CONSTANTINE REVIEWS PLANS AND RECENT RESULTS FOR ITS NORTH AMERICAN GOLD PROJECTS
October 27, 2010
Constantine Metal Resources Ltd. (TSX Venture- CEM) ("Constantine" or the "Company") is pleased to report on exploration activity and plans for the Company’s gold projects in Ontario and British Columbia. Constantine has a 100% interest in three gold projects, lead by the flagship Munro-Croesus Project, a past-producing mine property that yielded some of the highest grade gold ever mined in Ontario. The Trapper Gold Project, host to a large gold in soil anomaly with no reported prior drilling, and the Phoenix Gold Project, south of the Timmins gold camp in Ontario, represent early stage exploration opportunities in promising gold environments. The Company intends to continue building upon its strong gold portfolio. With new results in hand, Constantine is gearing up for an active year of gold exploration. Highlights from recent work include:
Soil sampling at the Trapper Gold Project, in northwest British Columbia extends the high-tenor gold anomaly 1000 meters along trend, for a total length in excess of two kilometers. The soil anomaly includes multiple samples exceeding 1.0 g/t gold and averages 200 meters in width. Rock float samples collected over the anomaly by Constantine assayed up to 6.03 g/t gold, with historic sampling in the area assaying up to 33 g/t gold.
New gold zones grading 7.86 g/t over 0.5 meters, 5.0 g/t over 0.5 meters, and 1.18 g/t over 12.25 meters were identified by re-logging and assaying holes drilled by prior owners on the Four Corners area of the Munro-Croesus Project, Ontario. Gold occurs within a previously un-sampled section of strong hydrothermal biotite alterationwith associated minor quartz veining. A backhoe trenching program, designed to aid future drill targeting, is currently in progress in an area of old pits and trenches (1920-1930) with strong quartz veining and alteration.
Four new claim units (65 ha) were acquired by staking in proximity to the past-producing, exceptionally high-grade Croesus mine property
Munro-Croesus and Phoenix Gold Projects, Ontario
The Munro-Croesus Gold Project includes the 28 claim unit Croesus mine property (481 ha) and the neighboring 63 claim unit Four Corners property (1020 ha) located 1.2 kilometers to the east. The properties lie within the influence of the prolific Porcupine-Destor Deformation zone that is host to over 110 million ounces of gold and stretches from Timmins, Ontario for more than 200 kilometers into the Province of Quebec.
The Croesus mine was renowned for the spectacular high-grade gold it produced. Five gold samples from the Croesus vein held by the Royal Ontario Museum, weighing 85 pounds collectively, contain 480.7 ounces of gold or 11,310 oz gold per short ton (387,727 grams/tonne) – equal to 38.77 percent gold. The Croesus vein was mined up to an east-west trending fault that truncated the vein. Initial drilling by Constantine in 2008 and 2009 identified gold-bearing veins on the offset side of the fault (up to 83 g/t gold over 0.10 m) and new vein systems (e.g. 15.1 g/t over 1.00 m and 12.5 g/t over 0.46 m) at depth below the historic mine workings that share the same alteration, and stratigraphic and structural setting as the mined Croesus vein. With very few holes ever penetrating deeper than 100 meters on the property, the depth potential of the system remains virtually untested.
Current field work and planning is being carried out to prepare the Munro-Croesus Project for diamond drilling. A close spaced (12 - 15 m) pattern of drill holes is being considered to test for bonanza grade chutes within the newly identified vein structures. With some of the high grade chutes of the original mined vein material exceeding 20 to 30 percent by weight gold, there is good potential for similar as yet undiscovered mineralization to be detectable by off-hole geophysical methods, providing that hole spacing is optimized for target size. Downhole geophysical techniques are being evaluated as part of future drill programs.
In addition to the unique, exceptionally high-grade exploration opportunity in the immediate Croesus mine environment, Constantine is also evaluating plans for drilling other targets on the greater Munro-Croesus property and on the neighboring Four Corners property. The geological setting at Four Corners shares many similarities to classic Archean gold systems and past drilling on the property has documented up to 9.37 g/t gold over 1.25 meters, including 14.33 g/t gold over 0.68 meters in the southeast area of the property. Backhoe trenching, currently in progress, is focused on an area of historic pits within heavily quartz-veined and strongly iron-carbonate and fuchsite altered rocks in the northwest part of the property. This work is designed to provide a better understanding of the alteration and structural controls on mineralization for future drill targeting.
