Constantine Metal Resources Intersects Wide Intervals of Precious and Base-Metal Mineralization at its AG Zone, Palmer Project, Alaska
TSX VENTURE: CEM
33.5 meters at 98 g/t Silver, 0.4 g/t Gold, 5.0% Zinc, 1.1% Lead, 0.2% Copper, 41.5% Barite
Vancouver, British Columbia--(Newsfile Corp. - October 30, 2018) - Constantine Metal Resources Ltd. (TSXV: CEM) ("Constantine" or the "Company") is pleased to report assay results for nine new drill holes from the AG Zone at its Palmer Joint Venture Project, Alaska ("Palmer" or the "Project"). Expansion of the AG Zone, discovered three kilometers southwest of the main Palmer Deposit in 2017, has been one of the main goals of the Company's 10,000-meter 2018 summer exploration drill program.
New drilling at the AG Zone has intersected wide intervals of precious and base-metal rich massive barite-sulphide mineralization in multiple drill holes and extended the overall strike length of the zone to over 550 meters. Key highlights include:
- 14.0 meters grading 163 g/t silver, 0.5 g/t gold, 5.6% zinc, 1.0% lead, 60.7% barite, including 4.1 meters grading 336 g/t silver, 0.6 g/t gold, 14.9% zinc, 2.3% lead, 67.0% barite, in CMR18-125
- 6.8 meters grading 247 g/t silver, 0.8 g/t gold, 5.5% zinc, 2.8% lead, 69.6% barite, and 34.4 meters grading 152 g/t silver, 0.4 g/t gold, 1.6% zinc, 0.5% lead, 63.6% barite, in CMR18-128
- 33.5 meters grading 98 g/t silver, 0.4 g/t gold, 5.0% zinc, 1.1% lead, 0.2% copper, 41.5% barite, in CMR18-130
- 14.4 meters grading 23 g/t silver, 0.2 g/t gold, 5.5% zinc, 0.2% lead, 0.4% copper, including 3.4 meters grading 44 g/t silver, 0.1 g/t gold, 10.8% zinc, 0.2% lead, 0.4% copper, in CMR18-132,
Garfield MacVeigh, President, stated "AG Zone continues to deliver impressive intersections of gold-silver-zinc-lead-barite mineralization. Drilling this season has more than doubled the strike length of the zone and it is developing into a significant deposit with excellent potential for further expansion. We are excited to commence an initial resource estimate for the AG Zone, which will contribute to the total resource base of the Palmer Project."
AG Zone Drill Results
A total of 16 drill holes were completed at AG Zone during the 2018 drill program with assays now received for 13 holes. A summary of all 2018 AG Zone assays results received to date is provided in Table 1. Location of drill hole intersections are shown in Figures 1 and 2.
The new results expand the strike length of AG Zone mineralization to over 550 meters and include multiple, thick, high-grade intersections of massive barite-sulphide mineralization with excellent continuity between holes. This is well demonstrated by holes CMR18-125, 128, 130 and 132 that were completed on the same section at a nominal drill-spacing of 50-meters over a total dip-length of 150 meters (Figure 1). The four holes intersected cumulative widths of mineralization totalling 44.5 meters, 41.2 meters, 38.5 meters and 19.1 meters respectively and are located 50 meters along strike of previously released drill holes CMR18-109 (12.5 meters grading 217 g/t silver, 1.8 g/t gold, 5.2% zinc, 0.7% lead and 29.7% barite) and CMR18-110 (28.8 meters grading 141 g/t silver, 0.49 g/t gold, 8.98% zinc, 3.55% lead and 21.5% barite; see Company news release dated August 21, 2018).
Table 1. AG Zone Assay Results
|Drill Hole||From||To||Width||Ag||Au||Zn||Pb||Cu||BaSO4 %|
|CMR18-124||No significant intersections|
|CMR18-120||No significant intersections|
|CMR18-118||No significant intersections (did not reach ore horizon)|
|CMR18-115||No significant intersections (dyked-out)|
|CMR18-112*||No significant intersections|
Drill intercepts reported as core lengths; true widths are estimated to be approximately 80% to 95% of reported widths. Averages are weighted for length and density, with selection of significant intersections based on geology and assays. Barite (BaSO4) is included as a reportable commodity based on test work that shows a premium-quality barite concentrate can be recovered as a by-product from the polymetallic ores at Palmer. "g/t" equals grams per metric tonne. * Denotes previously reported intersection.
There is opportunity to expand the known mineralization of the AG Zone to the northwest, southeast and at depth. Drill hole CMR18-116 extended the strike of the AG Zone over 100 meters to the northwest, and the zone remains open to further expansion in this direction. This hole was drilled through thick overburden directly into bedrock consisting of strong footwall feeder-style mineralization; however, it overshot the targeted massive barite-sulphide horizon that typically overlies feeder-style mineralization. Follow-up drill hole CMR18-118 also failed to test the targeted mineral horizon, remaining entirely within unaltered hanging wall stratigraphy. At the far southeast end of the AG Zone, drill hole CMR18-115 intersected a post-mineralization mafic-dyke over a core length of 80 meters at the depth of the projected target horizon. It is inferred that the hole was drilled sub-parallel to the mafic-dyke and the mineralized zone remains open to expansion in this area and further to the southeast.
Collectively, the drilling at AG Zone now defines a thick lens of massive barite-sulphide with potential to add significant tonnage to the total mineral resource base for the Palmer Project. Constantine intends to commence an initial resource at AG Zone for inclusion in the Preliminary Economic Assessment study that is currently underway. The proximity of AG Zone to the main Palmer Deposit and existing access infrastructure enhance the opportunity for AG Zone to make a positive contribution to the Project. Excellent potential also exists for additional future resource expansion at AG Zone, and elsewhere on the district scale property.
