CONSTANTINE ANNOUNCES ELECTION BY MAJOR TO PROCEED WITH GOLDEN MILE PROPERTY OPTION AND REPORTS NEW SURFACE GOLD RESULTS ON MUNRO SELECTION PROPERTY, ONTARIO
August 7, 2012
Vancouver, BC – Constantine Metal Resources Ltd. (TSX Venture – CEM) ("Constantine" or the "Company") is pleased to announce Teck Resources Limited (“Teck”) has elected to take-up the first option on the Company’s 100% owned Golden Mile Property in the Timmins gold camp, northeast Ontario. Teck funded surface field work programs designed to follow-up on positive results from recent work by Constantine to identify targets for drilling will commence as soon as practicable.
The large, 68 square kilometer, Golden Mile Property is located 9 kilometers northeast of Goldcorp’s multi-million ounce Hoyle Pond deposit and covers the Pipestone Fault System where it crosses the “Porcupine Giant Mine Corridor” that has produced more than 55 million ounces of gold (see figure at www.constantinemetals.com). The first option grants Teck the right to earn an initial 51% interest in the Golden Mile property by incurring $1,500,000 in exploration expenditures by September 30, 2015 and making $25,000 annual cash payments to Constantine. A second option grants Teck the right to earn an additional 15% interest in the property, for a total interest of 66%, by incurring an additional $3,500,000 in expenditures by September 30, 2019 and making $50,000 annual cash payments to Constantine.
The Golden Mile option agreement is one of three separate property rights agreements between Constantine and Teck on certain of the Company’s Ontario gold properties (see Company news release, May 9, 2012). Teck has until September 30, 2012 to take-up an option on the Company’s 100% owned Phoenix Property, and holds a right of first offer/first refusal to option or otherwise acquire an interest in the Munro Selection Property that is exercisable until November 30, 2012.
New Surface Gold Results - Munro Selection Property
Eight samples of the historic #2 Vein, on the Munro Selection part of the Croesus property yielded six plus-gram gold assays over a strike length of approximately 400 meters, with a high value of 15.9 grams per tonne gold. The #2 Vein is a northeast trending vein structure with observed widths to 12 meters, located to the southwest and along the same structural trend as the former producing high-grade Croesus vein, and has seen no diamond drill exploration. Sampling in the northwest area of the Munro Selection, a further 2.5 kilometers to the northwest of the #2 Vein has yielded gold mineralization in altered and mineralized variolitic basalt. Eight individual grab samples range from 0.17 to 11.4 grams per tonne gold with 5 samples greater than 1 gram per tonne gold.
The above described gold zones are located within 500 meters of the Pipestone fault, an important structure known to control gold mineralization at several gold deposits within the region, including the neighbouring 2.1 million ounce Fenn-Gib gold deposit. Constantine’s Munro-Croesus project area covers an approximately seven kilometer length of this key structural corridor. Please refer to the updated website map at www.constantinemetals.com.
About the Company
Constantine is a gold and copper exploration company that has multiple active projects located in premier North American exploration environments. These are highlighted by: (1) the 100% owned Palmer Project, located in a very accessible part of southeast Alaska, that is host to a NI 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); (2) the 100% owned Timmins area Munro-Croesus Project a past-producing mine property that yielded some of the highest grade gold ever mined in Ontario and includes strategically located claims immediately along trend from the 2.1 million ounce Fenn-Gib gold deposit; (3) the 50/50 Joint Venture with Carlin Gold exploring an approximately 800 sq. km land position in an emerging new Carlin-type gold district in Yukon; and (4) the Trapper Gold Project in northern British Columbia that is optioned to Ocean Park Ventures Ltd. who carried out an 8,500 meter drill program on the property in 2011. Please visit the Company’s website (www.constantinemetals.com) for more detailed company and project information.
On Behalf of Constantine Metal Resources Ltd.
For further information please contact:
Darwin Green, VP Exploration or Koraleen Jarvis, Communications Coordinator
Phone: 604-629-2348. Email: firstname.lastname@example.org
Samples of rock (usually 1-2kg) were broken with a rock hammer and placed in individual sealed polyurethane bags and were delivered directly, by Constantine personnel, to the AcmeLabs prep lab in Timmins Ontario in sealed woven plastic bags. Prepared pulps were shipped by AcmeLabs to their East Vancouver Lab where gold was determined by fire-assay fusion of a 30 g sub-sample by ICP. Overlimit gold assays were analyzed using lead collection fire-assay fusion with a gravimetric finish. All samples were analyzed for multi-element inductively-coupled plasma (ICP) atomic emission spectroscopy, following multi-acid digestion.
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.
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, 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 Company’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.
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