Constantine Metal Resources Ltd. (TSX-V: CEM) (OTCQX: CNSNF) is pleased to provide a summary of the summer field activities and available assay results from its 2021 drill program at the Palmer Joint Venture Project, Alaska.
Two diamond drill rigs were mobilized to the Palmer property in early June to complete up to 6,000 meters of drilling directed towards: i) infill drilling the down-dip inferred South Wall copper-zinc-silver-gold resource, ii) exploration drilling to explore for the fault off-set of the thick South Wall deposit and iii) geotechnical and environmental drilling to support the planned underground exploration program and provide information required to advance the project to feasibility.
Drill contractor staffing issues and low drill productivity caused the Company to refocus the planned multi-purpose drilling program to ensure that the geotechnical and environmental aspects of the drill program were completed. A total of eight diamond drill holes for a total of 2,917 meters were drilled.
Infill and hydrology drillholes
Two drillholes (1,230 meters) were completed on the lower South Wall Zone as resource infill and hydrological information holes. The South Wall Zone includes an indicated mineral resource of 4.68 million tonnes grading 5.23 % zinc,1.49 % copper, 30.0 g/t silver, 0.30 g/t gold and inferred mineral resource of 5.34 million tonnes grading 5.20 % zinc, 0.96 % copper, 29.2 g/t silver, 0.28 g/t gold*.
Drillhole CMR21-143B tested the lower part of the South Wall inferred mineral resource and intersected the mineralized horizon between 451.2 and 511.7 meters downhole with zones of semi-massive to massive sulfides and barite intervals. Significant assay results are provided on Table 1.
CMR21-144, the second infill drillhole intersected chert and footwall stringer mineralization in close proximity to the Kudo fault. Assay results are pending.
Table 1: Significant Assay Results
* true width is estimated to be 75-80% of reported width
2021 Palmer Project Work Program
Extensive geotechnical, engineering, and environmental studies were carried out during the 2021 field season which included:
The fieldwork has been completed for the season and the drilling equipment has been demobilized. Environmental monitoring and data collection will continue through the Fall and winter season.
Dowa Metals & Mining Co., Ltd, our JV partner, funded the 2021 work program with an approved budget of US $ 8.8 million which will result in some dilution of Constantine’s interest in the project. Dilution is pro-rated according to expenditures and Constantine’s project interest based on expenditures to the end of September 2021 is 46.61%. Constantine remains the operator of the project for which it receives a management fee.
Update on Permitting and Scheduling
The geotechnical and environmental information collected this year and previous seasons is being compiled and interpreted by various consulting groups. The information is applicable to the amended Waste Management Permit application to be submitted in the first quarter of 2022, that when approved, will allow the planned underground exploration to proceed in June 2023. The underground exploration program is expected to take 18 months to complete and will provide access to the hanging wall of the lower South Wall deposit for resource upgrade and confirmation of geological, hydrological and geotechnical information currently being collected from surface drill holes.
A program of surface resource upgrade drilling and exploration drilling at the Palmer deposit (South Wall/RW Zones) and the AG deposit is being considered while the underground preparation work and underground development work takes place from 2022 through 2024. The additional surface and underground geological, geotechnical and hydrological information for the period 2022 through 2024 will provide the necessary data for permitting and feasibility level studies that determine future project development.
About the Palmer Project
Palmer is a high-grade volcanogenic massive sulphide-sulphate (“VMS”) project located in a very accessible part of coastal Southeast Alaska, with road access to the property and within 60 kilometers 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.
Exploration work at Palmer has continued to grow the mineral resource estimate in 2 deposits to its current size of *4.68 million tonnes indicated grading 5.23 % zinc,1.49 % copper, 30.0 g/t silver, 0.30 g/t gold and 9.6 million tonnes inferred grading 4.95 % zinc, 0.59 % 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 Palmer Project, there is abundant potential for discovery of multiple deposits.
In 2019, the Company reported a positive Preliminary Economic Assessment (“PEA”) for the Project with a post-tax NPV7% of US$266 million (see Company news release dated June 3rd, 2019). The PEA outlined the potential for a low capex, low operating cost, high margin underground mining operation with attractive environmental attributes. Metal prices used for the PEA were copper $2.82/lb, zinc $1.22/lb, silver $16.26/oz, gold $1296/oz, barite $220/tonne.
The PEA is preliminary in nature and includes inferred mineral resources that are too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that PEA results will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Qualified Person Statement
The technical information in this news release has been reviewed and approved by Michael J. Vande Guchte, P.Geo., VP Exploration for Constantine Metal Resources Ltd. and a qualified person as defined by Canadian National Instrument 43-101.
About the Company
Constantine is a mineral exploration company led by an experienced and proven technical team with a focus on the Palmer base metal project being advanced as a joint venture between Constantine (~46.6%) and Dowa Metals & Mining Co., Ltd. (~53.4%), with Constantine as operator.
In September 2019, Constantine successfully spun-out its gold assets into HighGold Mining Inc. that included the high-grade Johnson project in south-central Alaska and the Munro-Croesus Gold property which is renowned for its high-grade mineralization in the Timmins area, Ontario.
In 2020, the 100% owned Big Nugget Gold project, located only 8 kilometers east of our flagship Palmer Project, was recognized as a potential gold lode source area, immediately upstream from the +80,000 ounce gold Porcupine Placer operations and is as an attractive drill target opportunity.
In May 2021, Constantine announced the acquisition of the Bouse Property in southwest Arizona, that will be explored for its copper-gold potential (see news release NR#186-21).
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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We acknowledge the [financial] support of the Government of Canada.