Drill Program Summary
The Palmer project drill program totaled 29 holes for 10,364 meters between early June and late September. Sixteen (16) holes for 5,776 meters were completed at the AG Zone with the rest divided between resource and exploration drilling within the South Wall area (seven holes for 2,822 meters), reconnaissance drilling at the Boundary Prospect (four holes for 1,370 meters), and geotechnical drilling to support future underground exploration (two holes for 400 meters). Results for outstanding drill holes will be summarized and released together pending receipt of final assays.
About the Palmer Project
Palmer is an advanced stage, high-grade volcanogenic massive sulphate-sulphide (VMS) project, with an Indicated Mineral Resource of 4.7 million tonnes grading 3.84% copper equivalent (11.67% ZnEq), and an Inferred Mineral Resource of 5.3 million tonnes grading 3.26% copper equivalent (9.9% ZnEq)*. The Project is being advanced as a joint venture between Constantine (51%) and Dowa (49%), 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 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. VMS deposits are known to occur in clusters and with at least 25 separate base metal and/or barite occurrences and prospects on the property, there is abundant potential for discovery of multiple deposits at Palmer.
About the Company
Constantine is a mineral exploration company led by a proven technical team with a focus on premier North American mining environments. In addition to the Company's flagship copper-zinc-silver-gold Palmer Joint Venture Project, Constantine also controls a portfolio of high-quality, 100% owned, gold projects that the Company intends to spinout. These include the very high-grade Johnson Tract Au-Ag-Zn-Cu-Pb deposit, located in coastal Southcentral, Alaska (see Company news release dated June 19, 2018) and exploration projects in the Timmins camp Ontario that include the large, well located Golden Mile Property and the Munro Croesus Gold Property that is renowned for its exceptionally high-grade past production. 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.
Please visit the Company's website (www.constantinemetals.com) for more detailed company and project information.
On Behalf of Constantine Metal Resources Ltd.
For further information, please visit the Constantine Metal Resources website at www.constantinemetals.com, or contact:
Vice President, Investor Relations
Phone: +1 604 629 2348
Garfield MacVeigh, President
Phone: +1 604 629 2348
* 4.677 million tonne indicated resource grading 1.49% copper, 5.23% zinc, 0.30 g/t gold, 30.8 g/t silver, 23.9% barite, and 5.338 million tonne inferred resource grading 0.96% copper, 5.20% zinc, 0.28 g/t gold, 29.2 g/t silver, 22.0% barite. See the Company's news release date September 27, 2018 and available on www.sedar.com. Resource estimate utilizes an NSR cut-off of US$75/t with assumed metal prices of US$1250/oz for gold, US$16/oz for silver, US$3.00/lb for copper, and US$1.15/lb for zinc. Estimated metal recoveries are 89.6% for copper, 93.1% for zinc, 69.6% for gold (49.5% to the Cu concentrate and 20.1% to the Zn concentrate) and 90.9% for silver (70.8% to the Cu concentrate and 20.1% to the Zn concentrate) as determined from metallurgical locked cycle flotation tests. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability.
Samples of drill core were cut by a diamond blade rock saw, with half of the cut core placed in individual sealed polyurethane bags and half placed back in the original core box for permanent storage. Sample lengths typically vary from a minimum 0.3 meter interval to a maximum 2.0 meter interval, with an average 1.0 to 1.5 meter sample length. Drill core samples were shipped by transport truck in sealed woven plastic bags to ALS Minerals laboratory facility in Kamloops, BC for sample preparation and North Vancouver, BC for analysis. ALS Minerals operate according to the guidelines set out in ISO/IEC Guide 25. Gold was determined by fire-assay fusion of a 30 g sub-sample with atomic absorption spectroscopy (AAS). Various metals including silver, gold, copper, lead and zinc were analyzed by inductively-coupled plasma (ICP) atomic emission spectroscopy, following multi-acid digestion. The elements silver, copper, and zinc were determined by ore grade assay for samples that returned values >10,000 ppm by ICP analysis. Barium (BaO) analysis utilized lithium borate fusion into fused discs for XRF analyses, with BaO converted to BaSO4 (barite) using a conversion factor of BaO x 1.52217. Density measurements were determined at the project site by qualified Constantine personnel on cut core for each assay sample.
The 2018 exploration program for the Palmer project is managed by Darwin Green, P.Geo, the Company's Vice President Exploration for Constantine Metal Resources Ltd. and a qualified person as defined by Canadian National Instrument 43-101. Mr. Green has reviewed the information contained in this news release and has also verified the analytical data for drill core samples disclosed in this release by reviewing the blanks, duplicates and certified reference material standards and confirming that they fall within limits as determined by acceptable industry practice. The analytical results have also been compared to visual estimates for the base metals to check for any obvious discrepancies between analytical results and the visual estimates.
Forward looking statements: This news release includes certain "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively "forward looking statements")." Forward-looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "forecast", "expect", "potential", "project", "target", "schedule", budget" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions and includes the negatives thereof. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the expected. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on a number of material factors and assumptions. Important factors that could cause actual results to differ materially from Company's expectations include actual exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward-looking statements, there may be other factors that cause such actions, events or results to differ materially from those anticipated. There can be no assurance that forward-looking statements will prove to be accurate and accordingly readers are cautioned not to place undue reliance on forward-looking statements.
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