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Constantine Metal announced the discovery of significant new zone on its Palmer project in Southeast Alaska in September 2014. Geologist Wayne Hewgill weighs in.
The “Drill Tracker” highlights early stage drilling and trenching results, giving a metric to evaluate exploration results and compare them against their peer group. In this report we highlight a dozen exploration companies displaying their projects in the Core Shack at the AME BC Roundup held in Vancouver between January 26 and 29, 2014.
Constantine Metal Resources (TSXV:CEM)
Price: $0.13
Market cap: $16.8 million
Cash estimate: $0.4 million
Project: Palmer
Country: Alaska, US
Ownership: Dowa Metals & Mining can earn 49 percent by spending $22 million over four years
- In September 2014, Constantine Metal announced the discovery of significant new zone on its Palmer project in Southeast Alaska. The initial 2014 drilling was the first completed under the Dowa option agreement and discovered a new zone of massive sulfide mineralization 150 meters down dip from the South Wall Zone. Dowa Mining of Japan may earn a 49-percent interest in the project by spending US$22 million over four years, including the US$6.2-million budget planned for 2014.
- Highlights from the newly discovered zone include:
- The new discovery adds significant value due to its proximity to the valley bottom. It may allow the zone to be more easily accessed with an exploration and/or development adit into the steep valley wall.
- In 2009, prior to reporting a number of high-grade intersections, the company outlined a 43-101 compliant inferred resource of 4.75 million tonnes grading 1.84 percent copper, 4.57 percent zinc, 0.28 g/t gold and 29 g/t silver using a $50-per-tonne cut off ($700 gold, $12 silver, $2.25 copper, $0.85 zinc). Initial metallurgical work indicated coarse-grained sulfide and simple mineralogy. The Palmer VMS project, discovered in 1969, is well situated on a paved Alaskan state highway 60 kilometers from the year-round sea port at Haines, Alaska. The company expects to have an updated resource in early 2015.
Project status: Resource development
Resource: 4.75 million tonnes at 1.84 percent copper, 4.57 percent zinc, 0.15 percent lead, 0.28 g/t gold, 29.1 g/t silver
Catalysts: Updated resource in early 2015
Disclosure: I, Wayne Hewgill, certify that the information in this report is sourced through public documents that are believed to be reliable, but accuracy and completeness as represented in this report cannot be guaranteed. The author has not received payment from any of the companies covered in this report.
At the date of this release the author, Wayne Hewgill, owns shares in the following companies:
This report makes not recommendations to buy sell or hold.
Wayne Hewgill is a geologist with extensive knowledge of the global mining industry gained through 30 years of diversified experience in mineral exploration and new business development in Canada, as well as 10 years living in Africa, New Zealand and Australia. He was previously senior research officer at BHP Billiton, an executive with an exploration company working in Argentina and a mining analyst at three Vancouver-based financial groups where he developed the Drill Tracker database in 2006. He holds a B.Sc. in Geology from the University of British Columbia and is registered as a Professional Geoscientist (P.Geo) with APEGBC.
