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CONSTANTINE REPORTS FINAL DRILL RESULTS AT MUNRO-CROESUS GOLD PROJECT, ONTARIO


(18.79 g/t gold over 4.10 meters including 166.5 g/t gold over 0.40 meters)


September 20, 2011

Vancouver, BC - Constantine Metal Resources Ltd. (TSX Venture - CEM) ("Constantine" or the "Company") is pleased to announce the final round of results, with several new high-grade gold intersections, from the 100% owned Munro-Croesus Gold Project drill program located 75 kilometers east of Timmins, Ontario. The 7280 meter drill program tested the Croesus Mine target at shallow and moderate depths, and the Four Corners property at the Canamax and Perry Pond targets (Figure 1).

Near surface high-grade veins have been intersected in both the hanging wall and footwall to the main high-grade Croesus Mine vein structure, including intercepts of 18.79 g/t gold over 4.10 meters in MC11-C38 and 18.03 g/t gold over 1.24 meters in MC11-20. These intersections highlight the potential for more high-grade Croesus type ore that was only mined historically to a depth of 40 meters and that could be accessible by a shallow (< 50 meter deep) open pit. Drilling has also outlined the 200 Zone target for more detailed exploration 175-200 meters below the Croesus Mine workings (9.56 g/t gold over 1.31 meters in MC11-17 and 12.2 g/t gold over 0.46 meters in MC08-10). Five kilometers to the east at the Canamax Zone, wide spaced drilling has identified broad intervals of gold mineralization within a robust carbonate +/- silica+/- fuchsite alteration zone (e.g. 25.50 meters grading 0.30 g/t gold in CMX11-01 and 10.05 meters grading 0.55 g/t gold in CMX11-03A). Details on each target area are provided below.

Garfield MacVeigh, President and CEO of the Company states: “The 2011 Munro Croesus drill program has documented significant gold mineralization in multiple different areas of the greater Munro Croesus project. Combined with the potential for extensions of Lake Shore Gold’s Fenn-Gib deposit (acquired from Barrick for $60 million) immediately along strike onto Constantine ground, the project area offers a great opportunity to build shareholder value.”

Figures, photos and maps, including those showing the relationship between the Fenn-Gib property and the Munro Croesus property, can be found on the Company’s website (www.constantinemetals.com/projects/croesus/

Munro Croesus Project Drill Highlights

G Vein and Croesus Vein Hanging wall-Footwall Targets
The 2011 program completed a total of 38 short holes (average length of 36 meters) on shallow targets in both the hanging wall and footwall to the main Croesus vein. New assay results are presented for the final 27 of these holes (MC11-C12 to MC11-C38) and are summarized in Table 1. The majority of these holes tested a new vein structure, the G Vein, located approximately 25 meters into the footwall and west of the historically mined Croesus vein. Several holes also targeted the hanging wall and footwall to the high-grade Croesus vein structure that required drilling through the old Croesus Mine workings. New assay highlights include:

  • 6.01 g/t gold over 0.5 meters in MC11-C13 (shaft pillar)
  • 11.55 g/t gold over 0.20 meters in MC11-C14 (shaft pillar)
  • 5.47 g/t gold over 0.40 meters in MC11-C15 (shaft pillar)
  • 10.65 g/t gold over 0.25 meters in MC11-C18 (Croesus vein footwall)
  • 25.0 g/t gold over 0.15 meters in MC11-C20 (G-Vein)
  • 5.77 g/t gold over 0.40 meters in MC11-C25 (Croesus footwall vein)
  • 5.21 g/t gold over 0.40 meters in MC11-C34 (Croesus vein in pillar)
  • 7.65 g/t gold over 0.40 meters in MC11-C35 (Croesus footwall vein)
  • 7.60 g/t gold over 0.50 meters in MC11-C37 (Croesus vein in pillar)
  • 18.79 g/t gold over 4.10 meters in MCll-C38 including 166.5 g/t gold over 0.40 meters (hanging wall vein structure above Croesus stope)

Previously announced assays in hanging wall vein structures include:

  • 5.88 g/t gold over 4.65 meters, including 11.87 g/t gold over 1.34 meters in MC11-19
  • 13.29 g/t gold over 1.78 meters, including 18.03 g/t gold over 1.24 meters in MC11-20

This mineralized area in the hanging wall to the main Croesus vein has not been drill defined and is open for delineation and expansion over a 60-70 meter dip length within the favourable upper contact area of the Croesus flow north of the Croesus fault.

