Constantine JV sets $18M budget for Palmer project in Alaska

Constantine Metal Resources’ (TSXV: CEM) flagship Palmer property in southeast Alaska has been given a budget of US$18 million for its upcoming work program. Palmer is an advanced stage copper-zinc-gold-silver exploration project with road access and located within 60 km of the deep sea port at Haines.

The joint-venture project with Dowa Metals & Mining currently hosts resources at the Palmer and AG Zone deposit, with a total indicated resource of 4.7 million tonnes grading 5.23% zinc, 1.49% copper, 30 grams silver per tonne and 0.3 gram gold. Inferred resources add 9.6 million tonnes grading 4.95% zinc, 0.59% copper, 69.3 grams silver and 0.39 gram gold.

The 2022 program will include plans for a surface exploration drilling program, continuing baseline environmental work, and preparation for the development of an underground incline (ramp) for future exploration and definition drilling.

As part of the preparation work for the underground exploration program, which is expected to start in mid-2023, the company will look to complete the final 1 km of the underground portal access road, construction of facilities for an updated wastewater design discharge system, as well as a 50 to 60 person camp to support exploration activities.

The surface exploration drilling program is designed to test for the offset of the large South Wall deposit, plus exploration targets including Terminus and Jasper Mountain that can be tested from surface and are readily accessible from the planned underground exploration development.

“This is the single largest Palmer program and budget, and it will set the stage to initiate underground exploration to provide essential technical information to be included in a future feasibility study,” Garfield MacVeigh, president and CEO of Constantine, commented.

The company’s JV partner Dowa will fund the entire 2022 program. Constantine will not contribute to the funding of the program at this time, but has the option to pay its share of the 2022 program expenses.

Dowa Metals, based in Tokyo, initially earned into a 49% interest in Palmer with expenditures of US$22 million between 2013 and 2016. Last year, it increased the JV interest to 55%, with Constantine remaining as the project operator.