Advancing Palmer: A High -Grade Polymetallic Project, Southeast - - PowerPoint PPT Presentation

advancing palmer a high grade polymetallic project
SMART_READER_LITE
LIVE PREVIEW

Advancing Palmer: A High -Grade Polymetallic Project, Southeast - - PowerPoint PPT Presentation

TSX.V : CEM OTCQB: CNSNF Advancing Palmer: A High -Grade Polymetallic Project, Southeast Alaska TSX.V : CEM Forward Looking Statements Forward looking statements: This presentation contains certain forward -looking information within


slide-1
SLIDE 1

TSX.V : CEM

“Advancing Palmer: A High-Grade Polymetallic Project, Southeast Alaska”

TSX.V : CEM OTCQB: CNSNF

slide-2
SLIDE 2

Forward Looking Statements

Forward looking statements: This presentation contains certain “forward-looking information within the meaning of Canadian securities legislation and "forward- looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively "forward looking statements") concerning Constantine’s plans for its properties, operations and other matters. Forward-looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, "forecast", “expect”, "potential", "project", "target", "schedule", budget" and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions and includes the negatives thereof. All statements other than statements of historical fact, including, without limitation, statements regarding potential mineralization, the estimation

  • f mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of

exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital to Constantine and its joint venture partner, government regulation of exploration operations, environmental risks, reclamation, title, statements with respect to the future price of gold and other metals, and future plans and objectives of Constantine are forward-looking statements that involve various risks and

  • uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those

anticipated in such statements. Forward-looking statements are based on a number of material factors and assumptions. Important factors that could cause actual results to differ materially from Constantine’s expectations include actual exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms to Constantine and its joint venture partner, general economic, market or business conditions, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and

  • ther exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators. Although the Company has

attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward-looking statements, there may be

  • ther factors that cause such actions, events or results to differ materially from those anticipated. There can be no assurance that forward-looking statements will

prove to be accurate and accordingly readers are cautioned not to place undue reliance on forward-looking statements. Darwin Green P.Geo, Vice President Exploration for Constantine Metal Resources Ltd. and a qualified person as defined by Canadian National Instrument 43- 101, has reviewed and approved the technical information contained in this presentation. James N. Gray of Advantage Geoservices Ltd. is the Qualified Person as defined by NI 43-101 for the resource estimate.

slide-3
SLIDE 3

Corporate Snapshot

Electrum 21%

  • J. Tognetti

14% Management 9% Other 53% Altius Minerals 3%

ISSUED & OUTSTANDING: 44.0 million

Warrants/Options: 17.6 million Fully Diluted: 61.7 million

MARKET CAPITALIZATION: C$27M CASH: C$7.9M*

*As of July 31, 2018 (most recent financial statement)

SHARE STRUCTURE

Major Shareholders

Strong Management & Technical team Tight Share Structure Cash in the Bank Project Endorsement: JV with Japan’s largest Zinc company (49%) Roster of High Quality Shareholders News Flow: New Resource update, PEA, 10,000m of drilling Fundamental Value + Exploration Upside + Spin-out of Gold Assets

✓ ✓ ✓ ✓ ✓ ✓ ✓

slide-4
SLIDE 4

Quality Assets – Dual Opportunity

Base Metal Deposit on Path to Feasibility High Grade Gold Spin-out

slide-5
SLIDE 5

TSX.V : CEM

The Palmer Project

A High Quality Asset Reaching Critical Mass

ADVANCING A HIGH-GRADE COPPER-ZINC DEPOSIT

New resource update & maiden PEA underway

DEFINING A MULTI-DEPOSIT DISTRICT

Drill expansion of a 2nd deposit; maiden resource 2018

slide-6
SLIDE 6

TSX.V : CEM

2018 Game Plan

Demonstrate Value & Increase Market Recognition

Metallurgical Study New Resource PEA

End of Year

Drilling (10km) Opportunity for PEA to provide re-rate on share price

slide-7
SLIDE 7

New Palmer Resource Estimate

23% Increase in Size & 47% Upgraded to Indicated Category

  • Added 1.9M tonnes for a total deposit size of 10M tonnes
  • Does NOT include Maiden Resource for AG Zone; due later this year

