Constantine Metal drills 45.4 m of 2.5% Cu at Palmer

Jul 28, 2017

2017-07-27 07:59 ET – News Release

Mr. Garfield MacVeigh reports

CONSTANTINE REPORTS NEW SILVER-GOLD DISCOVERY AT NUNATAK AND HIGH-GRADE SOUTH WALL RESULTS, PALMER PROJECT, ALASKA

Constantine Metal Resources Ltd. has released the first round of assay results for a 7,000-metre, 20- to 25-hole, drill program currently under way at its Palmer joint venture project, Alaska. Wide intervals of high-grade copper and zinc mineralization have been intersected in resource expansion drilling at the south wall zone. The company is also very pleased to report a high-grade precious metal discovery in the first-ever drill hole to test the Nunatak prospect, located three kilometres from the south wall resource. Results for four holes for which assays have been received include:

South wall resource expansion drilling:

45.4 metres grading 2.5 per cent copper, 7.4 per cent zinc, 39 grams per tonn silver, 0.3 g/t gold in hole CMR17-82, includes 6.2 per cent copper, 13.8 per cent zinc over 10.9 metres;
18.7 metres grading 2.3 per cent copper, 6.9 per cent zinc, 33 g/t silver, 0.3 g/t gold in hole CMR17-84;
14.3 metres grading 0.4 per cent copper, 7.6 per cent zinc, 45 g/t silver, 0.3 g/t gold in hole CMR17-86.

Nunatak discovery:

9.2 metres grading 312 g/t (9.1 ounces per ton) silver, 0.9 g/t gold in hole CMR17-89.

Garfield MacVeigh, president, stated: “We are excited to have such a successful start to this year’s drilling. The new south wall intercepts will enhance the resource and demonstrate the ability of the south wall to produce thick intersections that build tonnes quickly. The new Nunatak drill discovery shows great potential and we look forward to further advances in both areas in the current drill program.”

South wall resource

Three holes were completed in a fan along the western edge of south wall zone for resource expansion and upgrade. All intersected wide intervals of massive sulphide within an area poorly tested by previous drilling. These new intersections dramatically increase the width and grade of mineralization in this area and also indicate excellent potential for further expansion to the west. All three intersections occur in a gap between two historic holes which had partial intercepts and passed immediately above and below the zone. Additional drilling in this area and to the west is in progress.

The drilled intercepts display strong copper and zinc zoning, similar to other areas in the deposit. CMR 17-82 contains an interval of 10.9 metres of 6.15 per cent Cu and 13.83 per cent Zn which includes 4.5 metres of 1.83 per cent Cu and 28.84 per cent Zn. The detailed intercepts of these three holes, CMR17-82, CMR17-84 and CMR17-86, are shown in the associated table.

Nunatak prospect

The Nunatak prospect was drilled as part of the company’s dual-focus plan of exploring for new deposits across the district-scale property while also expanding and upgrading the inferred resource. CMR17-89 intersected 9.2 metres of massive barite-sulphide grading 312 g/t silver and 0.9 g/t gold. The intersection is approximately 50 metres downdip of a surface showing where a continuous chip sample returned 127 g/t silver over 4.7 metres. An image on the company’s website shows the general outline of the mineralized horizon at Nunatak with locations of current and planned additional drilling. The company plans to explore this mineralization along the prospective mineralized horizon.

This new high-grade silver-gold intersection at Nunatak confirms the potential for Palmer to host significant precious metal mineralization, which is characteristic of other Late Triassic VMS (volcanogenic massive sulphide) deposits in the region such as Greens Creek, one of the largest and lowest-cost primary silver mines in the world. Priority exploration targets for 2017 include the Nunatak-JAG and Cap-HG prospects that collectively define a several-kilometre-long, stratigraphically linked corridor of mineralization that is parallel to the south wall — RW zone trend. It is anticipated that the airborne geophysical survey, which has recently been completed, will contribute to the property-wide drill targeting.

                       ASSAY RESULTS FOR SOUTH WALL AND NUNATAK

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

CMR17-82          248.1     293.5      45.4       149    2.54   7.44    39.4    0.33
Includes          262.5     288.4      25.9        85    3.61   9.13    43.4    0.54
Includes          277.5     288.4      10.9      35.8    6.15  13.83    65.4    0.52
Includes          277.5       282       4.5      14.8    1.83  28.84    38.1    0.30
Includes            282     287.6       5.6      18.4    9.95   2.79    90.8    0.72
CMR17-84          227.5     246.2      18.7      61.4    2.34   6.93    33.2    0.29
Includes          233.9     245.5      11.6      38.1    3.39   3.42    26.8    0.31
Includes          235.1     238.6       3.5      11.5    5.08   5.37    36.4    0.41
Includes          227.5     235.1       7.6      24.9    0.94  12.64    45.0     0.3
CMR17-86          197.1     203.9       6.8      22.3    1.64   3.67     0.5    0.01
CMR17-86          208.1    222.35     14.25      46.8    0.43   7.58    44.7    0.34
CMR17-89           25.1      28.8       3.7      12.1    0.03   0.27    28.8    0.49
CMR17-89          127.9     137.1       9.2      30.2    0.09   0.19   312.6    0.89

* Drill intercepts reported as core lengths; true widths are estimated to be 
approximately 50 per cent to 80 per cent of reported widths. Averages are weighted 
for length and density.

About the Palmer project

Palmer is an advanced-stage, high-grade volcanogenic massive sulphide (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 (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 property, there is abundant potential for discovery of multiple deposits at Palmer.

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 joint venture 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.

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