constantine releases positive preliminary economic assessment for palmer zinc-copper-silver-gold project, southeast alaska post - containment berm

by:Demi     2019-09-11
constantine releases positive preliminary economic assessment for palmer zinc-copper-silver-gold project, southeast alaska post  -  containment berm
Vancouver, BC--(Newsfile Corp. -June 3, 2019)-
Konstantin Metal Resources Co. , Ltd. (TSXV: CEM)(OTCQX: CNSNF)(
"Constantine" or "Company ")
It is pleased to report that the joint venture of Konstantin Mining Co. , Ltd. with a 51% interest in Konstantin has completed the preliminary economic assessment ("PEA")
Palmer zinc-Copper-Gold-
Southeast Alaska Silver Project (
"Palmer" or "project ").
PEA is an underground mining operation with low capital expenditure, low operating cost and high profit, with attractive environmental attributes.
All the results presented here are reported in US dollars on the basis of 100% Konstantin Mining Co. , Ltd.
Let's say the basic metal price is $1, pea high beam for peas.
$22 per pound of zinc.
The price of copper per pound is $82, $16.
$3 per ounce of silver, $1296 per ounce of gold, and $354 per metric ton of Spar, including: $ *
Net present value of tax ("NPV")
7% discount rate * $266
Net present value before tax at a discount rate of 7% * 24%
Internal rate of return on taxation ("IRR")and 21% post-
11 years after 24 years of tax IRR * my life-months pre-production (
Based on current mineral resources)*3,500 tonnes-per-
Daily stable state picking rate * Operating cost $54. 2/tonne (
Mining, processing, general and administrative)
* Operating plus maintenance capital costs $65.
Net operating income was $92. 6/tonne ($81.
4/ton including cost of continuous capital)
* Zinc cash costs including maintenance capital of $0.
Net increase of 11 pounds per pound
Product credit * Pre-
Capital costs for production development $0. 278 billion * maintenance and closure costs $0. 14 billion;
My total life ("LOM")
Capital costs of $0. 418 billion
Tax return period 3. 3 years *12.
48 million tons ("Mt")
Mining with 4 dilution head grade. 24% zinc, 0. 81% copper, 49.
6 grams per ton ("g/t")silver, 0.
33g/ton gold and 22. 6% barite ("BaSO4")
* LOM recovered 1,068 of zinc, 196 of copper, 18 ounces of silver, 91 ounces of gold and 2 ounces of metal production.
The important source of minerals in the United States-peas are preliminary in nature, including inferred mineral resources that are too speculative in geology, economic considerations for its application cannot be classified as mineral reserves
The results of PEA will certainly come true.
Mineral resources with non-mineral reserves do not show economic feasibility.
"This pea is by far the most important milestone in Constantine, showing a high
Quality projects with strong economy and advanced, environmental-conscious mine design, "commented garfield macveig, President and CEO.
Quality of development in North America-stage zinc-
Copper projects are undersupplied, especially as Palmer peas has shown, projects with high operating margins and resilience to a low metal price environment.
Pavdel's excellent visit makes the Palmer project different from its peers --
Important area-seasonal and secondary roads, close to existing Pacific Port ore terminal, reasonable and manageable cost of capital
Expand the size of additional mineral resources and establish a joint venture that includes a global leader in the zinc smelting business.
"For other comments on the importance of this pea result, please click here (
Conduct an active investment interview with Darwin Green, vice president of Constantine exploration.
Konstantin and joint venture partner Dova metals miningLtd.
Now, I will evaluate the next steps to move forward with the project while continuing to focus on the testing of resource expansion and additional deposits. The long-
Term visionis defines more than one
Palmer's ten-year mining operation
PEA parameters and results PEA overview prepared by independent consultant JDS Energy and Mining, Inc. ("JDS").
The company has also hired Klohn Crippen Berger Co. , Ltd. ("KCB")
Used for water management and waste management design components as well as site base assessment of processing plants.
In order for readers to fully understand the information in this press release, they should read the PEA technical report (
Available on sedar or www.
Com within 45 days of this press release)
Includes all qualifications, assumptions, and exclusions related to the information listed in the technical report.
This pea model mine both Palmer and AG deposits.
Site topography enables the lateral underground passage to enter the bottom of the sediment
Gravity-assisted mining.
