CONSTANTINE REPORTS 97% RESOURCE EXPANSION FOR THE PALMER PROJECT 8.1 MILLION TONNES GRADING 1.41% COPPER, 5.25% ZINC, 0.32 G/T GOLD AND 31.7 G/T SILVER
May 11, 2015
Vancouver, BC – Constantine Metal Resources Ltd. (TSX Venture – CEM) ("Constantine" or the "Company") is pleased to announce an updated independent mineral resource estimate for the Palmer copper-zinc-silver-gold Project, located in Southeast Alaska, 160 kilometers north of the Green’s Creek mine. The updated Inferred Mineral Resource is based on approximately twice the number of drill holes and has nearly doubled in size since the last resource was estimated (Figure 1; see news release dated January 20, 2010)*.
Garfield MacVeigh, President and CEO of the Company states: “the resource estimate significantly increases the size of the deposit, highlighting the tremendous success of recent drill campaigns and the growing potential of the project. It is open to expansion in most areas with the thickest part of the deposit located at the current down dip limit of the South Wall Zone where mineral zoning and geophysics support potential for a high-grade copper core within a more extensive area of zinc-copper-barite mineralization. A US$5 million exploration budget is in place for 2015 to target extensions to the deposit, which are readily accessible by surface drilling”.
The Inferred Mineral Resource is tabulated below for a range of NSR (Net Smelter Return) cut-off values based on assumed underground mining and milling costs. The resource utilizes a base case cut-off of $75 per tonne and has an effective date of May 11, 2015.
|Cut-off NSR US$||Tonnes||Grade||CuEq (%)||ZnEq (%)|
|Cu (%)||Zn (%)||Au (g/t)||Ag (g/t)|
- NSR equals (US$45.69 x Cu% + US$11.70 x Zn% + US$25.04 x Au g/t + US$0.43 x Ag g/t). NSR formula is based on assumed values for offsite costs, metal recovery, and metal prices. Offsite costs include transportation of concentrate, smelter treatment charges, and refining charges.
- Assumed metal prices are US$2.75/lb for copper (Cu), and US$1.00/lb for zinc (Zn), US$1200/oz for gold (Au), US$18/oz for silver (Ag).
- Estimated metal recoveries are 89.6% for copper, 84.9% for zinc, 75% for gold (61.5% to the Cu concentrate and 13.5% to the Zn concentrate) and 89.7% for silver (73.7% to the Cu concentrate and 16% to the Zn concentrate) as determined from metallurgical locked cycle flotation tests.
- Density was estimated by inverse distance squared interpolation; unique density values were determined by conventional analytical methods for all assay samples
- Copper equivalent (CuEq%) and zinc equivalent (ZnEq%) values were calculated based on the NSR formula above (e.g. CuEq% = Cu% + (Zn% x $11.70 + Au g/t x $25.04 + Ag g/t x $0.43)/$45.69
- Mineral resources as reported are undiluted
- Mineral resource tonnages have been rounded to reflect the precision of the estimate
- Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability
Mineralization at the Palmer Project contains an unusually high concentration of barite. Barite is an inert, high-density industrial mineral that is in demand for use in oil and gas drilling, with the majority of US consumption met by imports from Asia. Barium content within the resource area averages approximately 13 to 15%, which equates to a barite mineral content of approximately 22 to 25% by weight**. The Company will be evaluating the potential to produce a marketable barite concentrate.
The independent mineral resource estimate prepared by James N. Gray of Advantage Geoservices Ltd. is reported in accordance with Canadian Securities Administrators' NI 43-101 and conforms to the Canadian Institute of Mining "Estimation of Mineral Resources and Mineral Reserves Best Practices" guidelines. Eighty-two diamond drill holes were used in generating the geological model for the South Wall and RW zones, 48 of which intersect the interpreted mineralized zones in 19,000 meters of core. Outlier assays were capped and all assays within the mineralized zones composited to 1.5 meter lengths. Metal grades were estimated using inverse distance cubed interpolation into a 3D block model with block dimensions of 6 x 6 x 6 meters. Three dimensional geologic solids were constructed by Darwin Green, Vice President of Exploration and reviewed by QP Ian Cunningham-Dunlop, and, in general, were limited to material grading > 0.5% Cu or > 2% Zn that could be demonstrated to be correlative with definable stratabound zones. As a general rule, solids were extended no more than 50 meters up-dip, down-dip and along strike from a drill hole; the Inferred Mineral Resource includes only mineralization within 75 meters of a drillhole. A total of five solids were constructed for sulphide mineralization: South Wall Zone 1, South Wall Zone 2-3, South Wall EM Zone, RW West, and RW East. The complete NI 43-101 Technical Report will be released within 45 days of this news release.
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. Due to the uncertainty that may be attached to Inferred Mineral Resources, it cannot be assumed that all or any part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration. 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.
Ian Cunningham-Dunlop, P.Eng and Technical Advisor to Constantine Metal Resources Ltd., is a Qualified Person as defined by NI 43-101 for the Palmer project. James N. Gray, P.Geo of Advantage Geoservices Ltd. is the Qualified Person as defined by NI 43-101 for the resource estimate discussed above. They have reviewed and approved the contents of this release.
About the Palmer Project
Palmer is a resource expansion stage, high-grade volcanogenic massive sulphide (VMS) project that is being advanced in partnership with Dowa Metals & Mining Co., Ltd. who can earn 49% in the project by making aggregate expenditures of US$22 million over four years. 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. There are at least 25 separate base metal and/or barite occurrences and prospects on the Palmer property, indicating the potential for discovery of multiple deposits.
About the Company
Constantine is a mineral exploration company led by a proven technical team with a focus on premier North American mining environments. The company’s principal asset is the Palmer copper-zinc-silver-gold VMS Project located in Alaska that is being advanced in partnership with Dowa Metals & Mining Co., Ltd. Constantine also controls a pipeline of quality gold projects in the Timmins camp Ontario and Yukon. 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 contact:
Garfield MacVeigh, President or Darwin Green, VP Exploration
Phone: 604-629-2348. Email: firstname.lastname@example.org
*97% resource expansion is based on comparison with January 2010 resource above a $75/tonne cut-off that totaled 4.12 million tonnes. The 2010 NSR formula utilized metal prices of US$2.25/lb for copper US$0.85/lb for zinc, US$700/oz for gold, and US$12/oz for silver, with estimated metal recoveries of 90%, 90%, 55% and 55% respectively.
**Average barium content within the resource area is based on analysis and block modelling of barium XRF assay data that is available for 95% of all samples included within the mineralized wireframes. There is insufficient data and confidence to include barium in the Inferred Mineral Resource and the range of average barite mineral content is presented herein for the purpose of highlighting exploration potential only.
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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