Constellation drills oxide copper at San Javier (June 28, 2006)

Vancouver – Initial core drilling by Constellation Copper (CCU-T, CCUDF-O) at its San Javier oxide copper project, in southern Sonora State, Mexico, returned an average thickness of 123 metres grading 0.46% copper from seven holes. Mineralization was encountered from an average depth of about 17 metres below surface.

The drill program was designed to test an area of copper oxide stained cliff faces around a hill about 200-to-300 metres in height. The company believes the area represents an iron-oxide copper-gold (IOCG) deposit with an exposed strike of up to 1.5 km, width up to 600 metres and about 100-to-200 metres of thickness.

Host rock in the deposit is a volcanic breccia containing abundant specular hematite plus the oxide copper minerals chrysocolla and tenorite within the upper oxidized zone and chalcopyrite in the deeper sulphide zone.

Constellation is adding a reverse circulation rig to its drill program enroute to producing a copper oxide resource estimate by year-end. Additionally, it will conduct column leach tests and initiate engineering programs for a preliminary assessment of a possible open pit, heap leach operation at San Javier producing cathode copper by solvent extraction-electrowinning. The company is targeting a pittable oxide orebody of about 100-to-150 million tonnes grading around 0.3% copper that will likely have a very low strip ratio due to the surface geography.

The San Javier project is located close to infrastructure with a community, paved highway, high voltage power and water source all in close proximity. The project (previously called Cerro Verde) underwent past exploration by Industrias Peoles (IPOAF-O) in the 1970s and by Phelps Dodge (PD-N) from 1995-to-1998, with a total of 25 widely spaced drill holes completed.

In late-2004, Constellation negotiated two option to purchase agreements covering the main project area. The option has total cash payments of US$1.23 million, staged over five years, towards complete buyout of the mineral rights and with no retained royalties.

In addition to exploration at San Javier, the company commenced cathode copper production from its Lisbon Valley mine in southeastern Utah earlier this year and has been conducting a feasibility study on its Terrazas copper-zinc project in Chihuahua State, Mexico.