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Constantine climbs on drill results from Palmer project in Alaska

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Constantine Metal Resources (CVE:CEM) rallied on Tuesday after announcing results for the first two holes of its 10,000 metre drill program on its Palmer project in Alaska.

Of the highlights, the company told investors it intersected a thick lens of high grade massive sulphide 150 metres down dip of the lower edge of the South Wall zone.

The hole, CMR14-54, returned 22.1 metres grading 2.48 percent copper, 4.05 percent zinc, 24 grams per tonne (g/t) silver and 0.39 g/t gold. 

Constantine said the intersection represents a "major expansion" of the zone to depth.

Shares rose nearly 18 percent on Tuesday to 16.5 Canadian cents, hitting a new 52-week high of 17 cents earlier this morning.

"Hole CMR14-54 not only expands the footprint of the South Wall zones but opens up the opportunity for considerable further expansion and will be a focus for ongoing drilling," said president and CEO Garfield MacVeigh, who called the development exciting.

"The thickness and high copper content associated with a large conductive target enhances the potential around this new area."

The hole was designed to test a large conductive plate modeled from geophysical data, located southwest and downdip of the existing deposit.

"CMR14-54 confirms that the conductive plate is associated with massive sulphide as shown on the long section, and when combined with the width, copper-rich grade and character of the mineralization observed, suggests excellent potential to significantly expand the South Wall Zone," the company said.

The zone has now been defined over a vertical distance of more than 600 metres, remaining open to expansion at depth and along strike.

The company's 10,000 metre drill program is part of a US$6.2 million budget for the year, funded by partner Dowa Metals & Mining of Japan. Dowa, which is in the second year of an option agreement between the two parties, can earn 49 percent in the Palmer project by spending a total of US$22 million on exploration over four years.

Separately, Constantine said Tuesday that it has started construction on a four-km exploration access road which, when complete, will provide vehicle access to the base of the South Wall area.

The early-stage Palmer project, in a coastal area of southeast Alaska, hosts 4.75 million tonnes of inferred resources grading 1.84 percent copper, 4.57 percent zinc, 0.28 g/t gold and 29 g/t silver. The property has road access to its edge, and is within 60 km of the year-round deep sea port of Haines.

According to the company, mineralization at the property occurs within the same belt of rocks that is host to the Greens Creek mine, one of the world's richest volcanogenic massive sulphide (VMS) deposits.

Quick facts: Constantine Metal Resources Ltd.

Price: 0.19 CAD

TSX-V:CEM
Market: TSX-V
Market Cap: $9.25 m
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Constantine Metal Resources receives permits on Palmer Project, spins out...

Constantine Metal Resources (CVE: CEM) President and CEO Garfield MacVeigh and Vice President of Exploration Darwin Green sat down with Steve Darling from Proactive Investors to talk about the company receiving their permits to move forward on the Palmer project in Alaska. MacVeigh also...

on 31/7/19

3 min read