The mining newspaper for Alaska and Canada's North

ME2018: Constantine Metal Resources Ltd.

Constantine Metal Resources Ltd. continues to advance its flagship property, the Palmer copper-zinc-silver-gold-barite project near the port-town of Haines in Southeast Alaska, as it looks to create a new vehicle to carry its gold properties in Alaska, Yukon Territory and Ontario.

The roughly US$9 million exploration program at Palmer is being funded by a joint venture between Constantine Metal Resources (51 percent) and Dowa Metals & Mining Co. Ltd. (49 percent).

A new resource published on Sept. 27 for South Wall-RW, the primary volcanogenic massive sulfide deposit outlined so far at Palmer, contains 4.68 million metric tons of indicated resource averaging 5.23 percent (539 million pounds) zinc, 1.49 percent (154 million lb) copper, 30.8 grams per metric ton (4.2 million ounces) silver, 0.3 g/t (40,900 oz) gold and 23.9 percent (1.12 million metric tons) barite; plus 5.34 million metric tons of inferred resources averaging 5.2 percent (612 million lb) zinc, 0.96 percent (113 million lb) copper, 29.2 g/t (4.5 million oz) silver, 0.28 g/t (43,600 oz) gold and 22 percent (1.17 million metric tons barite.

Most of this resource is located within South Wall, which consists of three mineralized zones that run nearly vertically through Mount Morlan; the balance is found in RW, a fault-separated section of the same mineralization lying at the top of the mountain.

Over the three years since a resource was last calculated for the deposit, drilling has tapped new areas of copper- and zinc-rich mineralization at South Wall. The 2017 program, especially, found expansion areas that are expected to substantially increase the width and grade of mineralization along the western edge of South Wall.

Hole CMR17-97, drilled in the western expansion area last year, cut 14.5 meters grading 7.5 percent zinc, 1.9 percent copper, 66 g/t silver and 0.4 g/t gold

A roughly 10,000-meter drill program carried out this year continued to expand South Wall, as well as test exciting exploration targets across the wider Palmer property.

Results from South Wall include CMR18-108, which cut 15.5 meters grading 1.6 percent copper and 4.8 percent zinc about 50 meters west and 50 meters down-dip of CMR17-97.

Drilling also significantly expanded AG zone, nearly doubling this silver-, zinc- and barite-rich target about 3,000 meters southwest of the South Wall-RW zone.

The 2017 discovery hole at AG cut 9.2 meters of massive barite-sulfide averaging 312 g/t silver and 0.9 g/t gold.

Early results from this year's drilling at AG include CMR18-109, which cut 12.5 meters at 1.8 g/t gold, 217 g/t silver and 5.2 percent zinc; and CMR18-110, which cut 28.8 meters grading 0.5 g/t gold, 141 g/t silver, 9 percent zinc and 3.5 percent lead.

CMR18-114, which further expanded AG, cut 21.3 meters grading 0.5 g/t gold, 92 g/t silver, 1 percent zinc, 0.4 percent lead and 55 percent barite (BaSO4). This was from the first batch of drill results that includes barite as a reportable commodity.

A maiden resource for AG zone that includes results from the 2018 program is expected later this year.

Wanting to find out whether the substantial barite content at Palmer could be economically recovered in a saleable product, Constantine initiated a metallurgical program earlier this year.

This work showed a premium-quality barite concentrate can easily be produced.

"This may have very positive implications with the potential to both enrich gross metal value per tonne (metric ton) and provide significant environmental and operational benefits by reducing waste," said Constantine Metal President Garfield MacVeigh.

These benefits are being explored in a preliminary economic assessment being prepared for Palmer.

The Sept. 27 resource calculation will serve as the basis for the PEA.

New gold focus

As the Palmer JV advances the project to a point of considering the economics of developing a mine there, Constantine is putting together a new spin-out focused on gold.

A key asset for this new exploration company is Johnson Tract, a gold-rich polymetallic property in Southcentral Alaska that the company is leasing from Cook Inlet Region Inc., an Alaska Native regional corporation more commonly known as CIRI (pronounced "seer-ree").

Located about 125 miles southwest of Anchorage, Johnson Tract hosts a gold and base metals deposit that is reminiscent of the historical Eskay Creek Mine in neighboring British Columbia.

Exploration by Anaconda in the 1980s encountered wide widths of gold-rich VMS mineralization at Johnson Tract, including 102.6 meters grading 10.94 g/t gold, 8.01 percent zinc, 0.75 percent copper, 2.13 percent lead and 8.5 g/t silver; and 71.4 meters of 20.94 g/t gold, 5.21 percent zinc, 1.23 percent copper, 1.51 percent lead and 9.81 g/t silver.

Difficult Creek, about three miles northeast of the Johnson Tract deposit, demonstrates the property's wider potential. Highlights from historical drilling include three meters of 7.54 g/t gold, 3.72 percent zinc, 0.11 percent copper, 1.15 percent lead and 27.4 g/t silver; and 13 meters of 8.57 g/t gold, 4.7 percent zinc, 0.5 percent copper, 0.9 percent lead and 37.7 g/t silver.

Difficult Creek is one of at least nine prospect areas spanning a 7.5-mile stretch of the property, most of which have seen little or no drilling.

Constantine believes Johnson Tract could be the flagship property of a gold portfolio for the company it spins off. The bonanza-grade Munro Croesus and large Golden Mile gold properties in Ontario, as well as a package of Carlin-style gold prospects in Yukon, are expected to round out the portfolio.

Constantine raised around C$10 million through a private placement completed in July. Electrum Strategic Opportunities Fund contributed roughly C$6 million to this financing, giving the New York-based Electrum Group a roughly 20 percent stake in the exploration company.


Constantine Metal Resources Ltd. - TSX.V: CEM

Chairman: Wayne Livingstone

President and CEO: Garfield MacVeigh

VP, Exploration: Darwin Green

Ste. 320 – 800 West Pender St.

Vancouver, BC V6C 2V6

Tel: 604-629-2348


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