transaction, March 31st
Constitution Mining Corp. anticipates that a definitive purchase agreement with Seabridge Gold Inc. (SA:NYSE Amex, TSX:SEA) will be executed on March 31st thus positioning CMIN one step closer to acquiring mineral claims located in the heart of Nevada's prolific Walker Lane gold belt. The parties are negotiating the final terms of a definitive agreement.
On December 2nd, 2009, Constitution entered into a non-binding Letter of Intent to purchase all of the interests of Seabridge Gold Inc. in certain Nevada exploration properties subject to completion of final due diligence by Constitution, regulatory approval and execution of a binding definitive agreement. The due diligence process has now been completed.
The most advanced project in the package of mineral claims proposed to be acquired is the Castle Black Rock project in Esmeralda county, which has an NI-43-101-compliant gold resource of 215,000 ounces in the measured and indicated categories (12.38 million tonnes grading 0.54 gram of gold per tonne) and 93,000 ounces in the inferred category (7.95 million tonnes grading 0.37 gram of gold per tonne). - For further information, see Seabridge Gold's Oct. 10, 2000, news release - http://www.seabridgegold.net/resources.php.
The terms of the definitive agreement being negotiated between the parties contemplates that completion of the transaction with Seabridge is expected to occur on or before May 15, 2010 - at which time, all necessary transfer of titles and third-party consents are to have been finalized. Closing of the transaction is subject to a number of conditions and contingencies, including the approval of the parties respective board of directors and the receipt of all necessary third party consents.
CMIN Supports Peruvian Government Initiative to Ban Hazardous Mining
Constitution Mining Corp. supports the government of Peru in its steps to regulate informal gold mining in Madre de Dios in order to reduce pollution and, in fact, we support such efforts throughout all of Peru. However, the Madre de Dios region is not located near CMIN's properties in the Department of Loreto and has no application to CMIN's efforts to develop its Gold Sands project. Nevertheless, the Company supports these recent regulatory efforts on the part of the Peruvian government.
The government is concerned about small "informal" mining operations that operate on or near the edge of Peruvian waterways and dump mercury into the water as a result of mining processes. CMIN does not operate in or near waterways and its operations in any case are run with proper environmental safeguards. CMIN is concerned about the impact of adding mercury to Peru's river systems and CMIN management has long believed that these practices should cease and does not use mercury or any other contaminants in its exploration efforts. Modern dredging operations do not use such chemicals and are considered environmentally friendly.
CMIN supports the Environment Minister Antonio Brack's recent announcement of a presidential decree regulating mining activity in Madre de Dios. The government has decided it will not provide new mining rights for an indefinite period, and that further dredging operations in the rivers of Madre de Dios are not allowed.
About Seabridge Gold Inc. Seabridge holds a 100% interest in several North American gold resource projects. The Company's principal assets are the KSM property located near Stewart, British Columbia, Canada and the Courageous Lake gold project located in Canada's Northwest Territories. For a breakdown of Seabridge's mineral resources by project and resource category please visit the Company's website at www.seabridgegold.net/resources.php.
About Constitution Mining Corp. Our goal is to locate large-scale, commercially viable gold deposits and continuously increase the amount of gold underlying each of our outstanding shares. We're interested primarily in geographical areas that are home to several significant proven gold deposits, including highly prospective districts likely to hold further large deposits.
Our first and most active project is in the Gold Sands region of Peru, where we hold options on 461 square kilometers (178 square miles) of mining property, the largest such block in the district.
The Gold Sands of Peru were 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 much of the treasure in loose gravels and sands - Gold Sands - in the area the Company now controls.
Results from test holes drilled a decade ago indicated a potential presence of significant alluvial gold. The Company is now engaged in a program of pitting and test-mining with the intention to confirm and extend those earlier results and to gather further data for determining the feasibility of large-scale mining of this vast resource.
The implementation of these programs will require the company to secure additional financing.
Further information about Constitution Mining Corp may be found at www.ConstitutionMining.com
On behalf of the Board:
Dr. Michael Stocker - CEO and President Constitution Mining Corp. (CMIN.OB)
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.