Constantine starts 10,000 m drill program at Palmer

Jun 6, 2018

2018-06-06 08:37 ET – News Release

Mr. Garfield MacVeigh reports

CONSTANTINE COMMENCES 10,000M DRILL PROGRAM PALMER COPPER-ZINC-SILVER-GOLD PROJECT, SOUTHEAST ALASKA

Constantine Metal Resources Ltd. has commenced a 10,000-metre drill program with two rigs at the Palmer copper-zinc-silver-gold joint venture project in southeastern Alaska. Objectives of the drill program are:

Systematically define and expand the south wall and RW zone mineral resources;
Expand the AG zone, a new silver-gold-zinc-rich discovery made last year;
Test other never-before-drilled prospects across the district-scale project area.

South wall mineral resource drilling

South wall zone drilling will target extensions of the known deposit. The focus will be on areas west of strong 2017 drill results from the western edge of the mineral resource, and also at depth, targeting the fault-displaced offset of the zone. The western expansion targets include stepouts to holes CMR17-82, which intersected 45.4 metres grading 2.5 per cent copper and 7.4 per cent zinc, and CMR17-97, which intersected 14.5 metres grading 1.9 per cent copper and 7.5 per cent zinc, and 10.5 metres grading 0.5 per cent copper and 8.5 per cent zinc (see company news releases dated Oct. 2, 2017, and Aug. 17, 2017). Both target areas have potential to significantly expand the extent of mineralization beyond the bounds of the current resource.

AG zone drilling

AG zone is a new area of silver-gold-zinc-rich mineralization discovered during last year’s drill program approximately 3.0 kilometres from the south wall zone. The 2017 drilling defined AG zone mineralization over a strike length of 225 metres and a vertical dip length of 275 metres, with the zone open along strike in both directions and at depth. Testing for extensions to the mineralization in each of these directions will be the focus of this year’s AG zone drill plan. The AG zone has yielded the best precious metal drill intersections on the project, including 10.3 metres grading 461 g/t (14.7 ounces per ton) silver and 0.9 g/t gold, and 9.2 metres grading 312 g/t (9.1 ounces per ton) silver and 0.9 g/t gold. The zone also hosts significant zinc mineralization, including highlighted drill intersections of 17.8 metres grading 11.3 per cent zinc and 20.4 metres grading 9.9 per cent zinc (see company news releases dated July 27, 2017, and Aug. 17, 2017).

New prospects drilling

Drilling will also test new exploration targets which coincide with areas of VMS-style (volcanogenic massive sulphide) mineralization and hydrothermal alteration exposed at surface that have been prioritized by the 2017 airborne electromagnetic survey. Two high-priority targets are the Boundary and HG prospects, neither of which have ever before been drilled.

The Boundary prospect hosts numerous samples of high-grade mineralization. These include footwall-style stringer mineralization in outcrop grading up to 6.6 per cent copper, float boulders of massive pyrite-chalcopyrite grading up to 13.6 per cent copper and massive barite-sphalerite boulders grading up to 19.7 per cent zinc. The mineralization at Boundary is spatially associated with a thick, strongly altered rhyolite sequence that is overlain by argillite and unaltered basalt — a classic VMS setting. The interpreted source of the massive sulphide-barite float boulders is located under surficial cover and coincides with one of the most pronounced EM (electromagnetic) target anomalies identified in the favourable mineralized stratigraphy in the survey area.

The HG prospect, like Boundary, is defined by a large-scale alteration zone associated with massive sulphide-barite mineralization exposed at surface, with grab samples grading up to 14.1 per cent zinc, 0.36 per cent copper, 2.3 per cent lead and 198.9 g/t silver. A distinct airborne EM geophysical response is located immediately on strike of the 600-metre-long alteration zone.

About the Palmer project

Palmer is a high-grade volcanogenic-massive-sulphide-sulphate (VMS) project, with an inferred mineral resource of 8.1 million tonnes grading 1.41 per cent copper, 5.25 per cent zinc, 0.32 g/t gold and 31.7 g/t silver. The project is being advanced as a joint venture between Constantine (51 per cent) and Dowa Metals & Mining Co Ltd., with Constantine as operator. The project is located in a very accessible part of coastal Southeast Alaska, with road access to the edge of the property and within 60 kilometres of the year-round deep-sea port of Haines. Mineralization at Palmer occurs within the same belt of rocks that is host to the Greens Creek mine, one of the world’s richest VMS deposits. VMS deposits are known to occur in clusters and with at least 25 separate base metal and/or barite occurrences and prospects on the project, there is abundant potential for discovery of multiple deposits at Palmer.

Constantine appoints new director

Stuart Harshaw has been appointed to the company’s board of directors effective June 4, 2018. Mr. Harshaw is a seasoned professional with a distinguished 27-year career in the mining industry, mostly with Vale SA and Inco Ltd., where, among other things, he was in charge of operating six underground mines, a portfolio of processing and refining facilities, as well as marketing and sales of a broad range of concentrates worldwide. He is a member of the board of directors of International Tower Hill Mines and Laurentian University of Sudbury, Canada. Mr. Harshaw earned a BSc in metallurgical engineering from Queen’s University and an MBA from Laurentian University. Mr. Harshaw was appointed to the company’s board of directors pursuant to the company’s investment agreement with Electrum Strategic Opportunities Fund II LP. Upon closing of the second tranche of the private placement, Electrum will have the right to name one additional director to be appointed to the board of directors (for a total of two).

Stock options issued

The company announces the issuance of 150,000 stock options with an exercise price of 68 cents per share, expiring June 5, 2023. The stock options are being issued to an officer and to a director of the company and are subject to approval by regulatory authorities.

About Constantine Metal Resources Ltd.

Constantine is a mineral exploration company led by a proven technical team with a focus on premier North American mining environments. In addition to the company’s flagship copper-zinc-silver-gold Palmer VMS project, Constantine also controls a portfolio of high-quality, 100-per-cent-owned gold projects in the Timmins camp, Ontario. This includes the large, well-located Golden Mile property in Timmins and the Munro Croesus gold property that is renowned for its exceptionally high-grade past production. Management is committed to providing shareholder value through discovery, meaningful community engagement, environmental stewardship, and responsible mineral exploration and development activities that support local jobs and businesses.

Darwin Green, vice-president, exploration, for Constantine Metal Resources, a qualified person as defined by Canadian National Instrument 43-101, has reviewed and approved the technical information contained in this release.

We seek Safe Harbor.

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