Palmer underground exploration approved

Constantine Metal Resources Ltd. July 31 reported that it has received state approvals for underground exploration at Palmer, the next major step in the advancement of this zinc-copper-gold-silver-barite project in Southeast Alaska.

In June, Constantine published a preliminary economic assessment that outlines plans for a 3,500-metric-ton-per-day operation at Palmer that would produce 1.07 billion pounds of zinc, 196 million lb of copper, 18 million ounces of silver, 91,000 oz of gold and 2.89 million metric tons of barite over an initial 11-year mine life.

This operation is based on 4.68 million metric tons of indicated resource averaging 5.23 percent zinc, 1.49 percent copper, 30.8 grams per metric ton silver, 0.3 percent gold and 23.9 percent barite; and 9.59 million metric tons of inferred resource averaging 4.95 percent zinc, 0.59 percent copper, 69.3 g/t silver, 0.39 g/t gold and 27.7 percent barite.

Details of the economically robust and environmentally conscientious PEA for Palmer can be read at PEA offers first look at Palmer Mine plan in the June 7 edition of North of 60 Mining News.

With this scoping level study returning positive results, one of the next steps is to develop an exploration ramp that will provide a platform for drilling the deposits with the spacing needed to advance pre-feasibility and feasibility studies, which will provide more detailed engineering and economic parameters for a Palmer Mine.

Toward this next step, the Palmer Joint Venture – Constantine Metal (51 percent) and Dowa Metals & Mining Co. Ltd. (49 percent) – has received all the necessary approvals to proceed with an underground exploration plan for this polymetallic volcanogenic massive sulfide (VMS) project near Haines, Alaska.

These approvals allow the Palmer JV to:

• excavate a roughly 2,000-meter underground ramp to provide a drill platform for exploration and access to gather additional geotechnical and hydrological data;

• complete 30,000 meters of underground exploration drilling;

• surface storage of waste rock from underground excavation;

• build sediment settling ponds and disposal system for the discharge of underground seepage waters; and

• the construction of other facilities necessary for the underground excavation and drill programs.

The approvals for the plan of operations submitted to state agencies late last year include a waste management permit issued by the Alaska Department of Environmental Conservation; approval for the reclamation plan issued by Alaska Department of Natural Resources; and approval for the overall plan of operations by the Alaska Mental Health Trust, on whose land package the Palmer project is located.

"We would sincerely like to thank all those involved in the application, review, public comment and granting of this set of permits that will allow us to advance the Palmer zinc-copper project to the next phase," said Constantine Metal Resources President and CEO Garfield MacVeigh. "From application to approval, the seven-month process is the culmination of input from many experts and interested stakeholders to formulate a responsible underground exploration plan."

The Palmer JV plans to begin the approved underground exploration work in June of next year. Final decision to proceed will require unanimous approval of the joint venture members and securing necessary funding.

–SHANE LASLEY