See news release dated September ##, 2018. Net Smelter Return (“NSR”) equals (US$16.01 x Zn% + US$48.67 x Cu% + US$23.45 x Au g/t + US$0.32 x Ag g/t). NSR formula is based on estimated metallurgical recoveries, assumed metal prices, and assumed offsite costs that include transportation of concentrate, smelter treatment charges, and refining charges .Assumed metal prices are US$1.15/lb for zinc (Zn), US$3.00/lb for copper (Cu), US$1250/oz for gold (Au), US$16/oz for silver (Ag). Estimated metal recoveries are 93.1% for zinc, 89.6% for copper, 90.9% for silver (70.8% to the Cu concentrate and 20.1% to the Zn concentrate) and 69.6% for gold (49.5% to the Cu concentrate and 20.1% to the Zn concentrate) as determined by 2018 metallurgical locked cycle flotation tests.. Zinc equivalent (ZnEq%) and Copper equivalent (CuEq%) calculated based on NSR formula plus assumed barite net-value of US$0.566 x BaSO4% (e.g. CuEq = (total NSR value + BaSO4 net-value)/US$48.67

slide-8
SLIDE 8

Palmer Deposit Long Section

slide-9
SLIDE 9

Margin Makes Mines

Differentiating the Palmer Project

Unit Value - High

NSR = $173/t *

Mine Cost - Low

Estimate $65/t - $80/t** minus

=

High Margin

* Based on 2018 Palmer Indicated Resource grade and NSR formula with assumed metal prices of $3/lb Cu, $1.15/lb Zn,

$1250/oz Au, $16/oz Ag (Does NOT include estimated net-value of BaSO4 which equals $0.566 per percent BaSO4) ** Conceptual Mine Operating Costs inclusive of mill processing and G&A, based on costs reported for operating mines, and PEA to FS projects for comparable underground mining projects and assumed mining methods at Palmer – a formal mine cost analysis to 43-101 reporting standards is NOT currently available for Palmer.

Conceptual Economics ($US)

  • Palmer has higher value per tonne than

most of its peers

  • Palmer has potential for low Capex and

low UG mining & Operating costs

slide-10
SLIDE 10

Terrain is an ADVANTAGE for Underground Mine

Mine from the bottom up! Access with lateral development

slide-11
SLIDE 11

Deep Tidewater 60km By Road

Existing Port Infrastructure

Metallurgy: Excellent recoveries & clean concentrates at mod to coarse grind size Mining Method: 10 to >20m wide, subvertical ore zones amenable to longhole mining Lateral Access: No shaft = lower capex; limited development to start mining Ore Pass: Mine from bottom up, gravity assist (reduced haulage cost) Mining Rate: 2500 to 3500 tpd Transportation & Access: Short 60km haul on existing road to deepwater port No Remote Project Costs: Town nearby with excess capacity & mining workforce State Support: AIDEA funds infrastructure for mines (e.g. ports, power, roads)

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

Pacific Ocean (Lutak Inlet) FUEL STORAGE STATE HIGHWAY PORT FACILITY OIL PIPELINE MARINE TERMINAL (historic) LUMBER DOCK

slide-12
SLIDE 12

Low Cost Development and Mining Potential

All signs point to a low cost operation

Metallurgy: Excellent recoveries & clean concentrates at mod to coarse grind size Mining Method: 10 to >20m wide, subvertical ore zones amenable to longhole mining Lateral Access: No shaft = lower capex; limited development to start mining Ore Pass: Mine from bottom up, gravity assist (reduced haulage cost) Mining Rate: 2500 to 3500 tpd Transportation & Access: Short 60km haul on existing road to deepwater port No Remote Project Costs: Town nearby with excess capacity & mining workforce State Support: AIDEA funds infrastructure for mines (e.g. ports, power, roads)

