Constantine Metal Resources (CEM.V) has been planning a 7,000 meter drill program at its Palmer VMS project in Alaska, USA. The majority of the US$7M budget will be spent on exploration drilling in an attempt to discover new mineralized zones, whilst the balance will be spent on expanding and upgrading the currently known resources.
Constantine won’t limit its activities to just drilling, as the company has also taken an airborne survey and mapping and prospecting work into consideration for this summer’s exploration program. Of the US$7M program, $2M will be funded by the existing cash position in the JV-co, which means Constantine will face a cash call of US$2.55M to pay for its 51% stake.
And it definitely makes sense for Constantine to remain a partner in the Palmer project, as the project currently hosts 8.1 million tonnes at an average grade of 5.25% zinc, 1.41% copper, 0.32 g/t gold and 31.7 g/t silver for a zinc-equivalent grade of in excess of 12%.