Constantine to conduct 10,000 m drill program at Palmer

May 10, 2018

2018-05-10 12:28 ET – News Release

Mr. Darwin Green reports

CONSTANTINE ANNOUNCES 2018 EXPLORATION PLANS FOR PALMER PROJECT, SOUTHEAST ALASKA

Constantine Metal Resources Ltd. has released its 2018 exploration plans for the Palmer copper-zinc-silver-gold joint venture project in Southeast Alaska. Plans include:

Regional prospects and mineral trends Palmer project;
10,000-metre diamond drill program using two rigs starting early June;
Updated mineral resource estimate and preliminary economic assessment study;
Advance plans to initiate permitting underground exploration development;
Constantine’s 51-per-cent share of the joint venture budget to year-end is approximately $4.5-million (U.S.);
10,000-metre drill program.

The 2018 drill program will continue to have a dual focus of exploring for new deposits while also systematically defining and expanding the South Wall and RW zone mineral resources. Discovery of the exciting new silver-gold-zinc-rich AG zone in 2017, which returned 9.2 metres grading 312 grams per tonne (9.1 ounce per tonne) silver and 0.9 g/t gold in discovery hole CMR17-89 and 11.3 per cent zinc over 17.8 metres in hole CMR17-92 (see company news releases dated July 27, 2017, and Aug. 17, 2017), highlights the district potential of the camp. AG zone is open to expansion along strike and at depth and will be an important part of the 2018 drill program.

Drilling will also test new geophysical targets identified by a regional 1,137-line-kilometre airborne electromagnetic survey completed over the project last year. Multiple targets sharing similar geophysical characteristics to the known South Wall deposit have been defined, several of which coincide with areas of volcanic massive sulphide style mineralization and hydrothermal alteration exposed at surface. The targets occur both on joint venture ground and 100-per-cent Constantine ground.

Mineral resource estimate and preliminary economic assessment

An updated mineral resource estimate has been initiated that will incorporate drilling and analytical data acquired since the resource was last updated early 2015. In addition to significant new South Wall drill results (for example, 2.5 per cent copper and 7.4 per cent zinc over 45.4 metres in hole CMR17-82) the resource estimation will also include evaluation of the new AG zone discovery. Results of metallurgical testwork currently under way (see company news release dated Feb. 27, 2018) will also be incorporated in the estimation, including assessing the viability of barite as a marketable commodity, and potential optimization of copper and zinc recoveries.

Upon completion of the updated resource, a preliminary economic assessment study will be initiated. The PEA will gauge the potential economic viability of the mineral resources, and will be the first such study to be commissioned for the project. The company is currently in the process of selecting a consulting firm to lead the PEA and is targeting the fall of 2018 for completion.

Underground exploration planning and permitting

The Palmer project joint venture intends to advance the planning and permitting of an underground exploration program that would include development of an underground access ramp. Underground access would importantly:

Provide a platform for drilling to expand the South Wall deposit at depth and along strike;
Allow for the upgrading of existing mineral resources to support economic studies;
Allow for collection of important metallurgical, environmental and geotechnical data;
Enable the transition to year-round underground exploration work to advance this important new resource;
Supporting technical studies as well as some surface construction are planned for the 2018 season.

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.

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. The company’s flagship asset is the high-grade copper-zinc-silver-gold Palmer project, which is being advanced as a joint venture between Constantine (51 per cent) and Dowa Metals & Mining Alaska Ltd. (49 per cent), with Constantine as operator. Palmer hosts 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 g/t silver, and is located in a very accessible part of coastal southeast Alaska. Constantine also controls a portfolio of high-quality, 100-per-cent-owned gold projects in the Timmins camp in Ontario.

Resource estimate utilizes a net smelter return cut-off of $75 (U.S.)/tonne with assumed metal prices of $1,200 (U.S.)/ounce for gold, $18 (U.S.)/oz for silver, $2.75 (U.S.)/pound for copper, and $1 (U.S.)/pound for zinc. Estimated metal recoveries are 89.6 per cent for copper, 84.9 per cent for zinc, 75 per cent for gold (61.5 per cent to the Cu concentrate and 13.5 per cent to the Zn concentrate) and 89.7 per cent for silver (73.7 per cent to the Cu concentrate and 16 per cent 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, vice-president, exploration, Constantine Metal Resources Ltd., is 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.

http://constantinemetals.com/news/2018/