Resource World Magazine

40 www.resourceworld.com D E C E M B E R / J A N U A R Y 2 0 1 5 MINING CoNSTaNTiNE METaL and its prospective partnerships by Jennifer S. Getsinger, PhD, PGeo CoNSTANTINE METAL RESoURCES LTD. [CEM-TSXV], based in Vancouver, British Columbia, is mainly focusing on its zinc and copper-rich Palmer VMS property in a "rugged but not remote" coastal corner of southeastern Alaska near Haines. Although Constantine also owns and continues to explore the potential of the formerly producing high-grade gold mine, Munro-Croesus, and the Golden Mile property in the rich Abitibi belt of Ontario, the company is currently concentrating on proving up future resources at the Palmer Project. An ideal mine prospect would include access to significant ore of at least one valuable commodity; convenient location near energy and transport infrastructure in a political jurisdiction relatively friendly toward mining with reasonable community relations; manageable environmental risks; and would be run by a company with expertise to coordinate factors of place and geo- logical knowledge with business goals and partnerships. Although base metals like zinc and copper do not glitter like gold and diamonds, they help constitute the backbone of mining. Zinc is the most-utilized metal after iron, aluminum, and copper, and we all use it every day: in batteries, in galvanized steel, in medicines, in brass. Zinc is much less toxic than lead, and more useful. World resources of zinc are large, but increasing require- ments predict the need for additional sources to be developed. Because zinc is far more abundant and less expensive than lith- ium, research into its uses in various types of fuel cells is ongoing and could expand future demand. The operator of the largest zinc smelter in Japan, Dowa Metals and Mining Co., Ltd., has entered into a partnership with Constantine Metals to explore and develop the Palmer property, with an eye toward benefiting from a potential zinc mine. A recent interview with Constantine geologist and Vice President of Exploration, Darwin Green, P.Geo., confirmed that the company is excited to retain 51% interest in this deal, calling it a "win-win" situation, as there would be a guaranteed buyer for any zinc produced. Glaciers on steep peaks of the Palmer property, such as nearby Mt. Henry Clay (straddling the US–Canada border), have scraped off alpine slopes revealing rich sulphide ores of zinc and copper, sweetened with silver and gold values in layered and metamorphosed volcanogenic massive sulphides (Paleozoic VMS deposit in the Porcupine trend, same belt as Greens Creek Mine). Geological studies by Constantine have probed deeper into the interior of the massif, showing folded and faulted repetition of sulphide lenses and ore bodies, practical to mine underground from the sides of exposed mountains, which are accessible by road, an easy drive up the Chilkat River from the port of Haines. The main ore zones on the Palmer property lie uphill from an actively mined placer gold claim on a tributary creek of the Klehini River. So far, the initial inferred resource at Palmer is estimated at 4.75 million tonnes grading 1.84% copper, 4.57% zinc, 29 g/t silver and 0.28 g/t gold. Recent (2013 and 2014) drill results are providing the basis for an updated technical report to be issued in early 2015. For instance, drill hole CMR13-45 yielded 9.06% Zn, 2.36% Cu, 28.8 g/t Ag, and 0.33 g/t Au over 21.71 m, including 11.88 m with 3.29% Cu, 10.48% Zn, 35.5 g/t Ag, and 0.44 g/t Au; and CMR13-49 yielded 2.02% Cu, 8.47% Zn, 31.7 g/t Ag, and 0.51 g/t Au over 24.66 m. Step-out drilling in 2014 targeting geophysical anomalies yielded results such as in hole CMR14-54, of 2.5% Cu and 4.1% Zn over 22.1 m, including 8.9 m of 3.8% Cu and 3.2% Zn. Green is optimistic that the next phases of exploration are likely to increase the size of the inferred resource considerably with results like those coming in to date, potentially placing it in league with other world-class zinc deposits. Evidence that the State of Alaska is a mining-friendly jurisdic- tion comes with the new deal between Constantine Metals and the Alaska Mental Health Trust Authority regarding the Haines Block, a large area of mineral lease land surrounding the Palmer Project. Constantine pays annual rental to explore a greatly increased land base, and if successful in mining, the state trust is slated to receive a production royalty. With Constantine in part- nership with both Dowa and the State of Alaska, its prospects for cooperation in developing a mine look promising. Confirmation of a larger ore resource from planned exploration programs would be the next important step toward that goal. n Diamond drilling on the Palmer polymetallic property near Haines in southeastern Alaska. Photo courtesy of Constantine Metal Resources Ltd.

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