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