200 Zone
Five of the last 9 holes drilled to test the 200 Zone intersected the zone in the favourable Croesus flow unit 175-225 meters below the Croesus Mine workings, while 2 holes deviated into the overlying mafic flow at target depth and 2 holes were abandoned at shallow depths. Table 1 provides a tabulation of the 2011, 200 Zone results. One hole (MC11-28) intersected 7.08 g/t gold over 1.60 meters (including 18.15 g/t gold over 0.40 meters) in a new shallow vein structure with visible gold, 12.4 meters above the Croesus Mine workings. This vein structure is 30 meters east of the MC11-38 intersection described above and is part of the favourable mineralized hanging wall area that requires delineation.

The 2011, 200 Zone drilling has provided a suitable drill spacing for down-hole geophysics to map out the chemically and structurally favourable, sulphide-carbon rich host rocks and potentially directly target zones of high-grade gold for which the Croesus Mine was famous.

Four Corners Property Drilling

Drilling on the nearby Four Corners property tested two separate target areas referred to as the Canamax zone and the Perry Pond prospect. The Four Corners property forms part of the Munro-Croesus project and is located 1.2 kilometers east of the Munro Croesus property, with Lake Shore Gold's Fenn-Gib property located in between.

Canamax Zone
At the Four Corners Canamax Zone, 3 holes were drilled on 100 meter spaced sections. All holes intersected very robust carbonate +/- silica+/- fuchsite alteration with gold values. The two most easterly holes intersected the strongest gold mineralization over wide widths. Selected results are highlighted below and a more complete listing is provided in Table 1.

  • 0.34 g/t gold over 18.25 meters, including 0.611 g/t over 5.40 meters and 5.94 g/t over 0.25 meters in CMX11-01(Zone I)
  • 0.30 g/t gold over 25.50 meters, including 0.59 g/t gold over 8.00 meters and 1.10 g/t over 2.80 meters in CMX11-01(Zone II)
  • 3.97 g/t gold over 0.95 meters in CMX11-03A
  • 0.75 g/t gold over 5.20 meters, including 2.31 g/t over 1.00 meters in CMX11-03A
  • 0.55 g/t gold over 10.05 meters

The best result from previous drilling by Canamax Ltd. in 1987 is 2.28 g/t gold over 4.00 meters.

Perry Pond Prospect
Two holes were drilled on section that tested shallow to moderate south dipping shear zones and steep north dipping contacts between tholeiite-komatiite rocks. The best assay intersection from the current drilling is 0.64 g/t gold over 4.05 meters. Additional results are provided in Table 1.

Previous drilling by St. Andrews on the Perry Pond prospect intersected 9.37 g/t gold over 1.25 meters within a south dipping deformation zone that cuts tholeiitic and komatiitic volcanic rocks.

Future Munro Croesus Exploration

A surface trenching/excavating program is being planned to expose the bedrock immediately overlying the Croesus mine workings for mapping and sampling. The program would provide essential information to evaluate and design an open pit to extract gold mineralization within and in the immediate hanging wall and footwall of the shallow Croesus Mine workings. Now that a suitable drill spacing has been established in the deeper 200 Zone gold mineralization, a down-hole geophysical program as previously proposed is planned to map out the chemically and structurally favourable sulphide-carbon rich host rocks and potentially directly target zones of high-grade gold that the Croesus Mine is famous for.

Wide zones of gold mineralization intersected in the 2011 drilling at the Canamax Zone documents a large robust gold system that requires more drilling on strike and at depth

The western strike extension of the Fenn-Gib deposit located immediately adjacent to the Munro Croesus property is an obvious high priority target that has not yet been tested. The deposit is localized along the Pipestone Fault on a major sediment-volcanic contact that projects through the Munro Croesus property. A VTEM airborne geophysical survey flown by Constantine in 2008, clearly defines the Fenn-Gib deposit horizon and its extension onto the adjacent Munro-Croesus claims.

There are several other surface prospects on the Munro Croesus property that will be evaluated for drill testing. Four grab samples of broken trench rock and outcrop collected from the No. 4 Flow prospect located 1 kilometer west of the Croesus mine returned values ranging from 7.08 g/t to 18.75 g/t gold.

