CONSTANTINE ACQUIRES HIGH GRADE FORMER CROESUS GOLD MINE PROPERTY IN THE PROLIFIC ABITIBI GREENSTONE BELT- NORTHERN ONTARIO
May 8, 2007
White Rock, B.C. - Constantine Metal Resources Ltd. (TSX Venture- CEM) ("Constantine" or the "Company") is pleased to announce that it has signed a letter agreement with Munro-Croesus Gold Mines Limited (the "Vendor") to acquire an outright 100% interest in the high grade Croesus Gold property, including the former Croesus Gold mine, consisting 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 (PDDZ) that stretches from west of Timmins, Ontario into the province of Quebec.
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 Croesus mine gold production from milled ore 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 milled ore production did not include the very high grade direct shipping 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 in the mid-late 1970's.
The Croesus Gold property consists of 3 claim blocks and one isolated claim that lie along and between 2 major fault zones that are probably splays of the main Porcupine-Destor Fault that forms part of the PDDZ. The Timmins-Porcupine gold camp situated on the north side of the PDDZ in the Abitibi greenstone belt is the world's largest lode gold camp (> 63 million ounces of gold) in Archean age greenstone belts. The PDDZ extends for more than 200 kilometres to the east and is an important structural control for many other gold deposits. The Croesus Gold property covers a sequence of tholeiitic and variolitic basalts, sediments and ultramafic rocks on the north side of the PDDZ that represent very similar stratigraphy to the slightly younger host rocks of the Timmins gold camp.
In order to acquire a 100% interest in the project, Constantine must make payments totaling C$40,000 ($10,000 on signing the Letter Agreement and $30,000 on signing a Definitive Agreement) and issue 750,000 Constantine shares. The Vendor will retain 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 acquisition is subject to a number of conditions including approval of the TSX Venture Exchange, approval of the Vendor's shareholders, completion of Constantine's due diligence, execution of a definitive agreement and completion of the transaction by June 30, 2007. Upon completion of the transaction, should the Vendor wish to sell more than 50,000 of the Constantine shares in any 30 day period, the excess shares over 50,000 must first be made available for purchase by Constantine or by purchasers arranged by Constantine.
Constantine has initiated a digital compilation of the historical Croesus project information, most of which predates the general availability of personal computer technology. The information will be used to develop a 3D interpretation of the immediate former mine area and will guide Constantine's future exploration on the project, including a proposed drill program later in 2007.
Palmer project update: on the Alaskan Palmer project the Company is gearing up to start its exploration drilling program in June. The plans are to initiate drilling on some of the lower elevation sites. Follow up drilling is planned to step out on the massive sulphide drill intersections from 2006. (see October 23, 2006 news release).
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. The Palmer project is a world class base metal exploration opportunity in a very accessible part of southeast Alaska. The Croesus property acquisition now provides shareholders with exploration exposure to a gold project in a renowned and prolific gold production environment. Both these projects fulfill Constantine's mandate to focus on 100% controlled projects in areas where management has strong familiarity and expertise."
The Company's website (www.constantinemetals.com) is under construction and is expected to be on line within the next few days. Please visit the site for more detailed company and project information.
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
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 are exploration risks detailed herein and from time to time in the filings made by the Constantine with securities regulators.