The mine design uses the long rod mining method, the vertical ore passage, and the underground crusher and conveyor to transport the mineralised material to the mill. Three high-
Will produce high quality products (
Zinc, copper, Spar).
The fourth concentrate. pyrite)
Production will also be used for placing underground as backfill.
Non-sulfur tailings
Potential acid production will be treated as a backfill and a filtered "dry pile"
Tailingability. Table 1 -
Summary of economic investment and results assumptions in unit Basic cases (1)
Copper costs $2 a pound.
The price of zinc per pound is $82.
Silver is $16 an ounce.
$1296 gold price per ounce2)
$20 per tonTaxCash Flows (Undiscounted)
$ 7% 738NPV, $ 24% 354IRR % payback period of 3 years. 1Post-TaxCash Flows (Undiscounted)
$ 7%, $ 21%, $, annual return period.
Cost of capital-
The cost of production capital is US $278, the cost of maintaining capital closure is US $140, the total capital is US $418, and the income is US $ (
Processing per ton)
Net return furnace of smelting plant (3)
$150 per ton. 6Royalty (2. 5%)
$ Per ton ($3. 8)
Operating costs and profits (
Processing per ton)Operating costs (
Mining, processing G &
$54 per ton.
Net operating income of $92 per ton.
Maintain Capital and closure at $11 a tonne. 7All-
Maintain operating costs of $65 per ton. 4All-
Maintain net operating income of $81 per ton. 4Cash Cost (net of by-Product credit)Cash cost of zinc (C1)
$ per lb ($0. 05)
Total cash cost of zinc (
Including $0 per pound of sustained capital. 11& closure)1.
The basic case price for copper, zinc, gold and silver is the average of the past three years, and through the analysis of the London Metal Exchange futures, as of April 16, 2019, it is expected that the next two years. []^2.
The basic case price of Spar provided by third-party spar industry experts is based on the direct quotation of many wholesale suppliers in the relevant oil basin market (
Short ton quotation converted into metric ton equivalent). 3.
Net return on smelters
Site fees including handling fees/boutique fees, shipping costs and fines, as well as fees other than royalties. Table 2 -
Production Processing Statistics mine production zinc silver barite12
48 million tons (
Dilute ore 4. 24% 0. 81% 49. 6 g/t 0. 33 g/t 22. 6%head grade)
Metal production M pound k ounce k ton nestotal recycling (LOM)
1,068 196 18,077 2,894 average annual recovery of 100 1,687 270 total payable (LOM)
908 188 13,595 58 2,894 average annual Accounts payable by metal 85 18 1,269 5 270 Income (base case)
M $ m lom nsr value 900 457 200 71 average NSR value 84 42 in 251. 7 18. 6 6. 6 23.
4% of total value for 48% 24% 11% 4% 13% months-
Cost of Capital ("CapEx")Initial ($M)Sustaining ($M)Total ($M)
Mining $55 $108 $163 site development $12 $1 $13 Mineral Processing $75 $3 $77 tailings management $2 $3 $5 site Infrastructure $34 $1 $35 indirects $26 $0 $26 EPCM $32 $0 $32 owner cost $8 $0 $8 off $0 $31 residual value ($6)($6)
Subtotal $245 $140 $385 month 33 accident spending $33 project Total $278 $140 $418 month-
Operating costs ("OPEX")
Underground mining is $29 per ton.
$16 per ton.
8G & $8 per ton.
Total operating expenditure was $54 per ton.
2 Summary of capital and operating costs estimates peas are based on a summary of capital costs with an estimated accuracy /-
25%, as shown in the table below.
Capital and operating costs have evolved from the first principles of using mining plans for construction, mining, processing and management, including speed of development, labor, materials and consumables.
JDS uses supplier quotes on almost all devices.
Mining and processing plants are designed to be 3,500 tons per day.
The initial materials of the Palmer deposit will be recovered at a rate of about 2,700 tons per day through the underground long göller mining method.
In the third year, AG ZoneDeposit will start production and increase the total output to about 3,500 tons per day.
The stopper will fill the combination of the waste stone from the development and the paste backfill produced from the sulfur iron concentrate and mud removalsulphide tails.
