The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Constantine Metal Resources Ltd. May 9 outlined plans for a US$3.7 million work program at the Palmer volcanogenic massive sulfide project in Southeast Alaska.
This work will include a drill program to test several exploration targets located within a 3,000-meter radius of the resource identified in the RW and South Wall zones of the Glacier Creek deposit.
In 2015, Constantine published an inferred resource of 8.125 million metric tons averaging 1.41 percent (252.6 million pounds) copper, 5.25 percent (940.4 million lbs.) zinc, 0.32 grams per metric ton (83,600 ounces) gold and 31.7 g/t (8.3 million oz) silver for the RW and South Wall zones.
An initial 1,700-meter drill program scheduled to begin in early July will target new deposits in proximity to the existing resource and infrastructure.
"We remain focused on steadily advancing the high-grade RW and South Wall resources that are open to expansion in multiple directions.
We are also very pleased to begin testing some of the other high-quality prospects at Palmer, several of which are precious metals rich," Constantine President and CEO Garfield MacVeigh explained.
In addition to drilling, the company intends to build a 2.5-mile road to the resource area at Palmer, pending approvals of permits for the construction.
At the end of April, the U.S. Bureau of Land Management opened a 30-day public review and comment period on an environmental analysis for Constantine's proposed plan to build the road, after which the federal agency will make an approval determination.
Environmental, geotechnical and engineering studies and evaluation of a potential exploration drift for the purpose of underground drilling of the deeper portion of the existing resource also will continue this year.
The 2016 program at Palmer is being funded by Dowa Metals & Mining Co., which can earn 49 percent interest in the VMS project by investing US$22 million over four years.
To the end of 2015, Dowa has spent roughly US$16.2 million on the project and has indicated its intent to earn a 49 percent interest by the end 2016.
Any unspent funds at year's end will be deposited in an account to cover initial joint venture cash calls.
Following formation of the JV and use of any carry-over funds, Constantine and Dowa will fund the project in proportion to their ownership interest.
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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