CONSTANTINE COMPLETES ACQUISITION OF HIGH-GRADE, PAST-PRODUCING CROESUS GOLD MINE PROPERTY IN THE PROLIFIC ABITIBI GREENSTONE BELT- NORTHERN ONTARIO
October 30, 2007
White Rock, B.C. – Constantine Metal Resources Ltd. (TSX Venture- CEM) ("Constantine" or the “Company”) is pleased to announce that it has completed the acquisition of its 100% interest, subject to a net smelter interest reserved to the former owner as described below, in the high-grade Croesus Gold property, including the former Croesus Gold mine. The property consists of 22 patented mining claims and leases (416 hectares), located 90 kilometers east of Timmins, Ontario and within the influence of the prolific Porcupine-Destor Deformation zone that stretches from Timmins, Ontario for more than 200 kilometres to the east into the Province of Quebec.
Constantine paid $40,000 in cash and issued 500,000 Constantine shares to the vendor, Munro-Croesus Gold Mines Limited. A further 250,000 shares are reserved for issuance to the vendor subject to confirmation of certain environmental conditions in the agreement. The vendor retains a 2% NSR production royalty of which 0.5% can be purchased by Constantine for C$1,000,000 with a right of first refusal on the remaining 1.5% NSR production royalty.
The former Croesus Gold mine is known for having produced some of the highest grade gold mined in Ontario. The Ontario Bureau of Mines (1919) reported that “765 pounds of ore taken from a portion of the shaft yielded $47,000 worth of gold”. This represented a grade of 5,944 oz gold per short ton (203,771 g/tonne) at a gold price of $20.67 per troy ounce. Five gold samples purchased by the Ontario Bureau of Mines for exhibition purposes and now in possession of the Royal Ontario Museum weigh 85 pounds collectively and contain 480.7 ounces of gold or 11,310 oz gold per short ton (387,727 g/tonne). The total historical gold production from the Croesus mine as reported by the Ontario Department of Mines in 1951 was 14,854 ounces gold from 5,333 short tons milled, for an average grade of 2.78 oz gold per short ton (95.3 g/tonne). Research by the previous owner suggests that the above-reported production did not include the very high-grade gold ore which was shipped directly to the Canadian Mint for processing.
The high-grade Croesus ore shoot is truncated by the Croesus fault and several efforts have been made to locate the high grade extension to the vein, with the last serious effort occurring in the mid-late 1970’s (see news release dated May 8, 2007 for additional information on the Croesus property).
Constantine is compiling the historic data with the intent to test for the faulted extension of the high–grade Croesus vein with HQ (2.5 inch) and NQ (1.875 inch) drill core. The faulted extension of the vein is anticipated to be at a vertical depth of 100 to 200 metres from surface. In addition, potential exists to find additional Croesus type veins or other gold bearing structures in the same favourable structural and stratigraphic setting that is interpreted to extend to depth on both sides of the Croesus fault. A winter drill program to test for the faulted high grade Croesus gold vein and other gold bearing structures at depth is being planned for the first quarter of 2008.
Garfield MacVeigh, President & CEO, states; “the Munro-Croesus acquisition combined with the Palmer project offers Constantine shareholders exposure to year round exploration activity on two excellent projects. Shareholders can look forward to an exciting, initial drill program on the Croesus project in the winter of 2008 followed by a June to October 2008 drill program to follow-up on the high grade 2007 drill discoveries on the Palmer project. The Palmer project is a world class base metal exploration opportunity in a very accessible part of southeast Alaska. Partial drill results (see news releases dated September 25, 2007 and October 16, 2007) from the completed 2007 Palmer drill program reported two substantial intersections (3.8% Cu, 7.2% Zn, 0 .37 g/t gold, 47 g/t silver over 46 ft [14m] in CMR07-07 and 1% copper, 7.8% zinc, 0.94g/t gold and 67.5 g/t silver over 58.9 ft [18m] in CMR07-09). The intersections are about 1400 ft (430 m) apart in the same stratigraphic sequence but in different structural settings that are linked by a strong alteration system and will be the focus of a 2008 drill program that is being planned.
Garfield MacVeigh, President of the Company and a Qualified Person, has reviewed and approved the technical information contained in this release.
"J. Garfield MacVeigh"
J. Garfield MacVeigh, President
Telephone: (604) 629-2348 or (709)424-0561
Please visit the Company’s website (www.constantinemetals.com) for more detailed company and project information.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. The news release includes certain “forward-looking statements”. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential mineralization, exploration results and future plans and objectives of Constantine are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Constantine’s expectations include exploration risks which may be detailed herein and from time to time in the filings made by the Constantine with securities regulators. Statements of historical fact which are provided in this news release have not been verified by Constantine and, while Constantine has no reason to doubt the accuracy of such facts, there is no assurance that they are accurate.