Plans are made at mine entrances at multiple elevations to maximize natural ventilation and dehydration for underground operations. Diesel-
Electric mobile devices will be used for all underground mining activities.
Underground crushing and delivery will provide low-cost mineral transport from the Palmer deposit to processing facilities.
The mineralisation of the deposit in the AG area will be transported through the lateral underground passage rampsto to the underground crushing station of the Palmer deposit.
The project consists of a standard 3,500 tons/day crushing, floating separation flow sheet including a main underground crusherautogenous ("SAG")
Then there are two or three selective-
Stage flotation of production of three fine mineral products (
Copper, zinc, Spar)
Shipped to a remote smelter.
The fourth concentrate. pyrite)
It will also be used for underground placement as paste backfilling production.
KCB completed the millsite Foundation assessment and basic design.
The metallurgical hypothesis of the Palmer deposit is based on the locked-cycle flotation and grinability test completed in 2018, which produces high recovery rates at medium grinding sizes to separate copper, zinc and medium copper.
Most of the precious metals are reported to copper concentrate, resulting in a higher overall coping score.
The deposit metallurgy hypothesis in AG area is based on the modification of Palmer deposit parameters by metallurgical focused minerals research.
Harmful elements are expected to be below the penalty level.
Zinc in copper concentrate will be subject to a slight penalty. Table 5 -
Assumed metal recovery rate for metallurgical recovery (%)
Zinc Silver baritepalmer deposit-
Zinc concentrate 93-6. 3 20. 1 20. 1 -Palmer deposit
Copper concentrate 4. 8 89 70. 8 49. 5 -Palmer deposit
Spar concentrate----91.
Deposit in 1AG area-
Zinc Concentrate 88 6. 3 20. 1 20. 1 -
Deposit in silver District
Copper concentrate 4. 8 79 70. 8 49. 5 -
Deposit in silver District
Spar concentrate----91.
1 concentrate transport and refining copper concentrate and zinc concentrate will pass through Covered, double-trailer,40-
Gather the truck to the port of Haines, Alaska, where the trailer will shuttle through the barge to the existing ore
Eventually loaded on the ocean freighter of the Asian smelter. All-
The cost of transporting copper concentrate and zinc concentrate from the mining area to the final destination is $91 per ton of concentrate.
The spar concentrate will be placed in a ton of "super bags" on site and transported to Haines by truck in a combined transport container and then shipped to the shipto-
It is located at the railway container terminal of Prince Rupert of Colombia.
The final destinations for spar concentrate include Western and Central Canada
Oil basin in western United StatesAll-
The transportation cost from the mining area to the final destination is on average $132 per ton of Spar concentrate, including truck transportation, barge transportation, rail transportation, re-Transportation
Container rental.
The spar is high-
Density, stability, chemical inert minerals (
Lithium sulfate of Bas04)
This is an important industrial mineral product, mainly used for mud in oil and natural gas drilling.
It is one of the 23 important minerals identified by the US Geological Survey, defined as critical to the economy and national security, and is vulnerable to supply chain disruptions due to reliance on foreign imports.
Currently, about 80% of the population in the United StatesS.
The Spar market is imported from abroad.
The spar concentrate produced by Palmer project will become the final product
User-ready products that do not require additional processing or off-site refining.
The trucking distance from the proposed mining area to the Alaska Haines port facility is 72 km kilometers, consisting of a gravel road of 22 km kilometers and a pavedhighway of 50 km kilometers.
The barging distance from Haines to the existing ore terminal inSkagway is 25 km kilometers.
Skagway is one of the closest ports in North America to Asia.
The Prince Rupert is located 400 nautical miles from Haines and is the main railway hub in North America. Table 6 -
Transportation and TC/RC parameter concentrate transportation, treatment, refining and commission cost transportation cost of zinc and copper $91 transportation cost of Spar $132 processing cost-
Processing fee $172 zinc $/dmt concentrate $-
Fine for copper $/dmt concentrate $86-
Zinc in copper concentrate> $ 4%/dmt concentrate $2 refining fee $0/lb payable copper.
09 royalties for the net return of smelters % 2.
5% * wmt: Wet metric tons;
Dmt: dry metric tons;
Zinc treatment charge based on 3-
The following table provides an overview of the indication and inference of the total mineral resources of the Palmer deposit and the AG area deposit. An NSR cut-
$80 a tonne is used to incorporate resources into peas.
