Constantine estimates Palmer at 5.33Mt of 9.9% Zn inf.

Sep 28, 2018

2018-09-27 11:31 ET – News Release

Mr. Garfield MacVeigh reports

CONSTANTINE ANNOUNCES SIGNIFICANTLY EXPANDED MINERAL RESOURCE ESTIMATE FOR THE PALMER PROJECT, SOUTHEAST ALASKA

Constantine Metal Resources Ltd. has provided an updated mineral resource estimate for the Palmer copper-zinc-gold-silver deposit located in a very accessible area of coastal southeast Alaska. A separate maiden resource for the nearby AG zone discovery has been deferred until later this year to include recent 2018 drill results that have significantly expanded the extent of this new area of mineralization, which was first identified in 2017.

Palmer deposit resource update highlights:

Indicated resource of 4,677,000 tonnes grading 11.67 per cent zinc equivalent (3.84 per cent copper equivalent). This represents the first indicated resource for Palmer and accounts for 47 per cent of the total resource.
Inferred resource of 5,338,000 tonnes grading 9.90 per cent zinc equivalent (3.26 per cent copper equivalent). This includes the addition of new areas of inferred resource totalling 1.89 million tonnes for a total tonnage increase of 23 per cent.
First resource to report barite mineralization for the Palmer deposit, highlighting the opportunity for barite to contribute value as an industrial mineral co-product.

                        PALMER DEPOSIT MINERAL RESOURCE ESTIMATE AT A $75/T NSR CUT-OFF     
                                       (effective date Sept. 27, 2018)                               
                                                                   
Category            Tonnes (thousands)  Zn (%)  Cu (%)  Ag (g/t)  Au (g/t)  Barite (BaSO4 %)  ZnEq (%)  CuEq (%)   
   
Indicated                       4,677    5.23    1.49      30.8      0.30              23.9      1.67      3.84   
Inferred                        5,338    5.20    0.96      29.2      0.28              22.0      9.90      3.26 
 
Contained metal                
                                    
Category              Zn (M lb)  Cu (M lb)  Ag (M oz)  Au (K oz)  Barite (K tonnes)  ZnEq (M lb)  CuEq (M lb)  
                 
Indicated                  539        154        4.2       40.9              1,116        1,203          396    
Inferred                   612        113        4.5       43.6              1,174        1,166          383

Garfield MacVeigh, president and chief executive officer of Constantine Metal Resources, commented: “We are very pleased to report that this latest update significantly expands and enhances the resource base at the Palmer project. There is excellent opportunity to continue to expand the current resource, to add to the resource base with the planned maiden resource estimate for the AG zone and to make additional deposit discoveries. We are excited to incorporate these positive developments in the preliminary economic assessment, establishing the path forward for this important high-grade base metal asset.”

Resource model

The mineral resource estimate prepared by James Gray, PGeo, of Advantage Geoservices Ltd. is reported in accordance with National Instrument 43-101 of the Canadian Securities Administrators and conforms to the Canadian Institute of Mining Estimation of Mineral Resources and Mineral Reserves Best Practices Guidelines. The resource incorporates all exploration drilling in the Palmer deposit area completed to the end of 2017. A total of 108 exploration diamond drill holes for 44,868 metres and geological surface mapping were used to generate the geological and structural model for the South Wall and RW zones. Sixty of the holes intersect the interpreted mineralized solids. Outlier assays were capped and all assays within the mineralized zones composited to 1.5-metre lengths. Metal grades were estimated using inverse distance cubed interpolation into a 3-D block model with block dimensions of six by six by six metres. Density was estimated by inverse distance squared interpolation, with unique density values determined by conventional analytical methods for all assay samples. Three-dimensional geologic solids were constructed by Darwin Green, vice-president of exploration, and reviewed by Ian Cunningham-Dunlop, PEng, vice-president of advanced projects and the company’s qualified person, and, in general, were limited to material grading greater than 0.5 per cent copper or greater than 2 per cent zinc that could be demonstrated to be correlative with definable stratabound zones. As a general rule, solids were extended no more than 50 metres up dip, down dip and along strike from a drill hole, except where geology supports extension in the plunge direction of mineralization.

Indicated resources include only a portion of the upper part of the South Wall zone, where drill density and confidence in the geological model are highest. Indicated mineral resource blocks meet the criteria of being a minimum 25-metre distance away from the outer edge of the mineralized geological solid, estimated by a minimum of three holes, and have a maximum average distance to the third hole of less than or equal to 50 metres; the remaining estimated blocks are classified as inferred mineral resource. A total of four solids were constructed for sulphide mineralization: South Wall zone 1, South Wall zone 2-3-EM, RW West and RW East. The complete NI 43-101 technical report will be released within 45 days of this news release.

Mr. Cunningham-Dunlop is a qualified person as defined by NI 43-101 for the Palmer project. Mr. Gray is the qualified person as defined by NI 43-101 for the resource estimate discussed above. They have reviewed and approved the contents of this release.

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 gram per tonne gold and 31.7 grams per tonne silver. The resource was last estimated in May, 2015, and a new resource estimate is currently under way that will include drilling completed from 2015 to 2017. The project is being advanced as a joint venture between Constantine (51 per cent) and Dowa Metals & Mining Co. Ltd. (49 per cent), 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.

About Constantine Metal Resources Ltd.

Constantine Metal Resources 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 joint venture project, Constantine Metal Resources also controls a portfolio of high-quality, 100-per-cent-owned gold projects that the company intends to spin out. These include the very high-grade Johnson Tract gold-silver-zinc-copper-lead deposit, located in coastal southcentral Alaska (please see the company’s news release dated June 19, 2018), and projects in the Timmins camp in Ontario that include the large, well-located Golden Mile property and the Munro Croesus gold property, which is renowned for its exceptionally high-grade past production.

We seek Safe Harbor.

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