Oct 27 2010
Constitution Mining Corp. (OTCBB:CMIN) has announced further preliminary data following completion of the Company's Phase II Drill (100-hole drill) program.
The drilling confirmed the presence of three large auriferous fluvial channels that meander near the surface.
Drilling at Constitution's Peruvian Gold Sands project has confirmed a third channel returning values as high as 286.5 mg/m3 over a width of 60m and a thickness of 2.0 meters. This third channel lies within the area of the company's Phase II drill program. It lies near the surface and contains ore with gold grades over 5 times higher than the Company's targeted 50mg/cubic meter cutoff standard for economic consideration. These results are encouraging as CMIN is working to develop plans for the implementation of a test gold mining program in this Phase II drill area.
The Phase II Drill program sampled a 6.8 square kilometer east facing meander containing three promising gold bearing channels. During the execution of this Phase II Drill program, the Company applied close interval drilling to define the dimensions and grades of these channels.
Jim Prudden V.P. Exploration states "Preliminary development drilling to date on the Second Channel has outlined a potential Pilot Mining size dredgable fluvial channel. Preliminary calculations from 21 holes within the contoured values indicate a volume of 140,500 CM at an average grade of 161.5 mg/CM using a 50 mg/CM cut off. However, these preliminary calculations should not be relied upon as further drilling is required to bring this potential dredgable channel to the reserve category."
Reconnaissance in 2009 and work during the current 2010 Phase II drill program discovered a third channel with a length of about 1,000 meters and open on both ends. Select channel sampling in the northwestern portion of this third channel in the informal mine pit walls averaged 224.5 mg/CM for a depth of 2.4 meters in the vicinity of a drill hole that averaged 147.5 mg/CM over 2.0 meters. In addition, 2009 drilling in the southeastern portion of the channel disclosed the channel width of 60 meters recording values to 286.5 mg/CM over width of 2.0 meters.
In a detailed report prepared for Constitution Mining by MTI Holland/IHC Merwede in 2009, it was estimated at the time of that report that the cost of gold production would be US$1.60 - US$2.40 per cubic meter once full-scale production was underway. Based on the Company's current preliminary modeling results and a gold price of $1,200/ounce, gold values from the HBD-33 channel, to the extent they are recoverable, are estimated to be approximately $6.15 per cubic meter.
Constitution Mining CEO Michael Stocker states, "We are very pleased with the preliminary data collected during of our Phase II drill program. The confirmation of a third channel appears to offer greater gold values than identified in the first two channels discovered. We are now discussing, with various dredging contractors, the possible implementation of a test gold production program."
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 Maranon 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 is now actively engaged in conducting 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 initial results of 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.