Background on Adjacent Fenn-Gib Property

The Fenn-Gib property is located between Constantine's Munro-Croesus and Four Corners properties. Past drilling on Fenn-Gib defined a large mineralized envelope with minimum one kilometer strike length and widths up to 250 meters. Lake Shore has reported that it is targeting an initial bulk tonnage resource of at least 2 to 3 million ounces at Fenn-Gib based on historic drilling and Whittle pit shell.* The structural and geological controls on mineralization at Fenn-Gib are interpreted to project westward onto underexplored parts of the Munro-Croesus property, which is located within 300 meters and along trend of the historic Fenn-Gib gold resource.

About the Historic Croesus Mine

The Munro-Croesus property lies within the influence of the prolific Porcupine Destor Deformation Zone and includes the formerly producing Croesus mine (1914-1933) known to have produced some of the highest grade gold ever mined in Ontario.** Five Croesus gold specimens held by the Royal Ontario Museum weigh 85 pounds collectively and contain 480.7 ounces of gold or 11,310 ounces gold per short ton (387,771 grams per tonne). Except for a few brief option periods to publicly traded companies, the Croesus mine property has been in private hands since its discovery in 1914, prior to acquisition by Constantine in 2007.

Other Corporate News

The Company is pleased to announce the appointment of new, independent director Mr. Ross McDonald to the board of directors. Mr. McDonald is a chartered accountant with over 30 years of professional experience. Mr. McDonald received his Bachelor of Commerce degree from the University of British Columbia in 1964 and his designation as a Chartered Accountant from the Institute of Chartered Accountants of British Columbia in 1968. For the past 15 years, Mr. McDonald worked principally with clients related to mining and mineral exploration, until his retirement from public practice last year. He is currently involved as director of several junior resource companies.

The Company announces that it has extended for six months the investor relations agreement with San Diego Torrey Hills Capital Inc. that was first announced in Constantine's news release dated February 22, 2011. Torrey Hills Capital will continue to assist the Company in gaining exposure to investors through the dissemination of corporate information to a network of brokerage firms, financial institutions and private investors.

About the Company

Constantine is a gold and copper exploration company that has multiple active projects located in premier North American exploration environments. These are highlighted by the 100% owned Palmer Project, located in a very accessible part of southeast Alaska, that is host to a NI43-101 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), the 100% owned Timmins area Munro-Croesus Project that includes a past-producing mine property that yielded some of the highest grade gold ever mined in Ontario, the Trapper Gold Project in northern British Columbia that is optioned to Ocean Park Ventures Ltd. who are carrying out a $4.9 million, 10,000 meter drill program on the property in 2011, and a 50/50 Joint Venture with Carlin Gold Corporation exploring a 1000 sq. km land position in an emerging new Carlin-type gold district in Yukon.

On Behalf of Constantine Metal Resources Ltd.

“Garfield MacVeigh”

President

Investor relations enquiries please contact:
R.E. (Bob) Jeffery
Phone: 250-335-2011
Email: bob@constantinemetals.comor Email: info@constantinemetals.com
or
Jim MacDonald, Torrey Hills Capital
Phone: 858-456-7300, Email: jm@sdthc.com

 

* As reported in May 5th, 2001 news release by Lake Shore Gold Corp.
** As reported in the 60th Annual Report of the Ontario Department of Mines, Geology of Munro Township, J. Satterly vol. LX, Part VIII, 1951

Notes:

Samples of drill core were cut by a diamond blade rock saw, with half of the cut core placed in individual sealed polyurethane bags and half placed back in the original core box for permanent storage. Sample lengths typically vary from a minimum 0.1 meters to a maximum 1.0 meter interval with an average 0.5 meter sample length. Drill core samples were delivered directly, by Constantine personnel, to the ALS Chemex prep lab in Timmins Ontario in sealed woven plastic bags. Prepared pulps were shipped by ALS Chemex to their North Vancouver Lab where gold was determined by fire-assay fusion of a 30 g sub-sample with atomic absorption spectroscopy (AAS) finish. A subset of samples were also screened and analyzed for metallics gold. All samples were analyzed for multi-element inductively-coupled plasma (ICP) atomic emission spectroscopy, following multi-acid digestion.

Darwin Green, VP Exploration for Constantine, and a qualified person as defined by Canadian National Instrument 43-101, has reviewed the information contained in this news release and has also verified the analytical data for drill core samples disclosed in this release by reviewing the blanks duplicates and certified reference material standards and confirming that they fall within limits as determined by acceptable industry practice.

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 expected completions of financings and the use of proceeds thereof, 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 Company 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 Company’s 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 Company with securities regulators.  Although the Company has 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.


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Palmer VMS Project Croesus Gold Project Yukon Gold Project Golden Mile Project

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