Constantine Announces Election by Major to Proceed with Golden Mile Property Option and Reports New Surface Gold Results on Munro Selection Property, Ontario
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 7, 2012) - Constantine Metal Resources Ltd. (TSX VENTURE:CEM) ("Constantine" or the "Company") is pleased to announce Teck Resources Limited ("Teck") has elected to take-up the first option on the Company's 100% owned Golden Mile Property in the Timmins gold camp, northeast Ontario. Teck funded surface field work programs designed to follow-up on positive results from recent work by Constantine to identify targets for drilling will commence as soon as practicable.
The large, 68 square kilometer, Golden Mile Property is located 9 kilometers northeast of Goldcorp's multi-million ounce Hoyle Pond deposit and covers the Pipestone Fault System where it crosses the "Porcupine Giant Mine Corridor" that has produced more than 55 million ounces of gold (see figure at www.constantinemetals.com). The first option grants Teck the right to earn an initial 51% interest in the Golden Mile property by incurring $1,500,000 in exploration expenditures by September 30, 2015 and making $25,000 annual cash payments to Constantine. A second option grants Teck the right to earn an additional 15% interest in the property, for a total interest of 66%, by incurring an additional $3,500,000 in expenditures by September 30, 2019 and making $50,000 annual cash payments to Constantine.
The Golden Mile option agreement is one of three separate property rights agreements between Constantine and Teck on certain of the Company's Ontario gold properties (see Company news release, May 9, 2012). Teck has until September 30, 2012 to take-up an option on the Company's 100% owned Phoenix Property, and holds a right of first offer/first refusal to option or otherwise acquire an interest in the Munro Selection Property that is exercisable until November 30, 2012.
New Surface Gold Results - Munro Selection Property
Eight samples of the historic #2 Vein, on the Munro Selection part of the Croesus property yielded six plus-gram gold assays over a strike length of approximately 400 meters, with a high value of 15.9 grams per tonne gold. The #2 Vein is a northeast trending vein structure with observed widths to 12 meters, located to the southwest and along the same structural trend as the former producing high-grade Croesus vein, and has seen no diamond drill exploration. Sampling in the northwest area of the Munro Selection, a further 2.5 kilometers to the northwest of the #2 Vein has yielded gold mineralization in altered and mineralized variolitic basalt. Eight individual grab samples range from 0.17 to 11.4 grams per tonne gold with 5 samples greater than 1 gram per tonne gold.
The above described gold zones are located within 500 meters of the Pipestone fault, an important structure known to control gold mineralization at several gold deposits within the region, including the neighbouring 2.1 million ounce Fenn-Gib gold deposit. Constantine's Munro-Croesus project area covers an approximately seven kilometer length of this key structural corridor. Please refer to the updated website map at www.constantinemetals.com.
To read the entire news release follow the link below:
August 7, 2012 (Source: Marketwire)
Disclosure: Constantine Metal Resources (CEM.V or CNSNF) is a Vulture Bargain Candidate of Interest (VBCI) and is our Vulture Bargain #6. Members of the GGR team are actively accumulating and hold long positions in the company.