CONSTANTINE-CARLIN JV EXPANDS YUKON GOLD PORTFOLIO AZTEC PROPERTY ACQUISITION
February 17, 2011
Constantine Metal Resources Ltd. (“Constantine”) (TSX Venture - CEM) and Carlin Gold Corporation (“Carlin”) (TSX Venture - CGD) jointly (the "Companies") are pleased to announce a signed agreement with Yukon prospector Ron Berdahl (the “Vendor”) to acquire a 100% interest in the 226 claim, 4,724 hectare, Aztec Property (the “Property”). The Property is located in the Mayo Mining District, approximately 50 kilometers south of Atac Resources Ltd.’s recent Osiris discovery. The Constantine-Carlin 50/50 Joint Venture (the “Joint Venture”) has also acquired two additional properties by staking, comprising another 533 claims. Combined with new staking, the Property acquisition expands the Joint Venture Yukon land package to 2185 claims and approximately 175 square miles (450 square kilometers).
About the Property
The Property covers an area of strongly anomalous gold and arsenic defined by regional government stream silt data. Gold values exceeding the 95th percentile for the Yukon database occur in a total of five separate drainages that transect the Property, one of which contains 155 ppb gold and 460 ppm arsenic, the 99th percentile for both elements. Reconnaissance traverses involving prospecting, mapping and silt, rock and soil sampling by Viceroy Exploration Inc. in 1998 and Novagold Resources Ltd. in 1999 have revealed several broad gold geochemical anomalies across the Property requiring detailed follow-up. Mineralization identified to date includes extensive quartz stockworking associated with faults, and gold associated with altered quartz monzonite and lamprophyre dykes. Grab samples collected by the Vendor on the Property reportedly assay up to 9.57 grams of gold per tonne (0.279 opt).
About the Joint Venture Claims
The Joint Venture is making plans for aggressive exploration of its newly acquired properties. The claims are underlain by Paleozoic rocks with carbonate bearing sections located in drainage basins containing anomalous gold, arsenic, mercury and antimony geochemistry in the Yukon regional stream sediment database. The Joint Venture is targeting Carlin-style gold mineralization distal to the Tombstone intrusive rocks as well as sediment hosted gold mineralization adjacent to these intrusions. The Companies believe that several of these areas will develop into drill targets fairly quickly based on prior work done and the strong regional geochemical signatures. Realgar and orpiment, important arsenic-bearing minerals associated with Carlin-style gold deposits, are known to occur in the vicinity of some of the Joint Venture claims.
In order to acquire a 100% interest in the Property the Joint Venture must make optional cash payments totaling $450,000 ($25,000 payable on signing) and optional share payments of Constantine and Carlin for a total of 450,000 shares over a period of five years. Annual advance royalty payments to the Vendor of $35,000 commence January 20, 2017. The Vendor will retain a 2.5% NSR royalty, twenty percent of which, representing a 0.5% NSR, can be purchased by the Joint Venture at any time for $1,000,000 with a right of first refusal on the remaining 2% NSR royalty. The acquisition is subject to regulatory approval.
Constantine is a gold and copper exploration company with exposure to multiple projects located in premier North American exploration environments. These include the 100% owned Palmer Project, where Constantine has discovered a new copper-zinc-silver-gold deposit in a very accessible part of southeast Alaska, and the Munro-Croesus Project, that includes a past-producing mine property that yielded some of the highest grade gold ever mined in Ontario. The Palmer Project is host to a National Instrument 43-101 compliant 4.12 million tonne inferred resource grading 2.01% copper, 4.79% zinc, 0.30 g/t gold and 31 g/t silver (using an NSR cut-off of US$75/t; see news release dated January 20, 2010) that is open to expansion.
In addition, Constantine has a 100% interest in the large (8,300 hectares) Phoenix Gold project in the active Shiningtree gold area, 75 kilometers south of Timmins, Ontario and recently optioned its Trapper Gold Project in northern British Columbia to Ocean Park Ventures Ltd. which is committed to spend $750,000.00 this year as part of its $4.75 million, 50% earn-in. The Trapper Gold property hosts a +2000 meter long by 200 meter wide gold-arsenic soil anomaly with values up to 8.6 g/t gold that has not been drilled. Most recently the Company announced the acquisition of a 100% interest in the Hornet Creek gold-copper-barite prospect in west-central Idaho with an historic intersection of 17 meters (55.8 feet) of 3g/t gold and 0.16% copper (see news release dated February 9, 2011).
Carlin is a gold exploration company focused in Nevada and Yukon Territories. Carlin owns 100% of 3 properties in Nevada, all of which represent Carlin-type gold targets. Carlin’s Cortez Summit property is located 4 miles east of Barrick’s new Cortez Hills gold mine, in a similar geologic environment.
About Constantine-Carlin Joint Venture
Constantine and Carlin have recently entered into a 50/50 joint venture focused on gold exploration in the Yukon Territory. The Companies currently control 2185 claims (175 square miles, 450 square kilometers) located in the Selwyn Basin. The primary target is Carlin-type gold mineralization similar to Atac Resources recent Osiris discovery.
Please visit the Constantine’s website www.constantinemetals.com and Carlin’s website www.carlingold.com for more detailed company and project information.
|On Behalf of Constantine Metal Resources Ltd.||On Behalf of Carlin Gold Corporation|
|“Garfield MacVeigh”||“K. Wayne Livingstone”|
Historic results reported herein are derived from government reports, including Yukon assessment reports.
Darwin Green P.Geo, Vice President for Constantine Metal Resources Ltd. and a qualified person as defined by Canadian National Instrument 43-101, has reviewed and approved the technical information contained in this release.
Robert Thomas, Vice President for Carlin Gold Corporation and a qualified person as defined by Canadian National Instrument 43-101, has reviewed and approved the technical information contained in this release on behalf of Carlin Gold
Forward looking statements: This news release includes certain “forward-looking information within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively "forward looking statements").” Forward-looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, "forecast", “expect”, "potential", "project", "target", "schedule", budget" and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions and includes the negatives thereof. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential mineralization, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, and future plans and objectives of the Companies are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on a number of material factors and assumptions. Important factors that could cause actual results to differ materially from Companies’ expectations include actual exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the Companies with securities regulators. Although the Companies have attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward-looking statements, there may be other factors that cause such actions, events or results to differ materially from those anticipated. There can be no assurance that forward-looking statements will prove to be accurate and accordingly readers are cautioned not to place undue reliance on forward-looking statements.
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