Constantine Metal Resources Ltd. (TSX VENTURE:CEM) ("Constantine" or the "Company") is pleased to announce that Dowa Metals & Mining Alaska Ltd. ("Dowa") has completed its US$22 million earn-in to the Palmer VMS Project, Alaska ("Palmer" or "Project") and has exercised its option to participate as a partner in the Project. A Joint Venture has been formed for the purpose of further exploring and developing Palmer, with Constantine owning a 51% participating interest and Dowa owning a 49% participating interest. Approximately US$2 million in unspent funds will form the starting cash balance of the Joint Venture.
Garfield MacVeigh, President and CEO states, "We are delighted to form the Joint Venture partnership and start the next phase in Palmer's advancement. Dowa has over a century of experience in mining and smelting VMS ore deposits and shares Constantine's conviction in the Project's potential and commitment to responsible exploration. With a projected shortfall in global zinc supply and a dearth of quality advanced stage zinc projects we anticipate an exciting 2017 and bright future for the Project and our shareholders."
Update on $4,500,000 Horseshoe Claims Sale
The previously announced sale of certain Ontario claims to Lake Shore Gold Corp., a wholly owned division of Tahoe Resources Inc. (see news release dated November 7, 2016) is nearing completion. Government documentation necessary to close the transaction, including completion of claim transfers, is expected to be finalized in January. The $4.5 million cash payment due in full upon closing will provide Constantine with a strong cash balance to fund its 51% share in the exploration development of the Palmer Project joint venture for 2017 and beyond.
About the Palmer Project
Palmer is a resource expansion stage, high-grade volcanogenic massive sulphide (VMS) project, with an Inferred Mineral Resource of 8.1 million tonnes grading 1.41% copper, 5.25% zinc, 0.32 g/t gold and 31.7 g/t silver*. The Project is being advanced as a Joint Venture partnership between Constantine (51%) and Dowa (49%), with Constantine as operator. Dowa Metals & Mining Alaska Ltd.is a subsidiary of Dowa Metals and Mining Co., Ltd., an integrated metals company that operates the largest zinc smelter in Japan. The project is located in a very accessible part of coastal Southeast Alaska, 60 kilometers by road from the year-round deep sea port of Haines. Mineralization at Palmer occurs within the same belt of rocks that is host to the Greens Creek mine, one of the world's richest VMS deposits. The district-scale, 108,000 acre, land package at Palmer hosts at least 25 separate base metal and/or barite occurrences and prospects, indicating the potential for discovery of multiple deposits.