Constantine starts road construction at Palmer project
CONSTANTINE STARTS ROAD CONSTRUCTION AND PROVIDES PROGRESS UPDATE PALMER COPPER-ZINC-SILVER-GOLD PROJECT, SOUTHEAST ALASKA
Constantine Metal Resources Ltd. has started road construction and is providing an update on work programs at the Palmer VMS (volcanogenic massive sulphide) project in Alaska. Information on the company’s gold assets is also provided.
Exploration access road and permit approvals
Construction on a road that will provide access to the deposit area has commenced following a record of decision received on Aug. 18 from the Bureau of Land Management (BLM). An environmental assessment completed by BLM resulted in a finding of no significant impacts, with Constantine authorized to conduct expanded exploration activities of up to 40 acres.
Garfield MacVeigh, president and chief executive officer, states: “A road to the mineral resource at Palmer is a major advancement for the project. It improves our ability to conduct ongoing exploration, environmental and geotechnical work, reduces dependency on helicopter, and enhances the safety of our employees. It also highlights the excellent location and access of the project, which is 40 miles by paved highway and logging road to the deep sea port town of Haines. Permit approvals are the culmination of a rigorous environmental review process. We thank the many community members who offered their support and assistance, and acknowledge the thoroughness and professionalism of the regulatory agencies involved in our permitting process.”
2016 work program update:
- The 2016 summer drill program is now complete. Drilling included four
reconnaissance exploration holes (1465 m) and three geotechnical holes
(502 m) for a combined total of 1967 meters, with assays now received
for three of the four exploration holes. See news release dated July 6,
2016 for details on the target areas.
- Highlights include a 20.5 meter thick zone of chert and semi-massive
pyrite intersected at the CAP prospect. The intersection, which is
anomalous in silver and other pathfinder elements, is geologically
significant. At the South Wall and RW zones, located 2500 meters to the
northeast, chert grades laterally into high-grade massive sulphide, and
similar zoning is predicted at CAP. The thickness of the chert horizon
at CAP, which occurs at the contact between overlying argillite and
altered footwall volcanics, suggests good potential for a well-
developed massive sulphide system within the immediate area. The
limited 2016 drilling provides an important vector to the potential
massive sulphide component of the CAP prospect for follow-up drilling.
- Analysis by a recognized, independent structural geologist has provided
new insight into the direction and sense of displacement of fault
structures identified in the 2015 down-dip resource drilling that
intersect and offset the lowermost portion of the South Wall zone. The
work included review of the fault and adjacent rocks in drill core and
on surface, and has produced new drill targets to test for extensions
of the deposit.
- Mapping and rock and soil sampling programs were completed at several
areas throughout the Property with the objective of advancing prospects
to the drill stage. Results of this work will be summarized following
receipt of assays, all of which remain outstanding at this time.
- Significant new environmental and geotechnical data was collected over
the course of the summer exploration program. This includes
hydrogeology, water quality, aquatic resources, wildlife, rock
geochemistry, rock and soil geotechnical engineering, and natural
hazard assessments. These studies support the ongoing evaluation of the
inferred mineral resource.
A more comprehensive summary of exploration results will be provided pending receipt of assay data for all drill holes and surface samples.
About the Palmer Project
Palmer is a resource expansion stage, high-grade volcanogenic massive sulphide (VMS) project, with an Inferred Mineral Resource of 8.1 million tonnes grading 1.41% copper, 5.25% zinc, 0.32 g/t gold and 31.7 g/t silver(i). The Project is being advanced in partnership with Dowa, who can earn 49% in the project by making aggregate expenditures of US $22 million over four years (about US$19 million spent to date). The project is located in a very accessible part of coastal Southeast Alaska, 60 kilometers by road from 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. There are at least 25 separate base metal and/or barite occurrences and prospects on the Palmer property, indicating the potential for discovery of multiple deposits.
Strategic Review of Constantine Gold Assets
Constantine controls several high quality gold projects in the Timmins camp, Ontario and Yukon which were systematically acquired and advanced over a 7 year period prior to the recent resurgence of gold. The Company is actively considering various strategic alternatives to realize the value of these assets for our shareholders. The assets include:
(1) 100% owned Timmins area Munro-Croesus Project (16.7 square kilometres) – a past-producing mine property that yielded some of the highest grade gold ever mined in Ontario. The project covers a 6.5 km extent of the prospective Munro Break that hosts the robust Canamax gold prospect and a 6.5 kilometre target area along the Pipestone fault where management has identified numerous gold bearing structures which are largely undrilled but, where tested, shows good potential for discovery of new “Croesus-type” gold mineralization. One of these structures that hosts the high-grade Croesus Mine has only been tested in the immediate mine area and the 1 kilometre southwest extension of the vein corridor remains untested. The project also includes strategically located claims adjacent and on trend with Tahoe Resource’s Fenn-Gib gold deposit with a NI 43-101 resource containing 1.35 million ounces indicated and 0.75 million ounces inferred. The Munro-Croesus land holdings represent a rare opportunity to control an extensive, high potential project in the prolific Timmins gold camp area.
(2) the large (68 square kilometre) Golden Mile property in the Timmins gold camp, 9 kilometres northeast of Goldcorp’s multimillion ounce Hoyle Pond Mine, and
(3) a 50/50 Joint Venture formed in 2010 with Carlin Gold Corporation exploring a greater than 600 sq. km land position in a new Carlin-type gold district in Yukon.
About the Company
Constantine is a mineral exploration company led by a proven technical team with a focus on premier North American mining environments. 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.
(i) 8.125 million tonne inferred resource grading 1.41% copper, 5.25% zinc, 0.32 g/t gold and 31.7 g/t silver. See the Company’s news release date May 11, 2015 and available on www.sedar.com. Resource estimate utilizes an NSR cut-off of US$75/t with assumed metal prices of US$1200/oz for gold, US$18/oz for silver, US$2.75/lb for copper, and US$1.00/lb for zinc. Estimated metal recoveries are 89.6% for copper, 84.9% for zinc, 75% for gold (61.5% to the Cu concentrate and 13.5% to the Zn concentrate) and 89.7% for silver (73.7% to the Cu concentrate and 16% to the Zn concentrate) as determined from metallurgical locked cycle flotation tests. An “Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. Confidence in the estimate is insufficient to allow the meaningful application of technical and economic parameters or to enable an evaluation of economic viability worthy of public disclosure.
Darwin Green, VP Exploration for Constantine Metal Resources Ltd. and a qualified person as defined by Canadian National Instrument 43-101 has reviewed and approved the technical information contained in this release.
http://constantinemetals.com/news/2016/
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