There are 12 PEA mine plans.
48 Mt of two deposits.
The RW section of Palmer's deposit does not meet the internal standards of the basic case mine plan, representing potential future opportunities. Table 7 -
Total Mineral Resources estimates for Palmer project (2018)alldeposits)Deposit Cut-
Resource ton ZnEq category of zinc, copper, lead, silver, Au spar (1,000s)(%)(%)(%)(g/t)(g/t)(%)(%)
Palmer said 4,677 5. 23 1. 49 -30. 8 0. 30 23. 9 10.
21 deposit $75/tSouth Wall NSR inferred 5,338 5. 20 0. 96 -29. 2 0. 28 22. 0 8.
74 & rw ag Zone 5.
0% inference 4,256 4. 64 0. 12 0. 96 119. 5 0. 53 34. 8 9.
The total number of deposits ZnEq shows 4,677 5. 23 1. 49 -30. 8 0. 30 23. 9 10.
21 infer 9,594 4. 95 0. 59 0. 43 69. 3 0. 39 27. 7 8. 87Notes:1.
For resource estimates for the Palmer project, please see press release dated December 18, 2018. 2.
Net return of smelters ("NSR")equals (US$16.
01 x zinc % + $48.
67 x Cu % + $23.
$45 x Au g/t 0. 32 x Ag g/t).
The NSR formula is based on the estimated metallurgical recovery rate, the assumed metal price, and the assumed off-site costs, including concentrate transportation, smelter treatment and refining costs. 3. ZnEq equals = ($66 x Cu % + $25.
3 x zinc % + $22 x lead % + $0.
51 x Ag g/t $40. 19 x Au g/t)/ 25. 3. 4.
The assumed metal price for the NSR and ZnEq formulas is $3.
Copper (00/lb)Cu), US$1. Zinc 15/lb (Zn), US$ $1.
Lead is 00/pound and gold is $1250/ounce (Au)
$16/ounce silver (Ag). 5.
The metal recovery rate of Palmer deposit is estimated to be 93. Zinc 1%, 88.
Copper 9%, 90. 9% for silver (70.
8% of copper concentrate and.
1% from zinc concentrate)and 69. 6% for gold (49.
Copper concentrate of 5% and 20.
1% from zinc concentrate)
Determined according to the metallurgical lock cycle flotation test completed in 2018.
There is no recovery data available for AG Zone deposits. 6. Barite (BaSO4)
Not included in cutting
ZnEq is not identified or reported. Table 8 -
Total amount of metal for Palmer project (all deposits)
Resource category zinc, copper, lead, silver, Au spar, ZnEq (M lb)(M lb)(M lb)(M oz)(K oz)(K tonnes)(M lbs)
Display 539 1544. 6 45.
1,116 1,053 1,047 inference 124 90 21. 4 120.
6 2,654 1,87 6 details on Mineral Resources estimates for the Palmer project, including quality assurance plans and quality control measures applied and key assumptions, for the estimation of the parameters and methods of mineral resources proposed here, please refer to the title "NI 43-
101 technical report and latest resource estimates, including the "AG area of Palmer exploration project", which came into effect on December 18, 2018 "(
"Palmertechnology Report ").
Palmer's technical report can be found on the company sislauer profile on SEDAR at www. sedar. com.
The tailings and waste stone management and water management facilities and assumptions were developed by KCB.
These designs include the surface of the combined tailingsmanagement and waste storage equipment,
Contact the regulations on water diversion and contact water collection and disposal.
On-site water management also includes collection and treatment (if required)
And handling groundwater reported to the surface, runoff from nuclear power plants, and process water from the mill.
It is estimated that 78% of the tailings will be used for backfilling, which includes a total sulfur iron concentrate and more than half of the sulfide tailings.
The proportion of residual sulfide tailings that need surface storage is relatively small (15%)
All materials for mining and grinding.
The tail material that is dewatered is classified as non-
Potential acid production. Non-
Potential acid production ("NPAG")
Waste stones developed underground will be stored on the surface.
Potential acid production ("PAG")
The waste rock generated by underground works will be treated as backfill.
During the operation of the first few years, some PAG waste stones will be temporarily stored in an isolated lining facility until there is enough space underground for disposal.
