Constitution Mining Corp.
OTC Bulletin Board : CMIN

June 16, 2010 08:01 ET

Constitution Mining Sees Encouraging Phase II Drill Indications

LIMA, PERU--(Marketwire - June 16, 2010) - Constitution Mining Corp. (OTCBB:CMIN) announces that early indications and analysis of gold grades from the first 40 drill-holes completed during its current Phase II 100-hole drill program now being conducted in a 2.5 square kilometer region are cause to have a discussion with IHC Merwede about the economics of implementing a potential future test production gold mining operation at CMIN's gold sands project.

Constitution Mining CEO, Dr. Michael Stocker, commented, "Based on CMIN's previous discussions with IHC, the world's largest manufacturer of gold dredging and processing machinery, we are optimistic that results obtained from our Phase II drill program may be sufficient to support the implementation of a test-dredging production operation in the near future. We have scheduled a management meeting with IHC to inquire as to the economics of putting the 2.5 square kilometer region that is subject to the Phase II 100-hole drill program into production."

CMIN recently hosted a community relations meeting in San Lorenzo (the nearest village to CMIN's field operations) attended by more than 1,200 dignitaries, community leaders and citizens. The meeting was facilitated as part of CMIN's efforts to obtain final legal approval to proceed with a regional gold test-production dredging operation and community development plan.

Dr. Stocker commented on the meeting. "We believe it was an overwhelming success. CMIN made significant strides forward in bridging the societal gaps of possible misunderstanding about our overall intentions. We are optimistic that this is not only a major potential win for our shareholders, but also for the residents of the region."

The Company intends to release a partial resource estimate, based on the completion of the first 50 holes of its actively-ongoing 100-hole drill program. With a new hole completed every 1.5 days, CMIN is hopeful the interim report should be available within the next several weeks.

"We are very encouraged by the efficiency and pace at which our Phase II drill program is proceeding". Dr. Stocker added. "We look forward to our upcoming meeting with IHC and to report back the baseline economics associated with a similar Colombian-based private gold dredging operation – though smaller in scope and apparently lower in grade than our gold sands project – in order to provide a benchmark against which to measure our pending numbers".

About IHC'S Dredge Mining Equipment

IHC companies have been involved in the design and fabrication of dredge mining equipment since the end of the 19th Century. Most of this equipment is used in dredge mining projects all around the world, thus generating a great deal of in-house knowledge, furthering technical development. In addition to important innovations like the development of the dredging wheel, dredge mining automation systems, submerged pumping technology and track chain bucket ladder systems, IHC Merwede is constantly trying to improve the latest state-of-the-art designs for dredge mining systems, and their operation.

About Constitution Mining Corp.

The Company's goal is to locate large-scale commercially viable gold deposits and continuously increase the amount of gold underlying its outstanding shares. The Company is interested primarily in geographical areas that are home to several significant proven gold deposits, including highly prospective districts likely to hold further large deposits.

Peru

The first and most active project is in the Gold Sands region of Peru - 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 indicates a potential presence of significant alluvial gold. The Company is now engaged in implementing a Phase II drill program that will focus on grid drilling 2.5 square kilometer regions with an aim to develop gold resource estimates and to gather further data to determine the feasibility of large-scale mining of this vast resource. While the results received from the Phase I drill program and the preliminary results of the Phase II 100 hole drill program are favorable, these results do not yet indicate the presence of a commercially viable mineral deposit.

The full implementation of these programs will require the Company to secure additional financing.

Nevada

On April 1st, 2010 CMIN executed a definitive and binding Asset Purchase Agreement with Seabridge Gold Inc. to acquire 30 Nevada-based gold projects comprised of 2,141 claims, primarily located in the heart of Nevada's prolific Walker Lane gold belt.

The closing of the Agreement, which was initially anticipated to occur on May 20, 2010, is subject to certain conditions, including, but not limited to: (1) Seabridge obtaining certain authorizations, approvals and consents necessary to transfer the assets to the Company; (2) the accuracy of the parties' representations and warranties; and (3) material performance of all of the agreements and obligations of the parties. The agreement contains certain termination rights, including the right of either party to terminate the Agreement if the closing has not occurred by June 20, 2010 (as long as the terminating party has performed its obligations under the Agreement) and to terminate upon a material misrepresentation or breach by either party. The Agreement may also be terminated upon mutual consent of the parties.

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

On behalf of the Board;

Dr. Michael Stocker – CEO

Constitution Mining Corp. (CMIN.OB)

Disclaimer

This release contains forward-looking statements that are based on beliefs of Constitution Mining Corp. management and reflect Constitution Mining Corp's 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 we use 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 shown 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.

Contact Information