VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/12/13 -- Constantine Metal Resources Ltd. (TSX VENTURE: CEM) ("Constantine" or the "Company") is pleased to announce it has commenced a 4000 meter drilling program on its Palmer VMS Project, Alaska ("Palmer" or "Project"). The drill program is part of a $3.0 million budget for 2013 that includes a cash payment of $500,000, funded by Dowa Metals & Mining Co., Ltd. of Japan ("Dowa").
Palmer is a high-grade VMS project located in a very accessible part of coastal southeast Alaska, with road access to the edge of the property and within 60 kilometres of the year-round deep sea port of Haines. The Project is host to a NI 43-101 compliant 4.75 million tonne inferred resource estimate grading 1.84% copper, 4.57% zinc, 0.28 g/t gold and 29 g/t silver(i). The current drill program includes plans for 10 to 15 holes focused on the South Wall and RW Zones, both of which are open to expansion in multiple directions. The 2013 program will also include metallurgical test work, downhole geophysics, and environmental baseline surveys.
Under the terms of an Option and Joint Venture Agreement, Dowa has the option to earn a 49% interest in the Project by making aggregate expenditures of US$22,000,000 over a four year period. Expenditures for each year shall not be less than US$3,000,000, with Dowa funding a minimum of US$3,000,000 in year one as a firm commitment. Included in the aggregate expenditure are cash payments to Constantine totalling US$1,250,000 over four years, of which US$500,000 was received upon signing of the Agreement. Constantine is the Operator for work programs during the earn-in period.
"We are pleased to have Dowa as a partner to advance and develop our flagship Palmer Project and further demonstrate its potential" comments Garfield MacVeigh, President and CEO.
About the Palmer VMS Project
The Palmer Project is a volcanogenic massive sulphide (VMS) type deposit that is located within the same belt of rocks that is host to the Greens Creek and Windy Craggy VMS deposits - both widely recognized to be world class systems. Drilling of 42 holes by Constantine between 2006 and 2010 led to the discovery of thick continuous zones of massive sulphide mineralization at the South Wall and RW Zones of the Glacier Creek prospect, and calculation of an initial mineral resource estimate. The South Wall and RW Zones occupy the same time-stratigraphic intervals on opposite limbs of a large-scale anticline, and all zones intersected in drilling remain open to expansion laterally and to depth.
Although this year's program is focused on expanding the South Wall and RW zones, there are at least 25 separate base metal and/or barite occurrences and prospects on the Palmer property along two mineralized trends over a combined strike length of 15 kilometers. Many of these prospects have associated significant precious metal values and most have not been drill tested. In addition to the Glacier Creek prospect (South Wall and RW Zones) that is focus of current exploration work, other notable prospect areas include MHC, Cap, Nunatak, HG, Gullies, Boundary and Red Creek. Extensive pyrite-sericite schists and siliceous rocks provide a common link to the showings suggesting the presence of a very extensive mineralized system with potential for discovery of multiple deposits.
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