North of 60 Mining News - The mining newspaper for Alaska and Canada's North

Constantine Metal Resources Ltd. Jan. 5 reported that Dowa Metals & Mining Alaska Ltd. opted to exercise its option to become a 49 percent joint venture partner in Palmer, a copper- and zinc-rich volcanogenic massive sulfide project near Haines in Southeast Alaska.

Early in 2013, Dowa and Constantine inked a deal that provides the Tokyo-based smelting and mining company with the opportunity to earn a 49 percent stake in the Palmer project by investing US$22 million over a four-year span.

Dowa invested roughly US$20 million on exploration and fees to Constantine since that time, the approximately US$2 million balance has been deposited in an account to cover initial joint venture expenditures.

"We are delighted to form the joint venture partnership and start the next phase in Palmer's advancement. Dowa has over a century of experience in mining and smelting VMS ore deposits and shares Constantine's conviction in the project's potential and commitment to responsible exploration," said Constantine President and CEO Garfield MacVeigh.

In 2015, Constantine published an inferred resource of 8.125 million metric tons averaging 5.25 percent (940.4 million pounds) zinc, 1.41 percent (252.6 million lbs) copper, 0.32 grams per metric ton (83,600 ounces) gold and 31.7 g/t (8.3 million oz) silver.

"With a projected shortfall in global zinc supply and a dearth of quality advanced stage zinc projects we anticipate an exciting 2017 and bright future for the project and our shareholders," added McVeigh.

In November, Constantine announced plans to sell some of its gold exploration claims to Lake Shore Gold Corp., a wholly owned division of Tahoe Resources Inc. This transaction is nearing completion, which would bolster Constantine's treasury by C$4.5 million, providing the company with more than enough cash to fund its 51 percent share in the exploration development of the Palmer joint venture for 2017.

-SHANE LASLEY