Constitution Mining Corp.
OTC Bulletin Board : CMIN

May 19, 2009 09:00 ET

Constitution Mining Receives Preliminary Master Plan (Scoping Study) for Peruvian Gold Sands Project

BUENOS AIRES, ARGENTINA--(Marketwire - May 19, 2009) - Constitution Mining Corp. (OTCBB:CMIN) announces that it has received a Preliminary Master Plan for the development of the gold-rich sands and gravels of its Gold Sands Project in Peru. The Plan was prepared by MTI Holland, a Netherlands research and development division of IHC Merwede that specializes in dredging and alluvial mining technology. CMIN commissioned MTI Holland to recommend the optimum mining and processing technologies for the Gold Sands Project. Constitution Mining's goal is to achieve production from the Gold Sands Project of at least of 500,000 ounces of gold per year from resources grading between 250 and 350 milligrams per cubic meter.

The Preliminary Master Plan submitted to CMIN by MTI Holland:

- sets out a plan of action for on-going geotechnical studies and recovery test work

- sets out mining scenarios and lay-outs of possible operations

- provides required equipment lists

- estimates required capital expenditures and operating costs

- provides preliminary cash flow analyses based on the information collected to date.

This study indicates that dredging is by a significant margin the most economic way of mining the large quantities of alluvial sands and gravels in the wet environment of the Manseriche alluvial field. The mining systems proposed consist of wheel dredgers connected to floating plants that separate gold from the sands and gravels by scrubbing and screening in combination with asymmetrically-pulsed jigs, centrifugal separators and cyclones.

As contemplated by the study, mining would start in 18 to 24 months with a wheel suction dredger of limited size and dredging depth and an appropriately matched floating plant. A year later, the first full-scale dredger and floating plant, with a capacity to dredge to a depth of 20 meters, would be commissioned. An additional year later, a similar sized dredger and plant would be brought on with a maximum dredging depth of 40 meters. The two dredgers and their floating plants would work together in a single pond. Thereafter, the two-dredger system would be replicated twice, over a four-year period.

Initial production would be at a rate of 48,000 ounces per year with one dredger and should grow to 630,000 ounces per year with seven dredges.

Preliminary cash-flow analysis based on current information and assuming an average gold concentration of 300 milligrams per cubic meter, a mine life of 16 years, a discount rate of 8% and a gold price of US$800 per ounce return the following:

- For the initial, single-dredger operation (pilot mining): NPV = US$80 million, IRR = 38%, Operating cost = US$261 per ounce.

- For the intermediate, three-dredger operation: NPV = US$309 million; IRR = 45%; Operating cost = US$206 per ounce.

- For the seven-dredger operation: NPV = US$600 million; IRR = 46%; Operating cost = US$183 per ounce.

Constitution Mining CEO, Dr Willem Fuchter, commented: "The Preliminary Master Plan is, in effect, a first draft, or a work in progress, that will evolve as additional data are collected and analyzed and will, ultimately, form the technical basis for a Feasibility Study. Not only does it indicate the exceptional economic potential for the development of such deposits, but it provides the Company with a concise road map for the rapid development of its Gold Sands Project."

About Constitution Mining Corp.

Our goal is to continuously increase the amount of gold underlying each of our outstanding shares. To build such value, we are focusing on the rapidly developing Gold Sands region of Peru, where we have optioned 382 square kilometers (229 square miles) of mining properties - the largest such block in the district.

The Gold Sands of Peru 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 much of the treasure in loose gravels and sands - Gold Sands - below the Manseriche gorge in Northeastern Peru. There the rivers reach a broad flood plain, slow to a crawl and release their cargo.

Drilling results from more than 500 test holes in a 'proof of concept' zone located on Constitution Mining's properties indicate the presence of tens of millions of ounces of alluvial gold in the region. We intend to capture the profit potential of that gold by applying recently enhanced mining technologies that are especially well suited to low-density, near-surface deposits. These green-mining technologies are energy-efficient and environmentally friendly -- features that support their profitable use.

Further information about Constitution Mining Corp may be found at www.Constitutionmining.com.

On behalf of the Board:

Dr. Willem Fuchter, CEO

Constitution Mining Corp.

Disclaimer

This release contains forward-looking statements that are based on the beliefs of Constitution Mining Corp. management and reflect Constitution Mining Corp. current expectations as contemplated under section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. When used in this release, the words "estimate, "project," "believe," "anticipate," "intend," "expect," "plan," "predict," "may," "should," "will," "can," the negative of these words, or such other variations thereon, or comparable terminology, are all intended to identify forward-looking statements. Such statements reflect the current views of Constitution Mining Corp. with respect to future events based on currently available information and are subject to numerous assumptions, risks and uncertainties, including, but not limited to, risks and uncertainties pertaining to development of mining properties, changes in economic conditions and other risks, uncertainties and factors, which may cause the actual results, performance, or achievement expressed or implied by such forward looking statements to differ materially from the forward looking statements. The information contained in this press release is historical in nature, has not been updated, and is current only to the date indicated in this press release. This information may no longer be accurate and therefore you should not rely on the information contained in this press release. To the extent permitted by law, Constitution Mining Corp. and its employees, agents and consultants exclude all liability for any loss or damage arising from the use of, or reliance on, any such information, whether or not caused by any negligent act or omission.

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