The Phoenix Gold Project is a large, 82 km2 (8200 ha) property that was staked to cover the projected westerly extension of the Matachewan-Kirkland-Larder Lake-Cadillac Break (host to over 70 million ounces of gold) based on new airborne magnetic data. The property shares key elements of the Timmins and Kirkland-Larder Lake Gold camps, with large multi-ounce float boulders documented in the region. Near term work on the Project will consist of prospecting, mapping, and drill target generation.
Trapper Gold Project, BC
The Trapper Gold Project is a recent greenfields acquisition (see news release, May 18, 2010) that lies 45 km north of the Golden Bear mine road, and 200 km south of the Yukon-BC border. The 3,756 hectare Property covers a large, high tenor gold-in-soil anomaly that, after recent sampling, now extends greater than two kilometers in length, averages 200 meters in width and remains open ended along strike. Gold occurs with elevated arsenic and antimony, and is associated with pervasive iron carbonate-silica+/-clay alteration that can be traced on surface for a distance of five kilometers. The gold-in-soil anomaly is characterized by greater than 100 ppb gold, and includes multiple samples in excess of 1000 ppb (1.0 g/t) including two samples yielding greater than 8.0 g/t gold. Large samples (10-20 kg) collected from strongly anomalous soil sites yielded numerous flakes of coarse visible gold after processing through a heavy mineral separator. Soil sampling to date has covered less than 10% of the Property.
Results from the 2010 program identified grab samples of rock float within the soil anomaly ranging from <5 ppb to 6.03 g/t gold. Results from previous programs include grab samples grading up to 18.0 g/t, 19.55 g/t and 33 g/t gold. Recent remote sensing analysis, utilizing satellite imagery, has documented regionally extensive alteration typical of epithermal and porphyry systems. Several of the newly defined alteration zones occur in areas with little or no prior documented work.
The Company is formulating exploration plans at the Trapper Gold Project for the second quarter of 2011. Recommended Phase I work includes expanding the soil grid, surface geophysics, trenching, prospecting and mapping, with the objective of refining drill targets for a Phase II program of drilling in mid-summer 2011.
About the Company
Constantine is focused on exploring 100% controlled projects located in world class exploration environments where management has strong familiarity and expertise. In addition to the Company’s high quality gold projects, Constantine is actively advancing a major new copper-zinc-silver-gold discovery – the Palmer VMS Project – located in a very accessible part of southeast Alaska. The Palmer Project is host to a NI43-101 compliant 4.12 million tonne inferred resource grading 2.01% copper, 4.79% zinc, 0.30 g/t gold and 31 g/t silver (using an NSR cut-off of US$75/t) that is open to expansion.
On Behalf of Constantine Metal Resources Ltd.
“Garfield MacVeigh” President
Darwin Green P.Geo, Vice President for Constantine Metal Resources Ltd. and a qualified person as defined by Canadian National Instrument 43-101, has reviewed and approved the technical information contained in this release. Data presented in this news release include data generated by Constantine as well as data derived from historic government assessment files and a November 2008 technical report on the Trapper Gold Project that was prepared in compliance with Canadian Securities Administrators National Instrument 43-101 and Form 43-101F1. Samples for the 2010 Trapper Gold Project work program were shipped directly by truck in sealed woven plastic bags to ALS-Chemex Laboratories prep facility in Whitehorse, and then on to North Vancouver for analysis. Samples for the Four Corners re-logging program were shipped directly by truck in sealed woven plastic bags to ALS-Chemex Laboratories prep facility in Timmins, and then on to North Vancouver for analysis. ALS Chemex laboratories operate according to the guidelines set out in ISO/IEC Guide 25. Gold was determined by fire-assay fusion of a 30 g sub-sample with atomic absorption spectroscopy (AAS). Various metals including silver, gold, copper, lead and zinc were analyzed by inductively-coupled plasma (ICP) atomic emission spectroscopy, following multi-acid digestion.
Forward looking statements: This news release includes certain “forward-looking information within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively "forward looking statements").” Forward-looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, "forecast", “expect”, "potential", "project", "target", "schedule", budget" and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions and includes the negatives thereof. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential mineralization, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, 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. Forward-looking statements are based on a number of material factors and assumptions. Important factors that could cause actual results to differ materially from Constantine’s expectations include actual exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward-looking statements, there may be other factors that cause such actions, events or results to differ materially from those anticipated. There can be no assurance that forward-looking statements will prove to be accurate and accordingly readers are cautioned not to place undue reliance on forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.