Dec 4 2010
Constitution Mining Corp. (OTCBB:CMIN) Investor update: Completion of Design of Gold separation equipment by IHC, and visit by a world leading dredging company.
Constitution Mining Corp announces the field visit of a high-ranking representative from one of the world's leading dredging companies, an event which took place on October 27 – 29. This company, having experienced rapid and sustained growth over the last decade, occupies a leading position on the global dredging and land reclamation market.
During this visit, the management team was able to evaluate with this dredging company the property for future dredging, and review data collected thus far. After the visit, Constitution Mining signed with this company, an NDA (non-disclosure of information agreement) to exchange information about the Gold Sands Project, with the objective of setting up a business and investment plan for a pilot scale dredging test production operation.
Though similar negotiations are currently underway with other dredging contractors, this company, with which we have the most advanced negotiations, has been the first to visit our property. Once we have made a decision as to which of these competing dredge operators offers the best fit for us, and to the extent that we are able to reach an agreement, we will be able to publicly announce their name.
Completion of the Phase I and Phase II drill programs (126 holes total) has indicated the presence of paleo - channels which management believes may be suitable for pilot scale dredging. A test production on these channels could provide the company with important data for future exploration and production efforts, in addition to helping refine cost estimates should the Company, based on the results of its exploration activity, be positioned to engage in larger scale production.
For this purpose IHC Merwerde has proposed cutting-edge Gold Separation equipment, designed specifically for use on the Company's Gold Sands properties. Provided that the Company is successful in acquiring this equipment, Constitution Mining would have the equipment necessary to begin its own small-scale gold production operation.
CEO Michael Stocker remarked:
"Constitution Mining has completed the initial phase of its task as an exploration company. We have drilled 126 holes in 2 years; On the drilled out areas, we have confirmed a rough estimate of the expected Gold values in the Gold Sands project; We have found the right partners (IHC and others) to implement the project and we have even helped design the necessary gold separation equipment. The Company's ability to move to the next stage is dependent on its ability to secure additional financing."
Board Chairman Pat Gorman added:
"We are very satisfied about the fact that IHC Merwerde has been able to design gold separation equipment specifically for our purpose, and hope that we can implement an initial production test in 2011. The Company is now actively seeking financing sources for such a future operation."
The first and most active project is in the Gold Sands region of Peru where the Company holds options on 461 square kilometers (178 square miles) of mining property, the largest such block in the district. These Gold Sands were laid down by eons of alluvial erosion. For millions of years, the waters of the Santiago and the Marañón rivers have been carving their way through the gold-rich mountain canyons of the Andes, carrying off vast amounts of gold and depositing it in the loose gravels and sands - Gold Sands - in the area the Company now controls.
Results from test holes drilled during CMIN's 26-hole Phase I exploratory drill program indicate the presence of significant alluvial gold. The Company recently completed a Phase II drill program focused on grid drilling a 2.5 square kilometer region. While the results from the Phase I drill program and the Phase II, 100-hole drill program are highly favorable, the Company cautions that these results do not yet indicate the presence of a commercially viable mineral deposit and further exploration is needed to determine the full feasibility of the project.
Source: Constitution Mining Corp.