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

slide-13
SLIDE 13

Underground Exploration Planning

2018 Surface Construction work

Proposed Exploration Portal Site AG ZONE PALMER DEPOSIT SOUTH WALL ZONE

slide-14
SLIDE 14

KUDO OFFSET

  • Fault offset of deep South Wall
  • Last hole before fault intersected

89m @ 9.5% ZnEq

Drill to Expand Resource & Discover New Deposits

Potential for Multiple 5 to +20 Mt Deposits

HG PROSPECT

  • Strong EM Anomaly
  • 600m long VMS alteration zone
  • high-grade at surface
  • NEVER BEFORE DRILLED

RESOURCE EXPANSION

  • West expansion of South Wall
  • Step-out from excellent 2017 results

45.4m @ 2.5% Cu, 7.4% Zn 18.7m @ 2.3% Cu, 6.9% Zn

2 km

NEW AG ZONE DISCOVERY

  • Discovered on first hole (2017)
  • Wide open to expansion

24.6m @ 260 g/t (8.3 opt) Silver 17.8m @ 11.3% Zinc

BOUNDARY PROSPECT

  • Strong EM Anomaly
  • Thickest altered rhyolite on property
  • Surface samples to 13.6% Cu & 19.7% Zn
  • NEVER BEFORE DRILLED

MHC PROSPECT

  • Targeting source of hundreds of

large Massive Sulphide Boulders

  • Average grade >20% Zinc
slide-15
SLIDE 15

New 2018 AG Drill Results:

  • 43.3 meters of MS includes 28.8m @ 141 g/t

Ag, 0.9 g/t Au, 9.0% Zn, 3.5% Pb

  • 150m step-out from 2017 drill holes
  • Maiden AG Zone Resource scheduled for Q4;

to include major expansion from 2018 drilling

AG Zone

Rapidly Building Tonnes

slide-16
SLIDE 16

AG Zone Long Section

  • 2018 Drilling has

doubled strike length to over 450m

  • Thick, high grade

intersections

  • Open in all

directions

slide-17
SLIDE 17

Johnson Tract Southcentral Alaska

New Acquisition announced June 2018

Munro Croesus Gold Timmins area, Ontario

A New Gold Spin-out Opportunity

Two Exceptional High-Grade Assets

Croesus Mine Sample (>10,000 opt)

slide-18
SLIDE 18

Johnson Tract Very High-Grade Au, Zn, Cu, Pb, Ag Deposit

Anchorage Johnson Tract

Location Inset Map

slide-19
SLIDE 19

Johnson Tract Deposit Drill Intersections

DRILLHOLE LENGTH GOLD ZINC COPPER LEAD SILVER (meters) (g/t) (%) (%) (%) (g/t) JR82-04 102.6 10.9 8.0 0.8 2.1 8.5 includes 14.0 59.1 9.8 0.9 3.1 18.2 JR82-07 36.0 13.4 2.0 0.4 0.2 3.6 JR83-12 45.8 9.1 7.5 0.9 0.2 6.7 includes 9.9 40.7 24.8 1.8 0.0 11.5 JR84-28 18.6 6.3 19.6 0.5 0.2 10.1 JR88-34 71.4 20.9 5.2 1.2 1.5 9.8 includes 8.9 88.5 9.2 5.6 0.1 22.1 JR93-65 99.7 10.1 6.3 0.9 1.3 6.7 includes 13.0 28.1 3.7 1.5 1.4 10.8 JR93-68 112.2 10.3 5.0 0.7 1.5 6.4 includes 8.0 39.2 9.6 1.1 2.5 12.7 JR93-69 92.6 9.2 3.0 0.7 1.4 6.6 includes 9.0 51.6 6.9 3.0 0.9 22.2

Historic drilling (1982 to 1993)

slide-20
SLIDE 20

TSX.V : CEM

Investment Highlights

  • A rare high-quality copper & zinc asset reaching critical mass
  • Top-tier partners at both the Asset level and Equity level
  • An exceptional value investment with tremendous exploration upside
  • Steady material news flow, and potential for major value realization via PEA
  • Spin-out of very high-grade gold assets to unlock value for shareholders

Positive Near & Long term fundamentals

slide-21
SLIDE 21

TSX.V : CEM

APPENDIX

slide-22
SLIDE 22

Palmer Fold Repeated ‘Ore’ Horizon

Potential for multiple deposits along several mile long target horizon

Mountain Scale Cross-Section HG-CAP-AG Zone

slide-23
SLIDE 23

Palmer Metallurgy (2013 & 2018 Test Programs)

