Oct 21 2010
Constitution Mining Corp. (OTCBB:CMIN) has announced drill results and tentative conclusions from the Company's 100 (Phase II) drill-hole program on its Peruvian GoldSands properties.
A total of 100 drill holes have been drilled to sample a 6.8 square kilometer east facing meander which contains three promising gold bearing channels. During the last 4 months, the company has applied close interval drilling to define the dimensions and grades of these channels.
Jim Prudden, Constitution's VP of Exploration notes:
"These channels are 100 + meters wide and average 2.5 meters deep. Current drilling has indicated that they are a minimum of 600 meters long with the gold rich horizon extending another 400 meters with geological evidence suggesting further extensions. Available assays indicate an average grade of 151.5 mg/CM or $5.85/CM Gold Value at 1200 USD/ounce gold prices."
Michael Stocker, Constitution's CEO states:
"We are very encouraged by the results of this 100 hole Phase II drill program. The efforts of the past few months have confirmed on a consistent basis, the results we have been expecting for this specific area. This drilling has enabled us to provide revised inputs to delineate what we hope will be a viable gold resource which can support an experimental test production operation."
The 100E line was completely drilled as planned at 100 meter intervals. Excavation of the second line commenced from the southern portion of the grid. In the 100E line, the exploration team encountered a very anomalous hole - HBD33- which had the potential of being expanded for a resource area. However, the focus at that time was to complete the 100 holes in anticipation of being able to make a resource calculation.
The 100 m X 250 m grid was intentionally designed to intersect any mineralization of interest, which might be contained within that specific area of exploration.
After HBD33, a pragmatic and systematic approach has enabled the Company to make substantial progress in locating a channel whose presence had been previously expected, and moving forward aggressively to develop an understanding of it.
At this time, this HBD33 channel appears to be suitable as an initial test production area. It is anticipated that further drilling will demonstrate the presence of additional mineralization. As a next step, the plan is to work on the implementation of test production equipment on the drilled out area.
The Company will now analyze the drilling data and will publish first results of the study of the second and third channel in the near future.
Peru
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 has now completed its Phase II drill program focused on grid drilling a 2.5 square kilometer region. While the results from both 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.