The conceptual design of tailings and waste Stone Management Alternatives was developed for 12 candidate sites.
In the same lining facility, filter tailings with NPAG waste stones are used as external containment as the preferred waste management method.
The life of the mine full tailings production that needs to be stored on the surface is about 1.
83 million tons, 1 ton.
10 million tons of NPAG scrap stone.
The project is located in the Porcupine mining area in the self-governing city of Haines, Alaska, and benefits from well-
Infrastructure that has been developed, including existing road traffic for one yearround deep-
The harbor and the nearby miningcommunity.
Haines town and surrounding rural communities (
Population 2,400
Provide services, skilled labor, accommodation and equipment for exploration activities and local gold sands business in Constantine.
Residents also work in the nearby Kensington and greencreek coal mines.
In the case of peas, it is expected that the labor force of most miners will live in local communities.
My plan will be this year.
Stable employment in the region is a priority of community programs.
The total number of direct employees is expected to be 220 full-time employees, with approximately 40 full-time contractors working for centralized trucking, barge shipping and crew shipping.
The existing power lines extend within several kilometers of the project;
However, the local grid does not currently provide enough power to meet the needs of the project.
Peas include 12 installation.
5 mw liquefied natural gas ("LNG")
Power plants using five CAT 2500 KW generators.
The cost of electricity is estimated at $0.
15/kWh, excluding the operating and maintenance labor costs of the generator set calculated in the project operating expenses.
The close combination of environmental and natural geological features and the choice of elaborate design lead to a project that will be a North American leader in mine design with small impact and strong environmental awareness.
Environmental protection and natural sustainable closure are an integral part of mine design.
Main features include: * small footprint, high
Grade Underground Mine * proportion of low waste to ore * waste stone or tailings that are submerged in acid without permanent surface storage * removal of selectively recovered sulfur iron
Returned to the underground mine the product of sulfide tailings * most of the tailings returned to the ground for backfilling, including all sulfur-iron concentrate stored on the surface * the tailings represent only 14% (1. 8 Mt)
Of all grinding materials (12. 48 Mt)
Composed of minerals beneficial to the environment (
Quartz, stone, cloud mother Stone, carbonate and lime stone).
* Cement inlet plugs will be installed when closed to seal the underground works, prevention of mine water drainage to the surface * utilization of existing resource channel roads and overlapping regional history and current logging and sand mining * community consensus agreement and local and national land use supporting mineral development in the project area management plan the company prioritizes community engagement, and take great pride in how pea mine design can solve environmental problems Project raised issue stakeholders.
The project design starts with sustainable development and provides the basis for responsible environmental and social closure.
The company will continue to have meaningful conversations with stakeholders as the project progresses.
Sensitivity analysis
The tax NPV7 % for changes to important value drivers is shown below.
The analysis shows that the project is resilient to lower metal prices and higher costs.
The project is most sensitive to the price of zinc and has a strong leverage on higher prices. Table 9 -
Sensitivity analysis NPV7 % $ million (Pre-Tax)-20% -
10% + 20% mm zinc price 217 cm 286 cm 354 cm 423 cm 492 cm price 288 cm 321 cm 354 cm 388 cm 421 cm 442 398 354 of capital expenditure cost 311 267 425 390 354 319 284 project OpportunitiesThe pea points out the challenges of several projects for this for the peas, this is a satisfactory level and an optimization opportunity for the next level of research to further improve project economics.
These include: * deep opening of the Palmer deposit and the AG deposit, potential is considered to be the best option to discover additional zones in the greater Palmer area * it is recommended to conduct a preliminary metallurgical test assessment of deposits in the AG area to enhance the potential for metal recovery and grade, especially for future trade in silver
For off-
Site infrastructure such as the ore terminal in Haines or the expanded hydropower capacity within the local power grid.
Qualified Persons state in this press release scientific and technical information relating to peas (
Except as described below)
Review and approve the Richard Goodwin page. Eng.
JDS's project manager, who is an independent "qualified person" under National Instrument 43"101 -
Public Standards for Mineral Projects ("NI-43-101")
The scientific and technical information in this press release relating to the design of pea water and waste management components has been reviewed and approved by Jim CaseyE.
Project engineer Klohn crippenberg Co. , Ltd.
Who is the independent "qualified person" under NI 43"101.
