CONSTANTINE REPORTS 4.75 MILLION TONNE INITIAL RESOURCE AT PALMER VMS PROJECT, ALASKA
January 20, 2010
Vancouver, B.C. – Constantine Metal Resources Ltd. (the “Company”) (TSX.V: CEM) is pleased to announce an initial NI 43-101 compliant resource estimate for the Company's high-grade Palmer copper-zinc-gold-silver rich volcanogenic massive sulphide (“VMS”) project. The resource estimate, prepared by independent consultant Mr. Gary Giroux, P.Eng. of Giroux Consultants Limited, is for the RW and South Wall zones and is based on drill holes completed up to the end of 2009. The project is located in a very accessible part of southeast Alaska with good logistics, 60 kilometres by road from the year-round deep sea port of Haines.
- Using an NSR cut-off of US$50 per tonne, an inferred resource of 4.75 million tonnes grading 1.84 percent copper, 4.57 percent zinc, 0.28 grams per tonne gold, and 29.1 grams per tonne silver has been estimated.
- High-grade copper zones within the overall resource include 2.52 million tonnes grading 2.65 percent copper, 3.71 percent zinc, 0.29 grams per tonne gold and 27.0 grams per tonne silver, based on a 1.5 percent copper cut-off.
Garfield MacVeigh, President and CEO of the Company states “we are extremely pleased with the tenor of the deposit as defined by this first resource estimate, which compares well against other North American VMS exploration and mining projects. Palmer represents an early stage discovery where Constantine has been able to rapidly define a significant resource with relatively few drill holes. With almost $4 million cash in the bank and no debt, the Company is now well positioned to add further value to the project, with drilling planned to commence in late spring. The deposit is open in most directions, with considerable potential for expansion.”
The inferred resource estimate is tabulated below for a range of both NSR (Net Smelter Return) and copper cut-off grades. The effective date of the inferred resource estimate is January 19, 2010.
|Cu (%)||Zn (%)||Pb (%)||Au (g/t)||Ag (g/t)|
(i) NSR equals (US$36.87 x Cu% + US$9.54 x Zn% + US$11.12 x Au g/t + US$0.18 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$700/oz for gold (Au), US$12/oz for silver (Ag), US$2.25/lb for copper (Cu), and US$0.85/lb for zinc (Zn), with estimated metal recoveries of 55%, 55%, 90%, and 90% respectively.
|Cu (%)||Zn (%)||Pb (%)||Au (g/t)||Ag (g/t)|
The South Wall and RW inferred resources are open along strike and down dip. Future drilling will be designed to expand the known resources and to upgrade and refine the categorization of this initial inferred resource estimate.
During the drilling of these resources, oxidized RW massive sulphide mineralization leached of copper and zinc has been delineated over a strike length of approximately 250 meters and this mineralization is not included in this resource estimate. The Company has previously demonstrated the significance of oxide mineralization through the original discovery of the RW sulphide zone, which was made by drilling down-dip of this material. Only a limited strike-length of the oxide zones has been tested to date for down-dip and on-strike sulphide mineralization. Additionally, down-hole geophysics has indicated exploration targets outside the current resource estimate.
Palmer Project Highlights
- The 64 square kilometre property encompasses numerous underexplored VMS prospects located within large scale hydrothermal alteration zones. In addition to the immediate opportunity to expand the current RW and South Wall resources, excellent potential exists to define other new deposits on the property.
- Recent mineralogy studies with metallurgical benchmarking demonstrated coarse grained mineralogy and the likelihood that the Palmer mineralization will yield good recoveries with high grade concentrates at relatively low milling cost (see News Release #49-09, November 19, 2009).
- The resource area could likely be accessed by short lateral development.
- Geometry of the currently defined, wide, steeply dipping South Wall sulphide mineralization is generally considered favourable for lower cost underground mining methods.
- The project has a favourable location with good logistics, including direct access to Pacific Rim concentrate markets via 60 kilometres of existing road connecting the project to deep sea port facilities at Haines, Alaska.
The independent mineral resource estimate prepared by Giroux Consultants Limited is reported in accordance with Canadian Securities Administrators' NI 43-101 and conforms to the generally accepted Canadian Institute of Mining "Estimation of Mineral Resources and Mineral Reserves Best Practices" guidelines. Forty-six diamond drill holes were used in generating the geological model for the South Wall and RW zones, with 26 of the holes (9,302 meters) included in the resource estimate. Outlier assays were capped and all assays within the mineralized zones composited to 1.25 meter lengths. All gaps in the assay record were assigned 0.001 % for Cu, Pb, Zn and 0.001 g/t for Au and Ag grades. Metal grades were estimated using inverse distance squared interpolation into a 3D block model with block dimensions of 10 x 10 x 5 metres. Three dimensional geologic solids were constructed by QP Darwin Green 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. A total of five mineralized solids were constructed: South Wall Zone 1, South Wall Zone 2, South Wall Zone 3, RW West, and RW East. The complete NI 43-101 Technical Report will be released within 45 days of this news release.
Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Additional technical disclosure regarding data verification, exploration including drilling, quality assurance and quality control measures, geological information, analytical and testing procedures and true widths may be found in News Release #46-09 (October 22, 2009).
The Palmer project is located within the Porcupine Mining Area, a region designated for resource extraction, with active placer mining and logging. The State of Alaska enjoys a competitive tax regime and stable, predictable permitting and regulatory environment. There are no known environmental, permitting, legal, title, taxation, socio-political or other relevant issues that materially impact this resource estimate.
Darwin Green, P.Geo., Vice President Exploration Constantine Metal Resources Ltd., is a Qualified Person as defined by NI 43-101 for the Palmer deposit. Gary Giroux, P.Eng. of Giroux Consultants Limited 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 VMS Project
The copper-rich Palmer Project represents one of North America’s newest volcanogenic massive sulphide discoveries. Drilling to date has defined the South Wall mineralization 380 meters horizontally along strike, and 410 meters vertically down dip. The South Wall with its three distinctive stratigraphic stacked zones occurs on the steep limb of a large anticlinal fold, and is correlative with the RW Zone that occurs on the shallow dipping upright limb of the fold (see figures at www.constantinemetals.com ). The presence of massive sulphide on both sides of the fold indicates a sizeable massive sulphide system, with zones on each limb offering excellent opportunity for further expansion.
About the Company
Constantine has a 100% interest in two exceptional projects located in world class exploration environments where management has strong familiarity and expertise. These include the Palmer Project, where the Company has made a major new copper-zinc-silver-gold discovery in a very accessible part of southeast Alaska, and the Munro-Croesus Project, a past-producing mine property that yielded some of the highest grade gold ever mined in Ontario.
On Behalf of Constantine Metal Resources Ltd.
J. Garfield MacVeigh
President and CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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, including, without limitation, statements regarding potential mineralization, the estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of Constantine are forward-looking statements that involve various risks and uncertainties. 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 Constantine’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.