Constellation cuts Cashin copper (March 02, 2004)

Fan drilling to define the western margin of the Cashin deposit in Colorado has returned some wide swaths of encouraging copper grades for Denver-based Constellation Copper (CCU-T).

The latest holes were collared in a little-drilled area south of La Sal Creek. Results are as follows;

• Hole 5 – 300 ft. (from 60 ft. below surface) grading 0.5% copper;
• Hole 6 – 105 ft. (from 4 ft.) running 0.46% copper, and 165 ft. (from 209 ft.) of 0.56% copper;
• Hole 7 – 80 ft. (from surface) of 0.74% copper, 20 ft. (from 115ft.) averaging 0.33% copper, and 40 ft. (from 270 ft.) of 0.64% copper;
• Hole 8 – 230 ft. (from 31ft.) grading 0.54% copper;
• Hole 9 – 248 ft. (from surface) containing 0.48% copper; and
• Hole 10 -28 ft. (from surface) grading 0.51% copper, and 175 ft. (from 58ft.) of 0.75% copper.

The six holes returned an average of 0.55% copper over 232 ft. They were drilled in two separate fan patterns east of three previously sunk holes that returned 0.46-0.85% copper over widths of 90-351 ft. Results from three additional fans of holes between the two tested areas are pending.

Copper mineralization at Cashin is represented by malachite and azurite, with some chalcocite, neoticite and chrysocolla also present.

Constellation will send any core remaining after assaying to the Lisbon Valley processing plant for column leach tests.

The drilling is attempting to define a resource south of La Sal Creek to supplement the estimated resource north of La Sal Creek. Based on 77 holes drilled in 1994 and 1995, Cashin hosts a total resource of 13 million tons grading 0.5% copper. Included is a measured and indicated resource of 3.45 million tons grading 0.55% copper. The material is amenable to open-pit mining and would be trucked to the proposed Lisbon Valley project for processing.

Meanwhile, in the Philippines, Constellation has abandoned its planned acquisition of the Hinoba-an copper-gold-molybdenum porphyry deposit on Negros Island.

The decision follows a Supreme Court ruling that the 1995 Mining Law in the Philippines was unconstitutional. Constellation says the court ruling has called into question the validity of the “commercial interest in the property.” Still, the company says it will monitor the ongoing appeal and is in consultation with its legal council.

Hinoba-an is home to a measured and indicated resource of 240.6 million tonnes grading 0.37% copper, based on a cutoff grade of 0.25% copper (T.N.M., Jan 7-13/04).

Constellation had planned to acquire the project by issuing 52 million shares to privately held Hinoba Holdings. The shares would have given Hinoba a 9.9% stake in Constellation; Hinoba would also nominate one representative to Constellation’s board.

The news sent Constellation shares half a penny lower to 13 in late afternoon trading in Toronto on March 2.