All other scientific and technical information in this press release has been approved by Darwin GreenGeo.
Vice President of Exploration, Konstantin Metal Resources Co. , Ltd. Mr.
As far as NI 43 is concerned, Greenis is a qualified person101.
Konstantin is a mineral exploration company, led by an experienced professional and technical team, focusing on the first-class mining environment in North America.
The company's flagship asset is the Palmer project.
Grade volcanic massive sulfur-sulphate (VMS)
Joint venture between Constantine (51%)
And Dowa metal mining, Ltd. (49%)
Take Constantine as the operator
Constantine also controls a portfolio.
Quality, 100% owns gold project and intends to proceed with structured transaction
Invest all these gold assets.
Subsidiary of Gaojin mining company(
See Constantine News released on May 21, 2019).
These include very high
Johnson TractAu-Ag-Zn-Cu-
Lead deposit on the southern coast
Projects in Central, Alaska and Timmins gold camp, Ontario, including large Wells
The prime location in the prime area and the gold area in monrockrose, known for its extremely high location
Gold grade and most-
Recently acquired properties around gold.
Management is committed to providing shareholder value through discovery, meaningful community engagement, environmental management, and responsible mineral exploration and development activities that support local work and businesses.
Representing Konstantin Metal Resources Co. , Ltd.
For more information, please visit the Constantine Metal Resources website www.
Com, or contact: Naomi nemesse, Vice President of Investor Relations: info @ constantinemetals.
ComPhone: 1 604 629 2348, Ext 1413 OrGarfield MacVeigh, President Email: info @ constantinemetals.
ComPhone: 1 604 629 2348 note: The information contained here contains "forward-
Implications of the US Private Securities Litigation Reform Act and the forward-looking statement
"Looking for information" in the sense of applying securities legislation. "Forward-
"Finding information" includes, but is not limited to, statements about activities, events or developments that the Company expects or expects to occur in the future, including, but not limited to, completing technical reports supporting PEA, statement on mineral resource estimates, potential mineralisation and geological advantages of the Palmer project.
Usually, but not always forward
By using words such as "plan", "expected", "budget", "scheduled", "estimated", you can identify the lookup information and reports, "Prediction", "intention", "expectation" or "belief" or the negative connotation or change of these words and phrases, or the presentation of certain acts, the event or result is "possible", "Yes", "possible" or "accepted", "occurring" or "implemented" or its negative symbol. Forward-
The search for information and statements is based on expectations, beliefs, assumptions, estimates and forecasts of the company's business and the industries and markets it operates. Forward-
The search for information and statements is based on a large number of assumptions, including the results of planned exploration activities such as expectations, commodity prices, the cost of planned exploration activities, etc, if required, and on reasonable conditions, third party contractors, equipment, supplies required to carry out the company's planned operational activities, government and other approvals will be provided in a reasonable terms and time, and general business and economic conditions will not be changed in an adverse manner.
Although the assumptions made by the company in providing forward-looking information or making forward-looking statements were considered reasonable by management at the time, such assumptions would not prove accurate. Forward-
Finding information and statements also involves known and unknown risks and uncertainties, as well as other factors that may lead to significant differences in actual results, performance and achievements of Constantine from any outcome prediction, constantine's performance and success were suggested by such a forward.
View information or statements including amongothers, negative operating cash flow and reliance on third-party financing, uncertainty of additional financing, inaccuracy of mineral resource estimates, indigenous ownership and advisory issues, exploration risks, reliance on key management and other personnel, defects in ownership of the company's property, risk of non-insurance, failure to manage conflicts of interest, failure to obtain or maintain the required licenses and licenses, changes in laws, regulations and policies, competition in resources and financing, and other factors that the company's recent MD & A Discusses or mentions under "risk factors.
Although the company tried to identify important factors that could lead to significant differences between actual results and those contained in the future outlook
Forward-looking or implied information
In terms of information, it may be that other factors lead to results that are not as expected, estimated, or expected.
No guarantee of progress-
It turns out that finding information and statements is accurate, as the actual results and future events may differ significantly from the expected, estimated or intended results.
Therefore, readers should not rely too much on forwarding
View reports or information.
The company has no obligation to renew or re-issue-
Find information due to new information or events, unless required by applicable securities law.
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