Constantine drills 4.6m of 0.52% Cu, 4.65% Zn at Palmer

Sep 25, 2019

2019-09-25 07:19 ET – News Release

Mr. Garfield MacVeigh reports

CONSTANTINE INTERSECTS 4.6 METERS OF 0.52% COPPER AND 4.65% ZINC IN 335 METER STEP-OUT ON RW ZONE AT PALMER PROJECT, ALASKA

Constantine Metal Resources Ltd. has released assay results for a drill hole testing the depth extension of the RW zone at its Palmer joint venture project, Alaska. The RW zone (which includes the RW West, RW East and RW oxide zones) is located in the Palmer deposit area and within the same folded mineralized horizon that hosts the main South Wall zones. Expansion of the RW zone is a priority for the company as the RW zone is near to planned mining infrastructure but was not included in the company’s recently released preliminary economic assessment (see company press release dated June 3, 2019).

Drill hole CMR19-140 was designed to test the open downdip and down-plunge extension of the RW West zone and intersected massive baritic sulphide mineralization. The new intercept represents a significant 335-metre stepout of the mineralized zone. The zone is open to further expansion along strike (east and west) and at depth.

                                        ASSAY RESULTS

Drill hole         From          To       Width      Cu      Zn      Ag       Au    BaSO4 (%)
               (metres)    (metres)    (metres)     (%)     (%)   (g/t)    (g/t)     (Barite)

CMR19-140         151.8       156.4        4.6*    0.52    4.65    27.7     0.20         43.7

* True width is 85 to 90 per cent of reported width.

“We are very encouraged by this new intersection at the RW zone, which shows the potential to expand the RW zone through further targeted stepout holes,” said president and chief executive officer Garfield MacVeigh. “This could ultimately lead to the inclusion of the RW zone in future economic studies on Palmer and further enhance the project.”

Mineralization in drill hole CMR19-140 is very similar in character to previous RW zone drill hole intersections, which were last drilled in 2014. The nearest updip intersection is hole CMR14-67 which returned 3.9 metres averaging 5.11 per cent zinc, 0.19 per cent copper, 92.5 g/t silver and 0.37 g/t gold. The RW West zone previously had an approximate maximum true thickness of six metres, a strike length of 375 metres, and a dip length of 325 metres (based on mineral resource wireframes). The zone remains open both up- and downdip, and along strike.

The company completed a total of 3,165 metres of drilling in eight holes (CMR19-135 to CMR19-142) on the Palmer project in 2019. Holes targeted stepouts of: the RW West zone, the AG zone and a previously untested subice geophysical target to the west of the HG prospect. All assays have been received.

The AG zone drilling to date shows that the deposit remains open up plunge to the southeast toward the JAG prospect and toward the Waterfall prospect, 1.2 kilometres to the northwest.

At the subice geophysical target, VMS-style barite-zinc mineralization in drill hole CMR19-142 returned 1.3 per cent zinc and 8.52 per cent barite from 378.7 to 379.2 metres with extensive strong pyritic footwall-style alteration. These results are highly encouraging for follow-up of this target and for the nearby untested HG prospect.

Update on permitting

Constantine’s waste management permit (see Constantine news release July 31, 2019) has been remanded to the Alaska Department of Environmental Conservation (DEC) staff for further review. The remand is due to a Ninth Circuit Court decision related to the Hawaiian wildlife case that is currently before the Supreme Court that may change the way that U.S. Environmental Protection Agency (EPA) and DEC permit water discharges in the United States. Alaska has joined 18 other states in supporting EPA’s and DEC’s current permitting process and asking that the Ninth Circuit’s decision in Hawaii wildlife be reversed.

About the Palmer project

Palmer is a high-grade volcanogenic massive sulphide-sulphate (VMS) project located in a very accessible part of coastal southeastern Alaska, with road access to the property and within 60 kilometres of the year-round deepsea 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.

A preliminary economic assessment presents a low-capex, low-operating-cost, high-margin underground mining operation with attractive environmental attributes (see news release dated June 3, 2019). Exploration has resulted in the discovery of the new AG deposit and continued to grow the resource base to its current estimated size of 4.68 million tonnes indicated grading 5.23 per cent zinc, 1.49 per cent copper, 30.0 grams per tonne silver, 0.30 g/t gold and 9.6 million tonnes inferred grading 4.95 per cent zinc, 0.59 per cent copper, 69.3 g/t silver, 0.39 g/t gold. 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.

About Constantine Metal Resources Ltd.

The company’s flagship asset is the Palmer project, a high-grade volcanogenic massive sulphide-sulphate (VMS) project being advanced as a joint venture between Constantine (51 per cent) and Dowa Metals & Mining Co. Ltd. (49 per cent), with Constantine as operator.

We seek Safe Harbor.

https://www.constantinemetals.com/