CONSTANTINE ACQUIRES HORNET CREEK GOLD-COPPER PROPERTY IN IDAHO, USA
February 9, 2011
Constantine Metal Resources Ltd. (TSX Venture – CEM) ("Constantine" or the "Company") is pleased to announce a signed agreement to acquire a 100% interest in the 909 acre (367 hectares) Hornet Creek property (the “Property”) located in the Hornet Creek mining district of west central Idaho, USA.
The Property includes the Peck Mountain gold-copper volcanogenic massive sulphide (“VMS”) prospect, where limited drilling by Conoco Inc. in the early 1980s is reported to have intersected 17 meters (true width) of massive sulphide grading 3 g/t gold and 0.16% copper*. Several old pits, trenches and short adits dating from the early 1900s exist on the Property. Grab samples collected by Constantine in proximity to an adit located in the footwall to the massive sulphide horizon contained up to 1.72% copper and 0.98 g/t gold. Other grab samples collected adjacent to old workings to the northwest of the drilled prospect assayed up to 12.05 g/t gold in heavily iron-oxide mineralized rocks that are locally associated with barite.
The Hornet Creek property lies within the Blue Mountains region that is host to several gold-enriched volcanogenic massive sulphide prospects and deposits. Most notable of these is the 39 million tonne Red Ledge deposit located approximately 40 kilometers to the north. The Property is situated in an area with excellent access and infrastructure, and is amenable to year round exploration. Primary industries within the region currently include logging and ranching, with active mining occurring as recently as the mid-1980s at the nearby Iron Dyke high-grade copper-gold mine.
Garfield MacVeigh, President and CEO of the Company states: “The Hornet Creek property is an attractive gold-rich VMS system and represents an overlooked opportunity that appears to have received little if any exploration over the past 30 years. Constantine has significant expertise exploring VMS deposits and is pleased with the addition of this new asset to the Company’s growing portfolio of high quality gold and copper projects.”
In order to acquire a 100% leasehold right to the 44 federal lode claims that comprise the Hornet Creek property, Constantine must make cash payments totaling US$130,000 (US$10,000 paid on signing the Agreement) and issue 100,000 shares of the Company over a four year period.
Constantine has the right to pay half of the remaining $120,000 cash payments in shares of the Company, at its election. The vendor will retain a 2% NSR royalty, half of which can be purchased by Constantine at any time for US$1,000,000 with a right of first refusal on the remaining 1% NSR royalty. The acquisition is subject to regulatory approval.
Property Background and Plans
A United States Geological Survey (USGS) publication describes mineralization at the Hornet Creek Property as stratiform layers and lenses (1 to 5 m. thick) of semi-massive to massive pyrite plus chalcopyrite, magnetite, silica, and barite in felsic metavolcanic rocks of the Triassic Huntington Formation of the Izee Terrane. Bear Creek Mining Company staked the Property in 1964 and the Property was subsequently held briefly by Noranda and Asarco. Conoco acquired the Property in 1978 and drilled six wide spaced holes, four of which are in the immediate prospect area. One of these holes is reported to have intersected a 17 meter (55 foot) true width of massive pyrite containing 3 g/t gold, 0.16% copper and 1.2% barium. None of the Conoco drilling tested down dip of this intersection, and the two closest holes are located along strike 180 meters to the northeast and 260 meters to the southwest. Mineralization encountered in neighbouring holes includes semi-massive sulphide, massive barite, and sulphidic debris flow intervals (no assay data available). Subsequent to the work by Conoco, the Property was vended to Chevron Minerals. It is unknown what, if any, further work was completed, however no other obvious surface disturbance like that associated with the Conoco drill sites have been identified in the immediate area of the prospect.
The Company’s 2011 plans include locating and compiling all available historical information on the property. An initial field program will include geological mapping, rock and soil sampling, and geophysics to establish drill targets.
About the Company
Constantine is a gold and copper focused exploration Company with exposure to multiple projects located in premier exploration environments. These include the 100% owned Palmer Project, where the Company has made a major new copper-zinc-silver-gold discovery in a very accessible part of southeast Alaska, and the Munro-Croesus Project, that includes a past-producing mine property that yielded some of the highest grade gold ever mined in Ontario. The Palmer Project is host to a National Instrument 43-101 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; see news release dated January 20, 2010) that is open to expansion.
In addition, the Company recently acquired a major land position in an emerging new gold district in Yukon Territory that is part of a 50/50 joint venture with Carlin Gold Corporation, and will see partner-funded exploration on the Trapper Gold Project, northwest BC, which is host to a two kilometer long gold in soil anomaly with no reported prior drilling.
Please visit the Company’s website (www.constantinemetals.com) for more detailed company and project information.
On Behalf of Constantine Metal Resources Ltd.
* Historic drill results reported herein are derived from USGS Professional Paper #1493. Work done by previous operators was conducted before the implementation of National Instrument 43-101. Quality control methods by the previous operator are unknown, and the accuracy of the information cannot be relied upon.
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 reports; specifically USGS Professional Paper #1493. Samples collected by Constantine were shipped in sealed woven plastic bags to ALS-Chemex Laboratories facility in 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.