Results of Locked Cycle Test Work

  • Copper recovery of 88.9% to 89.6% – concentrate grade of 24.5% to 25.5%
  • Zinc recovery of 84.9% to 93.1% – concentrate grade of 59.1% to 61.3%
  • Total Silver recovery of 89.7% to 90.6%
  • Total Gold recovery of 69.6% to 75.0%
  • Majority of precious metals report to copper concentrate
  • Concentrates produced are of very good quality, with low impurities and

no potential penalty or problematic elements

  • Bond Work Index of 6.3 kWh/tonne; soft ore with low grinding costs
  • Barite recovery of 91.1% to a high-grade 4.44 SG barite product meeting

API specifications for drilling-mud

The deposit responded very well to conventional metallurgy. Tests yielded marketable copper and zinc concentrates, with high metal recoveries produced at moderate grind sizes.

slide-24
SLIDE 24

Palmer Project Land Status and Permitting

Key Ingredients for Successful Development

  • Area specifically selected for mining by the State of Alaska & Mental Health Trust1
  • Land Use Management Plans at all levels support Mining (Local, State & Federal)
  • Community consensus agreement enshrined in State legislation2 that establishes a balance of

areas protected for resource economy and areas protected for conservation value

  • Well established permitting process in Alaska and resource development culture
  • Management has long history of meaningful community engagement, environmental

stewardship, and responsible exploration that has built broad local support

  • Favorable geology for responsible design: (1) underground (2) small footprint (3) abundance of

carbonate-rich, environmentally benign host rocks. A unique low-sulphide VMS with more barite than pyrite (actually a sulphide-sulphate deposit)

1. The Alaska Mental Health Trust Authority is a state corporation that administers a perpetual trust created to ensure that Alaska has a comprehensive mental health program. The Haines Block leased by Constantine represents about 40% of the mineral lands owned by the Trust to generate revenues for mental health programs 2. AS 41.15.305 created for the establishment of the Haines State Forest Resource Management Area and the Alaska Chilkat Bald Eagle Preserve; the intent for balance between conservation and resource development clearly stated in the legislation

slide-25
SLIDE 25

Johnson Tract

  • A gold and base metal-rich quartz vein stockwork in

Jurassic-aged volcaniclastic rocks

  • Past work includes eighty-eight (88) drill holes for a total
  • f 26,840 meters
  • Major engineering and mining related studies by Westmin

Resources evaluating direct shipping ore to Premier mill in Stewart, BC

  • Excellent exploration upside, including multiple

underexplored satellite prospects

  • “Off-the-market” and no work for over 20 years

An Exceptional Opportunity

slide-26
SLIDE 26

Johnson Tract Deal Terms

  • Agreement with Cook Inlet Regional Corporation (CIRI)

an Alaskan Native Corporation

  • Annual lease payments of $75,000 for years one through

five, escalating to $150,000 from year six onwards

  • US$10 million in expenditures over the first 10 years with at

least US$7.5 million within the first 6 years

  • Upon completion of a feasibility study and a decision to

construct a mine, CIRI has the one time right to back-in to the project and participate to a maximum 25% interest

  • NSR royalties payable to CIRI of 2% to 3% on base metals

and a gold price adjusted NSR royalty of 2.5% to 4% Sophie Minich, CIRI President and CEO states, “CIRI is excited to work with Constantine Metal Resources on the Johnson Tract project. CIRI prides itself on projects that deliver economic benefits to our shareholders while respecting and preserving the land. With Constantine’s excellent reputation for responsible mineral exploration and development activities, we know we have chosen the ideal partner. ”

slide-27
SLIDE 27

For additional information, please contact: Naomi Nemeth, VP Investor Relations Naomi@constantinemetals.com W: +1 604 629 2348 ext. 1413 M: +1 416 567 5151 Or visit our website at www.constantinemetals.com Follow us on Twitter @CEM_metals

TSX.V : CEM OTCQB: CNSNF